Lance Coyle Eng
description
Transcript of Lance Coyle Eng
ANEVAR International Conference
The Role of Appraisal Reviewers in the U.S.
M. Lance Coyle, MAI, SRAAppraisal Institute President
Sept. 9, 2015
Dodd-Frank Legislation
Massive financial system reform legislation passed in
2010 / response to financial crisis of 2008
Institutionalized Appraisal Management Companies
Established requirements for review of all appraisals
prepared for regulated lending activities
Value Added
• Value of the appraisal review function
• Subject of the review
• Work file
Value Added
• Purpose of reviews
• U.S. lending institutions
• Mortgage insurers
Value Added
• Common issues
• Successful reviewers
• Quality control
• Eligible to prepare reviews
Credibility Added
• Reinforce confidence
• Appraisal process vs. the appraisal review process
• Competency issues• Geographic
• Sector
• Technical
• Effective date issues• Time of report
• Time of review
The Reviewer’s Toolbox
• IAG, FDIL, ECOA, Reg B, FNMA, ALLL, FASB
• Yellow Book and Just Compensation
• IRS
• Other standards
• Green construction
• LEEDS
• Historic preservation & easements
• TIF & Abatement
• Litigation precedents
Multi-faceted Thinker
• The review appraiser excels:oMental math
oCustom analysis
oReasonableness tests
o Technology
• Working parts of real estate sectors
• Urban economist
Inner Conflicts
• Balance vs. bias
• New and unfamiliar methods
• Collaboration vs. intimidation
• The challenge of 2n
ASC and Reviewers
• Who are they?
• ASC Statement 5
• Reciprocity and limitations
• State enforcement• Consistency vs. arbitrariness
• Local appraiser culture
• Impact on banks• Challenges
• Work-arounds
Technical Talk – Transaction Control
• The moment of maximum control• Before you place the order• Establishing appraisal parameters
• The pre-flight• Clear understanding• Setting expectations• Structural problems
Technical Talk – Reviews
• Tests of ReasonablenessoComparable salesoBracketingoThe best metrics
• ErrorsoMagnitudeoCounterpoint
Appraisal Institute Review Designations
ANEVAR International Conference
The Role of Appraisal Reviewers in the U.S.
M. Lance Coyle, MAI, SRAAppraisal Institute President
Sept. 9, 2015