Session Descriptions

Leveraging Your Appraisal to Credit Risk

Wednesday, August 28, 2024

9:15 a.m. to 10:30 a.m.

This session will focus on what an appraiser wants you to know to effectively review an appraisal. The session will address how to extract and interpret data pertinent to your credit approval decision, LGD assignment and loan structuring plan. From there, we will explore how one association’s credit appraisal and credit teams partner to assign an ‘appraisal durability rating’ to real estate collateral. This rating drives discounts between the appraised value (AV) and the net realize value (NRV) to assess LTV more accurately.

Learner Outcomes:

1. Understand the most common appraisal/evaluation methodologies and their intended uses.
2. Efficiently find and interpret the most relevant information in an appraisal.
3. Identify potential red flags in an appraisal.
4. Develop a framework for testing the durability of appraised values and incorporating that rating into better LGD and loan structuring practices.