Commercial appraisals are not only lengthier than residential reports, but are also exponentially more complex. As a result, bank employees that review commercial appraisal reports face a greater challenge than their residential counterparts. Per the regulators, the complexity of commercial appraisal methodology may increase a bank’s credit risk. The income approach is an integral part of the commercial appraisal process. But bankers often have a limited understanding of income-approach methodology and applied analysis within an appraisal report, versus a borrower’s financial statement or stress testing. This webinar will provide insights into the income approach and concentrate on what appraisal reviewers should know.
Recorded Thursday, June 4, 2015
Continuing Education: Attendance verification for CE credits upon request
- When the income approach is most – and least – relevant to the appraisal process
- Two main categories of capitalizing income into value
- Three methodologies and how to apply them
- Obtain a basic understanding of the components of the income approach and how they vary
- How to discuss income approach issues with appraisers
- TAKE-AWAY TOOLKIT
- Supplemental manual with some examples/case studies
- Employee training log
- Quiz you can administer to measure staff learning and a separate answer key
WHO SHOULD ATTEND?
This informative session is designed for staff involved in the appraisal function, particularly those who review commercial appraisal reports. It will also benefit credit administration and credit review personnel.
Webinar content is subject to copyright and intended for your individual financial institution’s use only.