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Conducting In-House Evaluations: Guidance, Rules & Technological Tools

Sep 30 2:00 PM - Sep 30, 2021 3:30 PM
Sep 30, 2021 2:00 PM - 3:30 PM
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In-house evaluations are becoming more common for collateral valuation, partially due to newer agency rules that increased the appraisal exemption threshold. Staff that is independent of loan production must be appropriately trained to conduct this function. Will your evaluations pass muster?

Learning Objectives

  • Better identify when an in-house evaluation may be used in determining real estate market value (appraisal exemption rules) and when an appraisal should still be considered, even though an evaluation is permissible under the regulation
  • Clearly define the content requirements of a real estate evaluation, including the identification of real estate evaluations that do not meet regulatory expectations o Including suggestions for source data in developing content
  • Properly use technological tools in preparing evaluations, considering regulatory expectations surrounding support and validity of the tool
  • Define independence and how this impacts the evaluation process
  • Determine who should conduct real estate evaluations, including recommendations for training and continuing education

The use of in-house evaluations continues to become more prevalent among financial institutions. Recently adopted agency rules have increased appraisal exemption threshold levels for real estate transactions, providing for an increased volume of credits whereby an in-house evaluation may be used for collateral valuation. In addition to expanded exemption thresholds, limited availability of appraisers in some rural markets has driven several institutions to rely more heavily on internally prepared evaluations.

Institutions need to ensure that properly trained personnel, independent of loan production, are in place to develop real estate market values based on assumptions which are clearly supported and documented within the real estate evaluation. This presentation will focus on the development of a comprehensive real estate evaluation, including procedures surrounding the use of analytical methods or technological tools such as Automated Valuation Models (AVMs) and Tax Assessment Valuations (TAVs). 



Aaron Lewis, Young & Associates, Inc.

Aaron Lewis is a senior consultant at Young & Associates, Inc. With over 15 years in the banking industry, his expertise is now dedicated to the lending division of Young & Associates where he assists financial institutions with loan, ALLL, policy, and credit process and compliance reviews. He also conducts seminars on credit risk and compliance.

Prior to joining Young & Associates, Aaron was the Vice President Credit Administrator of a community financial institution in southeast Michigan and managed all facets of the lending function, including originations, underwriting, ALLL analysis, servicing, and secondary market compliance. He holds a Bachelor’s in finance from Michigan State University and graduated from the Graduate School of Banking, University of Wisconsin.




Additional Info

Event Type

On-Demand Webinar

Topics Covered

  • On-Demand Webinars
  • Operations
  • Lending & Collections
  • Fraud, Security & Technology
  • Compliance