Overview

Part A: Engaging Appraisers: Compliance with the Regulations​ covers federal appraisal regulations and federal banking regulations. It is divided into four sections. The first section covers the history and background of regulations governing single-unit (family) residential and commercial real estate, why this regulation was needed, and the changes it brought to the banking industry. Participants learn about federal appraisal regulations such as USPAP and its three most important rules for appraisers—Ethics Rule, Competency Rule, and Scope of Work Rule. This is followed by the banking regulations that also cover appraisals, which include two congressional laws—FIRREA and FDICIA—and the banking industry’s response to these laws, the IAEGs and FAQs – General and FAQs – Subdivisions. Attendees will learn the procedures for selecting an appraiser, which transactions require an appraisal, minimum appraisal standards, transactions that permit evaluations, evaluation development and content, requirements for reviews, and requirements concerning third-party arrangements. The third section covers the process for ordering an appraisal—developing, maintaining, and monitoring a vendor panel. The fourth section provides more insight into USPAP’s Scope of Work Rule and how it affects ordering an appraisal that is in compliance with both sets of regulations. Participants will learn about the documents that banks need to provide to the appraiser, inspection requirements, market analysis, selection of approaches, and level of research and analyses. The handbook can serve as a useful reference to attendees.

Part B: Sales Comparison Approach -- A Case Study covers the use of the sales comparison approach in completing an appraisal review or an evaluation of a land parcel. It is divided into two sections. The first section introduces the sales comparison approach and discusses its usefulness for different types of properties. Scope of work issues are also briefly introduced, including the number of sales required, client requirements, level of data confirmation, level of inspection, and level of comparison and analysis. At the beginning of the second section, participants are introduced to Case Study 1 and refer to it as they discuss the steps of the review process. The class will use the Engagement Proposal / Reviewer’s Checklist to work through the case study.
 
Part C:  Income Approach -- A Case Study begins by discussing the methodology for the income approach and the types of properties for which the income approach is used. Scope of work issues are discussed in relation to the appraisal, evaluation, and appraisal review. Participants will refer to Case Study 2 as they observe how to estimate income from all sources, adjust for market vacancy and collection loss, deduct expenses, and use direct capitalization.
 
Part D: Single-Family Residential – Understanding the URAR Report introduces participants to the forms used for single-family appraisal and focuses on the URAR form. Participants will identify best practices for assessment of the URAR form and understand the scope of work and value premise used. They will learn about the type of data used and verification sources used for that data. Most importantly, they will review each section of the report separately so they understand the steps necessary for completing a residential appraisal.   
Attendance Hours: 7
Exam Hours: N/A
State Approvals: Search by State
Number of Components: 4
Total Number of Pages: 456
Level:  
Type:  
For Further Reading: None Specified