From the Credit Side – YouConnect Blog

Financial institutions often have their outside commercial real estate appraisers allocating real property, tangible personal property (FF&E) and intangible personal property/business enterprise for certain property types like hotels and c-stores. However, how appropriate is it for commercial appraisers to determine

Fee simple or leased fee interest? It comes up daily for commercial appraisers and financial institutions.  The current generally acceptable methodology is, if there’s a lease, you must present the leased fee interest. There’s not a lot of discussion and

Not many people would argue that banks tend to operate a little bit differently than other businesses. As a matter of fact, one of the key components of profitability and a motivation to be a potential merger target, is the

As a commercial appraiser in a former life, economies of scale was something learned early on.   Economists use it every day and even the layperson heard a lot about it as a result of the financial crisis of 2008 –

I love the nomenclature of the FDIC’s proposed revisions to the Consolidated Reports of Condition and Income (Call Report or RC Report) as burden-reducing. Per the FDIC, “Every national bank, state member bank, insured state nonmember bank, and savings association

I love the quote from Dwayne Cassius “King” Pride (played by Scott Bakula) on the show NCIS New Orleans, “learn things.”  It’s not very often that chief appraisers and credit officers get together to share best practices. But so very

There’s much chatter about the economic uncertainty generated by our current POTUS and how he (and the political machine) may impact borrowing and risk associated with business models and associated credits. The failure of passing health care reform and upcoming

Sadly the erroneous grouping of residential and commercial appraisers was baked into Dodd-Frank which in my opinion is the single largest negative influence to commercial appraisers. Dodd Frank is an enormous bill but its affect in our world has created

USPAP is intended not to betray public trust. However, if it is not sufficiently flexible to meet the pragmatic business needs then the market is forced to look to others (who are often less qualified than appraisers) to complete evaluations.

AMCs, appraisal management companies, fulfill an administrative function in the appraisal process effectively outsourcing the appraisal department. Professional AMCs do a good job in selecting the appraiser, handling the review process and delivering the report to the lender. Some commercial