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    The Validation Frontier -- Theory & Applications in Stress Testing & Value Relationships for the “Un-Valuation”

    More Info Register
    April 18, 2024
    Date
    April 18, 2024
    Sponsor
    South Carolina Chapter
    Zoom (Live Synchronous), Zoom Location
    Instructor
    Douglas Potts
    No Longer Available
    Course Description

    When FIRREA became law, it required USPAP-complying appraisals as a crucial “leg” of collateral underwriting. A few years later,  regulators created a reduced scope “evaluation” alternative to appraisals, creating a “2nd leg” for underwriting flexibility. Appraisers have argued that since appraisals and evaluations both opine a value, both need to conform to USPAP unless exempted by State law. Ambiguity about how they differ has fostered conflict about appropriateness and legal compliance.

    But largely un-noticed within the regulations was permission for banks to deploy methods to assess the continued use of existing appraisals and evaluations. This offered financial institutions a ”3rd leg” to efficiently manage commercial loan renewals, which typically represent the vast bulk of daily management for real estate loan renewals.

    This program shows how Validations can be a new “3rd Leg” that appraisers can offer to institutions. Validations can be managed in ways that avoid the valuation requirements of USPAP, and also side-step the conflicts of appraisals vs. evaluations.

    The “Un-Valuation” represents an untapped opportunity for the appraisal profession.



    Who Should Enroll
    Appraiser
    State Approvals
    State QE/CE Course & Exam Course Only Exam Only Delivery Format Approval Format Start Date Expire Date State Code
    GA CE 4 Synchronous Livestream 03/19/2024 12/31/2024 77465 (South Carolina Chapter)
    NC CE 4 Synchronous Livestream 04/02/2024 12/31/2024 4635 (South Carolina Chapter)
    SC CE 4 Synchronous Livestream 02/26/2024 12/31/2024 2179 (South Carolina Chapter)
    Course Objectives

    In this Continuing Education Course, participants will gain enhanced understanding of:

    • A primer on real estate’s function in real estate lending in the nation’s banks, including a study of available loan volume data through the QBP.
    • An understanding of requirements for Appraisals and Evaluations contained in FIRREA and subsequent guidance, including the Interagency Appraisal and Guidance and subsequent issuances. Attention to Commercial Evaluations
    • A high-level history and the differences between appraisal and evaluation methods and standards, including divergences of expectation & reliability.
    • The “Appraisal Trifecta” in state regulation, where state regulations are evolving.
    • Why appraisers need new tools to blunt the encroachment of evaluations and AVMs in the valuation marketplace, caused by regulatory and technological change.
    • What is a “Subsequent Transaction to Existing Debt” – the single largest need for regulated financial institutions?
    •  How did we get to now? A brief history of FIRREA and evolving regulations around Validity and Validation.
    • How are Validations “Un-Valuations” that can offer a “3rd Leg” in performing real estate collateral “health-checks” for Subsequent Transactions.
    •  “Fundamental Analysis” as a new technique in stress testing historic real estate collateral valuations without Evaluations.
    • How appraisers can perform Validations within their existing skillsets.
    • How appraisers can perform Validations and maintain state compliance.
    • The Validation Waterfall & how phased assignments can resolve “Negative Delta.”
    • 2 case studies to demonstrate the concepts.
    Pricing Options
    Rate Full Price AI Price
    Standard
    04/02/2024 thru 04/18/2024
    $150.00 (no longer available) $125.00 (no longer available)
    Event Information

    Continuing Education Approval

    The Appraisal Institute has approved this third-party-developed seminar for 20 AI Points. The SC Real Estate Appraisers Boards have approved 7 hours of CE credit.  100% attendance is required for credit and will be monitored throughout class time.

    IMPORTANT: Not all states have approved Synchronous (AKA Virtual) education; therefore, registrants MUST CHECK their individual states for approval BEFORE registering for the Program. Before registering for the Program, registrants understand and agree that continuing education credit for this program MAY NOT be available in their state on the date of the Program. The Appraisal Institute is not responsible if credit is not available for the Program in individual states. Please note: State exceptions for virtual education may expire PRIOR to the offering date.


    Location

    • Live Synchronous Classroom Via Zoom Videoconference

    Schedule (Eastern Time Zone)

    • 12:30 – 1:00 p.m. (Zoom Check In)
    • 1:00 p.m. – 5:00 p.m. (Seminar Presentation)

    Required Equipment & Technology

    Students are required to have the following technology and equipment to participate in the program: reliable internet connection, computer (or tablet), web camera, audio, and microphone, Zoom application on computer or tablet. Go to zoom.us for new user tutorials and articles.

    Synchronous Classroom Participation Requirements & Guidelines

    • A copy of your driver's license must be emailed to the Chapter office as verification of your identity after you have registered for the seminar and prior to the start date. 
    • Students must have a reliable internet connection, computer (or tablet), web camera, audio (speaker and microphone) capability to participate and receive continuing education credit.  
    • Your webcam must always be in the on position with you in front of it.  Check your webcam privacy settings and allow the Zoom software to access it. If you have a Lenovo laptop, some participants have noticed that they need to install the Lenovo Vantage App on their computers for the webcam to operate. 
    • Basic Zoom Account is required. A paid Zoom account is not required to participate; however, you need to sign up for the free basic Zoom account and app (zoom.us) and install the app prior to the seminar start date.
    • The Zoom platform will be interactive and live. The instructor must be able to see and interact with all students and students must be able see and interact with the instructor.
    • Students must be in a location that allows for their full attention and interaction.
    • Registrants will receive a separate email from Sarah Walsh, 24 hours before class, with Zoom login information. 
    • Contact the chapter office if you have any questions regarding the participation guidelines, at sarah@ccai.org.