"What are the Interagency Appraisal and Evaluation Guidelines?"


3 Requirements For Compliant Evaluations

Interagency Guidelines

The most common questions asked in reference to implementing a change from appraisals to evaluations involve: cost differences, time frames for delivery, the accuracy of the content and very importantly, compliance with existing regulations. The Interagency Guidelines include three requirements for compliant “evaluations.” An institution’s board of directors or its designated committee is responsible for adopting and reviewing policies and procedures thatRead the Rest…


CoStar and Loopnet

Interagency Guidelines

CoStar and Loopnet:  Transforming data into information and knowledge. CoStar and LoopNet are commercial real estate industry-specific data sources which can be very useful in the compilation and verification of real property valuation and evaluation.  Data provided by CoStar and Loopnet contribute to the delivery of accurate valuation reports.  However, data alone does not a good valuation report make.  Data hasRead the Rest…


IFRS Impact on Commercial Real Estate Assets

Interagency Guidelines

IFRS Impact on Commercial Real Estate Assets. While the near-term use of International Financial Regulatory Standards (IFRS) in the US by domestic public companies will not be required, IFRS is highly relevant to many US businesses in 2013. Companies are and will be affected by IFRS at varying times and degrees of magnitude, driven by factors such as size, industry,Read the Rest…


CAP Rate Value

Interagency Guildelines

CAP Rate Value   When utilizing the Income Approach to value a commercial property, a CAP Rate Value is determined.  What exactly is a “CAP Rate Value?” In simple terms, an Income Approach valuation starts by reviewing the income generated by the property which typically takes the form of historic or anticipated lease payments or anticipated hotel occupancy multiplied byRead the Rest…


Rising Commercial Property Interest Rates

Interagency Guidelines

Rising Commercial Property Interest Rates: Not so Scary After All   Many real estate investors and commercial real estate agents are worried about the rising commercial property interest rates.  Bill Conerly, contributor to Forbes Magazine, projects that, “with the run up on interest rates and mortgages, and my forecast that long term interest rates will continue to rise, it’s timeRead the Rest…


The Importance of a Market Analysis

Interagency Guidelines

The importance of a Market Analysis. Market analysis has an undeniable role in the risk management aspect of CRE lending. Per Interagency Guidelines, there are permitted instances in which a market analysis-based evaluation may substitute for an appraisal. Of course, a well-diversified portfolio is the first line of defense to risk, meaning that major lending institutions with nationwide portfolios needRead the Rest…


Free Commercial Property Valuations?

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Free Commercial Property Valuations?   In the absence of continuously traded, deep and securitized markets, commercial property valuations perform a vital function in the property market by acting as a “surrogate” for transaction prices. As with asset prices in the equity and bond markets, “commercial property valuations” are central to the inter-related processes of performance measurement, acquisition and disposal decisionsRead the Rest…


The Interagency Guidelines, commonly referred to as the 'Guidelines', address supervisory matters related to commercial real estate appraisals and evaluations used to support federally regulated real estate-related financial transactions.