All Things Appraisal Tips amp Tricks August 6 2014 What you are about to experience are the views of these three individuals Deloris L KraftLongoria MAI Chief Appraiser Frost Bank San Antonio ID: 689869
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Slide1Slide2
Best Practices in Bank Integrations –
All Things Appraisal: Tips & Tricks
August 6, 2014Slide3
What you are about to experience are the views of these three individuals…Slide4
Deloris L. Kraft-Longoria, MAI
Chief Appraiser, Frost Bank (San Antonio,
TX
)
Eric K. Schwartz, MAI, SRA
SVP,
Chief Appraiser, Amegy Bank (Houston
,
TX
)
Justin D. Slack, MAI, SRA, AI-GRS, AI-RRS
VP,
Commercial Appraisal Mgr, HomeStreet Bank
(Seattle, WA)Slide5
Where do you Start?
Does size matter?
Policy(s) & Procedures
Personnel & Cultures
Vendor Lists
SystemsSlide6
Where do you start?Slide7Slide8
Ready…..Set…..
wait for it….Go!
Appraisal Departments
Credit Administration
Business Units
Approved Appraiser List(s)
Mgmt
Other 3
rd
-Party Vendor
Mgmt
AMCs
Environmental Consultants
Building Inspectors/ Engineers
PP/ Equipment AppraisersSlide9
Does
Size
Matter?Slide10
Pit FallsSlide11
Pit Falls…
Not being included in Due Diligence team
Not
being a part of merger team and/or included in meetings prior to merger
Lack of list of appraisal assignments in the
works
Who is the Client after LD-1?
Who is the Intended User after LD-1?
Appraisal Coordinator or Personnel left after merger
Acquired Bank had no Appraisal Division or Collateral Management System (CMS)
Lack of written policies to train acquired bank personnel
To use CMS system
When & how to order an
AppraisalSlide12
…& More Pit Falls
Incorporating Ordered Appraisal Assignments into CMS
Setting up files, gathering all data
Payment of AMC/Appraiser of Appraisal Assignments in the works
Dual payment
Lack of market knowledge in new footprint
Lack of sufficient personnel to handle the “new normal” (workload)
Specialized Property Types
Mining operation
Agricultural
properties
C-Stores
Country ClubsSlide13
Policies & Procedures
Who gets
to stay?
C
ombined?
Are you really the devil?
Who is your regulator now?
Different wrinkles
Different cycles
Different expectationsSlide14
Personnel & Cultures…Slide15
…Personnel
& Cultures
Bank A
Chief Appraiser
(Certified Appraiser)
Review Appraisers (2)
Department Admin.
Bank B
Appraisal Dept. Administrator
(non-certified Manager)
Review Appraisers (3)
Environmental Consultant
EvaluatorSlide16
Vendor Management
Approved Appraiser Lists
Update and Add New Appraisers to Lists due to new terror ties or markets
3
rd
-Party Reviewers
Continue to use or eliminate
Environmental Consultants
Incorporate additional environmental contractors to listSlide17
Vendor Management
Building Inspectors/ Engineers
Order Management Systems
Appraisal Management Company(s)
Coordinate with AMC’s in regards to open assignments
Complete reviews, payment of the appraiser
Cloud StorageSlide18
Appraisal Management SystemsSlide19
Appraisal Management Systems
RIMS
YouConnect
(Real Wired)
Oasis (Global DMS)
Lender Portal (EDR)
FNC’s system
Commercial, Residential and Environmental CMS system
OthersSlide20
Appraisal Management Systems
Platform Integrations
Pre/Post – Identify challenges
Key points to consider:
Administrative and support personnel needs assessment
Budgetary constraints
Integrating systems with differing cost allocations
Line reporting conflicts
Cultural conflicts!!!!!
Understand the weaknesses and strengths of each AMS
SWOT Analysis: Do you need to perform one?
Single or multi-platform process management
Different systems for commercial and residential?Slide21
Other Issues
USPAP Issues
Who is the client and intended user if the acquired entity no longer exists?
Are there additional expense burdens associated with:
AMC Audits
Manpower allocations
Duplication of review and support staffing
Retain performing vendors
Annually evaluate vendors (establish protocols if absent)
In-service training – may be necessary at both institutions
Establishing performance expectations
Valuing designations (cultural issue)Slide22