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Best Practices in Bank Integrations – All Things Appraisal: Tips & Tricks August 6, 2014

Best Practices in Bank Integrations – All Things Appraisal: Tips & Tricks August 6, 2014. What you are about to experience are the views of these three individuals…. Deloris L. Kraft-Longoria, MAI Chief Appraiser, Frost Bank (San Antonio, TX )

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Best Practices in Bank Integrations – All Things Appraisal: Tips & Tricks August 6, 2014

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  1. Best Practices in Bank Integrations – All Things Appraisal: Tips & TricksAugust 6, 2014

  2. What you are about to experience are the views of these three individuals…

  3. 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-RRSVP,Commercial Appraisal Mgr, HomeStreet Bank (Seattle, WA)

  4. Where do you Start? Does size matter? Policy(s) & Procedures Personnel & Cultures Vendor Lists Systems

  5. Where do you start?

  6. Ready…..Set…..wait for it….Go! Approved Appraiser List(s) Mgmt Other 3rd-Party Vendor Mgmt AMCs Environmental Consultants Building Inspectors/ Engineers PP/ Equipment Appraisers • Appraisal Departments • Credit Administration • Business Units

  7. DoesSizeMatter?

  8. Pit Falls

  9. 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 Appraisal

  10. …& 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 Clubs

  11. Policies & Procedures • Who gets to stay? • Combined? • Are you really the devil? • Who is your regulator now? • Different wrinkles • Different cycles • Different expectations

  12. Personnel & Cultures…

  13. …Personnel & Cultures Bank A Bank B Appraisal Dept. Administrator(non-certified Manager) Review Appraisers (3) Environmental Consultant Evaluator • Chief Appraiser (Certified Appraiser) • Review Appraisers (2) • Department Admin.

  14. Vendor Management • Approved Appraiser Lists • Update and Add New Appraisers to Lists due to new terror ties or markets • 3rd-Party Reviewers • Continue to use or eliminate • Environmental Consultants • Incorporate additional environmental contractors to list

  15. 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 Storage

  16. Appraisal Management Systems

  17. Appraisal Management Systems • RIMS • YouConnect (Real Wired) • Oasis (Global DMS) • Lender Portal (EDR) • FNC’s system • Commercial, Residential and Environmental CMS system • Others

  18. 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?

  19. 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)

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