I. We are OCC and just completed an exam (last week). They reviewed quite a few of our commercial and ag loan files this year and were highly complimentary on our documentation. We require the compeletion of a "Useful Life Validation" with renewals to document:
Last edited by Okie Banker; 01/23/12 07:53 PM.
The estimate of value within the above appraisal or evaluation continues to be acceptable based on the following factors:
Passage of time:
Volatility of the local market:
Changes in terms and availability of financing:
Limited or over supply of competing properties:
Improvements to the subject property or competing properties:
Lack of maintenance of the subject or competing properties:
Changes in underlying economic and market assumptions, such as capitalization rates and lease terms:
Changes in zoning, building materials, or technology:
Each bullet has to be completed. We do not allow the completion of such a form if the property is not within our target markets. Should the property be out of areas familar to us we would require a new evaluation/appraisal.
II. Per the Interagency 2010 Guidelines on Evaluation content:
An evaluation should contain sufficient information detailing the analysis, assumptions, and conclusions to support the credit decision. An evaluation’s content should be documented in the credit file or reproducible. The evaluation should, at a minimum:
• Identify the location of the property.
• Provide a description of the property and its current and projected use.
• Provide an estimate of the property’s market value in its actual physical condition, use and zoning designation as of the effective date of the evaluation (that is, the date that the analysis was completed), with any limiting conditions.
• Describe the method(s) the institution used to confirm the property’s actual physical condition and the extent to which an inspection was performed.
• Describe the analysis that was performed and the supporting information that was used in valuing the property.
• Describe the supplemental information that was considered when using an analytical method or technological tool.
• Indicate all source(s) of information used in the analysis, as applicable, to value the property, including:
o External data sources (such as market sales databases and public tax and land records);
o Property-specific data (such as previous sales data for the subject property, tax assessment data, and comparable sales information);
o Evidence of a property inspection;
o Photos of the property;
o Description of the neighborhood; or
o Local market conditions.
• Include information on the preparer when an evaluation is performed by a person, such as the name and contact information, and signature (electronic or other legally permissible signature) of the preparer.
Just working here until I get my letter from Hogwarts.