NPA Appraisal Review
In many cases, appraisers have gone from an overly optimistic view of the market to one that is arguably too pessimistic, and their decisions often lead to severe and unnecessary depletion of bank regulatory capital. Our work in critically reviewing and analyzing appraisals of real estate owned and real estate securing non-performing loan assets delivers a much needed dose of reality to a space that has become erratic and out of balance. We are longtime professional users of appraisals (as real estate lenders, work out experts and real estate investors) and also frequently interact with bank examiners on real estate valuation issues. As a result, we are acutely aware of what is acceptable to bank regulatory authorities in the field and bring a wealth of current real world examples to the table. Our constant involvement in loan workout and REO disposition projects further informs our perspective. We are also passionate about holding appraisers to the highest industry standards. The result is appraisal review that bolsters and defends realistic estimates of value and exposes appraisals that are fundamentally flawed, often with regulatory capital saving results.