B EST P RACTICES IN B ANK I NTEGRATIONS – A LL T HINGS A PPRAISAL : T IPS & T RICKS A UGUST 6,...
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Transcript of B EST P RACTICES IN B ANK I NTEGRATIONS – A LL T HINGS A PPRAISAL : T IPS & T RICKS A UGUST 6,...
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BEST PRACTICES IN BANK INTEGRATIONS –
ALL THINGS APPRAISAL: TIPS & TRICKS
AUGUST 6, 2014
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What you are about to experience are the views of these three individuals…
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• 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)
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• Where do you Start?
• Does size matter?
• Policy(s) & Procedures
• Personnel & Cultures
• Vendor Lists
• Systems
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WHERE DO YOU START?
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READY…..SET…..WAIT FOR IT….GO!
• Appraisal Departments
• Credit Administration
• Business Units
• Approved Appraiser List(s) Mgmt
• Other 3rd-Party Vendor Mgmt
– AMCs
– Environmental Consultants
– Building Inspectors/ Engineers
– PP/ Equipment Appraisers
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DOES SIZE MATTER?
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PIT FALLS
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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
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…& 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
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POLICIES & PROCEDURES• Who gets to stay?– Combined?– Are you really the devil?
• Who is your regulator now?– Different wrinkles– Different cycles– Different expectations
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PERSONNEL & CULTURES…
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…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• Evaluator
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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
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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
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APPRAISAL MANAGEMENT SYSTEMS
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APPRAISAL MANAGEMENT SYSTEMS
• RIMS• YouConnect (Real Wired)• Oasis (Global DMS)• Lender Portal (EDR)• FNC’s system– Commercial, Residential and Environmental CMS
system • Others
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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?
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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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