Large Bank Supervision Forum 2023

Disclaimer : Not in the fine print… This presentation reflects the analyses and opinions of the author, KC Conway, CCIM, CRE, MAI but not necessarily those of CCIM Institute, CSBS, UMH (Manufactured Housing REIT), nor Red Shoe Economics. Neither CCIM Institute, CSBS, UMH (Manufactured Housing REIT), nor Red Shoe Economics make any representations or warranties about the accuracy or suitability of any information in this presentation. The aforementioned do NOT guarantee, warrant, or endorse the advice or services of KC Conway, CCIM, CRE, MAI . This presentation consists of materials prepared exclusively by KC Conway, CCIM, CRE, MAI and is provided during this event solely for informational purposes of attendees. This presentation is not intended to constitute legal, investment or financial advice or the rendering of legal, consulting, or other professional services of any kind.

RedShoeEconomics.com

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Appraisal Change

 PAVE (Property Appraisal & Valuation Equity … aka DEI)  PAREA (Practical Applications of Real Estate Appraisal … translated, “USPAP Light”)  Appraiser Shortage (Underlying Problem)  Competency (PAREA will adversely impact it & will elevate CRE Lending Risk. How is Bank Policy going to adjust ALLL for PAREA and how will Approved Appraisers change?)  USPAP & Interagency Appraisal Guidelines (Outdated – Why? IAG last updated 2010)  Going ‐ Concern Value (GCV) Vs. Fee Simple Market Value (MV) (Banks are surprised when MV is

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