What Can a Banker do to Ensure the Highest Value on their Real Estate Collateral?

Every bank seeks to minimize the risk of extended credit and ensure the best value on real estate collateral so that it provides the appropriate security. There are two specific ways you can ensure the highest value, and, as a result, minimize risk to your business.

1-Know your Collateral

In our business, we see it often: A loan is inherited and the new lender is completely unaware of the secured collateral behind the loan. Although the lender fully expects that the valuation product is precise, often they know little about the property (such as where the property is located on a map). It may be unrealistic for lenders to know details about every piece of property in their portfolio; however, it may be advantageous to procure these necessary details from the customer, especially when dealing with commercial property where income streams, vacancy rates, and expenses fluctuate from year to year. It makes sound business sense to learn more about a property before getting it appraised. Not only will this ensure a more accurate result, this can save everyone a great deal of time and difficulty in the lending process.

2 – Communication is Key

There are so many resources online to find data about real estate properties, yet often, this data is out of date, incomplete, or even inaccurate. In the absence of additional information, however, valuation professionals can be forced to rely on any information available to them even if it is not validated. Examples of this include: the year a property was built, actual amount of square footage, or conditions of a certain transaction. If the borrower has completed any remodels, additions, or capital expenditures, it is critical to relay that information to the appropriate party; adverse information also needs to be shared. Although the valuation may seem straightforward a first glance, a majority of inaccurate property valuations happen because there was information about the real estate that wasn’t communicated. Be sure this information is shared with your valuation professional. The more accurate the valuation, the better the security.

It all comes down to ensuring accurate flow of information to the right people. Make certain the lines of communication in your discovery process are in place to ensure the most accurate, and as a result, most valuable collateral securities.

The CVC group is a team of real estate professionals providing valuation services and more for financial institutions. Learn more about how we can partner with you to expedite your lending process through a number of services and product offerings at www.thecvcgroup.com, or give us a call in the office: 479-966-4988. We’d love to chat with you!

CVC-Go!: A Game Changer in Inspection Services

It’s time for an industry game changer. Is your financial institution interested in streamlining their inspection services to save money, ensure accuracy, and increase turnaround time? Look no further. CVC, a one stop shop for all your financial institution’s evaluation needs, offers as a solution a capstone service: CVC-Go!

 

CVC-Go! provides highly accurate inspection services, offering a three-day turnaround, quality that exceeds industry guidelines and all at a lower price point that mainstream inspection services. Yes, it’s true!

 

How does CVC-Go! Work?

 

Financial institutions may choose from a range of inspection service options to best meet their needs.  Our team will provide an inspection report that exceeds the standards set in the Interagency Appraisal and Evaluation Guidelines, turning it around within three business days.

 

Raising the Bar in Inspection Services

 

With a network of trained inspectors across the region, we are committed to setting the standard in inspection services. Whether your bank currently uses your branch staff or another inspection provider, CVC-Go! is committed to providing a higher quality, timely product that is more cost-effective than other inspection service options. Unlike most inspection providers, you will also receive a 360°, on-site view of the property.

 

Streamlined Process with Ensured Accuracy

 

Our economical flat rate fees eliminate the need for employee mileage reimbursements and salaries to compensate branch employee inspections.   Our goal is to provide your institution with a complete view of both improvements and deferred maintenance, to ensure you get the most accurate collateral evaluation possible.

 

Contact Us Today!

 

Getting started with CVC-Go! is extremely easy! Just visit our website www.thecvcgroup.com, or give us a call in the office: 479-966-4988.

 

Career Opportunities Available: Perhaps you are interested in a career as a skilled inspector in this rapidly growing market? If you are highly committed to quality, speed and excellence, visit our website www.cvcgo.info to apply and for more information!

Raising the Threshold: Decreasing Appraisals Required on Properties

FDIC Federal Register Citations

Notice of Proposed Rulemaking

Real Estate Appraisals

https://www.fdic.gov/regulations/laws/federal/2017/2017-real-state-appraisals-3064-ae-56c.html 

A Response to FDIC Notice of Proposed Rulemaking- Real Estate Appraisals

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Evaluations vs. Traditional Appraisals – What’s the Difference?

Understanding the difference between evaluations and traditional appraisals is key for both financial institutions and borrowers alike.  Expectations needs to be managed and we must do a better job of educating the public about the products they receive. 

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