Interagency Appraisal and Evaluations Guidelines require prudent portfolio monitoring practices, and should include criteria for determining when to obtain a new appraisal or evaluation.
The criteria should address:
1) deterioration in credit since origination or
2) changes in market conditions.
Changes in market conditions could include material changes in current and projected vacancy, absorption rates, lease terms, rental rates, and sale prices, including concessions and overruns and delays in construction costs. Fluctuations in discount or direct capitalization rates also are indicators of changing market conditions.
Collateral Valuation Monitoring Solutions
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