Appraisal Management Company | Dodd-Frank Wall Street Reform

Appraisal Management Company (AMC) An individual or business entity that performs appraisal management services, i.e. a person or entity that for a fee maintains and administers a list of appraisers and fulfills requests for appraisal services using the services of those appraisers An AMC selects and appoints the firm that will carry out valuation-related services, usually for a regulated institution, such as a bank or insurance company. “The term ‘appraisal management company’ means, in … [Read more...]

Risk Retention | Dodd-Frank Wall Street Reform Act

risk retention(US) The retention of a part of a risk, usually by ‘self-insurance’, of all or part of a potential business loss. As a rule, risk retention represents a contingent liability against which a company should set aside a reserve fund. In particular, a requirement of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. A “securitizer” of an asset-backed security (ABS) continues to accept part of the credit risk of any loss that might occur during the life of the … [Read more...]

Methods of Valuation | Property Valuation

methods of valuation/property valuation The methods of valuation are numereous. The method of valuation is the act or process of determining the value or worth of something. An assessment of the market value of a property, at a given point in time. The provision of a written opinion as to the value of an interest in property. A valuation is normally accompanied by associated information, assumptions or qualifications. However, it may simply provide the opinion, without anything further. … [Read more...]

Deferment Rate Leasehold Enfranchisement | Ground Rent Valuation

deferment rate leasehold enfranchisement Generally a 'deferment rate' may be defined as "the rate of return that is used to defer or ‘discount’ a future value to arrive at the present value". For example, if a property is estimated to have a capital value (at today’s prices) of £1,000,000 in five years, then its present value may be assessed as £1,000,000 × {1/[(1 + 0.08)5]} = £567,400, where 0.08 or 8% is the deferment rate, i.e. the price is ‘adjusted’ or ‘deferred’ at a compound rate 8% per … [Read more...]

Residual Method Of Valuation | Residual Appraisal Technique

There are various methods of valuation, which include the residual method of valuation This method of valuation is used to estimate the amount that it is worth paying for land, or buildings, that is to be developed or redeveloped. The application of the residual method of valuation is based on the principle that the price to be paid for a property that is suitable for development is equal to the difference between (i) the completed value of the highest and best form of permitted development … [Read more...]