APPRAISAL BUZZ FALL 2020 | 27
LEARNING FROM THE PAST
CRISIS:
BY THOMAS INSERRA
The COVID-19 health
crisis has meaningfully
impacted employment,
the overall economy,
consumer and business
borrowers, lenders,
AMCs, real estate
markets, and
appraisers. The
short-term closure of
businesses impacted
wages, increased late
payments and loan
defaults, increased
foreclosures, reduced
paying capacity, and
likely adversely
impacted real estate
values. In all crises, both
Loss Frequency and
Loss Severity are
typically adversely
impacted. While the
full impact or duration
of this crisis is not yet
review of past national
possibilities.
Pre & Post Great
Depression, 1892-
1935:
The number of banks
in the USA peaked in
the year 1921 at 30,600.
The economic crisis
resulting from “Panic
of 1883” and the “Great
Depression” was so
banks failed. Two-thirds
of the failures occurred
at small banks in towns
with a population of
less than 2,500 people.