Tag Archives: MLV


JUNE 7, 2024 – The following comes from The European Valuer Journal:
The ‘Banking Package’ included a revision of the Capital
Requirements Regulation (CRR) which introduced a new
concept of ‘property value’ founded on ‘prudently conserv
ative valuation criteria’ that valuers will have to accommo
date alongside market value. Soon to be on the EU statute
books, it will come into effect on 01.01.2025 the same day
as EVS 2025. The Blue Book will contain a Guidance Note
with an interpretation of the new CRR concepts that the
European Valuation Standards Board issued – and that this
Journal liberally commented and publicised – shortly after
it became clear that the relevant provision had achieved
political consensus and wouldn’t change.
The other CRR game changer was Parliament and
Council’s ECB-inspired rejection of the Commission’s
attempt to extend banks’ freedom to use stand-alone,
valuer-free AVMs to revaluation and even to valuation
at origination. This extraordinary event will have conse
quences. Reiteration by the highest European authorities
of the central role of the qualified independent valuer
in ensuring the safety and stability of financial and real
estate markets will command a revision of the European
Banking Authority Guidelines on loan origination and moni
toring that confined mortgage valuers to a ‘desktop’ role so
poorly defined that banks could interpret it as little more
than an exercise in rubberstamping AVM ‘value proposals’
Mortgage Lending Value (a 120+ year old German valuation concept) was introduced in the USA about 15 years ago. It has not gained traction as Americans like Market Price and the bubbles it produces. MLV basically eliminates the ups and downs of property value and provides a stable number to loan against. The EU has now adopted the ‘prudently conservative valuation criteria.’ This is essentially MLV. But, other countries didn’t want to simply adopt a German concept. Maybe a decade or two from now this will become part of Basel and American lenders (and appraisers) will be forced to use this value instead of Market Value (Price).
It is also interesting that the EU basically killed the idea of AVMs.
The Mann


May 17, 2017 – As most of you know, I have been promoting Mortgage Lending Value (MLV) in America since back around 2009.  For the first time ever, HypZert is going to offer the course in America.

Information about the course is below.  The cost is $3300, which is a lot cheaper than the $20,000+ I spent on courses, travel (to Berlin), and the exam.  This is a great opportunity to learn new appraisal theory as it is introduced to America.  It is spreading in Europe and I believe it will be commonplace in America within 10 years.  I encourage you to go for it!

Training Course „Mortgage Lending Valuation“, Sep and Nov 2017 in New York – Please Register before 30 June 2017

 German Pfandbrief banks have recently intensified their activities in the U.S. real estate markets. This results in an increasing demand for real estate valuers with local market expertise who are qualified in Mortgage Lending Valuation (MLV) according to the German regulation (BelWertV).

 The vdpPfandbriefAkademie offers a compact training unit covering the methodology of MLV. The training consists of 4 seminar days in New York City including extensive study material and prepares for the corresponding certification as a HypZert Real Estate Valuer for Mortgage Lending Valuation.

The CIS HypZert (MLV) certification guarantees that its holders fulfil, without restrictions, the legal requirements for valuers according to § 6 of the German Regulation on the Determination of the Mortgage Lending Value (BelWertV).

 HypZert is Germany’s leading recognized institution in the area of certification of real estate valuers. HypZert certified experts are appreciated by clients and employers in the finance and real estate industry.

 For more information on the Seminar and Certification, please contact Nadine Roggendorf at roggendorf@pfandbriefakademie.de