TAF Suspends Most APB Operations

Dave Towne

Dave Towne

Certified Residential RE Appraiser at Towne Appraisals
AGA, MNAA, Accredited Green Appraiser - Licensed in WA State since 2003.
Dave Towne on e-AppraisersDirectory.com
Dave Towne

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APB Operations Suspended by The Appraisal Foundation (TAF)

APB was based on the housing crisis of 2008…

Appraisers,

The news release below was issued on Jan. 26, 2017.

I for one, appreciate what’s been done so far by the Appraisal Practices Board to help define and explain certain aspects of our work, and make those items available to anyone who wanted to download their advisories.

I am also of the opinion that the initiation of the APB was one of the elements that lead to the Appraisal Institute resigning from The Appraisal Foundation, an action that was not entirely positive for AI members, or the ‘image’ of AI within our profession. Should the APB be formally ended, I encourage AI leadership to reexamine their position about their membership in The Appraisal Foundation. (Disclosure: I have been an AI member since 2003.)

The Appraisal Foundation News Release:

The Appraisal Foundation Reexamines Valuation Advisories – Activities of the Appraisal Practices Board Temporarily Suspended

Washington, DC – January 26, 2017 — The Board of Trustees (BOT) of The Appraisal Foundation (Foundation) recently voted to temporarily suspend the activities of the Appraisal Practices Board (APB), citing the desire to examine the current needs of appraiser professionals related to guidance on recognized valuation methods and techniques. In putting APB activities on hold, the BOT determined that two advisories under development in the area of financial reporting would continue under the auspices of the BOT, as would the third in the series of advisories on valuing green and high performance properties being developed under agreement with the U.S. Department of Energy. Each of the three advisories is nearing completion.

Chair of the BOT, Tom Boyer, stated, “The actions taken give the BOT time to fully analyze the financial impact of developing advisories and to better understand the effect of these advisories on the profession. This vote should not be misconstrued as a negative reflection on the work of the many Board members and subject matter experts who have contributed to the APB since its inception in 2010, for each has given of their time and talents for the betterment of the profession, and we are very grateful for them.”

In the coming weeks, Foundation trustees and staff will conduct outreach activities to solicit feedback about valuation advisories from appraisers, users of appraisal services, regulators, and other stakeholders. The focus of the February 24, 2017 Public Meeting in Torrance, CA is now an open forum to explore the topic with attendees, as well as provide an update of Foundation activities.

David S. Bunton, President of the Foundation recalled that the origin of the APB was based on the housing crisis of 2008. “At that time appraisers were struggling with how best to deal with declining markets, and the Foundation was encouraged to publish voluntary guidance to help all appraisers, especially those who did not have access to such information via association with a professional membership organization.” He continued, saying, “We all know that the market is now very different, access to information through technology has dramatically changed, and we need to take a close look at our continued investment in providing this service to the profession: Is the need still there?

For more information on attending the February 24 open forum, please click here. Questions or comments can be directed to John Brenan, Director of Appraisal Issues, j…@appraisalfoundation.org, 202.624.3044.

Dave Towne

Dave Towne

AGA, MNAA, Accredited Green Appraiser - Licensed in WA State since 2003. Dave Towne on e-AppraisersDirectory.com

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5 Responses

  1. Don Clark says:

    I was never in favor of the APB. It has been my belief since 1989-1992 era when licensing went into effect or was to go into effect that the purpose of The Appraisal Foundation was to protect the public by originating, reviewing, and changing USPAP as needed and necessary. It has been my long held belief that USPAP was intended to have standards of practice in place to require that an appraisal be conducted in accordance with those standards. In other words, provide what an appraiser must do when doing an appraisal, but not tell an appraiser how to do an appraisal. The how to should come from client requirements contained in a scope of work as to what is to be done, and, in the case of the secondary market that purchases mortgage loans, what they consider must or should be done. The how to should also be the concern of professional organizations, state regulatory boards, and appraisers peers. The purpose of the APB came close to telling us “how to” in many cases. That was not the intent of the authority given the TAF by congress in FIRREA. It was rather, to write standards of practice with oversight by federal regulators, the FFIEC represented by the ASC.

    Some of the biggest errors that we have had was when TAF got “into the weeds” with things like the departure provision, and a few other failed concepts along the way. 

    Just my opinion of course, but, since the earliest date when I received my first copy of USPAP by FAX so I could teach it to appraisers who were the first to apply for their state licensure, the intent was to set certain standards, not assume a role of oversight best left to the states and the market.

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  2. Baggins - Let's start at the top please. Baggins - Let's start at the top please. says:

    Great information, thank you Dave and Don.  So like what’s the deal, will we still have advisory opinions?  Who can keep up with this?  Is this about advisory opinions because I like those and they’re helpful.  To think some other technological entity could replace that with alternative non centralized guidance is not logical.  The AO’s still defer to the main book and they’re always intended as anecdotal.  Very helpful but still anecdotal.  Or is this like scary dangerous serious like no more ethics book?  I have used the departure rule and this is a limited post, just outside the consultative circle of appraisal practice.  I think that just set in, despite being long gone.  What is the deal lately, I’ve got this new verbiage from Ford to pop in; this report supersedes and replaces, renders prior versions yada yada official official word tricks for the ten million ambulance chasing lawyers breaking into real estate and that’s a wrap.

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  3. Don Clark says:

     
    The APD has nothing to do with Advisory Opinions outside of the activities of the APB. The AQB and the ASB will still function as they are supposed to. The departure rule went out of being in 2008 as I recall.

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  4. Diana N. says:

    No matter how you cut it, appraisers are going to get screwed again just like we have in the past. We can complain all we want, but sorry to say it ain’t gonna do any good. We have complained since this whole debacle started, and we are no further ahead then we were then. Only difference, our insurance increased, our license/certification fees increased and we are offered less money per job.

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  5. Don Clark says:

    Perhaps you should offer some opinions on how to make things better.

    The way to do that is to send your written opinions to TAF. Reminds me of when Fannie Mae was changing all the forms in 2005. They asked for comment well in advance of the change. Of the then approximately 100,000 appraisers nationwide they got less than 1,000 comments.

    Better to speak up now than after changes have been made.

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TAF Suspends Most APB Operations

by Dave Towne time to read: 2 min
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