Posts tagged Uniform Standards of Professional Appraisal Practice


USPAP 2014-15 - Image courtesy of Danilo Rizzuti / FreeDigitalPhotos.net

Appraisal Institute Discusses 2014-15 USPAP Updates

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May 21, 2013
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In the organization’s latest YouTube , the invited Paula Konikoff, JD, MAI, chair of the ’s Professional Standards and Guidance Committee, to discuss 2014-15 updates, including the process used to adopt the latest edition of USPAP, the new Report Options that will be part of the 2014-15 edition of USPAP, and other changes made that might impact .

The Appraisal Standards Board adopted the 2014-15 edition of the , commonly known as USPAP, in February of 2013. Beginning in early 2012, the released (more…)

Appraisers and Realtors

REALTOR® & Appraiser Interaction Under Dodd-Frank

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May 13, 2013
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A common complaint among REALTORS® in virtually all of Michigan is that many residential deals are failing because the home will not appraise at a value that permits the buyers to finance the purchase and close on the home. Many REALTORS® take the position that many of these properties do not appraise because the is not “geographically competent.” In other words, the is from out-of-town, unacquainted with the area in which the appraised property is located; thus, fails to learn or uncover various factors that would substantially change the valuation of the property. The question is then posed why are we in this situation and how can we change it.

The situation is at least in part attributable to actions taken by Congress “to provide the financial stability of the United States by improving accountability and transparency in the financial system (more…)

Response to A Wakeup Call for the Valuation Industry - Image courtesy of Stuart Miles / FreeDigitalPhotos.net

Response to "A Wakeup Call for the Valuation Industry: Is anybody listening?"

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May 10, 2013
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RE: Richard Gilmore, ARA article – "A Wakeup Call for the Valuation Industry: Is Anybody Listening?"

I would like to offer some comments regarding Mr. Gilmore’s article in the April 9, 2013 issue of Ag News. I also read most of the report – "A Comprehensive Blueprint For Residential Appraisal Reform" dated February 2013. I disagree with most of Mr. Gilmore’s comments regarding the report. The report lacks a realistic understanding of what is taking place in the real estate appraisal profession today.

Most of what is commented on in the NAHB report has been required and/or in place for more than 20 years in the form of and FIRREA and other standards required by various professional . Since licensing has been in place, the value of a professional appraisal designation (more…)

USPAP 2014-15 Summary of Proposed Changes - Image courtesy of Stuart Miles / FreeDigitalPhotos.net

2013 Summary of Actions Related to Proposed USPAP Changes

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April 11, 2013
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On February 1, 2013, () adopted modifications to the (). This action was the culmination of a period of 15 months and multiple discussion drafts, requests for comments, and three exposure drafts. Written comments were received in response to each document, and oral comments were provided at each public meeting. The ASB read and carefully considered every comment, developed a work plan to address the issues brought forward, and adopted revisions for the 2014-15 edition of .

1.  Revisions adopted for 2014-15 USPAP

The following changes were adopted by the Board on February 1, 2013, and will be incorporated in  the  2014-15  edition  of  USPAP  and  associated  guidance  material  with  an  effective  date  of January 1, 2014: (more…)

1025 report

Rental Block

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April 1, 2013
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The Form 1025 is a lame document.

There. I said it. You out there all know exactly what I’m talking about.

Part of what makes it lame is the goofy layout of the form and what passes for education for appraisers in how to complete it properly.

Too many appraisers haven’t a clue how to compare rents in a two to four unit apartment building. In many cases they simply dump rents into rental grid and magically opine (more…)

Appraiser Complaint Forms

AI Advocates for Issue-Specific Appraiser Complaint Forms

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March 19, 2013
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The and the jointly sent a letter Feb. 28 to Corporation, the National Credit Union Administration and the Comptroller of the Currency expressing concern about the broad reach of a proposed Interagency Appraisal Complaint form.

The agencies intend to provide a copy of the form to individual complainants, who, in turn, will return to the agency for information gathering and potential referral.

In its letter, and expressed concern that the proposed form may not be the most effective approach and instead recommended complaint forms that addressed specific audiences and suggested three ways to improve the usefulness of the form:

  1. The agencies should not accept complaints regarding “inaccurate” values or disagreements with the value (more…)
Appraisal Workfile

How a Few Key Items in your Work File Can Protect You in Court

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March 8, 2013
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I used to work with someone who had a photographic memory. Most of us are not so lucky, and have to rely on our imperfect memories and good note-taking skills. As an attorney, I document everything. I handle hundreds of cases, and without good documentation I will not remember what I did on a particular day or what support I had for a particular theory.

As an , your work file is (more…)

ASB Exposure Drafts AO-13 & AO-21

ASB Releases Exposure Drafts for AO-13 & AO-21

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February 27, 2013
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() has issued the following exposure drafts:

of Proposed Changes to 13 (AO-13), Performing Evaluations of Real Property Collateral to Conform with

Rationale: The prior version of Advisory Opinion 13 included not only advice related to USPAP, but also some interpretations of the Interagency Appraisal and Evaluation Guidelines.  The Interagency Work Group has suggested, and the ASB agrees, that AO-13 should focus on the application of USPAP and avoid interpretation of the guidelines.

When  an  individual  is  acting  as  an  (more…)

E&O Appraisers Claims

Erros & Omissions Insurance and Claims Issues for Today’s Appraiser

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February 26, 2013
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The significant increase in insurance claims and disciplinary complaints against over the last few years is directly related to the phenomenon and subsequent pattern of appraisal reviews performed during the last decade. The validity of both the process and results of these forensic reviews may have little relationship to the subsequent actions by those seeking the deep pockets of the and their insurance carriers to recover monies lost in bad loans. This trend shows no sign of diminishing. It remains incumbent upon appraisers to understand their errors and omissions insurance policies, any available risk management services available through the insurer and the common occurrences that result in claims or complaints.

Understanding Your Errors And Omissions Policy

Errors and Omissions insurance policies have language and conditions that dictate the appropriateness of the policy for one’s appraisal practice and how coverage may be applied in the event of a claim. Here is a brief look at important policy features. (more…)

Appraisal Complaint National Hotline

ASC Letter to State Appraiser Regulatory Officials Announcing the Launch of the Appraisal Complaint National Hotline

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February 25, 2013
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To State Regulatory Officials

The Appraisal Complaint National Hotline (Hotline) will begin operation no later than March 29, 2013. The Hotline will refer complainants to appropriate State and/or Federal agencies to handle complaints of alleged violations of the () and/or appraisal independence requirements. The Hotline will direct complainants to contact you to formally file their complaint using the existing protocols established by your State. The Hotline does not initiate complaints, act on behalf of complainants, arbitrate complaints, assist in appealing the outcome of complaints, or follow up on complaint referrals previously provided.

The Hotline includes: (more…)

Appraisal Hotline Operations

Appraisal Institute Wants Details on ‘Appraisal Hotline’ Operations

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February 21, 2013
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The and the American Society of Farm Managers and Rural jointly sent a letter Feb. 12 to the asking that it make its proposed protocol for operating the “” available for public comment prior to its March 29 implementation.

In the letter, and said that while the concept of a hotline is sound, there exists almost no understanding among state regulatory officials, practicing appraisers and real estate and mortgage professionals as to how the hotline would function or even of its intended purpose. (more…)

Appraising disappearing

How to Make a Profession Disappear

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February 20, 2013
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We are fairly near the end of the continuing education cycle for in my home state of Pennsylvania. Among other topics, I’ve been presenting changes to laws and regulations, which include the new Appraisal Qualifications Board () standards that go into effect in January 2015. You can find the regulations here: http://www.appraisalfoundation.org/

The overwhelming response from existing appraisers is: “Do they just want to make us go away?”

The new requirements will include a bachelor’s degree, as well as — in most states — 2,000 hours of experience under a state-certified (the number of hours varies, but the requirement to gain experience under a state-certified is found in all states), plus another 75 hours of specific appraisal classes, including the 15-hour basic () course.

Most state laws require the (more…)

AI Exposure Time Guidance

New Guidance Helps Appraisers Analyze Exposure Time

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February 14, 2013
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The published “Guide Note 14: Concept of ” Feb. 12 to help understand and how to incorporate its analysis into appraisals.

The guidance addresses how appraisers should link exposure time, which refers to the time a property remains on the market, to their value opinion and comply with the . (more…)

Sky falling

The Sky is Falling for Appraisers & Home Inspectors

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February 4, 2013
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Chicken Little was right – the sky is falling… and landing on both AND inspectors.

Home inspectors often suffer from a general lack of respect, part of which is caused by the fact that they have no single set of national standards of practice like appraisers who have .

Appraisers, on the other hand, suffer from what is commonly known as appraisal creep where the conditions and requirements of appraisal work keep expanding, but the fees for the work either shrink or stay the same.

Now, forces within the government are conspiring to stick it to both groups.

The lending community (, FNMA, and FHLMC) has decided it would be a good idea to (more…)

Appraisers and the help

‘The Help’ for Appraisers

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January 18, 2013
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I love movies, but I did not enjoy going to ‘The Help’ this past year with my wife. It probably stems from the fact that I wanted to attend the other theater (which was playing Captain America), but it was her turn to pick. The movie did, however, remind me of a time in our history where certain individuals were treated less than others. Not cool, and it made me very uncomfortable.

There is another kind of ‘Help’ that many also find not so cool and makes them feel uncomfortable; that is… ANY HELP WHATSOEVER! For some odd reason, there is a prevailing thought, idea and conception within the appraisal industry that the must do everything from acceptance of the order to delivery of the report. It is my contention, however, that in order to survive in this new world of Dodd-Frank, AMCs, and increased liability, we need to become not only okay with asking for help, but very comfortable with it.

It is no secret that (more…)

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