Posts tagged Uniform Standards of Professional Appraisal Practice
In the organization’s latest YouTube video, the Appraisal Institute invited Paula Konikoff, JD, MAI, chair of the Appraisal Institute’s Professional Standards and Guidance Committee, to discuss 2014-15 USPAP updates, including the process the Appraisal Standards Board 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 appraisers.
The Appraisal Standards Board adopted the 2014-15 edition of the Uniform Standards of Professional Appraisal Practice, commonly known as USPAP, in February of 2013. Beginning in early 2012, the ASB released (more…)
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 appraiser is not “geographically competent.” In other words, the appraiser 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…)
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 NAHB report – "A Comprehensive Blueprint For Residential Appraisal Reform" dated February 2013. I disagree with most of Mr. Gilmore’s comments regarding the NAHB report. The NAHB 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 USPAP and FIRREA and other standards required by various professional appraisal organizations. Since licensing has been in place, the value of a professional appraisal designation (more…)
On February 1, 2013, the Appraisal Standards Board (ASB) adopted modifications to the Uniform Standards of Professional Appraisal Practice (USPAP). 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 USPAP.
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…)
The Fannie Mae Form 1025 is a lame document.
There. I said it. You appraisers 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…)
The Appraisal Institute and the American Society of Farm Managers and Rural Appraisers jointly sent a letter Feb. 28 to the Federal Deposit Insurance 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, AI and ASFMRA 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:
- The agencies should not accept complaints regarding “inaccurate” values or disagreements with the value (more…)
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.
Exposure Draft of Proposed Changes to ADVISORY OPINION 13 (AO-13), Performing Evaluations of Real Property Collateral to Conform with USPAP
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.
The significant increase in insurance claims and disciplinary complaints against appraisers over the last few years is directly related to the foreclosure 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 appraiser 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…)
ASC Letter to State Appraiser Regulatory Officials Announcing the Launch of the Appraisal Complaint National Hotline1
To State Appraiser 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 Uniform Standards of Professional Appraisal Practice (USPAP) 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…)
The Appraisal Institute and the American Society of Farm Managers and Rural Appraisers jointly sent a letter Feb. 12 to the Appraisal Subcommittee asking that it make its proposed protocol for operating the “appraisal hotline” available for public comment prior to its March 29 implementation.
In the letter, AI and ASFMRA said that while the concept of a hotline is sound, there exists almost no understanding among state appraiser regulatory officials, practicing appraisers and real estate and mortgage professionals as to how the hotline would function or even of its intended purpose. (more…)
We are fairly near the end of the continuing education cycle for appraisers 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 (AQB) 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 appraiser (the number of hours varies, but the requirement to gain experience under a state-certified appraiser is found in all states), plus another 75 hours of specific appraisal classes, including the 15-hour basic Uniform Standards of Professional Appraisal Practice (USPAP) course.
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 Uniform Standards of Professional Appraisal Practice. (more…)
Chicken Little was right – the sky is falling… and landing on both appraisers 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 USPAP.
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.
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 appraisers 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 appraiser 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…)