Bringing Evaluations Under USPAP’s Umbrella
Evaluations: Concept Paper, Webinar, Public Meeting
In early August, The Appraisal Foundation announced that the The Appraisal Standards Board would be considering adopting standards for evaluations in the Uniform Standards of Professional Appraisal Practice (USPAP). On September 3, 2019, they announced three opportunities to learn more and share your insights.
The Appraisal Standards Board is seeking your feedback on the concept of developing standards for performing evaluations in USPAP. Submit your comments to ASBcomments@appraisalfoundation.org. The comment period closes on October 11, 2019.
Read the evaluations concept paper here
Wayne Miller, chair of the Appraisal Standards Board, and John Brenan, vice president, appraisal issues at The Appraisal Foundation will discuss the recently published Concept Paper – Evaluation Standards in USPAP, and they will also answer your questions and comments. The Webinar will be held September 10, 2019 at 1:00 pm eastern. If you already have a question in mind, send your questions to email@example.com.
Register for the webinar here
Learn more and share your thoughts at the ASB public meeting on October 18, 2019. The Board will take your questions and welcomes your thoughts concerning creating standards for evaluations in USPAP. You can attend by either watching the meeting livestream or attend in person.
Register to live stream the public meeting here.
Final Rule Would Mean Fewer Home Appraisals
On August 26th 2019, Amy Scott of NPR’s National Market Place did a story on the increases of the appraisal threshold.
The new rule raised the appraisal threshold from from $250,000 to $400,000. Though it could make the homebuying process faster and less expensive, critics say it could also put more buyers at risk of owing more than their homes are worth.
Listen to the full story below.
Home Values Reach Highest Point Since January 2007, While Owner Perceptions Continue to Improve
The average home appraisal in July came in an average of 0.63% lower than owners’ estimates, according to Quicken Loans’ National Home Price Perceptions Index (HPPI). This is the third consecutive month of a tightening gap between the two data points, showing that owners are becoming more in tune with their homes’ current value.
Quicken Loans’ Home Value Index (HVI), which is based solely on the appraisal data of America’s largest mortgage lender, shows that values increased 0.6% nationally in July, though the year-over-year increase is identical to last month’s 4.78% jump. July’s HVI level, is at its highest since January 2007.
Appraisal values rose in every region, with the Northeast experiencing a 1.34% increase in home values, and the South measuring a 0.04% bump in appraisal values. All regions continue to enjoy significant year-over-over increases, which range from 3.51% in the South to 5.45% in the Midwest.
- Reconsider the Rule on Deferred Appraisals - May 11, 2020
- Appraisers Considered an Essential Business - March 22, 2020
- Bringing Evaluations Under USPAP’s Umbrella - September 6, 2019
For years I’ve been complaining about how the National Home Price Perceptions Index (HPPI) seems to want to make the homeowner the expert. Meaning the article above and what has been typical for years reflects the appraised value is “lower than owners’ estimates”. As a single number, the appraisers opinion of market value is neither high nor low, but does get interpenetrated as such when other parties interests are considered (intended users or not). Perhaps its a only a small thing, but I think its done on purpose to downplay and belittle our profession (appraisal low = a negative view). The latest HPPI thus should in part say “homeowners opinions are 0.63% above what the average home appraisal indicates. In other words, the appraisal is not low, but rather the homeowners opinion is high.
Give the independent, unbiased licensed expert (the appraiser) the benefit of the doubt, versus wanting to associate the expert as being the problem (low appraisal).
Seek the truth.
The ASB has to write some standards for evals, because appraisers aren’t required to do evals, and rising the deminimus means substantially fewer appraisals, resulting in many appraisers dropping out of the industry and not buying USPAP books, not taking USPAP classes and not paying the foundation for license renewals.
an income shortfall, quick, write new regulations so we can all pretend this will keep appraisers renewing their licenses, just in case the market crashes and the reps and warrants go back in place.
The 50 states and 5 major territories/District are already unable to enforce USPAP competently or uniformly in compliance with FIRREA.
Adding a second “lesser” requirement option such as Evals to appraisers repertoire will not raise their standards.
All it will do is further blur the line between credible appraisals and outright bullshit such as AVMs, bifurcated pasture patties and now 15-minute non-USPAP reviews.
Why are ANY appraisers asking for permission to perform lower quality work for lower fees? If you are that intent on destroying your own profession, then just abandon it now and go drive for Uber.
The user is legally responsible for the document he seeks, the appraiser can label his product a directed by the content. Webster defined appraisals, evaluations, and letter’s of opinion originally. shouldn’t we strive to continue those historic positions.
Wouldn’t it make things less complicated.
Amen, minor correction reduced quantities don’t necessarily reduce appraisers risk, work levels, or fees