No End Date for Future Editions of USPAP
Folks, on Thursday August 11, 2022, the ASB/TAF announced the extension of the current USPAP to the end of 2023.
Assuming that a ‘new’ USPAP is formally approved in time, the next issue of USPAP will become effective January 1, 2024. But here’s the interesting wrinkle about this, which I admit I missed in their 8/11/22 announcement:
What is the implication for appraisers?
For starters, it means the extraction of moolah from appraiser’s pockets every two years (past practice) to purchase a ‘new’ USPAP will end, unless of course, the ASB does actually decide to establish a particular ‘end’ date at some point in the future for the existing edition. Appraisers will have to pay strict attention to exposure drafts, news releases, etc., coming from the ASB/TAF.
Secondly, it will mean that the 7-hour USPAP update course will have to be modified, every two years! If there is no end date (implying no changes), then the course will have to instruct more of ‘what does USPAP actually want you to do’, rather than just focusing on whatever changes were implemented via prior exposure drafts, as has been past practice (until the most recent extension prior to the newest one).
Third, and this is highly speculative on my part, the ASB could implement a new policy that any ‘Update’ class only be required if and when a revised USPAP is issued. To replace the current USPAP class, they could say the appraiser must choose to take any other 7-hour CE class. From a regulatory standpoint, this will be cumbersome for states/territories to implement and enforce due to how their own regulations are instituted within their jurisdictions. My point in writing about this is the ASB must give this serious consideration to and consult with all the states and territories before embarking on any changes to CE requirements.
The final point I’d like to make is this: TAF was established as a non-profit organization within the Appraisal Subcommittee (ASC), which is a federal agency. The ASB and the AQB are two current Boards under TAF. TAF originally was to have ‘oversight’ by the ASC, but due to an anomaly of some sort (which I don’t fully understand), TAF has been acting independently almost with malice toward appraisers.
Over the years, due to the incessant desire to modify USPAP on a regular basis, and the requirement that new issues be purchased by appraisers and stakeholders, TAF has accumulated MILLIONS of dollars. Now, with the stated policy of ‘no end date’ the “extraction” process I mentioned above will moderate. It may not totally end, because classes will have to be ‘purchased’, but at least new USPAP books won’t have to be bought every two years.
Going forward, it will be interesting to watch the ‘dance’ between the ASC and TAF.