No End Date for Future Editions of USPAP
Future editions of USPAP will have an effective start date but no end date.
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:
With this announcement, the 2020-21 USPAP will now have an effective date through December 31, 2023. This is an additional one-year extension, which will be added on to the previous one-year extension, which expires on December 31, 2022.
What does this mean for the USPAP cycle going forward?
Future editions of USPAP will have an effective start date but no end date. This will give the Appraisal Standards Board greater flexibility to fully examine potential revisions to the standards and respond in a timely manner to changes in the valuation profession.
How does this impact the requirement to take a 7-hour continuing education course on USPAP every two years?
This extension does not impact appraiser continuing education requirements. The 7-hour continuing education course is required to be taken once every two years as a way to offer appraisers a refresher on important cornerstones of the profession and offer practical applications for their appraisal practice. In October 1, 2021, a new USPAP course was released, which will continue to be offered to meet this continuing education requirement.”
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.
Dave Towne on e-AppraisersDirectory.com
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Said this for years. Have a digital book and could get updates annually on a download. Anything that supersedes a standard, rule etc. 7 hours of a recap is ridiculous. 30 minutes of update 6:30 minutes of someone trying to entertain you
PA Board sent out something that said we will have to take the USPAP update over again every 2 years regardless of whether it is changed or not.
This is absolutely ridiculous! What a joke!
USPAP has reached the end of its functional life!
Functional obsolescence! Hats off to Jeremy and the cosmic cobra. Based.
Now do hybrids next!
Why do we even have USPAP if FNMA is controlling everything. Has the Appraisal Foundation ever told FNMA to backoff? I was hoping to hold out for 3 years and 4 mos. Now with all of the nonsense that is taking place I might not renew at the end 2023.That will put me at 40 years of which I enjoyed most of it. I have seen a number of interviews with the people who are forcing all of the changes and to tell you the truth I am not impressed. When the head guy for the appraisal section of **** say “we did not foresee that.” My response is no fooling, but you are still forcing it on the appraisers to figure out.
We literally had a tech company whom works with default management companies nationwide telling us they place the entirety of the inspection duty on realty sales agents. That they were going with 100% remote hybrid for appraisers ‘because that appeared to be the direction FNMA was moving’. Can’t make it up, notable bias and unfair practices already implemented. As if this tech company should be in charge of detailing the appraisal requirements for the entire lending and default management industry. All the other vendors, same traditional engagements, but absolutely crush the appraisal position. It’s not a coincidence. These companies are heartless, and borrowers at the end of the line whom get foreclosed on get absolutely crushed on the back end with no protections. The independent 1004 reo appraisal service was among their last line of defenses to at least minimize losses. So the lender and interested party realty agents would not be motivated to take the whole stack to give to their investment buddies at extreme liquidation value, even if such a discount was not warranted and the home left in decent shape. Thank you Homogenius / Radian.