Tagged: Exposure Draft

Disparate Treatment and Impact 10

Disparate Treatment and Impact in USPAP

USPAP has introduced the terms DISPARATE TREATMENT AND IMPACT in its 5th exposure draft. Disparate treatment and impact are bad for appraisers because they can damage the reputation of the profession, lead to legal and regulatory action, and negatively impact the success and viability of individual appraisers and their businesses. Disparate treatment occurs when an appraiser treats individuals or groups differently based on their race, ethnicity, gender, religion, or other protected characteristics. This type of discrimination is illegal and can result in legal and regulatory action, as well as damage to the appraiser’s reputation and business. Disparate impact occurs when...

Appraisal / Appraisal News / Appraisers News / Uniform Standards of Professional Appraisal Practice / USPAP

AQB Initial Fair Housing Course 11

AQB Initial Fair Housing Course

Mandatory completion of an initial fair housing course lasting 7 hours by January 1st 2025, as well as 4 additional hours every renewal cycle thereafter.  Recently, the Appraiser Qualifications Board (AQB) has proposed new requirements for those looking to become an appraiser or renew their certification/license. These include mandatory completion of an initial fair housing course lasting seven hours by January 1st 2025, as well as four additional hours every renewal cycle thereafter if this becomes standard practice. The following is taken right out of the new exposure draft on real property appraiser qualifications criteria. “The core goal is to...

Appraisal / Appraisal News / Appraisal Organizations / Appraisers News / AQB / The Appraiser Qualifications Board

Confusing Language for USPAP Ethics Rule Addition 31

Confusing Language for USPAP Ethics Rule Addition

A proposed update of professional guidelines for property appraisals contains confusing language about what constitutes discrimination, and would even suggest appraisers could engage in “ethical” discrimination.  Folks, the following article is in the ABA Banking Journal e-newsletter, posted on Wednesday, February 15, 2023. I’m really glad this has been released. Hopefully the Appraisal Standards Board will closely examine the concerns of the regulators. I read the USPAP 4th Exposure Draft. It contains so much new Ethics Rule “legaleze” language about conduct that it is, and can be, overwhelmingly confusing to a majority of appraisers. It’s written by lawyers in such...

Appraisal / Appraisal Organizations / ASB / The Appraisal Foundation / The Appraisal Standards Board / Trending

Bias & Discrimination in Reports 11

Bias and Discrimination in Reports, Yes or No?

Appraisers, should we include discussion of B&D in our reports? Wait, What?? Bondage and Discipline? No, not that. Bias and Discrimination. Yes, it must be addressed very clearly. Now, before you blow a cork or throw your mouse at the computer screen, let’s examine what’s really been impacting ‘us’ for the past 4 plus years. One of our peers, who’s become somewhat famous for the way articles are written about appraisal and other topics, had a recent article ‘rebroadcasted’ in AppraisersBlogs, FTX Bought Government’s Silence; Did Fintechs Buy Attacks on Appraisers? A statement in that article exposes some of what has...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisal Organizations / Appraisal Subcommittee

Baltimore Racial Bias Lawsuit 12

Baltimore Racial Bias Lawsuit

When reading over the Baltimore document, it appears painfully clear (to me) that there is a competency issue exposed. Folks, below is the Baltimore court paperwork for the latest appraiser bias suit that recently ‘hit the fan.’ This document is fairly specific, in that it reveals quite a lot about the two appraisals performed, including the home locations for the ‘comps’ used. The attorneys representing the plaintiffs are from the same Washington, D.C. firm that The Appraisal Foundation hired to examine USPAP. That firm was the one which has provided new ‘discrimination avoidance’ verbiage being considered in the USPAP Third...

Appraisal / Appraisal News / Appraisers News / Fannie Mae - Freddie Mac / Uniform Standards of Professional Appraisal Practice / USPAP

No End Date for Future Editions of USPAP 7

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: “How long is the current version of USPAP effective? With this announcement, the 2020-21 USPAP will now have an effective date through December 31, 2023. This is an additional...

Appraisal / Appraisal News / Appraisal Organizations / Appraisal Subcommittee / Appraisers News / AQB

USPAP 3rd Exposure Draft & Nondiscrimination Section Proposed 13

USPAP Third Exposure Draft

…the Ethics Rule has been expanded with a new highly detailed Nondiscrimination section, which also affects the Competency Rule. Folks, the Appraisal Foundation’s Appraisal Standards Board released the THIRD Exposure Draft to USPAP on July 26, 2022. To be honest, I didn’t know there have been two previous Exposure Drafts. I would encourage you to download and print this Draft here. The PDF is also embedded below. It’s only 11 pages total. The key difference in this Draft is that the Ethics Rule has been expanded with a new highly detailed Nondiscrimination section, which also affects the Competency Rule. You...

Appraisal News / Appraisal Organizations / Appraisers News / ASB / The Appraisal Foundation / The Appraisal Standards Board

2022 7hr USPAP Update Course 0

2022 7hr USPAP Update Course

Appraisers, if your license renews in 2022, you will need to take the ‘new’ USPAP 7hr Update course. See below. The Update class you have already taken for the 2020-21 book, which has been extended to Dec. 31, 2022, cannot be used for CE credit again. However, I’m somewhat confused as to the effective dates of this ‘new’ Update class. It says “2022-23” which implies it will be valid through the end of (or into?) 2023. But the ‘current’ USPAP is presently undergoing Exposure Drafts for the proposed changes, which will be effective as of Jan. 1, 2023.  Normally, the Update...

Appraisal / Appraisal News / Appraisal Organizations / Appraisers News / AQB / ASB

Advisory Opinion 16 Could Be a Game Changer for Appraisers! 22

Advisory Opinion 16, a Game Changer?

The Appraisal Foundation has issued an exposure draft for Advisory Opinion (AO) 16. Advisory Opinion 16 is Fair Housing Laws: Avoiding Bias in Real Property Appraisal and Appraisal Review Development and Reporting. Unlike other exposure drafts, the text of the AO opinion has been rewritten. The traditional strike through of word or phrase changes is nonexistent. The Appraisal Foundation acknowledges “the Advisory Opinion was extensively rewritten”. Comments on the changes are due to The Appraisal Foundation by March 31, 2021 via SurveyMonkey or email, asb@appraisalfoundation.org. Although an Advisory Opinion is not a standard of practice, it does express what is...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisal Organizations / Appraisers News

Future Changes in USPAP 2022-23 - Time to Quit the Constant Changes 11

Pending Future Changes in USPAP 2022-23

The Appraisal Foundation / Appraisal Standards Board have released the 4th Exposure Draft to the FUTURE version (2022-23) of USPAP. I, like so many other ‘stakeholders’ and appraisers, have grown weary of the incessant Exposure Drafts and updates to our mandated PROTOCOL MANUAL, which for many years has been massaged and modified in various ways every 2 years. Largely because new members cycle onto the ASB every year or two. The constant updates has resulted into a continuing cash cow for the Appraisal Foundation / Appraisal Standards Board. But in actual use, that should not happen because USPAP is codified...

Appraisal / Appraisal News / Appraisal Organizations / Appraisers News / ASB / The Appraisal Foundation

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