A&B Abstract: With recent and forthcoming changes to federal valuation requirements, the Appraisal Foundation is considering the development of standards for performing evaluations in the USPAP.
The Concept Paper:
On September 3, 2019, the Appraisal Foundation issued a concept paper on the development of standards for performing evaluations. The concept paper recognizes the current lack of standards for the performance of evaluations under the Uniform Standards of Professional Appraisal Practice (“USPAP”) and federal and state laws. Additionally, a forthcoming increase in the federal transaction threshold will increase the number of properties for which a federally regulated financial institution may obtain an evaluation, rather than an appraisal, of the collateral.
Specifically, the Appraisal Foundation is seeking public comment on seven questions. These include whether the Appraisal Standards Board (“ASB,” which promulgates the USPAP) should: (1) set minimum standards for evaluations; and (2) revise the definition of “appraisal” in the USPAP to differentiate it from an evaluation. Further, the Appraisal Foundation is seeking comment on whether USPAP reporting standards should be changed to reflect their ability to accommodate the reporting of evaluations.
Comments on the concept paper are due October 11, 2019, and may be submitted to: firstname.lastname@example.org.