By now you have most likely heard the term “USPAP”.
Most appraisers say they are compliant with it, but…
WHAT IS IT?
USPAP, the acronym for the Uniform Standards of Professional Appraisal Practice, was developed by The Appraisal Foundation, the organization that sets the Congressionally-authorized standards and qualifications for real estate appraisers, and provides voluntary guidance on recognized valuation methods and techniques for all valuation professionals.
USPAP was developed as a result of the savings and loan crisis in the 1980’s. Eight US based professional organizations representing appraisers in the United States, along with the Appraisal Institute Of Canada, formed an Ad-Hoc Committee on professional standards which resulted in the development of USPAP. The express purpose of USPAP was, and is, to promote and preserve public trust and confidence in professional appraisal practice.
The Ad-Hoc Committee recognized the need to develop a new and independent organization. This lead to the establishment of The Appraisal Foundation (TAF) in 1987 which would have independent authority over the standards. The Foundation established the Appraisal Standards Board (ASB) and the Appraisal Qualifications Board (AQB).
Public acceptance of USPAP and TAF began when Congress recognized USPAP as “the generally recognized standards of practice in the appraisal profession.” Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA, or the “Savings and Loan Bailout Bill” provided this recognition.