| APPRAISAL REGULATION AND ITS ACRONYMS
The following are most (not all) of the appraisal regulation acronyms
licensed/certified appraisers must contend with. Perhaps it is just
human nature for a profession to develop its own language filled
with secret codes, creating a certain mystique that marvels outsiders.
But it often causes many of us to scratch our heads as well! |
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| ASB = Appraisal
Standards Board: AQB =
Appraisal
Qualifications Board. These are the two independent boards
of TAF. The ASB exercises all authority in respect to establishing, improving,
and promulgating USPAP and providing advice in the form of AOs, FAQs,
and other venues. Similarly, the AQB exercises all authority in respect
to appraiser qualifications |
ASC = Appraisal
SubCommittee: The ASC was created
by Title
XI to oversee
the activities of the States and The Appraisal Foundation. It is composed
of the agency heads of HUD (Department
of Housing and Urban Development), FDIC (Federal
Deposit Insurance Corp.),
OCC (Office
of the Comptroller of Currency), OTS (Office
of Thrift Supervision),
NCUA (National Credit
Union Administration), and the Board of Governors
of the Federal Reserve System. The mission of the ASC is to ensure that
real estate appraisers who perform appraisals in real estate transactions
that could expose the United States government to financial loss are
sufficiently trained and tested to assure competency and independent
judgment according to uniform professional standards and ethics. The
ASC is funded by State certified or licensed appraisers, each of whom
currently pays an annual National Registry fee to the States which then
pay it to the ASC. |
| FIRREA = Financial
Institutions Reform, Recovery & Enforcement
Act – also very likely a familiar term. This federal legislation
was passed in 1989 in response to the Savings and Loan crisis. Title
XI of the Act includes real estate appraisal reform amendments. Title
XI authorized the federal financial institutions regulatory agencies
to adopt regulations regarding real estate appraisals made in connection
with federally related transactions (frt's), including: when appraisals
are required, who must perform the appraisals, and the manner in which
appraisals must be performed |
| FRT = Federally
Related Transaction. A real estate
transaction involving a federally insured depository institution. |
OREA = Office
Of Real Estate Appraisers. This is
the California state agency charged with the licensing and enforcement
of California real estate appraisers. California is a non-mandatory
state (unlike other many other states, such as Nevada). This means
that an individual is only required to be licensed as an appraiser
if the appraisal is to be used in a federally related transactions
(frt). Licensing is not required in California to perform appraisals
for non-federally related transactions. However, if one is licensed
as an appraiser then one must conform to and comply with all state
appraisal licensing regulations, irrespective if the assignment is
or is not for a federally related transaction. OREA has adopted in
totality USPAP into its regulations thus making USPAP state law. (orea.ca.gov)
The levels of licenses
issued by the OREA are:
AT: Trainee License
Must work under the technical supervision of a licensed appraiser.
May assist on any appraisal within the scope of practice of the supervising
appraiser.
AL: Residential License
May appraise non-complex 1-to-4 unit residential property up to a
transaction value of $1 million, and complex 1-to-4 unit residential
and all non-residential property up to a transaction value of $250,000.
AR: Certified Residential License
May appraise all 1-to-4 unit residential property without regard
to complexity, and non-residential property up to a transaction value
of $250,000.
AG: Certified General License
May appraise all types of real estate.
|
| TAF = The
Appraisal Foundation. TAF is a private,
not-for-profit organization established in 1987 by eight major professional
appraisal organizations as a separate and independent entity that is
tasked to place the public's benefit ahead of any other constituency.
TAF was recognized by Title
XI as the appropriate mechanism to establish
minimum appraisal standards and qualifications for appraisers. The BOT
(Board
of Trustees) exercises all authority and power of TAF, except
for appraisal standards and qualifications which are performed by two
independent boards. |
| TAFAC = The
Appraisal Foundation Advisory Council;
IAC = Industry
Advisory Council; ECAFS = Education
Council of Appraisal Foundation Sponsors. These are the three councils under TAF that represent
various public and private appraisal occupations and organizations and
provide advisory resources to the ASB, AQB and BOT. |
| USPAP = Uniform
Standards of Professional Appraisal Practice. These are the standards and ethical rules intended for all
appraisal disciplines – real property, personal property, mass,
and business appraisers. USPAP is intended to promote and maintain a
high level of public trust in appraisal services and has been adopted
by government agencies and recognized by courts as the uniform appraisal
standards in our country. USPAP includes SRs (Standards Rules) and SMTs
(Statement on Appraisal Standards). Accompanying advice is also provided
in AOs (Advisory Opinions), provided in the same publication as USPAP,
and FAQs (Frequently Asked Questions) which are published monthly (www.appraisalfoundation.org)
and compiled into an annual reference publication. |
