The New USPAP

[George Hatch]

I know 2 USPAP instructors who were sanctioned for violations. Now, do I need to say that both had their license revoked? Do I need to add I can think of 2 board members that were also sanctioned? If USPAP was simple, straight-forward, and unchanging, then more people would know the difference. I doubt any of the 4 above THOUGHT THEY WERE VIOLATING USPAP...mind you one of them used to post here. He and his wife both lost their license.

The book is not well written and leaves a lot to be desired to be a credible and easily understood book. It is as opaque as Tax regulations. Having black and white rules in a sea of gray scale means too many situations are neither easy to divine nor are they going to be interpreted the same by everyone. We need only go the USPAP section here to see that. Add to that mix the overlay of rules from FHA, FNMA, etc and you have a real can of worms.

We've been through this a dozen times over the years - if they were savvy enough to pass the instructors course AND working in good faith then the only way they get into serious trouble is via incompetence at the state board by board members.

Seriously, what could an appraiser do who's working in good faith to get their licenses revoked on the legitimate basis. Revocation is reserved for the worst of the worst, not some freaking typo or a disagreement of opinion about an adjustment. The way you get your licensed revoked on a legitimate basis is by committing crimes or fraud.

If you don't think the material is understandable then feel free - show me an example. And please lets not get into mineral and timber niches that 99.9% of appraisers don't even work.

 

[Ricky LaFleur]

if they were savvy enough to pass the instructors course AND working in good faith then the only way they get into serious trouble is via incompetence at the state board by board members

May be incompetence, but they're using their interpretation of what they believe USPAP requires, right or not. Like, how many sanctions have you seen that included a neighborhood description that the board found incorrect? Too many to count. The main components of USPAP aren't very complicated, but they can be misapplied or "interpreted" differently. One board member stated they believed the portion about actions of your peers being basically worthless. I'm not certain what system could better regulate than what we have, but this one... has some issues.

 

[Terrel L. Shields]

Seriously, what could an appraiser do who's working in good faith to get their licenses revoked on the legitimate basis. Revocation is reserved for the worst of the worst, not some freaking typo or a disagreement of opinion about an adjustment. The way you get your licensed revoked on a legitimate basis is by committing crimes or fraud.

No. You get it by ticking someone off - bad interview to being too defensive about a real mistake.

One of the ones who lost his license was a great instructor - best guy with appraisal math & the 12C I've ever seen and I've had 12C classes with another. I've taken environmental classes, M & S class, Narrative writing class, pre-test prep (I passed first time.) He got in trouble with a student who made the actual error and he didn't catch it. I sort of gave him a bye but he moved out of Arkansas as a result, to his former hometown. He then went to work for a fellow who was a past president of NAIFA. Good guy. Was taking a CE course with him and we were discussing the guy. He told me he had hired him and was surprised as how poor an appraiser he was. He asked him to quit. You never know. Again, he knew his class work but somehow was not good at applying it. I seriously doubt he was attempting deliberate fraud or was incompetent on any one thing. He just could not synthesize the whole problem and never understood how he was not complying with USPAP.

The other was a combative fellow indeed on the forums here. I really like him but he had some quirky ideas about depreciation, with the thought that most homes basically would never have an effective age over 30 because you'd remodel by then. Well, not the way I as taught and apparently the OK board felt the same way. By overestimating the remaining life, it led to significantly higher numbers in the CA than in the SA, and an AMC objected. I see a lot of appraisers who misunderstand how to value land, and it shows in the hearings but again, most of these folks really honestly do not understand the process of abstraction and extraction and as a result blithely go about until they get nailed. Some never do.

Poor technique is the result of poor training, and poor training is the product of poor education. Too many appraisers concentrate upon filling the forms correctly and not actually understanding basic principles. But that does not mean they commit deliberate fraud. And frankly almost zero CE today actually teaches fundamental principles.

 

[George Hatch]

This happened a long time ago. I can't see it happening that way these days. TBH I don't think appraisers should even get criticized over an opinion. When I review I never hassle opinions. I go for the facts. If the facts are straight then the results almost can't be unreasonable.

When I read these summaries the reasons being given are clear cut and don't involve subjective opinions.

 

[Fernando]

This happened a long time ago. I can't see it happening that way these days. TBH I don't think appraisers should even get criticized over an opinion. When I review I never hassle opinions. I go for the facts. If the facts are straight then the results almost can't be unreasonable.

When I read these summaries the reasons being given are clear cut and don't involve subjective opinions.

I believe choosing the right comps is essential in getting an accurate appraisal value.
You can look at the facts but if you don't understand why better comps are not used, it's wasted efforts in your review.

 

[Dublin ohio]

You can look at the facts but if you don't understand why better comps are not used, it's wasted efforts in your review.

The comps are part of the facts you look at. But if I remember. You don't do reviews

 

[Fernando]

The comps are part of the facts you look at. But if I remember. You don't do reviews

Do reviewers take the word of the appraiser in neighborhood boundaries?
Sometimes I can't define the neighborhood boundaries and I make judgement in how the neighborhood is in getting my comps.
Review appraisers not familiar with local neighborhoods fail in their job.
That's why there are bias lawsuits because the neighborhood wasn't define correctly.

 

[andrew81]

Not sure exactly what you are talking about. The new USPAP book has the same layout as the previous book. It's just separated into more than one volume.

Even if it were different, print to pdf, and use search.

 

[Fernando]

Even if it were different, print to pdf, and use search.

Some don't know how to print to pdf and search.
USPAP needs to not make things complicated.

 

[andrew81]

You are the reason I would never want to be an elementary school teacher