Evaluations & USPAP - Question from a bank staff appraiser

[George Hatch]

Got it, much appreciated.

 

[Dale Floyd]

https://www.tn.gov/content/dam/tn/attorneygeneral/opinions/documents/2010/op10-025.pdf

This is the finding of the attorney general as well, pertaining to evaluations and appraisers. Just for informational purposes.

 

[Dale Floyd]

https://support.commerce.tn.gov/hc/en-us/categories/200729068

The section at the bottom right of the Tennessee Appraiser Commission, spells out very clearly their take on evaluations versus appraisals, and the roles of the appraiser in Tennessee doing them. Again, just for informational purposes.

 

[Mejappz]

An evaluation is not an appraisal, nor should be written in a manner that would mislead a reader in believing it is the same thing as an appraisal.

A restricted appraisal is NOT an evaluation.

The concept is easy to understand, although there are a few people on the forum who struggle with it.

 

[Terrel L. Shields]

You seem to think an eval assignment cannot be supplemented with the USPAP minimums. That it's against the law.

If it is a USPAP compliant "evaluation" it is no longer an evaluation... it is an appraisal. It is not appraisal Lite, it is not evaluation plus. The two are separate instruments and in my state, you cannot do an evaluation as an appraiser, and you cannot do an appraisal without at least being registered as an appraiser.

 

[George Hatch]

The concept is easy to understand, although there are a few people on the forum who struggle with it.

You saw how the great state of Tennessee did it, though. By action via their state legislature; explicitly addressing the issue in black/white. Not by making up an appraisal myth as they go.

Meanwhile, even the AI has commented contrary to your talking point:

https://appraisersblogs.com/wp-content/uploads/2012/11/Performing-Evaluations-of-Real-Property-Collateral-for-Lenders-Guide-Note-13.pdf

 

[J Grant]

I have never done an evaluation.

But in the past I did a grand total of two BPO's- which are not labeled appraisals, however I did them to USPAP standards anyway, since regardless of what label is put on a product, I will be held to the USAP standard as an appraiser.
And if we give an opinion of value, we have performed an appraisal regardless if a company or client has a different name for the product or states it is not an appraisal - we can offer a verbal opinion as we know, and it is considered an appraisal.

Idk, it seems pretty clear to me - either conform to USPAP standards when doing an eval if you are an appraiser or don't do them.

As a business decision, If the money for doing evaluations does not mesh with the time spent on one then decline it, which is why I never did another BPO -

 

[Mejappz]

I suppose those 15 other states that enacted similar laws as Tennessee simply bypassed their state legislatures. LOL

 

[djd09]

The Foundation Announces Three Opportunities to Share Your Thoughts about Evaluations.
Concept Paper, Webinar and Public Meeting



(Washington, DC) September 3, 2019 – In early August, The Appraisal Foundation announced that the The Appraisal Standards Board would be considering adopting standards for evaluations in the Uniform Standards of Professional Appraisal Practice (USPAP). Today, we are announcing three opportunities for you to learn more, but more importantly, share your insights. The Appraisal Standards Board (ASB) is committed to hearing from every stakeholder who could be impacted by a decision from the Board.

CONCEPT PAPER

First, the Appraisal Standards Board is seeking your feedback on the concept of developing standards for performing evaluations in USPAP. To read the concept paper click here . Submit your comments to ASBcomments@appraisalfoundation.org. The comment period closes on October 11, 2019.

WEBINAR

Second, Wayne Miller, chair of the Appraisal Standards Board, and John Brenan, vice president, appraisal issues at The Appraisal Foundation will discuss the recently published Concept Paper – Evaluation Standards in USPAP, and they will also answer your questions and comments. The Webinar will be held September 10, 2019 at 1:00 pm eastern. Click here to register for the webinar. If you already have a question in mind, send your questions to aida@appraisalfoundation.org.

PUBLIC MEETING

Third, learn more and share your thoughts at the ASB public meeting on October 18, 2019. The Board will take your questions and welcomes your thoughts concerning creating standards for evaluations in USPAP. You can attend by either watching the meeting livestream or attend in person. Click here to register for the livestream or click here to register to attend in person.

 

[George Hatch]

I suppose those 15 other states that enacted similar laws as Tennessee simply bypassed their state legislatures. LOL

Did I say that? No. I didn't.

But if we're talking about the concepts involved and which of us understands those concepts, the mere fact that not every state references a prohibition (whether explicit or implied) on the labeling is self-explanatory. Unless otherwise required by the feds the states don't even need to have a good reason for what they're doing. They have the authority to make such decisions and that's all it takes.

Let me ask you a serious question and see if you can respond without accusing me of being stupid:

If it was their intent to actively prohibit evals from being performed to appraisal specs then why do you think there is no such prohibition in the Federal Regs?