Maryland Removes References to USPAP Advisory Opinions

[Mike Kennedy]

Maryland Removes References to USPAP Advisory Opinions
On April 8, the Maryland Commission of Real Estate Appraisers, Appraisal Management Companies and Home Inspectors completed action on rulemaking that removed the Advisory Opinions and Frequently Asked Questions of the Uniform Standards of Professional Appraisal Practice from being incorporated by reference into the state's appraiser licensing and certification laws. > FULL STORY

 

[Meandering]

UNIFORM STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE (USPAP)

The Financial Institutions Reform, Recovery and Enforcement Act
of 1989 recognizes USPAP as the generally accepted appraisal
standards and requires USPAP compliance for appraisers in
federally related transactions. State Appraiser Certification and
Licensing Boards, federal, state, and local agencies, appraisal
services, and appraisal trade associations require compliance
with USPAP.
Standards: Provide performance standards for real property,
mass, personal property appraisal and business valuation.
Statements: Clarify, interpret, explain, and elaborate on
appraisal standards.

Also, includes the following guidance (Which, although bound with, are not a part of, USPAP, because FIRREA called for Uniformed Standards, not Uniformed Guidance) from the Appraisal Standards Board (ASB):

Advisory Opinions: Offer advice and resolutions for appraisal issues and problems.
Frequently Asked Questions: A compilation of questions and responses regarding USPAP to be used as a reference for appraisers and users of appraisal services.

State Boards are federally mandated to enforce Uniform Standards, not ASB guidance.


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[Jon Liberatore]

Mike Kennedy, So What Does That Mean Now That Md Has Removed That Info?

 

[Mike Kennedy]

The State will enforce the "letter of the State Law". Whether or not Judges will permit Attorneys can introduce recognized appraisal industry texts i.e. The Dictionary of RE Appraisal, The Appraisal of Real Estate, the USPAP supplemental guidance, interpretations and opinions in defense of complaints against State Licensed Appraisers remains to be seen. Should the "bellweather" Law survive any challenges, it is possible other States may follow Maryland's "lead".

 

[Meandering]

It's going to cause a problem for REOs assignments, as exposure time is a USPAP defined term, while Marketing Time is not a USPAP defined term, and clients want a value in a restricted time frame, and the Dictionary of Real Estate Appraisal changed the definition of Liquidation Value, which is also a USPAP undefined term.

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