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Should Jurisdictional Exception go away?

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Couch Potato

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The ASC is of the opinion that the Jurisdictional Exception Rule should be eliminated. It seems they finally realized
The plain meaning of the Rule, in our view, is inconsistent with the Constitutional principle that Federal law reigns supreme. The Rule would allow any State or local jurisdiction to change USPAP (the “uniform standards” incorporated in Title XI) in any manner it deemed appropriate. Carried to an extreme, the Rule would allow a jurisdiction to exempt transactions completely from USPAP, and yet allow the appraiser performing the appraisal in that jurisdiction to be in compliance with USPAP, an illogical result in light of USPAP’s purposes under Federal law.
I tend to think it would be a good idea in the long run. In essence the ASC is looking to elevate USPAP to the level of federal law, applying to real estate appraisals because they say it does rather than because state laws and regulations say it does.
 

PropertyEconomics

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Couch .. what about cases of Eminent Domain where the rules of USPAP and State law are in conflict? I personally think the Jurisdictional Exception rule comes in to play very very seldom but when necessary its necessary.
 

Restrain

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ASC has it's head in the wrong position...as usual. If I'm doing something for a city, federal jurisdiction has no relationship, and the city has it's own set of laws governing the appraisal. We don't live in a one-government entity. It's a republic with multiple jurisdictions and multiple laws. Don't care what the ASC says, I have to comply with the jurisdiction's laws. They trump the ASC every day.
 

Marcia Langley

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Missouri

Because the ASB is an entity within the Appraisal Foundation, it is not a governmental body.
The ASB’s uniform standards,
i.e., USPAP, however, by virtue of Title XI, are Federal law. As a
result, USPAP compliance, when required by Title XI and other Federal statutes, regulations and

Executive Branch agency issuances, “reigns supreme” over conflicting State or local laws.


(my highlight)

Has anyone else ever heard that before? That USPAP is federal law? Isn't that a new interpretation?​

 

Carnivore

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ASC has it's head in the wrong position...as usual. If I'm doing something for a city, federal jurisdiction has no relationship, and the city has it's own set of laws governing the appraisal. We don't live in a one-government entity. It's a republic with multiple jurisdictions and multiple laws. Don't care what the ASC says, I have to comply with the jurisdiction's laws. They trump the ASC every day.

Roger,

I could not agree with you more. For that matter, taking JE out of USPAP does nothing, it still exist wether the TAF/ASB wants it to or not.

To your point, USPAP does not become law until the individual states adopt it as such. Which means in my mind, USPAP is state law with the requirement to follow certain federal law, just as it should be. Thats why, for examle, it drives me crazy why the TAF accepts and issues Q&A's directly from them to the appraisers. Q&A should be addressed only to the appraisers respective state Appraisal boards. The state appraisal boards should then interpret USPAP within the state statutes and issue answers based on state law. The states, if needed, then go to the TAF and ask for clarification on the Q&A's they receive.

This is a power grab and means to expand federalism. A step in the direction of a National Appraisal license.

I am a states rights type of person. :)

--------------------------------------------

After thought:

OK, so they want to set standards at federal level. Lets see if I have this right. This is from the crowd who eliminated the SSR as redundant because we have the SOW. In other words they expanded rule making authority by eliminating a specifically recognized Federal standard(Fannie Mae/Freddi Mac, FHA, VA, FRT) by placing emphasis on the SOW. They gave eveyone rule making authority via SOW! They said that, not the states.

Now they want to move the rule making authority back up to only the Federal level(under a title only in place for lending, not for appraising in general).


Are we confused yet!
 
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Fred

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Virgin Islands
ASC has it's head in the wrong position...as usual. If I'm doing something for a city, federal jurisdiction has no relationship, and the city has it's own set of laws governing the appraisal. We don't live in a one-government entity. It's a republic with multiple jurisdictions and multiple laws. Don't care what the ASC says, I have to comply with the jurisdiction's laws. They trump the ASC every day.
Where did you get the idea that the ASC is talking about anything other than federally regulated transactions?
 

Fred

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Virgin Islands
Couch .. what about cases of Eminent Domain where the rules of USPAP and State law are in conflict? I personally think the Jurisdictional Exception rule comes in to play very very seldom but when necessary its necessary.
And what are these exceptions to USPAP? The only possible one I ever came across is SMT-3 (subsequent sales) and it depends on what you think confirming a trend means.
 
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Fred

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(my highlight)

Has anyone else ever heard that before? That USPAP is federal law? Isn't that a new interpretation?
Penty of times. Don't agree with it. FIRREA instructs the regulators to make sure the banks they regulate obtain appraisals that are compliant with USPAP.
 

USPAP Compliant

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North Carolina


(my highlight)

Has anyone else ever heard that before? That USPAP is federal law? Isn't that a new interpretation?​


Check your state appraisal law. In NC USPAP is specificly named as the Standard for appraisers in the state appraisal board rules.

SECTION 57A.0500

STANDARDS OF APPRAISAL PRACTICE

57A .0501 Appraisal Standards

Every registered trainee, and licensed and certified real estate appraiser shall, in performing the acts and services of a registered trainee, or licensed or certified real estate appraiser, comply with the following provisions of the "Uniform Standards of Professional Appraisal Practice" promulgated by the Appraisal Standards Board of the Appraisal Foundation: Definitions, Preamble, Ethics Rule, Competency Rule, Scope of Work Rule, Jurisdictional Exception Rule, Statements on Appraisal Standards, and Standards Rules 1, 2 and 3, all of which are hereby incorporated by reference. This incorporation by reference includes subsequent amendments and editions of those provisions
 

Mike Kennedy

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New York
TITLE XI FIRREA of 1989

SEC. 1102. ESTABLISHMENT OF APPRAISAL SUBCOMMITTEE OF THE FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL
The Federal Financial Institutions Examination Council Act of 1978 (12 U.S.C. 3301 et seq.) is amended by adding at the end thereof the following new section:

AND

SEC. 1107. PROCEDURES FOR ESTABLISHING APPRAISAL STANDARDS AND REQUIRING THE USE OF CERTIFIED AND LICENSED APPRAISERS.
Appraisal standards and requirements for using State certified and licensed appraisers in federally related transactions pursuant to this title shall be

prescribed in accordance with procedures set forth in section 553 of title 5, United States Code, including the publication of notice and receipt of written comments or the holding of public hearings with respect to any standards or requirements proposed to be established.


* pursuant to this title = codified into law requiring the following >> ( 553 - 5 )

--------------------------------------------------------------------

What is USPAP?
The Uniform Standards of Professional Appraisal Practice (USPAP) are the generally accepted standards for professional appraisal practice in North America. USPAP contains standards for all types of appraisal services. Standards are included for real estate, personal property, business and mass appraisal.
  • USPAP was originally written in 1986-1987 by an appraisal profession Ad Hoc Committee on Uniform Standards and was donated to The Appraisal Foundation in 1987.
  • The Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) of 1989 cites USPAP as the standards to be enforced by state real estate appraiser licensing agencies.
  • USPAP compliance is also required by professional appraisal associations, client groups and by dozens of federal, state and local agencies.
  • USPAP is released on an annual basis. Regulators base enforcement decisions on the edition of USPAP in effect as of the date of an appraisal report.
 
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