The Foundations Authority

[Terrel L. Shields]

You know, the participants in this discussion are becoming a little testy but this has opened a pandora's box in my feeble mind. If the issue alone is copyright, then it is separate from the issue of authorization.

I have long opposed unfunded mandates from the US govt to states. This is a classic case. A) the states were required to adopt USPAP whether they wanted to or not. REQUIRED. You can dance around the issue of saying they had a choice, like having a choice in 1974 to NOT reduce the speed limit to 55. To exercise that option would have cost the state MILLIONS every year. B.) USPAP therefore is NATIONAL LAW (in my mind) and LAW ought not to be copyrighted. C.) The Foundation is supposed to be private.....does that mean we could vote ENRON as the rule writer for electric deregulation? EXXON to write energy policy? GREENPEACE to write environmental policy? Where does this crap end?

The states are forced to administer appraisal regulations they have absolutely no control over that should be national in scope, uniform across the nation and FUNDED by the U. S. GOVERNMENT. The foundation should be abolished. All 50 state boards should be abolished and a NATIONAL board created. I support Georgia asking questions. IF the appraisers of this nation should be regulated by the STATES, then those states should have some say-so in whether USPAP meets their needs, whether the FOUNDATION has any thing to tell them, and whether the AQB and ASB should determine state law, etc.

The FIRREA legislation that implemented the appraisal regulation is forcing states to do the job of the federal government without allowing the states ANY power whatsoever to actually regulate appraisers.

In regulating construction of buildings the states adopt one of various codes whether it be the Southern Building Code or something else. If we have real deregulation why not allow states to choose between USPAP and say, a similar code or codes promulgated by perhaps a concert of appraisal societies, say call it American Standard Appraisal Practice (ASAP).

If the Appraisal Foundation is truly private, then it should not mind to compete in an unregulated environment. I believe a lot of states would be under pressure to adopt a simplier and clearer set of regulations than USPAP if there was an alternative that was not written by a drunken engineer turned lawyer [the only plausible explanation for the awful text of USPAP].

 

[Terry Russell]

Terrel,

Just a couple of cents worth and no damn gibberish. After plowing through the copyright issue, I believe I could add a bit to your ideas.

Here we go again, the ASB holds the copyright to USPAP. And if you read Section 107 of the USCO code you will see there is nothing written about enforcement of the

standards. Also the holders of the copyright can prevent its use as an enforcable standard if the ASB interpretation differs greatly from the other users (the States
Regulatory Boards). The states can/must? use USPAP but they can not diminish from its original intent. The only way around this is to write different standards, because

if the state adopts USPAP it is the whole banana. I know Henry Harrison wrote USPAP in 1991 I wonder what hapened in that case. You spoke of a National Standard in
place ofUSPAP. Isn't that what USPAP is, or supposed to be? This is worthy of further discussion. but I am a little worn out right moment so I guess who'll see if anyone
else hasideas. It wouldn't be entirely impossible, the difficult part would be getting states to adopt a new standard. As I said before I like USPAP and I like the way it's
written, but I probably would not like the way it would be interpreted if used against me. That is all for now. Terry

 

[bradellis]

Terry,

A part of your post:

"if the state adopts USPAP it is the whole banana. I know Henry Harrison wrote USPAP in 1991 I wonder what hapened in that case."

1. I have no idea WHAT you are talking about. Henry Harrison, as far as I know, had NOTHING to do with writing USPAP. Henry is a great guy and a big asset to our profession, but attributing USPAP to him is blatantly wrong.

2. FIRREA mandates appraiser licensing- for FRTs (federally related transactions). States do NOT have to adopt it within their own laws or rules. Most or all have, but it never was mandatory for compliance with anything other that FRTs. It still is not.

3. The first issue of USPAP was published in January of 1989. It became the national standard in 1989 when Congress referenced it in Title XI of FIRREA.

Brad Ellis, IFA, RAA

 

[Terrel L. Shields]

actually Brad many states have adopted USPAP as the standard for all appraisals. Arkansas now has a class of appraisers known as Registered appraisers. But the restrictions on them are so great that they literally cannot use traditional appraisal forms to appraise because of the references to the report as an appraisal and or compliance with USPAP. Thus, these registered appraisers, in theory can appraise so long as they state the report does not comply with USPAP (therefore cannot reference it as a basis for the appraisal). Otherwise they must have the signature of a certified appraiser. I bet there have not been 15 reports prepared under the "Registered" label in the state since the Reg. Lic. law took effect.

 

[Terry Russell]

Brad,

You are quite correct in regards to Henry H. and USPAP. I stand corrected. It was late my head was foggy and so and on. But what I must have been thinking of is this.
I came across a reference to a publication by Henry Harrison in 1988 called "Standards of Professional Conduct and Practice". There was not much more than that, but I am still looking, just out of curiousity more than anything. Thanks for catching that. Terry

 

[bradellis]

Terrell,

Of course many states have adopted USPAP- probably most if not all.

Is the AK registered level similar to the traineee level in many states? Or is this some sort of hybrid?

Brad Ellis, IFA, RAA

 

[bradellis]

Terry,

No problema.

Actually, I've been trying to come up with an example of another copyrighted publication that has become "law". Cannot think of one, but the exchange between you and Don is interesting. Makes not only for good reading, but is thought provoking as well.

Brad Ellis, IFA, RAA

 

[Bob Ipock]

Brad,

Our state board rules (in North Carolina) say that all appraisals performed must comply with USPAP. Also, the Appraisers Certification we sign for Fannie Mae, Freddie Mac states that we have complied with USPAP.

Almost every loan that is sold ( I am sure there must be an exception) will have some language that appraisals must be USPAP compliant.

So in my case, every appraisal I make, must conform to USPAP, not only required by state law but but the requirements of Fannie and Freddie.

This is very strange, in that most lenders and brokers have no clue what USPAP is or says, yet THEIR AGREEMENT with the people that buy the loans they make, REQUIRES USPAP compliance.

I have made copies of some of these doccuments that require me to comply with USPAP and often fax them to clients who are unaware that THEY (the lender broker) have agreed to supply a USPAP compliant appraisal when they try to sell the loans.

NC just started a license program for lenders and brokers (for each indivdual loan officer) effective 07/01/2002, which will require CONTINUING EDUCATION each year. I hope to put together a USPAP Class for Lenders that will help them become aware of some of the USPAP stuff that THEY need to know. I expect many appraisal instructors will be putting together some CE classes that will help inform these folks.


Bob

 

[Don Clark]

Bob,

Good for you. Great idea.

Don Clark, IFA

 

[Anonymous]

You asked >>AK registered level similar to the traineee level in many states? Or is this some sort of hybrid? <<

Donno what they do in Alaska, but in ARkansas the Registered Appraiser law was passed over the objections of the AALCB who did not want the responsibility.

Requirements for RL is $50 and get a course in USPAP by Dec. 31. No tests, no required courses except USPAP. But if you claim to prepare a report by USPAP you must have the signature of a Certified Appraiser on the report. YOu can do non-USPAP reports on your own.

I do not know why this was such a big deal. Some legislator/ realtor/ appraiser dork created this law in last session of state legislature. It has not done one blessed thing to the best of my knowledge.

Arkansas started out with a Transitional License from 92-94± , which I qualified for, but it was phased out in 2-3 years, by which time I had passed the Cert. test and experience hours. The RL law does not even have the TL hours requirement.

Ter