USPAP class for the thirteenth time

[sputnam]

"You might understand it well and comply every time but, I see USPAP violations every work day and that tells me that many of our fellow appraisers don't know and understand USPAP."


What violations are you seeing....

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I'm not a fan of taking USPAP (and/or any CE courses) every 2 years....

I liken appraiser's license to driver's license....
You take driving lessons, you take and pass the written, driving and vision tests, you pay for renewals every few years....
No major moving violations, no further tests required....

Most of the violations I see are in residential reports and mostly Standard 2 issues. Sorry... but it is just true... most commecial appraiser do a better job. One of the most common is using a hypothetical condition or extraordinary assumption and failing to state that it's use might affect assignment results. Another common violation is not summarizing the support and rationale for the opinion of Highest and Best Use. Sometimes I see reports that cite the Departure Provision.

Anyone is allowed their own opinion about whether some USPAP requirements are absurd or not... are needed or not. What isn't allowed, for appraisers, is to just ignore the requirements they don't happen to agree with. Or to claim... 'That doesn't have anything to do with the value'.

It is neither immoral or unethical to adhere to GSE requirements unless a GSE wants you to do something that is immoral or unethical. I've never had a GSE ask me to do something immoral, illegal, or unethical. I have had mortgage people... brokers particularly... ask me do to things that were improper. So what? All you have to do is say 'No'.

 

[Mark K]

IMO, some of the changes made to USPAP in the last few iterations appear to have been made specifically to mold it to the desires/demands of the GSEs and the secondary market.

I am unaware of these entities having the 'public trust' or the best interest of the public in mind. Follow the money.

 

[J8012]

Wrong.... You are learning endurance and submission.

uggh so true

 

[George Hatch]

IMO, some of the changes made to USPAP in the last few iterations appear to have been made specifically to mold it to the desires/demands of the GSEs and the secondary market.

I am unaware of these entities having the 'public trust' or the best interest of the public in mind. Follow the money.

(not specific to you, but to the question itself because a lot of people share this opinion)

Okay, cite a couple of those changes and lets talk about them. Lender specific and not really relevant WRT other uses/users.

To refine the question, which hardwired requirements in USPAP do you think should be moved to the user's policies instead? Applicable only if/when working for that particular user.

 

[djd09]

The only ones that need to be euthanized are every single employee at TAF, the GSEs/HUD, and the ASC. Deep down these sewer rats know they deserve it. Poor peanuts and their owners. They are another casualty of a government that does not represent those who voted for them but instead, those who write their checks.

USPAP is so bad...that mortgage brokers dont use when estimating value for their waivers ask DW

 

[djd09]

Want to Avoid 12 Common USPAP Violations? Read this!​

09-10-2014 by: Christine Anderson

The Uniform Standards of Professional Appraisal Practice (USPAP) are the quality control standards applicable for real property and business valuation appraisals. What you may not know are the most common USPAP violations. This list below includes the most frequently encountered violations by TALCB's staff appraiser-investigations when investigating complaints filed with the Board. With this insight, you will be able to communicate more effectively in your appraisal report and successfully avoid missteps when completing an appraisal assignment.

Interested in a full version of the TALCB investigative report? We have provided it here for your information.

How-to avoid the most common USAP violations:​

1. Select comparable sales using recognized methods and techniques​

What to avoid:

• Leaving the neighborhood when sales data is readily available in the immediate area
• Searching by price
• Avoid utilizing sales of superior quality, superior site characteristics, and superior amenities when more similar sales to the subject were readily available
• Missing or lacking documentation; a lack of documentation in your workfile for the comparable sales and search criteria selected is a red flag to auditor

2. Provide market analysis that is sufficient and in-depth; make sure it is credible for the intended purpose​

What to avoid:

• Improper delineation of neighborhood boundaries;
• Failing to identify the relevant characteristics criteria of the neighborhood
• Missing market trends, including the analysis of bank-owned properties and/or the analysis of current listings in the neighborhood

3. Report and analyze all current agreements of sale, options and listings and the sales history dating back three years​

What to avoid:

• Overlooking or failing to analyze prior listings when the listings would have a significant effect on the credibility of the assignment results
• Do not fail to reconcile this data with other data in the report

4. Support and identify adjustments in market value appraisals based on recognized methods and techniques​

What to avoid:

• Developing paired sales analysis without documenting in the appraisal report or
• Don’t utilize “rules of thumb” adjustments without documenting market-based support
• Avoid misrepresenting in the report that a method and technique was utilized when in fact it wasn’t

5. Accurately develop and communicate cost approach, estimate of site value, and the estimate of accrued depreciation​

What to avoid:

• Stating that certain methods or techniques were used when they weren’t
• Relying on County Appraisal District estimates of site value without a proper basis
• Don’t provide unsupported estimates of effective age and economic life

6. Comply fully with the representations made in the certifications signed and included in the appraisal report​

What to avoid:

• Don’t state in the certification that you inspected the subject property when in fact you had not
• Failing to identify persons that contributed significant assistance to the appraisal report

7. Edit canned statements or boilerplate to avoid conflicting, inappropriate or incorrect statements to produce a misleading appraisal report​

What to avoid:

• Making statements not applicable to the appraisal

8. Identify, analyze, and report the relevant characteristics of the site and improvements of the subject property in sufficient detail​

What to avoid:

• Failing to report and describe the specific and accurate zoning for the subject property
• Misrepresenting the subject's gross living area (GLA); for example, by making a significant misstatement of the total GLA, or including the area of auxiliary units, enclosed patios, and/or converted garages when inappropriate to do so
• Failing to report and analyze easements on the property
• Not reporting or and analyzing the existence of detrimental site conditions on adjacent properties

9.Provide an adequate analysis, rational and support of the appraiser’s opinion of highest and best use​

10. Effectively communicate the assignment results in sufficient detail to enable the intended users to understand the appraisal report properly​

What to avoid:

• Inadequately describing remodeling or repairs to the subject property
• Failing to report and describe additional features of the property such as a swimming pool or barns
• Not reconciling the quality and quantity of data available and analyzed
• Failing to reconcile the relevance of the approaches, methods and techniques used to develop an opinion of value

11. Maintain a proper workfile containing all data, information and documentation necessary to support the appraiser’s opinion of value​

What to avoid:

• Missing pieces of the workfile or failure retrieve the workfile from another party
• Failure to make a workfile available when required by a state regulatory agency

12. Develop, apply, and disclose a credible scope of work (this includes extraordinary assumptions and hypothetical conditions)​

What to avoid:

• Not disclosing the scope of work actually performed
• Not stating the extraordinary assumptions and hypothetical conditions relied on in the assignment

https://www.talcb.texas.gov/public/news-articles/want-avoid-12-common-USPAP-violations-read

all for 300 bucks...and they shorted number 3...within the normal course of business

 

[George Hatch]

You never know, by this time next year it might be $200. In some towns. Probably not in others, though. Local market conditions prevail.

 

[djd09]

here is one suggestion for criminals on 15th st...let the appraisers be advocates...and let the good times roll

 

[djd09]

with a pen and an eraser...i would make appraising great again...it would be bye bye commies

 

[Mejappz]

with a pen and an eraser...i would make appraising great again...it would be bye bye commies