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What is this? "HB 2533 - appraiser is not required to comply with USPAP effective June 15, 2021".

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Which also means I have no idea if this frees mineral appraisers and petroleum engineers to do mineral appraisals for private parties without complying with USPAP. Or, if timber cruisers can now appraise timber land without compliance with USPAP.
 
I smell liberals. USPAP probably doesn't mesh with diversity and higher values for certain markets.
This was being worked on within the agencies before the liberal woke crowd showed up but with racial appraisal being one of the Administration and HUDS Directors agendas against appraisers- unconsciousness towards their racial bias and un--wokeness -it would certainly make sense to incorporate it into the programs larger goals to lower costs for people of color or ones located in lower income communities. Also in disputes about a low value since Evaluation are so much less expensive a lender could order two or three to see which one accomplished making the borrower happy. Cheaper than a federal Civil Rights discrimination lawsuit and settlement. Also Realtors Nationwide are fairly diverse with a high numbers of people of color and sexual identity and it would certainly be an-easy sell. So if I was a Director of NAR or some other-large trade group I would be all over it like white on rice . Lets face it a 10 person lobby from most organized appraisal organizations looks more like a assisted care facility let 10 old white guys go free : ) LMAO
 
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From the Texas Bill.

(b)AAA certified or licensed appraiser is not required to comply with the standards described by Subsection (a) to provide: (1)an evaluation of real property described by Section 1103.004(4); or an analysis, assessment, opinion, conclusion, notation, or compilation of data concerning the value of an interest in real property described by Section 1103.004(5) for use by a non-bank financial institution.(c)AAA document provided under Section 1103.004(4) or (5) must contain on the first page of the document the following notice: "This is not an appraisal performed in accordance with the Uniform Standards of Professional Appraisal Practice."
 
My under
Which also means I have no idea if this frees mineral appraisers and petroleum engineers to do mineral appraisals for private parties without complying with USPAP. Or, if timber cruisers can now appraise timber land without compliance with USPAP.
My understanding is that lots of different professions self adopted USPAP as a guideline like some Personal Property and Machinery appraisers do but its not a State Mandated requirement like with Appraisers ? A particular organization representing those non-real estate appraisers may require it but again not a State law. that is similar with manufacturing and ISO Standards-its not a law but most even small manufactures adhere to it and have an -ISO administrator on site or they wont get contacts.
 
From the Texas Bill.

(b)AAA certified or licensed appraiser is not required to comply with the standards described by Subsection (a) to provide: (1)an evaluation of real property described by Section 1103.004(4); or an analysis, assessment, opinion, conclusion, notation, or compilation of data concerning the value of an interest in real property described by Section 1103.004(5) for use by a non-bank financial institution.(c)AAA document provided under Section 1103.004(4) or (5) must contain on the first page of the document the following notice: "This is not an appraisal performed in accordance with the Uniform Standards of Professional Appraisal Practice."
LOL - label mania. 1990s thinking. Meanwhile, what really matters is who is doing what. They can't stop an appraiser (licensed or otherwise) from explaining what they're doing.

This
"This is not an appraisal performed in accordance with the Uniform Standards of Professional Appraisal Practice."

can be easily clarified with
However, this workproduct does meet all the minimum requirements of SR1/SR2 of USPAP.
 
We are not a Democracy we are a Republic and last I recall the public never in any State Voted for State Licensing Boards and there Directors are appointed not elected. They are all under administrative law. When it comes to Appraisals State Boards are Under The ASC which is a federal agency that oversees state licensing and certification of appraisers and appraisal management companies. The ASC is part of the Federal Financial Institutions Examinations Council (FFIEC), which coordinates federal banking regulators.

Translation : State Boards do what federal regulators tell them to do . They have some leeway when it comes to local and State issues but can be over-ridden. As the Financial players expand loan programs- waivers and Evaluations they want uniformity Nation Wide without individual State Boards telling them what Appraisers can or cannot do. In order to allow appraisers in-these States to do Evaluations without threat by their State Boards under USPAP Violations the laws have to be changed-Its a positive for appraisers otherwise they will lose all those Evaluations to Realtors and Brokers.

In my not so humble opinion -Rather than fight with Individual State Boards it's easier to lobby the State Legislators to pass Evaluation protections and get USPAP issues gone. The State Legislators know if they don't play ball some of those millions in Federal funds suddenly disappear. In my opinion I also think many believe the way Individual State Boards -USPAP and the entire structure is way outdated-ineffective and we need Nationwide Conformity.
I would not be surprised if Licensing in the next 5 years goes Federal where FHFA- and all agencies and Lending laws are more in conformity.

I think Jim-Bob- And Jake over in the Louisianan-Board and some other Pow-Dunk Boards have pissed off the Big Dogs In The Cages at the FTC and the Feds and bankers and GSEs have said enough we have to get control of these loose cannons. But, But, But, What we going to do with 55 State Boards ? who agree on nothing except and waste appraisers money and sell us USPAP every 24 months. Hey Jake Ya think the $600.00 Covid-19 exterior is on the way out ? Response: Yes we have a million Realtors Nationwide and lots of people we can train in a 5 days on-line courses on how to do evaluations and we here at NAR will offer free coursework-free legal hot-line and add another 100,000 to our membership-- Gee Angry-Cat you are so smart : ) LMAO
You don't deal with as many NAR members as I do and their logic. Our local MLS board has had licensed appraisers on the board for ages to bring NAR members back to reality.
 
From the Texas Bill.

(b)AAA certified or licensed appraiser is not required to comply with the standards described by Subsection (a) to provide: (1)an evaluation of real property described by Section 1103.004(4); or an analysis, assessment, opinion, conclusion, notation, or compilation of data concerning the value of an interest in real property described by Section 1103.004(5) for use by a non-bank financial institution.(c)AAA document provided under Section 1103.004(4) or (5) must contain on the first page of the document the following notice: "This is not an appraisal performed in accordance with the Uniform Standards of Professional Appraisal Practice."
YES BUT when the apprarsier does an-Evaluation he/she has to remove his apparsiers hat and put on his Evaluators hat because he/she want to make it clear that it's not an-appraisal -You do not attach or use your appraisal license number because its not an-appraisal .

The USPAP instructor-best described this in a class when he said you can be a licensed appraiser-broker-agent- and attorney BUT each engagement you are wearing a different hat and flying a different flag and what you don't want to do is step over the line and make anyone believe you have over-stepped into an-other profession--THIS IS where appraisers were getting into trouble for doing BPO -Broker Price Opinions and using their appraisal license numbers and signing as appraisers. As a Broker I don't tell lenders or borrowers or even other Realtors unless I am acting in teh copacity of a Broker. As an-Evaluator -that what I am and I sign it and date it as the Evaluator -no other profesional licenses or titles are given .
 
The appraisers are a great teaching tool for real estate agents as well. Real estate agents are a great source of info for appraisers. "Market Value" definition is very important in the whole process. RE agents many times lose that focus due to motivations. No need to get rid of USPAP. "Market Value" definition is not likely to change much. Development needs to improve.
 
YES BUT when the apprarsier does an-Evaluation he/she has to remove his apparsiers hat and put on his Evaluators hat because he/she want to make it clear that it's not an-appraisal -You do not attach or use your appraisal license number because its not an-appraisal .

The USPAP instructor-best described this in a class when he said you can be a licensed appraiser-broker-agent- and attorney BUT each engagement you are wearing a different hat and flying a different flag and what you don't want to do is step over the line and make anyone believe you have over-stepped into an-other profession--THIS IS where appraisers were getting into trouble for doing BPO -Broker Price Opinions and using their appraisal license numbers and signing as appraisers. As a Broker I don't tell lenders or borrowers or even other Realtors unless I am acting in teh copacity of a Broker. As an-Evaluator -that what I am and I sign it and date it as the Evaluator -no other profesional licenses or titles are given .

The definitions are based on and comprised of what the individual is doing, and what the expectations are for that service, not on the nomenclature being used to describe it.

So what is the individual doing in one of these assignments? They're doing a 3rd party opinion of value in an impartial and unbiased manner.
What are the user expectations for that service? Impartial and competent opinion of value

It doesn't matter what labels are being applied to the individual or to the service. As for applicability...

applicable.JPG
 
LOL - label mania. 1990s thinking. Meanwhile, what really matters is who is doing what. They can't stop an appraiser (licensed or otherwise) from explaining what they're doing.

This
"This is not an appraisal performed in accordance with the Uniform Standards of Professional Appraisal Practice."

can be easily clarified with
However, this workproduct does meet all the minimum requirements of SR1/SR2 of USPAP.
George did you spend one minute thinking what you are saying ? Quote: This is an-"not" an-appraisal performed in accordance with the Uniform Standards of Appraisal Practice !--However this work product does meet all the minimum requirements of SR1/SR2/ of USPAP --Thats what USPAP calls a Limited appraisal that had a lessor scope of work where you were able to skip some processes etc. BUT its still an -appraisal. On Non-Appraisal products like Evaluations- CMA-Brokers Price Opinions-do not Fall under State Appraiser laws or guidelines and yes a licensed apprarsier acting in a different capacity can use whatsoever standards he wants to adhere to but once you invoke USPAP- You have now stepped into a liability landmine because you have to decide what you want-to be when you-grow up - if you want to be an-appraiser adhering to USPAP thats fine but when you change hats and produce a lesser cheaper product that doesn't even require any kind of license and when your State Board rules Evaluations are not appraisals and not under USPAP you take that gift- you dont pull yourself back up under USPAP because now you have completed-an -appraisal and you are not an -Not an Evaluator.

Example : I am a Commercial Broker and we sometimes do Evaluations on small Commercial or land. Even though I am also an -appraiser I have to careful keep my two licenses -practices and Insurance separated although as I prepare a Evaluation I may adhere to some USPAP guidelines which often help keep even an Evaluator between the white lines once I even mention USPAP I have open the door to someone believing I am giving them a superior product and maybe even an appraisal- No I am giving them an Evaluation and I don't want to state or certify my Evaluation met SR1/SR2 because now I opened myself up to liability and possible inferring because I am also an appraiser I provide a better product . Imagine some person I did an -Evaluation for was not satisfied and had no idea who to file a complaint with- They call an -attorney or a guy like me and the disgruntled person says well its says its SR/1-SR2-USPAP Compliant - BINGO - immediately I say BINGO - USPAP is Appraisal standards and once he invoked any part he is held up to those standards so file the complaint with his State Appraisal licensing Board .
 
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