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

[Mejappz]

But, in my state, they are NOT appraisals, simply because in my state that is what the law says.

Exactly. Neither is it in my state.

 

[George Hatch]

I agree with the first point. But how different they are is a different story. Not only do you not have to follow standards 1 and 2--but you also don't have to maintain a work file for five years. You can if you want, but it is not a requirement.

So what you're saying is that you know you're not prohibited from acting like a professional in those assignments.

Just out of curiosity, when compared to what the requirements actually are for an eval assignment, how much time/effort would you guess you can save doing one of those as opposed to doing an appraisal with the same SOW?

That is not a trick question.

 

[Mejappz]

So what you're saying is that you know you're not prohibited from acting like a professional in those assignments.

I don't understand you're question be more specific.

 

[George Hatch]

The laws and regs do not establish an upper limit of conduct and performance. Same as with client expectations.

In this example the state law is exempting this appraisal work from their jurisdiction, which is their right. That doesn't amount to a prohibition against rendering services in a manner that still complies with the professional standards that we assert.

Regardless of what labels are in play, the overarching ethos of providing services to intended users in a manner which is meaningful and not misleading still remains.

 

[Mejappz]

Did you read my previous post? The bill passed in Florida states that a person completing an Eval has to do so Ethically and competently.

 

[Terrel L. Shields]

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.

Interesting concept. In Oklahoma, a lot (not that there all that many) of the ROW appraisers who contest state takings are unlicensed after the DOT stacked the board and started initiating complaints against certified appraisers who won in court. One fellow lost $50k in business and legal fees fighting (and winning) in court. He was unable to testify in court for nearly 2 years. Several well established appraisers - including an NAIFA USPAP instructor dropped their licenses over the issue. The courts they had long worked were comfortable with them and the state allows non-appraisers except for FRTs.

Arkansas allows "Registered" appraisers (non-USPAP appraisers) to testify, etc etc. But for FRTs you need to be licensed or certified. However, evaluators claim immunity from that "registered" classification. No one has contested it. They say federal law trumps the state regulation.

It's a **** storm anyway you look at it.

 

[Terrel L. Shields]

person completing an Eval has to do so Ethically and competently.

Isn't that like "Customary and Reasonable" ?

 

[Mejappz]

Isn't that like "Customary and Reasonable" ?

Don't get me started on that.

 

[George Hatch]

Interesting concept. In Oklahoma, a lot (not that there all that many) of the ROW appraisers who contest state takings are unlicensed after the DOT stacked the board and started initiating complaints against certified appraisers who won in court. One fellow lost $50k in business and legal fees fighting (and winning) in court. He was unable to testify in court for nearly 2 years. Several well established appraisers - including an NAIFA USPAP instructor dropped their licenses over the issue. The courts they had long worked were comfortable with them and the state allows non-appraisers except for FRTs.

Arkansas allows "Registered" appraisers (non-USPAP appraisers) to testify, etc etc. But for FRTs you need to be licensed or certified. However, evaluators claim immunity from that "registered" classification. No one has contested it. They say federal law trumps the state regulation.

It's a **** storm anyway you look at it.

Dodging your state board because appraisers believe the individuals being appointed are acting incompetently or unprofessionally is a separate issue. I agree that it's not a trivial issue, but if that's the argument then people should be stating it that way. Not trying to hide behind the labels in order to get away from "meaningful and not misleading".

TBH, I believe the primary impetus behind these efforts has a lot more to do with tribal control than with professionalism or appraiser liability.

 

[Terrel L. Shields]

Dodging your state board because they are acting unprofessionally is a separate issue.

Just an example of where a license is not required. FIRREA was intended to regulate banks and their appraisers. While USPAP was touted as the greatest thing since sliced bread and butter, it's also quite apparent that sometimes the bread falls but it always lands on the buttered side. There was no reason to regulate non-FRT appraisers in the first place. The Evaluation standards were an afterthought- and an ill-thought out concept pushed by banks. In reality, in much of the country, banks could use evaluations 100% of the time...in theory. In reality, the FDIC once made a bank revalue every single commercial property they had in their loan portfolio. The "evaluator' for that bank not only owned stock in the bank, her father was a major shareholder, and she was employed as their evaluator. The FDIC said that was a little too cozy and despite some properties being worth no more than $20k they required the bank to revalue all of them with a certified appraiser. I know, because I was one of the appraisers they used.