March 30, 2016 – I’ve been campaigning since 1994 to get states to pass laws that allow licensed appraisers to perform non-USPAP compliant Evaluations. After 22 years, we finally have the third State to invoke such a law. Congrats to Indiana and all of its appraisers that can now compete on a level playing field.
We have a long way to go. But, hopefully, this is gaining steam and appraisers in every state will get to work on getting similar laws passed sooner than later. I think the Tennessee law is the best, but the Indiana wording is very good, too.
The following is from the Appraisal Institute’s Appraiser News Online:
Indiana Law Allows Appraisers to Perform Evaluations
Indiana became the third state to allow state-licensed and state-certified appraisers to perform evaluations without having to comply with the Uniform Standards of Professional Appraisal Practice when Gov. Mike Pence signed SB 300 into law March 21.
Under the provisions of the bill, the requirements of Indiana’s existing appraiser licensing and certification law, including USPAP-compliance requirements, will not apply to:
“The performance of an evaluation of real property by an employee, an officer, a director, or a member of a credit or loan committee of a financial institution, or by any other person engaged by a financial institution, in a transaction for which the financial institution would not be required to use the services of a state licensed appraiser under regulations adopted under title XO of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989.”
Under the new law, state-licensed and state-certified appraisers will be able compete with other providers of evaluation services, including brokers and salespersons, and will not have to comply with USPAP when performing evaluations for transactions in which a federally regulated institution is not required to obtain a USPAP-compliant appraisal.
The other two states that currently have similar allowances for state-licensed and state-certified appraisers are Tennessee and Georgia.