May 23, 2019 – Licensed appraisers will finally be allowed to perform non-USPAP Evaluations for financial institutions. I like how the State makes it clear that Evaluations are not even real estate appraisal activity. Strong statement. Below is from the Appraisal Institute:
SB 109 will allow state-licensed and state-certified appraisers to provide evaluations to financial institutions beginning Jan. 1.
The new law clarifies that a person who is licensed or certified as an appraiser is not engaged in real estate appraisal activity when providing an evaluation that includes a required disclaimer and are not required to, but may choose to, comply with the Uniform Standards of Professional Appraisal Practice when providing evaluation services to financial institutions. Providing evaluations is not considered a real estate appraisal activity, and therefore appraisers are not subject to the jurisdiction of the Oregon Appraiser Certification and Licensure Board.
SB 109 also clarifies that financial institutions may utilize evaluations provided by third parties, and such activity does not constitute real estate appraisal activity. Currently, an evaluation is only exempt from the definition of “real estate appraisal activity” if it is prepared by the financial institution.
In testimony supporting the legislation, the Coalition of Oregon Real Estate Appraisers stated, “We believe Oregon’s citizens and financial institutions would be best served and protected by allowing appraisers to perform evaluation services.” COREA concluded, “We are not opposed to qualified non‐appraisers performing evaluations, however, [sic] we strongly feel that it is in the best interest of Oregonians that those most qualified to perform evaluations (appraisers) not be prohibited from doing so.”
April 19, 2019 – It has been exactly 25 years that I have been campaigning for non-USPAP Evaluations to be performed by licensed/certified appraisers. Most of the time it has been a one-man campaign. Thankfully, times have changed and appraisers have come around to the need for Evaluations.
It looks like this year will see many States pass the requisite law to allow its most qualified valuers to finally perform non-USPAP Evaluations. If your State isn’t mentioned below, I encourage you to take action. For almost 30 years, non-appraisers have been doing all the Evaluation work in your State. With Evaluation volume about 4x-6x that of Appraisal volume think how much business you have missed out on:(
The following are from the Appraisal Institute:
Utah Allows Appraisers to Perform Evaluations for Federally Regulated Lenders
Utah Gov. Gary Herbert on March 26 signed SB 140
, legislation that allows state-licensed and state-certified appraisers to perform evaluations for federally regulated financial institutions.
Under the new law, appraisers who provide evaluations in compliance with the Interagency Appraisal and Evaluation Guidelines are exempt from compliance with the Uniform Standards of Professional Appraisal Practice. Appraisers will sign the evaluations, certifying that they comply with the IAEG. However, they must still abide by the basic elements of USPAP’s Ethics, Competency, Scope of Work and Recordkeeping rules. This concept has been advanced by several Appraisal Institute chapters in recent years.
The legislation takes effect May 14.
Alabama (HB 304
) Louisiana (SB 42
) and Oregon (SB 109
) are considering bills that will amend appraiser licensing laws so that appraisers can perform for financial institutions evaluations that do not comply with the Uniform Standards of Professional Appraisal Practice when not required by federal law. If the laws pass in these states, they will join Florida, Georgia, Illinois, Indiana, Tennessee, Utah, and Virginia in allowing appraisers to perform these services.