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| Industry News
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Quality Appraisals keeps up to date with the latest standards and regulations set forth by the USPAP (Uniform Standards of Professional Appraisals Practice). Below are recent revisions to the USPAP that effect how we write appraisals.
- "Readdressing (Transferring) a Report" is no longer allowed.
- Confidentiality is required while "Appraising the Same Property for a New Client".
- More on confidentiality and transferring reports.
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| "Readdressing (Transferring) a Report" is no longer allowed. |
USPAP: AO-26 will address “Readdressing (Transferring) a Report to Another Party”. The following is the issue
and response from the ASB: Does USPAP allow an appraiser to “readdress a report by altering a title page
or transmittal letter to indicate a new recipient as the client or additional intended user when the original
report was completed for another party? Advice from the Appraiser Standards Board: NO. Once a report
has been prepared for an identified intended use, the appraiser cannot “readdress” the report to another
party. (Emphasis was added.) (See USPAP 2004 for an example case and further clarification.)
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| Confidentiality is required while "Appraising the Same Property for a New Client". |
USPAP: AO-27 will address “Appraising the Same Property for a New Client.” This Opinion addresses that an
appraiser must keep confidential information in a report confidential. Note that the existence of a second
client may be confidential information, therefore adding a wrinkle to the appraiser’s ability to get a release
to appraise the property for another client. A release is not required for appraising a property for a second
client, but maintaining the confidential portions of the report is required. (See USPAP 2004 for example
cases and further clarification.)
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| More on confidentiality and transferring reports. |
FDIC (Federal Deposit Insurance Corporation): Institutions may not use an appraisal prepared by an individual who was selected or engaged by a
borrower. An institution's use of a borrower-ordered appraisal violates the agencies' appraisal
regulations. Likewise, institutions may not use "readdressed appraisals" -- appraisal reports that are
altered by the appraiser to replace any references to the original client with the institution's name.
Altering an appraisal report in a manner that conceals the original client or intended users of the appraisal is misleading and violates the agencies' appraisal regulations and the Uniform Standards of Professional Appraisal Practice (USPAP).
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