The Appraisal Foundation (TAF) is the United States organization responsible for setting standards for the

real estate Real estate is property consisting of land and the buildings on it, along with its natural resources such as crops, minerals or water; immovable property of this nature; an interest vested in this (also) an item of real property, (more general ...

valuation profession. The organization sets the congressionally authorized standards and qualifications for real estate appraisers, and provides voluntary guidance on recognized valuation methods and techniques for all valuation professionals. The aim is to ensure appraisals are impartial, objective and independent, are conducted without bias and are performed in an ethical and competent manner. The Appraisal Foundation is a non-profit organization established in 1987 by the largest valuation organizations in North America. The foundation was congressionally authorized to develop standards and qualifications for real estate appraisers under Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989. Under this legislation, the foundation is overseen by the

Appraisal Subcommittee The Federal Financial Institutions Examination Council (FFIEC) is a formal U.S. government interagency body composed of five banking regulators that is "empowered to prescribe uniform principles, standards, and report forms to promote uniformity ...

(ASC), a subcommittee of the Federal Financial Institutions Examination Council (FFIEC).Appraisal Subcommittee (ASC)
a USA governmental agencyFederal Financial Institutions Examination Council (FFIEC)
a USA governmental agency The ASC is charged with filing a report to Congress each year, on the activities of TAF. Real estate appraisal practice in the United States is regulated by the various states and territories. TAF's Appraisal Standards Board (ASB) promulgates and updates best practices as codified in the

Uniform Standards of Professional Appraisal Practice Uniform Standards of Professional Appraisal Practice (USPAP) can be considered the quality control standards applicable for real property, personal property, intangible assets, and business valuation appraisal analysis and reports in the United Stat ...

(USPAP), and TAF's Appraisal Qualifications Board (AQB) promulgates minimum criteria for appraiser certification and licensing. The federal government does not regulate appraisers directly, the states are responsible for regulating the appraisal profession. The Appraisal Subcommittee (ASC), with members from the major federal lending regulators, monitors and reviews the activities of TAF and oversees the state licensing agencies. If ASC finds that a particular state's appraiser regulation and certification program is inadequate (i.e., it does not meet ASB and AQB standards), it can impose penalties including prohibition of a state's licensed appraisers from performing appraisals for federally related lending transactions. Banks make widespread use of appraisals in their real estate lending activity

mortgage loan A mortgage loan or simply mortgage (), in civil law jurisdicions known also as a hypothec loan, is a loan used either by purchasers of real property to raise funds to buy real estate, or by existing property owners to raise funds for any p ...

s and

mortgage-backed securities A mortgage-backed security (MBS) is a type of asset-backed security (an 'instrument') which is secured by a mortgage or collection of mortgages. The mortgages are aggregated and sold to a group of individuals (a government agency or investment ba ...

History

In the mid 1980s, the crisis in the savings and loan industry highlighted the need to improve appraisal practices throughout the United States. The difficulties and losses experienced by many lending institutions illustrated the importance of ensuring that appraisals are based upon established, recognized standards, free from outside pressures. In 1986, nine leading professional appraisal organizations in the United States and Canada to form the Ad Hoc Committee on the Uniform Standards of Professional Appraisal Practice. These nine groups were: *Appraisal Institute of Canada *American Institute of Real estate Appraisers (AIREA) *

American Society of Appraisers The American Society of Appraisers (ASA) is an American nonprofit organization which serves as a professional affiliation of appraisers of all disciplines. The organization is the largest multi-discipline, voluntary membership, trade association ...

*American Society of Farm Managers and Rural Appraisers *International Association of Assessing Officers *

International Right of Way Association The International Right of Way Association (IRWA) is considered the central authority for right of way education and certification programs, as well as professional services, worldwide. The IRWA headquarters is located in Gardena, California, i ...

*National Association of Independent Fee Appraisers *National Society of Real Estate Appraisers *Society of Real Estate Appraisers (In 1991, AIREA and the Society of Real Estate Appraisers merged under the new name

Appraisal Institute The Appraisal Institute (AI), headquartered in Chicago, Illinois, is an international association of professional real estate appraisers. It was founded in January 1991 when the American Institute of Real Estate Appraisers (AIREA) and the Society ...

.) Agreeing upon a generally accepted set of standards, the eight United States committee members adopted those standards and thereafter established The Appraisal Foundation in 1987 to implement the Uniform Standards of Professional Appraisal Practice. The Appraiser Qualifications Board was included in the foundation structure to develop and promote meaningful criteria by which the competence of appraisers could be measured. The Uniform Standards of Professional Appraisal Practice was adopted by the Appraisal Standards Board of the foundation on January 30, 1989, and is recognized throughout the United States as the generally accepted standards of professional appraisal practice. The work of the foundation is important to all disciplines of the appraisal profession as well as to the consumer public. The work of the foundation benefits the appraisal profession by functioning to increase the quality of appraisals and by addressing issues critical to the advancement professional valuation. Users of appraisal services and consumers can feel confident that the foundation is working to serve their needs and help protect their financial well-being. The Appraisal Foundation is composed of other organizations. There are no individual members of the foundation. Today, through sponsoring organizations and advisory councils, over one hundred organizations, corporations and government agencies are affiliated with the Appraisal Foundation.

Organization

TAF "''is a private, not-for-profit corporation charged by itle XI of FIRREAwith the responsibility of establishing, improving and promoting minimum uniform appraisal standards and appraiser qualifications criteria''".Appraisal Subcommittee (ASC)
a USA governmental agency Headquartered in Washington, D.C., TAF is directed by a 21-member Board of Trustees. The Board of Trustees appoints members to and provides financial support and oversight of the two independent Boards: the Appraiser Qualifications Board (AQB), and the Appraisal Standards Board (ASB). The mission statement of the Foundation is

Foundation boards

The work of the foundation is accomplished by four independent boards: the Appraiser Qualifications Board, the Appraisal Standards Board and the Appraisal Practices Board, and the Board of Trustees. The Appraiser Qualifications Board (AQB) establishes th
Real Property Appraiser Qualification Criteria
for state licensing, certification and recertification of appraisers. FIRREA mandates that all state certified appraisers must meet the minimum education, experience and examination requirements promulgated by the AQB. The AQB has also developed voluntary criteria fo
personal property appraisers
The Appraisal Standards Board (ASB) establishes the rules for developing an appraisal and reporting its results. In addition, it promotes the use, understanding and enforcement of the

(USPAP) as required by FIRREA. The Appraisal Practices Board (APB) was formed by Board of Trustees in 2010. The APB was charged with the responsibility of identifying and issuing opinions on recognized valuation methods and techniques, which may apply to all disciplines within the appraisal profession. The APB offered voluntary guidance, known a
Valuation Advisories
in topic areas in which appraisers and users of appraisal services feel are the most needed. Compliance with all guidance issued by the APB was entirely voluntary. The APB is not currently an active board of the Appraisal Foundation. The Board of Trustees

References

External links

The Appraisal Foundation

Appraisal Subcommittee, Federal Financial Institutions Examination Council

The Appraisal Foundation, Appraisal Subcommittee, Federal Financial Institutions Examination Council

Financial Institutions Reform Recovery and Enforcement Act of 1989

The Appraisal Foundation - Introduction
{{DEFAULTSORT:Appraisal Foundation Real estate in the United States Real estate valuation Financial regulatory authorities of the United States Valuation (finance)

History

Organization

Foundation boards

Sponsors

Appraisal sponsors

Affiliate sponsors

International sponsor

References

External links