USPAP

USPAP Services Provided by Federal Appraisal

Federal Appraisal & Consulting LLC provides all types of USPAP appraisal and appraisal consulting services.

  • Full Narratives and Self-Contained Reports
  • Executive Summaries and Summary Reports
  • Letter Appraisals and Restricted Use Reports
  • Complete Analysis Appraisals
  • Agreed-upon Procedure and Analysis Appraisals, Client-Defined Scopes of Services Appraisals, Limited Appraisals, Appraisals prepared using the Departure Provision.

Go to the Descriptions of Federal Appraisal & Consulting LLC’s USPAP Services page for explanations of this services

Additionally, Federal Appraisal & Consulting LLC provides a full array of non-USPAP appraisal and consulting services. 

Background on USPAP

USPAP contains the recognized standards of practice for real estate, personal property and business appraisal.

backgrounduspapNearly all conventional appraisal services are subject to the Uniform Standards of Professional Appraisal Practice (USPAP).  When the law requires a USPAP appraisal, the client must have a USPAP compliant appraisal, which is certified by the state licensed or certified appraiser.  Full analysis, complete narrative appraisals for mortgage underwriting purposes are the most common type of USPAP appraisal for commercial property types (full form reports, for one to four family property types).  It should be noted, however, that USPAP prescribes a number of important appraisal services beyond full analysis, complete narrative appraisal. Furthermore, when the law does not require a USPAP appraisal, clients have still more options.

Knowing when a USPAP appraisal service is needed and when it is not, and what type of USPAP appraisal services to order can save clients considerably on fees and on opportunity costs from inappropriate business decisions based on ill fitting appraisal and consulting services.

What Is USPAP?

The Uniform Standards of Professional Appraisal Practice (USPAP) prescribe the minimum ethics and standards required of an appraiser.  It was enacted in 1989 with the enactment of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA)

The following are links to the agencies and organizations that promulgate or help promulgate USPAP.

Uniform Standards of Professional Appraisal Practice (USPAP)

The Appraisal Subcommittee

The Appraisal Foundation

The Appraisal Institute

USPAP Applicability

USPAP applies to federally regulated transactions, mainly federally insured banks.  It also applies to other important but less common situations, such as many state courts that hear property tax appeals.

Importantly, it does not apply to all federal and state agencies.  USPAP does not apply to appraisals prepared for the IRS and for tax related purposes, unless that type of service is negotiated between the client in the appraiser.

Organizations that are Subject to USPAP Organizations that are Not Subject to USPAP*
Office of the Controller of Currency Office of Thrift Supervision Federally Insured Banks Internal Revenue Service Securities and Exchange Commission

* Note:  Even when an agency is not required to employ USPAP, in most cases we highly recommend its use.

Common USPAP Fallacies

There are perhaps few other documents in the business world that have been as misunderstood and that have caused as much consternation as USPAP has.  Federal Appraisal & Consulting LLC has listed the most common fallacies concerning USPAP, because the professionals at Federal Appraisal believe that a clearer understanding of USPAP, by both the users of appraisals and the appraisers themselves, could save the real estate community hundreds of millions of dollars in appraisal fees and investment opportunity costs.