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A. L. Appraisal Co.
"Independent Real Estate Appraisers & Consultants"
"Decision Makers Have Relied Upon Us Since 1971"
APPRAISAL REGULATION AND ITS ACRONYMS

The following are most (not all) of the appraisal regulation acronyms licensed/certified appraisers must contend with. Perhaps it is just human nature for a profession to develop its own language filled with secret codes, creating a certain mystique that marvels outsiders. But it often causes many of us to scratch our heads as well!

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ASB = Appraisal Standards Board: AQB = Appraisal Qualifications Board. These are the two independent boards of TAF. The ASB exercises all authority in respect to establishing, improving, and promulgating USPAP and providing advice in the form of AOs, FAQs, and other venues. Similarly, the AQB exercises all authority in respect to appraiser qualifications
ASC = Appraisal SubCommittee: The ASC was created by Title XI to oversee the activities of the States and The Appraisal Foundation. It is composed of the agency heads of HUD (Department of Housing and Urban Development), FDIC (Federal Deposit Insurance Corp.), OCC (Office of the Comptroller of Currency), OTS (Office of Thrift Supervision), NCUA (National Credit Union Administration), and the Board of Governors of the Federal Reserve System. The mission of the ASC is to ensure that real estate appraisers who perform appraisals in real estate transactions that could expose the United States government to financial loss are sufficiently trained and tested to assure competency and independent judgment according to uniform professional standards and ethics. The ASC is funded by State certified or licensed appraisers, each of whom currently pays an annual National Registry fee to the States which then pay it to the ASC.
FIRREA = Financial Institutions Reform, Recovery & Enforcement Act – also very likely a familiar term. This federal legislation was passed in 1989 in response to the Savings and Loan crisis. Title XI of the Act includes real estate appraisal reform amendments. Title XI authorized the federal financial institutions regulatory agencies to adopt regulations regarding real estate appraisals made in connection with federally related transactions (frt's), including: when appraisals are required, who must perform the appraisals, and the manner in which appraisals must be performed
FRT = Federally Related Transaction. A real estate transaction involving a federally insured depository institution.

OREA = Office Of Real Estate Appraisers. This is the California state agency charged with the licensing and enforcement of California real estate appraisers. California is a non-mandatory state (unlike other many other states, such as Nevada). This means that an individual is only required to be licensed as an appraiser if the appraisal is to be used in a federally related transactions (frt). Licensing is not required in California to perform appraisals for non-federally related transactions. However, if one is licensed as an appraiser then one must conform to and comply with all state appraisal licensing regulations, irrespective if the assignment is or is not for a federally related transaction. OREA has adopted in totality USPAP into its regulations thus making USPAP state law. (orea.ca.gov)

The levels of licenses issued by the OREA are:

AT: Trainee License
Must work under the technical supervision of a licensed appraiser. May assist on any appraisal within the scope of practice of the supervising appraiser.

AL: Residential License
May appraise non-complex 1-to-4 unit residential property up to a transaction value of $1 million, and complex 1-to-4 unit residential and all non-residential property up to a transaction value of $250,000.

AR: Certified Residential License
May appraise all 1-to-4 unit residential property without regard to complexity, and non-residential property up to a transaction value of $250,000.

AG: Certified General License
May appraise all types of real estate.

TAF = The Appraisal Foundation. TAF is a private, not-for-profit organization established in 1987 by eight major professional appraisal organizations as a separate and independent entity that is tasked to place the public's benefit ahead of any other constituency. TAF was recognized by Title XI as the appropriate mechanism to establish minimum appraisal standards and qualifications for appraisers. The BOT (Board of Trustees) exercises all authority and power of TAF, except for appraisal standards and qualifications which are performed by two independent boards.
TAFAC = The Appraisal Foundation Advisory Council; IAC = Industry Advisory Council; ECAFS = Education Council of Appraisal Foundation Sponsors. These are the three councils under TAF that represent various public and private appraisal occupations and organizations and provide advisory resources to the ASB, AQB and BOT.
USPAP = Uniform Standards of Professional Appraisal Practice. These are the standards and ethical rules intended for all appraisal disciplines – real property, personal property, mass, and business appraisers. USPAP is intended to promote and maintain a high level of public trust in appraisal services and has been adopted by government agencies and recognized by courts as the uniform appraisal standards in our country. USPAP includes SRs (Standards Rules) and SMTs (Statement on Appraisal Standards). Accompanying advice is also provided in AOs (Advisory Opinions), provided in the same publication as USPAP, and FAQs (Frequently Asked Questions) which are published monthly (www.appraisalfoundation.org) and compiled into an annual reference publication.