USPAP Compliance,  Appraisal Review – Standard 3

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In developing an appraisal review assignment, a reviewer must identify:

• The reviewer’s client and intended users
• The intended use of the review
• The purpose of the assignment
• The subject of the appraisal review assignment
• The date of the review
• The property and ownership interest appraised (if any) in the work under review
• The date of the work under review
• The effective date of the opinion in the work under review
• The appraiser(s) who completed the work
• The scope of work to be performed in the appraisal review

Further, the reviewer must develop opinions of:

• The completeness of the material under review within the scope of work applicable in the assignment;
• The apparent adequacy and relevance of the data and the propriety of any adjustments to the data
• The appropriateness of the appraisal methods and techniques used and develop the reasons for any disagreement
• Whether the analyses, opinions, and conclusions in the work under review are appropriate and reasonable and develop the reasons for any disagreement.

The above is a brief summary.  Refer to the complete text of Standards Rule 3-1 in USPAP.

A written appraisal review must state:

• The reviewer’s client and intended users
• The intended use of the review
• The purpose of the assignment
• The subject of the appraisal review assignment
• The date of the review
• The property and ownership interest appraised (if any) in the work under review
• The date of the work under review
• The effective date of the opinion in the work under review
• The appraiser(s) who completed the work under review
• The scope of work to be performed in the appraisal review
• The reviewer’s opinion as to the completeness of the material under review within the scope of work applicable in the assignment;
• The reviewer’s opinion as to the apparent adequacy and relevance of the data and the propriety of any adjustments to the data
• The reviewer’s opinion as to the appropriateness of the appraisal methods and techniques used and develop the reasons for any disagreement
• The reviewer’s opinion as to the whether the analyses, opinions, and conclusions in the work under review are appropriate and reasonable and develop the reasons for any disagreement.
• A signed certification in accordance with Standards Rule 3-2(f)

The above is a brief summary.  Refer to the complete text of Standards Rule 3-2 in USPAP.

PDF Downloads:

• Federal Reserve Regulation in attached excerpt 12 CFR 564
• OCC, OTS and FDIC Regulation - Interagency Appraisal and Evaluation Guidelines

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