Foundation Frequently Asked Questions (FAQs)
When and why was The Appraisal Foundation established?
In 1986, the instability in the real estate and mortgage lending professions led nine leading professional appraisal organizations in North America to form the Ad Hoc Committee on Uniform Standards of Professional Appraisal Practice. These groups agreed upon a generally accepted set of standards that were then adopted by the eight American appraisal organizations. With the adoption of the Standards, The Appraisal Foundation was established in 1987 to implement the Uniform Standards of Professional Appraisal Practice (USPAP) through an independent board, the Appraisal Standards Board (ASB). The Appraiser Qualifications Board (AQB) was later incorporated in the Foundation structure in order to facilitate the development of meaningful qualification criteria for appraisers.
What is the relationship between The Appraisal Foundation, the Appraisal Standards Board (ASB), and the Appraiser Qualifications Board (AQB)?
The Appraisal Foundation serves as an umbrella organization for two independent Boards, the Appraisal Standards Board and the Appraiser Qualifications Boards. While these boards are independent, the Board of Trustees of The Appraisal Foundation is responsible for funding the activities of the ASB and AQB as well as appointing members to the Boards and providing oversight of their activities.
How is The Appraisal Foundation funded?
The Appraisal Foundation is funded in part by a federal grant, sales of publications and services and from Sponsoring Organizations.
Is The Appraisal Foundation part of the federal government?
No, The Appraisal Foundation is a private non-profit educational organization.
What is the relationship between The Appraisal Foundation and the Appraisal Subcommittee (ASC)?
These two entities are often confused by the public. The Appraisal Subcommittee is the federal agency charged with oversight of the state appraisal regulatory programs. In addition, the ASC is responsible for monitoring the activities of The Appraisal Foundation and the ASB and AQB as well as providing a federal grant to assist in the operations of these Boards.
What public charge does the Foundation have and how was it obtained?
In 1989 Congress enacted Title XI of the Financial Institutions Reform Recovery and Enforcement Act (FIRREA), which established the current appraisal regulatory mechanism. As a result of the legislation, the Foundation has the following responsibilities: all certified appraisers must meet the qualification criteria established by the AQB; all state appraisal examinations must be reviewed and approved by the AQB; all appraisals for federally related transactions must conform to the Uniform Standards of Professional Appraisal Practice (USPAP) promulgated by the ASB.
Does The Appraisal Foundation offer memberships?
There are no individual memberships in The Foundation. The Foundation is an organization composed of other non-profit organizations, which represent appraisers and users of appraisal services. These organizations are affiliated with the Foundation through Sponsoring Organizations and various Advisory Councils.
How can I become involved with The Appraisal Foundation?
Individuals interested in the work of the Foundation should consider subscribing to one of the Foundation’s services (the Subscription Service or Information Service) to learn more about the work of the Boards.
In addition, the Foundation holds public meetings of its Boards (all Foundation meetings are open to the public) and much of the work of the AQB and ASB is exposed for public comment prior to adoption. Members of the Foundation Boards are often asked for speaking engagements before a variety of groups. Finally, each spring, the Foundation actively solicits for qualified individuals to serve on its Boards.
Why is the work of the Foundation important to me?
If you are an appraiser, you should be aware that the Foundation, through its independent Boards, sets the ethical and performance standards for your profession. In addition, minimum education, experience, and examination requirements are also set by the Foundation and enforced by the individual states.
Is the focus of The Appraisal Foundation exclusively real property oriented?
No. The uniform standards set performance and ethical standards for all types of property valuation. In addition, the AQB has established voluntary minimum qualifications for personal property appraisers.