Congress also mandated that all appraisals connected to federally-related transactions (transactions involving financial institutions that are regulated by the federal government) would have to conform to the Uniform Standards of Professional Appraisal Practice (USPAP), the generally-accepted appraisal performance standards promulgated by the Appraisal Standards Board (ASB) of The Appraisal Foundation. The state appraiser regulators also use USPAP when addressing disciplinary issues.
Congress gave The Appraisal Foundation considerable responsibilities that are traditionally under the purview of government agencies. Congress mandated that the state appraiser regulatory agencies must use the Criteria adopted by the Appraiser Qualifications Board (AQB) of The Appraisal Foundation when issuing certificates to individuals. The Criteria outlines minimum requirements in the areas of education, experience and continuing education. Individuals seeking to become state licensed or certified appraisers must also pass a comprehensive state examination that has been reviewed and approved by the AQB.
In exchange for providing USPAP and the Real Property Appraiser Qualification Criteria, The Appraisal Foundation is eligible to receive federal grants; these grants are made at the discretion of the federal appraisal oversight agency known as the Appraisal Subcommittee to fund the real property work of the AQB and ASB.
