2011 ICAP Seminar Speaker Writes Letter About Appraiser Independence, Objectivity, and Impartiality
2011 ICAP seminar speaker and the Executive Director of the Kentucky Real Estate Appraiser Board wrote a letter to Kentucky Registered Appraisal Management Companies and Credentialed Appraisers about appraiser independence, objectivity, and impartiality. The letter, written by Larry Disney concerns issues that are being propagated by Appraisal Management Companies:
When appraising one unit residential properties and reporting the results of the appraisal development using a 1004 Fannie Mae form, the appraisers are told that if the cost approach is developed and reported, regardless of reasoning, the appraiser shall not consider the opinion of value developed via the cost approach when reconciling the final opinion of market value despite the fact that USPAP requires that only the appraiser shall identify the scope of work.
It is the opinion of the Board that Kentucky credentialed appraisers must be allowed to develop the appropriate scope of work which includes the development of any approach(s) to value considered applicable by the appraiser, and the appraiser shall report a credible reconciled opinion of value for each approach developed and the final opinion of value.
To read the letter in its entirety click the following link: Memo Objectivity 04-2012 (2)