Daily Archives: December 16, 2013
There is still time to Comment on the Appraisal Foundations Draft White Paper-Alternative Valuation Products and the Uniform Standards of Professional Appraisal Practice.
The paper describes an Alternative Valuation Product (AVP) as a product that communicates an opinion of value (or price) other than a “traditional” appraisal. In the residential mortgage valuation sector, this means something other than an appraisal developed and reported using “standard” Fannie Mae/Freddie Mac appraisal report forms.
The (Draft) White Paper notes that because it is possible that an AVP complies with USPAP, it is possible that a state licensed or state-certified appraiser can perform AVP’s, it also states that if an AVP does not allow for compliance with USPAP, a state-licensed or state-certified appraiser may be able to perform the assignment; however, that is based on the state law where the appraiser is credentialed.
Several states have already implemented specific legislation that address AVPs. The State of Nevada allows a a real estate broker/salesperson to perform a BPO for the purpose of listing/selling a property; however, if a real estate broker/salesperson prepares a BPO for any reason other than listing and selling a property and receives compensation they have violated Nevada Revised Statues 645C. This is because Nevada is a mandatory licensing state which requires anyone who provides an opinion of value (or market value) on any real property located in the State of Nevada to first obtain a license or certification.
ICAP will keep you updated as the State of Illinois develops its stance on Alternative Valuation Products.