Still time to comment on the Appraisal Foundations White Paper on Alternative Valuation Products
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.
Posted on December 16, 2013, in Illinois License Law, Illinois Real Estate Appraisal Act, Legislative Alert and tagged icap, Illinois Coalition of Appraisal Professionals, Uniform Standards of Professional Appraisal Practice. Bookmark the permalink. Leave a comment.