Real Estate Appraisal Groups Release “Appraiser and Management Company Statement of Principles” and Invite Public Comment

The American Society of Appraisers (ASA), together with the Appraisal Institute (AI), the American Society of Farm Managers and Rural Appraisals (ASFMRA), and the National Association of Independent Fee Appraisers (NAIFA), has released for public comment a draft of the “Appraiser and Management Company Statement of Practice.” These 4 largest national professional real estate appraiser organizations are engaging stakeholders in the process, inviting comment and discussion regarding these proposed principles.

Mike Evans, president of the American Society of Appraisers, commented that “agreement with these principles will promote equality and a mutually beneficial relationship between professional appraisers and the AMCs using their services.” Evans continued, “Most importantly, adherence to these principals will ensure consumers are protected and safety and soundness fostered when lenders use AMCs for valuation services.”

To read a copy of the draft Statement of Principles, click here. To submit your own comments about the proposed principles, please e-mail AMCStatementofPrinciples@appraisalinstitute.org. Comments will be accepted until May 1, 2010.

The release of the Statement of Principles for public comment is the first step in a multi-step implementation process. Following the public comment period, the professional appraisal organizations will offer the Statement of Principles to AMCs, and will request that the AMCs formally adopt the Principles and agree to comply with the Principles in their interactions with appraisers, their clients, and consumers.

The organizations will also continue to work with all stakeholders, including the AMC community, to provide further clarification of each of the principles through guidance documents, responses to frequently asked questions, and other materials. The Statement of Principles is intended to evolve as the AMC industry continues to mature, and state and federal laws applicable to AMCs continue to be enacted and implemented.

In 2008, the professional appraisal organizations drafted and released model legislation for the registration and regulation of appraisal management companies. Laws based upon this model legislation have been enacted into law in ten (10) states. At least 16 other states currently have legislation under consideration that is based upon the model legislation.

“The organizations look forward to working with AMCs, state boards, local chapters and consumer groups as the business practices of AMCs are refined to comply with the Principles. The principles are intended to promote mutually beneficial business relationships between management companies and professional appraisers,” said Bill Garber, Director of Government and External Relations for the Appraisal Institute.

For more information on the Statement, please contact Scott DiBiasio, Manager of State & Industry Affairs at (202) 298-5593 or via e-mail sdibiasio@appraisalinstitute.org or Peter Barash, Government Relations Consultant, American Society of Appraisers at 202-466-2221 or peter@barashassociates.com