The New USPAP & Your Bank: What Changes Are Necessary?

01/03/2014

Ardmore Banking Advisors has recently reviewed the new 2014-2015 Edition of the Uniform Standards of Professional Appraisal Practice (USPAP) that is effective through December 31, 2015.

The foreword notes nine revisions to the old USPAP. Most noteworth is Revision #5, which may require you to change your appraisal policy to conform to the types of reports being required and your engagement letters with your appraisers.

Revision # 5 further notes that USPAP previously had three written report options for real estate and personal property appraisal assignments: Self-Contained Appraisal Report, Summary Appraisal Report, and Restricted Use Appraisal Report. USPAP now has two written report options, Appraisal Report and Restricted Appraisal Report.

USPAP notes that an Appraisal Report must summarize the appraiser’s analysis and the rational for the conclusions. A Restricted Appraisal Report might not include sufficient information for the client (no other intended users are allowed) to understand either the appraiser’s analysis or rationale for the appraiser’s conclusions.

Ardmore Banking Advisors recommends that you review your appraisal policy and engagement letter formats to see what changes are necessary.  Should you need assistance with any changes, or require more information on the new USPAP, please contact Lou Dunham at ldunham@ardmoreadvisors.com or Suzanne Storm at sstorm@ardmoreadvisors.com.