UNIFORM STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE  (USPAP) are a Federal Guideline that the states enforce.  USPAP is updated annually and is the primary source of the constant changes in the appraisal profession. 

The 2003 update addressed many issues.  The two issues below were significant clarifications that effect Lenders:

1) Appraisal Updates and Recertification and

2) Readdressing an Appraisal

A summary of these changes follows:

The New 2003 USPAP, AO-3 defines an Update and a Recertification as follows:  A "Recertification of Value" is a "Final Inspection". When an appraiser is asked to complete a "Final Inspection," the appraiser is confirming that conditions established in an assignment have, or have not, been met. A "Recertification of Value" does not change the effective date of the value opinion, it simply recertifies that all conditions have been met and the "Opinion of Market Value" is no longer subject to those conditions.

If a client uses this term in an assignment request that includes an updated value opinion, it is not a "Recertification of Value", it is a NEW APPRAISAL ASSIGNMENT!!!

Regardless of the nomenclature used, when a client seeks a more current value or analysis of a property that was the subject of a prior assignment, this is not an extension of that prior assignment that was already completed – it is simply a new assignment. 

USPAP and Readdressing an Appraisal

Clicking the link above will take you to a good article on the topic.  As a summary, lenders may reassign appraisals, but appraisers cannot.  If Lender B wants the appraisal prepared for Lender A, and Lender A will not release it to them -- then it becomes a new assignment!

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