Uniform Standards of Professional Appraisal Practice (USPAP)
Uniform Standards of Professional Appraisal Practice (USPAP) is a kind of quality control standards in the U.S. and its territories which is related to personal property, intangibles, real property and business valuation appraisal analysis and report. Uniform Standards of Professional Appraisal Practice which is commonly known as USPAP was developed by a joint committee that represents the major United States and the Canadian appraisal professional organizations. It was written in the 1980s.
USPAP and TAF
The Appraisal Foundation which is generally known as TAF was formed by the joint committee representing different appraisal groups in the U.S. and Canada because there was a savings and loan crisis. Along with the joint committee, there was also the support of other major educational groups and industry for the formation of TAF. The administration of Uniform Standards of Professional Appraisal Practice was afterwards taken up by TAF. On April 27, 1987, the copyright of USPAP was given to TAF. In the U.S., a certain regulatory need is answered by USPAP. It is also taken on by various appraisal organizations in North and South America, Asia and Europe.
The Appraisal Subcommittee (ASC) provides supervision to TAF and it is formed by the representatives of non-government organizations and the leading U.S. government agencies that are responsible for watching over the U.S. banking and mortgage system. The Appraisal Subcommittee (ASC) is authorized by Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA).
There are two main divisions by which TAF performs its work and they are the Appraisal Standards Board (ASB) and the Appraisal Qualifications Board (AQB). The work of the ASB is to look after USPAP and issue updates after every two years in January and the year has to be an even numbered years. The AQB lays down minimum qualifications for appraisal licensure. The work of AQB has been taken on by all the states and territories.
USPAP represents the commonly accepted and recognized standards of the appraisal practice. With time, certain changes have been made in the content and organizational structure of the document of USPAP due to certain changes in the appraisal practice.