New Qualifications/USPAP Explained

New Qualifications/USPAP Explained

by David Brauner, Editor

If you've been busy making a living, perhaps you missed or forgot that important changes to appraiser qualifications and to the Uniform Standards of Professional Practice (USPAP) took effect January 1, 2008.

Here is a brief overview of the changes with rational provided by John S. Brenan, Director of Research and Technical Issues, The Appraisal Foundation (TAF). You'll find source documents on the current qualifications standards and on 2008 USPAP at the Appraisal Foundation's website or at the bottom of this page.

Qualifications: for Whom the Bar Rises
Effective January 1, 2008 there are new, stricter qualification standards in place in the areas of education and experience for those entering the profession. Current licensees who aspire to a higher licensing level also face tougher standards. In short, the bar is raised significantly for those wanting to be professional appraisers.

According to John S. Brenan, Director of Research and Technical Issues, The Appraisal Foundation, "The intent of the changes is to raise the minimum requirements to become a real estate appraiser, thereby improving professionalism and ensuring public trust in the appraisal profession. When state licensing and certification was first enacted as a result of FIRREA in 1989, the federal financial institutions were deeply concerned that there might not be enough appraisers available to handle the volume of loan transactions that were projected.  As a result, the minimum requirements to become a licensed or certified appraiser were initially established at a relatively low level. Some modifications have been made over the years, but 2008 represents the biggest increase in requirements since the inception of FIRREA.  Nonetheless, the requirements to become an appraiser in the U.S. are still below that of many countries around the world."

The new qualifications were adopted back in February 2004 and are the result of three years of preparation, according to the Appraiser Qualifications Board (AQB). 

Continuing education requirements have not changed.

Education Requirements
The most significant changes in the new Criteria relate to qualifying education. The changes fall into the following categories: 1. There are college-level course requirements for the Certified Residential and Certified General classifications; 2. The required number of classroom hours in appraisal education has increased significantly in all three licensure classifications; and 3. There are minimum classroom hours of coverage requirements for specific topic areas, which are known as modules.

Certified Residential Licensing Requirements

Associates Degree or higher in any field of study or in lieu of the required degree, twenty-one (21) semester credit hours covering the following subject matter courses: English Composition, Principles of Economics (Micro or Macro), Finance, Algebra, Geometry or higher mathematics, Statistics, Computer Science and Business or Real Estate Law.

Certified General Licensing Level Requirements

Bachelors Degree or higher in any field of study or, in lieu of the required degree, thirty (30) semester credit hours covering the following subject matter courses: English Composition, Principles of Economics (Micro and Macro), Finance, Algebra, Geometry or higher mathematics, Statistics, Computer Science, Business or Real Estate Law and two (2) elective courses in accounting, geography, agricultural economics, business management or real estate.

Classroom Hours

In addition to the college-level course requirements, the appraisal education classroom hour requirement has increased for the State Licensed, State Certified Residential and State Certified General classifications. The Trainee classification remains unchanged at 75 classroom hours. The number of appraisal education classroom hours to become a State Licensed appraiser has increased from 90 hours to 150 hours; Certified Residential has increased from 120 hours to 200 hours; and, Certified General classification has increased from 180 hours to 300 hours.