USPAP Optimization

stillThe Appraisal Institute’s latest video features Paula K. Konikoff, JD, MAI, AI-GRS, chair of AI’s Professional Standards and Guidance Committee, discussing ways in which the Uniform Standards of Professional Practice has become more rules-based and created unintended consequences.

 In the video, Konikoff explains that USPAP’s hard-and-fast requirements can make the appraisal process needlessly cumbersome, can result in unnecessary cost and can make an appraisal report less effective for its intended use.

 To better support public trust, Konikoff recommends standards intended for all valuation assignments should be based on overarching valuation principles and should exclude requirements that aren’t necessary for all uses.

 Konikoff suggests the first step in optimizing USPAP would be to identify the requirements in the current USPAP that are critical to all intended uses and users. These would be uniform standards, applicable in all situations. The next step would be to provide requirements that would apply only when the assignment is for a specific intended use, such as mortgage lending. These specific standards could include some or all of the elements removed from the current USPAP plus any others applicable to that intended use.

If the consumer can call on trained valuation professionals for a broad range of valuation services, the quality and reliability of the service product will be improved.

Watch the video to learn more about USPAP optimization.