New trends towards increased regulation, scrutiny, lawsuits and penalties are forcing valuation professionals from all disciplines to take a serious look at how they conduct business.
Real estate appraisers in particular are taking the brunt of complaints, because the Appraisal Subcommitte (ASC) is pushing state regulators to enforce requirements on continuing education as well as Uniform Standards of Professional Appraisal Practice (USPAP).
Then there is the Dodd Frank Act, which MANDATES that a user file a complaint with the license board if that user is dissatisfied with an appraisal report. If the appraiser is found to have violated USPAP or a state statute, then that appraiser may be liable for civil negligence.
Add to that business valuers, machinery and equipment appraisers and general personal property appraisers are under serious scrutiny by the IRS, including increased fines, penalties and potential disbarment, meaning being barred from performing appraisals for tax related matters.
Then you can factor in civil lawsuits against appraisers for negligence in performing valuations. Most appraisers have never been critiqued. Hence they continue to make systemic mistakes believing that what they learned, were taught or have practiced is correct. Some find out the hard way when faced with a charge of negligence.
ASA has been on the forefront of these trends and has recently updated the Appraisal Review and Management program to help valuation professionals reduce such risks. Recent changes to the program allow currently designated ASA’s to earn an ARM designation by submitting an application, completing ARM201 and ARM204 courses, submitting an appraisal review experience log and submitting an appraisal review report to an examining committee. The first of two required classes will be held March 20-23, 2014 in Chicago, IL.
Learn more about ASA’s Appraisal Review and Management Program from an interview with Roger P. Durkin, FASA who is chair of ASA’s ARM Discipline Committee and a practicing appraiser and attorney; or by calling ASA at (800) 272-8258.