APPRAISAL FOUNDATION
1155 15TH STREET NW 1111, WASHINGTON, DC 20005 www.appraisalfoundation.org

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Organizations Filed Purposes: to advance the valuation profession by setting standards of excellence, promoting education and upholding the public trust.

BOARD OF TRUSTEES 2019 marked the 30th anniversary of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), which authorized The Appraisal Foundation's appraiser qualifications and appraisal standards. During this anniversary year, the Foundation made significant strides in advancing the profession, serving its constituents and protecting the public trust. The Appraisal Foundation Advisory Council (TAFAC) and the Industry Advisory Council (IAC) reviewed the issues that caused the need for the legislation and explained how the law was drafted. The House Subcommittee on Housing, Community Development and Insurance held a hearing entitled, "What's Your Home Worth: A Review of the Appraisal Industry," during which President David Bunton testified about FIRREA's implementation. He informed the subcommittee that federal agencies have watered down the bill's protections over the years and urged Congress to look at whether those agencies have carried out Congress's intent. The Board of Trustees was pleased that the House Committee heard the Foundation's concerns. As a result, Mr. Bunton sent a letter to congressional leadership requesting a General Accountability Office study into FIRREA's implementation. The Foundation also commended the House on passage of a bill that would allow state licensed appraisers to once again perform FHA appraisals. Other highlights of the year included: * The Foundation joined with Association of Appraisal Regulatory Officials in 2009 to put on Investigator Training. In 2019, the program celebrated its 1,000th attendee. Investigator Training is an excellent example of communicating with the states to help bring about greater regulatory consistency. * The 9th Circuit Court recognized the importance of qualifications and standards in personal property appraisals when it ruled in favor of an IRS appraisal of an art collection. The appraisal was compliant with USPAP and was completed by an appraiser who met ASB qualifications. The ruling went against an auction house appraisal that the court said was biased. * The board approved a study to determine the feasibility of implementing Practical Applications of Real Estate Appraisal (PAREA). * The Foundation built upon previous years' successes by increasing the number of webinars and live streaming of meetings, improving the production of in-house videos, reducing the staff while maintaining quality and watching the budget. For the second year the board voted to increase its reserves.

MARKETING, SUBSCRIPTIONS, AND PUBLICATIONS THE FINANCIAL INSTITUTIONS REFORM, RECOVERY AND ENFORCEMENT ACT OF 1989 RECOGNIZES THE UNIFORM STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE (USPAP) AS THE GENERALLY ACCEPTED REAL PROPERTY APPRAISAL STANDARDS AND REQUIRES USPAP COMPLIANCE FOR APPRAISERS IN FEDERALLY RELATED TRANSACTIONS. THE APPRAISAL FOUNDATION PUBLISHES AND SELLS THE USPAP MANUAL ALONG WITH A SERIES OF COURSES RELATED TO THE STANDARDS. THESE COURSES ARE AVAILABLE FOR SEVERAL APPRAISAL DISCIPLINES: BUSINESS VALUATION, PERSONAL PROPERTY, MASS APPRAISAL AND REAL PROPERTY. THE FOUNDATION IS THE PUBLISHER AND SELLS THE US DEPARTMENT OF JUSTICE'S UNIFORM APPRAISAL STANDARDS FOR FEDERAL LAND ACQUISITIONS (YELLOW BOOK). SEVERAL COURSES RELATED TO THESE STANDARDS WERE DEVELOPED AND ARE OFFERED BY THE FOUNDATION. WITH THE INPUT OF STATE REGULATORS, THE FOUNDATION DEVELOPED FOUR IN DEPTH TRAINING COURSES THAT COVER A RANGE OF USPAP COMPLIANCE ISSUES. THESE COURSES ARE BEING OFFERED VIA AN ONLINE PLATFORM

APPRAISER QUALIFICATIONS BOARD (AQB) In 2019, the Appraisal Qualifications Board worked concurrently on numerous projects, each of which is detailed below. Real Property Appraiser Qualification Criteria (Criteria) The AQB has continued to work on its examination of a concept they have named the Practical Applications of Real Estate Appraisal (PAREA). PAREA, if adopted, would be a new and alternative way for individuals to obtain some of their required experience hours for their licensing credential. Not being able to easily obtain the required experience hours has been identified as a hurdle under the current supervisor/trainee mentorship model. To assist in forming the PAREA concept, the AQB issued a discussion draft and accepted comments from the public up until June 1. With the resulting feedback, on September 5, the AQB published their First Exposure Draft which outlined the envisioned PAREA model followed by a webinar. To close out the year, the AQB asked, and the Board of Trustees (BOT) agreed, to retain a consultant to assess the technical and financial feasibility of implementing the currently proposed PAREA. Based on the preliminary input the consultant provided, the Board of Trustees asked the AQB to consider splitting PAREA into modules to make PAREA more feasible to implement. The ASB will continue to work on this project in 2020, which will likely include issuing a Second Exposure Draft of the PAREA concept. In addition to PAREA, the AQB continued to examine how disciplinary sanctions levied by state appraiser regulatory agencies relate to the qualification requirements for Supervisory Appraisers in the criteria. The AQB issued a First Exposure Draft on the topic in early April and a Second Exposure Draft on September 17. After deliberations and more comments received at its November 1 public meeting, the Board adopted the Second Exposure Draft of a proposed change to the Real Property Appraiser Qualifications Criteria (regarding supervisor qualifications) to become effective January 1, 2020. National Uniform Licensing and Certification Examinations The exam questions for the National Uniform Licensing and Certification Examinations underwent an annual review by the Board in 2019. An annual review has been conducted by the AQB ever since both the updated Criteria and the National Uniform Licensing and Certification Examinations were implemented on January 1, 2008. To update the exam questions, the Board uses a group of appointed Subject Matter Experts (SMEs). The Board, an exam expert and these SME's met face-to-face in Houston in late July to draft and eventually finalize new versions of the exams for each license classification. The new exams were put into use on January 1 of 2020. Program to Improve USPAP Education Each year, the AQB works to continue to improve USPAP education. In 2019, the Board's efforts included monitoring and improving procedures to ensure AQB Certified Instructors are meeting contractual commitments. Such steps are necessary to address past complaints about instructors who fail to comply with these requirements. Additional efforts by the AQB to improve USPAP education included: * Making policy decisions and serving as the appellate body for any disputes that arose regarding instructor applications, instructor conduct, examination issues and other administration issues. * Working with the ASB to ensure the Instructor Recertification Course was updated with the 2020-21 changes to USPAP and available by no later than October 1, 2019. * Working with the ASB to assist with updating the Instructor Certification Course, which will be completed in the spring of 2020. Course Approval Program The AQB continued to administer its Course Approval Program (CAP), a program designed to help state regulatory agencies approve qualifying and continuing education. The course reviewed and approved USPAP equivalent courses, as well as many general courses and seminars. As of January 1, 2010, there were more than 300 qualifying and continuing education real property courses approved through CAP. University Degree Review Program The AQB continued evaluating graduate and undergraduate degree programs in real estate to determine the applicability of the courses towards the required core curriculum contained in the Real Property Appraiser Qualification Criteria. To date, the Board has evaluated and approved a total of 11 bachelor's programs, six master's programs, and one associate program. Additional colleges and universities are currently being reviewed.

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