MYTH: The Foundation is a government agency.
FACT: The Appraisal Foundation is not a government agency. It is a nonprofit organization formed by a group of appraisal membership organizations in the wake of the Savings and Loan Crisis of the 1980s. The Foundation was authorized by Congress in 1989 under Title XI of Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) to maintain standards and minimum qualifications for the real property appraisal profession. Congress granted this congressional authority because it wanted to emphasize appraiser independence in the wake of the Savings and Loan Crisis. The Appraisal Foundation was meant to provide private sector expertise that would not be swayed by political winds or changing administrations.

MYTH: The Foundation receives direct federal funding through congressional appropriation.
FACT: At the time Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) was enacted into law, Congress was aware the Foundation was charging for Uniform Standards of Professional Appraisal Practice (USPAP) and understood that publication revenue is a major source of income. The Appraisal Foundation uses this revenue to carry out its congressionally authorized duties given the Foundation does not have any congressional appropriation.

MYTH: The Foundation advocates on behalf of appraisers.
FACT: The Appraisal Foundation is not a membership organization. Its stakeholders range from appraisers to consumers to regulators. As a 501(c)(3) organization and as an organization authorized by Congress to maintain standards and qualifications, The Appraisal Foundation does not lobby or advocate. The organization is a resource for federal and state government officials. You can see a full list of federal organizations that have asked the Foundation to assist in a wide range of projects relating to appraisal services here. In 2013, the Obama-Biden Administration also named The Appraisal Foundation the White House’s Valuation Resource.

MYTH: You have to know someone to get involved with the work of the Foundation.
FACT: The Appraisal Foundation publicly solicits applicants to all of its boards and panels each year. The Board of Trustees typically accepts new applications every winter and the Appraisal Standards Board, Appraiser Qualifications Board, Personal Property Resource Panel, and Business Valuation Resource Panel accept new applications in the summer. Board applications are scored blindly leading up to the first round of interviews. All portions of the nomination process are scored using a standardized rubric system, and final interviews are always held in a public setting. Anyone who believes they fit the role description for these groups is welcome to apply. As applications are scored blindly, there is no preference given to anyone who knows a current member of a board. Organizations can also join one of The Appraisal Foundation’s councils at any time. Visit the Get Involved webpage to learn more about any of these opportunities.

MYTH: The Foundation’s standards and qualifications only apply to real property appraisers.
FACT: The Appraisal Foundation has standards for real property appraisers, ad valorem or mass appraisers, personal property appraisers and business valuers within the Uniform Standards of Professional Appraisal Practice (USPAP). Likewise, there are also minimum qualification criteria for personal property appraisers in addition to real property appraisers.

MYTH: Trustees are just on the board of The Appraisal Foundation to pad their resumes.
FACT: The Board of Trustees is a working board, and members participate in committees, working groups and task forces which include meetings, work sessions, calls and outside work requiring brainstorming, editing and project development with Foundation staff. Most trustees are surprised just how much work is expected of them when they join the board.

MYTH: The Appraisal Foundation does not accept a grant from the Appraisal Subcommittee so it can avoid oversight.
FACT: Under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 the Appraisal Subcommittee is empowered to monitor and review the work of The Appraisal Foundation regardless of whether the Foundation receives a grant or not. This includes attending meetings, receiving board and committee materials and providing feedback on all proposed changes to the standards and qualification criteria. The Foundation has not received a grant from the Appraisal Subcommittee since 2019, and the Appraisal Subcommittee has continued the same monitor and review activities that it has carried out for over three decades.

MYTH: The Foundation and USPAP were created because of Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA).
FACT: Both The Appraisal Foundation and Uniform Standards of Professional Appraisal Practice (USPAP) were created prior to the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) becoming law. In fact, The Appraisal Foundation was founded in 1987. The Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA), which was passed into law in 1989, recognized both The Appraisal Foundation and USPAP (authored in 1987) in its legislative text, stating that The Appraisal Foundation was authorized to maintain the Uniform Standards of Professional Appraisal Practice (USPAP) as the standards for real estate appraisers in the United States.

MYTH: The Foundation is operated under a pay-to-play system where sponsors pay a fee for the ability to appoint trustees to select who will write the standards and qualifications.
FACT: The Appraisal Foundation does not operate under a pay-to-play system. The Board of Trustees consists of 21 individuals: 10 are appointed by founding sponsors of The Appraisal Foundation, The Appraisal Foundation Advisory Council (TAFAC), and Industry Advisory Council (IAC), 10 are public interest seats filled by a competitive application process, and the Foundation president is a nonvoting member. Sponsors of The Appraisal Foundation pay an annual fee to the Foundation, but this fee is not tied to their ability to appoint a trustee. To ensure those who are selected to serve on the Appraisal Standards Board (ASB) or Appraiser Qualifications Board (AQB) are selected in a transparent manner, candidates are blindly scored for the first two rounds of consideration and trustees on the nominating committee must adhere to a set rubric in scoring candidates through every round of the application process. In the interest of full transparency and to adhere to best practices for a management board, the current structure of the Board of Trustees is being examined by the Board Structure Working Group, and the group’s findings and recommendations will be publicly announced once their work concludes.

MYTH: The standards and qualifications produced by the Foundation’s technical boards are developed with no input from the public or regulators.
FACT: The Foundation’s technical boards rely on public input to carry out their congressionally authorized roles. The Boards determine what, if any, changes are needed through conversations with stakeholders inside and outside of the appraisal profession. If changes need to be made to the standards or qualifications, both the Appraisal Standards Board and Appraiser Qualifications Board follow a process that closely mirrors federal rulemaking. This includes multiple exposure drafts and public comment periods to ensure the Boards receive feedback on all drafts. The public can always participate in public meetings and share their thoughts with the Boards through the Foundation’s website.

MYTH: The Foundation does not utilize subject matter experts in making decisions regarding the standards and qualifications.
FACT: The Appraisal Foundation’s technical boards consist of subject matter experts in the standards and qualifications, including many practicing appraisers. In addition, feedback is sought from a wide range of stakeholders on any proposed changes, including those with expertise across a range of groups, such as regulators, consumers, and lenders.

MYTH: The Board of Trustees directs what changes are made to the standards and qualifications.
FACT: The Appraisal Standards Board (ASB) and Appraiser Qualifications Board (AQB) operate independently of the Board of Trustees. The Board of Trustees cannot dictate either boards’ work plan or their decisions regarding any topic in front of the board. There is an Oversight Committee charged with ensuring that all board members are upholding the Foundation’s Code of Conduct and ethical requirements, but this role is strictly managerial. Trustees on the Oversight Committee cannot participate in any substantive discussion of standards and qualifications issues while conducting oversight.

MYTH: USPAP controls how appraisal reporting forms are developed and written, what those forms say or how they should be used, including Fannie Mae’s 1004 form.
FACT: The Uniform Standards of Professional Appraisal Practice (USPAP) does not dictate the form, format, or style of appraisal reports. And it is the position of the Appraisal Standards Board (ASB) that it is the appraiser, not a form, that complies with Uniform Standards of Professional Appraisal Practice (USPAP). Each assignment is different, and no form can cover all Uniform Standards of Professional Appraisal Practice (USPAP) requirements for the assignment. Appraisal report forms are simply tools used to organize the reporting of assignment results, and it is common for appraisers to supplement a form with addenda in order to comply with Uniform Standards of Professional Appraisal Practice (USPAP) requirements.

MYTH: Any party who is given a copy of an appraisal report should be able to understand not just what is in the report, but why certain information is, or is not, in the report.
FACT: Uniform Standards of Professional Appraisal Practice (USPAP) only requires an appraisal report to only be able to be understood by the party (or parties) who the appraiser has identified as an “intended user” of the appraisal report. While a client is always an intended user, someone who simply ends up being given a copy of an appraisal report, is not an intended user. An appraiser writes an appraisal report in a way that answers the identified intended users’ questions and cannot be expected to write appraisal reports in a way that answers any questions a “reader” of the report (that is unknown and not identified by the appraiser) would have.

MYTH: The requirement to take the 7-Hour Uniform Standards of Professional Appraisal Practice (USPAP) Course is only required if there are changes made to the Uniform Standards of Professional Appraisal Practice (USPAP).
FACT: The AQB education requirement for appraisers to take the 7-Hour Uniform Standards of Professional Appraisal Practice (USPAP) Course every two years is independent of whether changes are made to Uniform Standards of Professional Appraisal Practice (USPAP) or not. Every two years, appraisers take a new version of the 7-Hour Uniform Standards of Professional Appraisal Practice (USPAP) Course which will feature hot topics in the profession and how appraisers can better apply Uniform Standards of Professional Appraisal Practice (USPAP) in their daily appraisal practice. This requirement that an appraiser stays proficient in applicable standards through education is in line with other professions, including lawyers and pharmacists.

MYTH: : The Uniform Standards of Professional Appraisal Practice (USPAP) is the 344-page book appraisers purchase for the 7-Hour USPAP Course.
FACT: Uniform Standards of Professional Appraisal Practice (USPAP) is only 58 pages long. The book you currently buy is called the “Uniform Standards of Professional Appraisal Practice (USPAP) publication” and contains Uniform Standards of Professional Appraisal Practice (USPAP) and material that is not Uniform Standards of Professional Appraisal Practice (USPAP), including Advisory Opinions and Frequently Asked Questions. This additional material is referred to as guidance and is designed to be a resource to appraisers to better navigate the Uniform Standards of Professional Appraisal Practice (USPAP) and apply them to their daily appraisal practice. Uniform Standards of Professional Appraisal Practice’s (USPAP) preamble, definitions, rules and Standards 1-4 are all available for free online here.

MYTH: States and the federal government cannot exceed the qualification criteria set by the AQB.
FACT: The Appraiser Qualifications Board (AQB) sets the minimum qualification criteria for appraisers. States and the federal government can and often do place additional criteria exceeding the Appraiser Qualifications Board (AQB) minimum. For example, many federal government agencies require an appraiser to have 3-5 years of experience before they are considered qualified to do an appraisal for that agency. You can check out the Property Appraisal and Valuation Equity (PAVE) task force’s map here to view the criteria each state has put in place in addition to the Appraiser Qualifications Board (AQB) requirements.

MYTH: The Foundation enforces the standards and qualifications it develops.
FACT: While the standards and qualifications developed by the Appraisal Standards Board (ASB) and Appraiser Qualifications Board (AQB) have the force of law, the Foundation has no enforcement authority over the standards and qualifications developed by its boards. The Appraisal Foundation provides the tools for regulators who do enforce the standards and qualifications. The Appraisal Subcommittee (a federal agency) and state appraiser regulatory agencies are charged with enforcing the standards and minimum qualification criteria.

MYTH: The appraiser regulatory system is too complex for the public and appraisers to navigate.
FACT: The appraiser regulatory system differs from many professions, but this regulatory model is not unique, nor is it impossible to navigate. Much like the Financial Accounting Standards Board, Governmental Accounting Standards Board, and Public Company Accounting Oversight Board, the Foundation is a nonprofit entity tasked with writing standards for a profession. But none of these entities function in a vacuum or without government input. The Foundation’s work is monitored and reviewed by the Appraisal Subcommittee (ASC). The Appraisal Subcommittee (ASC) sits in meetings and offers feedback to the Foundation’s boards on its work and any proposed changes to the standards and qualifications. Once new editions of the standards and qualifications are published, it is up to the Appraisal Subcommittee (ASC) to ensure that state appraiser regulatory agencies are properly enforcing the standards and meeting the minimum qualification criteria. In short, the Foundation manages the standards and qualifications until new editions are adopted. It is then the responsibility of the Appraisal Subcommittee (ASC) and state regulators to ensure they are enforced.

MYTH: The Foundation controls or directs clients on how they should order appraisals (or if they should require them).
FACT: The Appraisal Foundation provides tools for regulators by maintaining standards and qualifications for real estate appraisers in the United States, but it has no enforcement ability. It does not control or direct how clients should order appraisals, and it does not have any power to require someone to have an appraisal.

MYTH: The Foundation has control over Fannie Mae, Freddie Mac, VA, and other federal agencies and has input in how Fannie Mae requires you to fill out their appraisal forms.
FACT: The Appraisal Foundation is a private nonprofit organization tasked with writing standards and qualifications. It provides tools for regulators but has no oversight authority or control over any regulator, federal or state. This includes Government Sponsored Enterprises (GSEs).

MYTH: The Foundation dictates methods or techniques for how to solve an appraisal problem.
FACT: The Appraisal Foundation does not dictate any methods or techniques for solving an appraisal problem. Their focus is strictly on standards and qualifications. For a brief time, The Appraisal Foundation had a board called the Appraisal Practices Board which offered voluntary guidance relating to the standards and the appraisal process, but this group was disbanded as the Foundation felt that education providers and appraiser membership organizations were meeting this need and did not want to duplicate their efforts. Methods and techniques are developed by education providers and appraiser membership organizations. For further guidance on methods and techniques, visit the website of one of the appraiser membership organizations on our Sponsors Page or check out the education providers who offer appraiser education courses.

MYTH: The Foundation has no resources for appraisers or the public.
FACT: The Appraisal Foundation has a wide array of resources available for appraisers and the public including white papers on a wide range of subjects, current and past exposure drafts, and Appraiser Talk, a podcast answering questions from every corner of the appraisal profession. Appraisers and the public will also find useful information on The Appraisal Foundation’s website and their YouTube channel.

MYTH: The Foundation can help me find an appraiser.
FACT: The Appraisal Foundation cannot assist with finding an appraiser. This is the role of appraiser membership organizations. If you would like to find an appraiser, please visit any of the membership organizations on our Sponsors Page to use their Find an Appraiser tools.