Federal and State Guidelines

Appraisal practice in the US is regulated by the various states. The Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) of 1989 demanded all the states to develop systems for licensing and certifying real estate appraisers. To accomplish this, the Appraisal Subcommittee (ASC) was formed, with representatives from the various Federal mortgage regulatory agencies. Currently all real estate appraisers must be state-licensed or certified. In the 1980s, an ad-hoc committee representing various appraisal professional organizations in the U.S. and Canada met to codify the best practices into what became known as the Uniform Standards of Professional Appraisal Practice (USPAP). The Savings and Loan Crisis in the US resulted in increased Federal regulation of the mortgage lending process via the Financial Institutions Reform, Recovery and Enforcement Act of 1991. A portion of this act required federal lending regulators to adopt appraisal standards. A not-for-profit organization, The Appraisal Foundation, was formed by the same organizations which had developed USPAP, and the copyright for USPAP was signed over to The Appraisal Foundation. Federal oversight of The Appraisal Foundation is provided by the Appraisal Subcommittee (ASC), made up of representatives of various Federal lending regulators. The Appraisal Foundation carries out its work through two boards: the Appraisal Standards Board (ASB) which promulgates and updates USPAP; the Appraisal Qualifications Board (AQB) which promulgates minimum recommended standards for appraiser certification and licensure. During the 1990s, all of the states adopted USPAP as the governing standards within their states and developed licensure standards which met or exceeded the recommendations of The Appraisal Foundation.

Additional federal and state regulations and guidelines for appraisers have been adopted since in an effort to protect the public trust through appraiser independence.