Detailed Definition of Appraisal Subcommittee
The Appraisal Subcommittee (ASC) is an entity within the United States federal government that plays a pivotal role in the oversight of real estate appraisal activities. Formed under the mandate of Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) of 1989, the ASC’s primary function is to ensure that state-certified and state-licensed appraisers meet the qualifications required to perform appraisals involving federally related transactions.
Key Responsibilities:
- Overseeing State Appraisal Boards: The ASC monitors State Appraisal Boards to ensure they comply with federal standards and guidelines.
- Uniformity in Appraisal Qualification: It endeavours to create uniformity in the qualification requirements across different states to ensure consistent standards in appraisal practices.
- National Registry of Appraisers: The ASC maintains a centralized, publicly accessible National Registry, which lists appraisers by state, ensuring transparency and oversight.
Examples
- Mortgage Applications: When a bank processes a mortgage application, it requires an appraisal of the property. The appraiser performing this task must meet the qualification requirements overseen by the ASC.
- Federal Transactions: Any real estate transactions involving federal entities or funding must use appraisers listed in the ASC’s National Registry.
- State Coordination: A state appraisal board regularly consults with the ASC to ensure its appraisers meet federally mandated qualifications and standards.
Frequently Asked Questions
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What is the main purpose of the Appraisal Subcommittee? The main purpose of the ASC is to provide federal oversight of state appraisal boards, promote uniformity in the qualification of appraisers across states, and maintain a national registry of appraisers.
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How can I access the National Registry of appraisers? You can access the National Registry of appraisers through the ASC’s official website: www.asc.gov.
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Who appoints the members of the Appraisal Subcommittee? The members of the ASC are appointed by representatives from the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation (FDIC), and other federal financial regulatory agencies.
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How does the ASC ensure compliance with appraisal standards? The ASC conducts regular audits and reviews of state appraisal boards to ensure they comply with the Uniform Standards of Professional Appraisal Practice (USPAP) and other pertinent guidelines.
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Can an appraiser be removed from the National Registry? Yes, an appraiser can be removed from the National Registry if they fail to meet the ongoing qualification requirements or have committed violations of relevant laws and regulations.
Related Terms
Uniform Standards of Professional Appraisal Practice (USPAP)
The USPAP sets the minimum standards for appraisals, appraiser qualifications, and ethical behavior. It’s essential for ensuring consistency and reliability in the appraisal of property.
Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA)
A legislative act that established the ASC and aimed at reforming real estate appraisal practices after the Savings and Loan Crisis of the 1980s.
National Registry of Appraisers
A centralized database maintained by the ASC, listing all state-certified and state-licensed appraisers who are eligible to perform appraisals in federally related transactions.
Online Resources
- Appraisal Subcommittee Official Website: www.asc.gov
- Uniform Standards of Professional Appraisal Practice: USPAP Official Site
- Financial Institutions Reform, Recovery, and Enforcement Act: FIRREA Overview
References
- Appraisal Subcommittee ASC
- Uniform Standards of Professional Appraisal Practice (USPAP)
- Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA)
Suggested Books for Further Studies
- “Real Estate Valuation Theory” by Jay M. Smith – Provides in-depth theorical underpinnings valuable for understanding appraisal practices.
- “The Appraisal of Real Estate” by Appraisal Institute – A comprehensive guidebook widely considered a cornerstone in real estate appraisal literature.
- “Fundamentals of Real Estate Appraisal” by William L. Ventolo Jr. and Martha R. Williams – An excellent resource for foundational principles and practices in the field.
