In appraisals for federally-regulated institutions, what are appraisers expected to comply with?

In appraisals for federally-regulated institutions, appraisers are expected to comply with agency appraisal laws and the Uniform Standards of Professional Appraisal Practice (USPAP). This is essential because these standards provide a framework for ethical and competent appraisal practices, ensuring that appraisals are performed with integrity, objectivity, and transparency.

Agency appraisal laws typically refer to specific regulations set forth by federal agencies—like the Federal Housing Finance Agency or the Office of the Comptroller of the Currency—which mandate adherence to certain procedures and standards to protect public interest and consumer protection. USPAP, on the other hand, is a set of widely recognized guidelines that govern the appraisal profession as a whole. These standards help maintain consistency and professionalism in appraisals, which is critical when dealing with federally-regulated institutions that require a high level of scrutiny and accountability.

Other options, such as client requirements or local business regulations, do not provide a comprehensive framework for appraisals in this context, as they may not include the stringent ethical and procedural guidelines required by federal regulations. Private appraisal guidelines may also vary significantly and not adhere to the universally accepted standards necessary for federal compliance. Thus, compliance with agency appraisal laws and USPAP is a key responsibility for appraisers in these situations