The Appraisal Standards Board (ASB), through The Appraisal Foundation (TAF), issued new guidance for appraisers on limited appraisals and calculation engagements, plus clarity surrounding appraisal reports and restricted appraisal reports, TAF announced in a release.
Also, Fannie Mae has updated its Lender Letter 2020-04 pertaining to the COVID-19 impact on appraisals by way of extending the temporary appraisal flexibilities until June 30.
In the practice of business appraisals, does USPAP permit limited appraisals or calculation engagements?
“Yes,” the ASB responded. “While these terms have specific meanings and uses, they are both considered appraisals according to the USPAP definition. Limited appraisals and calculation engagements are examples of assignments with a narrow scope of work, which are addressed in the Scope of Work Rule.
“Under USPAP, it is the appraiser’s responsibility to determine when use of these narrower scopes of work is appropriate. For example, the scope of work must be sufficient to develop assignment results that are credible in the context of the intended use,” the ASB added.
For more updates, including comparison of content pertaining to an appraisal report versus a restricted appraisal report concerning personal properties and business valuations go to Comparison of Content – Appraisal Report vs. Restricted Appraisal Report (Personal Property) and Comparison of Content – Appraisal Report vs. Restricted Appraisal Report (Business Valuation).
For further information, contact TAF Appraisal Issues Vice President Lisa Desmarais at (202) 624-3044 or at [email protected].