Appraisal Alphabet Soup: It’s What’s for Dinner

Posted by TSI Appraisal
All industries have their own mix
of jargon and acronyms, and the appraisal industry is no different. It’s a
wonder that appraisers can even keep up with the alphabet soup that continues
to flood the industry year over year. When the housing bubble brought on an
economic downturn in 2008, the industry cured it with acronyms new and old. In
case you’ve missed any of them, here is a shortlist of the most common ones and
their purpose:

USPAP – Uniform
Standards of Professional Appraisal Practice
USPAP is basically the quality
control standards for real estate appraisal analysis. It was created in the 80s
by a joint committee representing both U.S. and Canadian appraisal
organizations. There is a USPAP update each year, which details annual
advancements, changes in standards and new guidelines in the appraisal
industry.
ASB – Appraisal
Standards Board
The ASB is a group of seven
appraisers who are appointed by the board of trustees of the Appraisal Foundation.
They are responsible for writing and organizing the aforementioned USPAP
guidelines.
CFPB – Consumer
Financial Protection Bureau
The CFPB is an agency that
ensures consumer protection with regard to financial products and services in
the United States. Established in 2011, the Bureau brought quite a few
controversial regulations into fruition including Dodd–Frank Wall Street Reform
and the Consumer Protection Act, which was created in reaction to the financial
crisis of 2008.
FNMA – Fannie
Mae
Created in the 1930’s as a part of
FDR’s New Deal legislation (focused on Reform, Relief, and Recovery) in
response to the great depression, Fannie Mae is a government sponsored enterprise.
It is responsible for developing the secondary mortgage market by securing
mortgages in the form of mortgage-backed securities. 
Mortgage-back securities allow
lenders to reinvest their assets into more lending. This increases the number
of lenders in the mortgage market by reducing the reliance on savings and loan
associations known as “thrifts”.
FHA – Federal
Housing Administration
The Federal Housing
Administration is an agency created to insure loans made by banks and other
private lenders for home building in order to improve housing standards and
conditions. The FHA basically insures mortgage loans to stabilize the mortgage
market. This administration has also been around since the 1930s.
UAD – Uniform
Appraisal Dataset
Uniform Appraisal Dataset is a
program designed to standardize mortgage loan data so it can be processed more
efficiently. Currently, Fannie Mae requires all appraisals to be submitted to
them in UAD format.
After you learn all the ingredients
that make up Appraisal Alphabet Soup, save room for seconds, thirds and
fourths; there will be many more helpings of new info and regulations to come.