The Regulatory Framework: FIRREA and The Appraisal Foundation

Following the savings and loan crisis of the 1980s, the federal government enacted the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) in 1989 to bring stability and strict standards to the lending and appraisal industries. FIRREA recognized The Appraisal Foundation as the source for appraisal standards and qualifications. The Foundation is a private, non-profit corporation that oversees the industry through two independent boards. The Appraisal Qualifications Board (AQB) acts as the gatekeeper for the profession, establishing the minimum education, experience, and examination requirements that an individual must meet to become a state-certified appraiser. Simultaneously, the Appraisal Standards Board (ASB) acts as the rule-maker, writing and amending the Uniform Standards of Professional Appraisal Practice (USPAP), which serves as the ethical and technical code of conduct for appraisers. Overseeing this entire structure is the Appraisal Subcommittee (ASC), a federal entity that ensures state governments are properly enforcing these standards and maintaining a national registry of eligible appraisers.