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.