STATEMENT BY THE APPRAISAL FOUNDATION

STATEMENT BY THE APPRAISAL FOUNDATION
REGARDING THE SUSPENSION OF
THE APPRAISAL INSTITUTE AS AN APPRAISAL SPONSOR
On September 1, 2010, the Board of Trustees of The Appraisal Foundation conducted a
hearing, the purpose of which was to provide the Appraisal Institute with an
opportunity to ask for reconsideration of a proposed seven month suspension as an
Appraisal Sponsor of the Foundation. A resolution for the suspension was adopted by
the Board of Trustees on July 12, 2010, with an effective date of September 15, 2010.
This action was based on a special meeting of the Board on June 15, 2010, at which time
information was presented to the Board regarding the conduct of the Institute.
The three resolutions the Board of Trustees adopted on July 12th were:
RESOLUTION #1
RESOLVED, that upon consideration of the information and materials presented
to the Board of Trustees with respect to the conduct of the Appraisal Institute
related to an amendment to Title XI, namely,
to maintain the independence of the Appraisal Standards and Appraiser
Qualifications Boards and to avoid potential conflicts of interest, the
Appraisal Foundation shall not directly or indirectly offer or sponsor
any qualifying or continuing education courses for certified or licensed
real estate appraisers beyond the National Uniform Standards of
Professional Appraisal Practice course specifically required for licensure
and certification
The Board of Trustees has concluded that the Appraisal Institute engaged in
conduct materially and seriously prejudicial to the purposes and interests of the
Foundation;
1155 15th Street, NW, Suite 1111
Washington, DC 20005
T 202.347.7722
F 202.347.7727
RESOLUTION #2
RESOLVED, that as a result of engaging in such conduct, the Appraisal Institute
shall be sanctioned as follows:
1) The Appraisal Institute shall be suspended as an Appraisal Sponsor
effective September 15, 2010 and ending on April 15, 2011;
2) Permission by The Appraisal Foundation to the Appraisal Institute to
reproduce the Uniform Standards of Professional Appraisal Practice
(USPAP) without charge and (b) its discount on the purchase price of
USPAP shall be revoked for a period commencing September 15, 2010 and
ending on July 1, 2012;
RESOLUTION #3
RESOLVED, The Chair of The Appraisal Foundation shall promptly appoint a
task force comprised of not less than three nor more than five members from the
Board of Trustees to liaison with the Appraisal Institute during the period of
suspension, or for such longer period as the Chair may determine, for the
purpose of rehabilitating the relationship of the Appraisal Institute with The
Appraisal Foundation as an Appraisal Sponsor.
After considering the September 1st presentation of the Appraisal Institute to the Board
of Trustees that it should reconsider its suspension, the Board passed the following
resolution:
RESOLVED, that the suspension of the Appraisal Institute as an Appraisal
Sponsor remains effective September 15, 2010 but shall end on December 31,
2010.
Without question a principal purpose of the Foundation is appraisal education. A
sponsor’s decision to promote the passage of an amendment to a federal statute that
would directly and expressly limit the future educational activities of the Foundation,
without the Foundation’s prior knowledge or its approval, is a very serious matter. In
this case, the Appraisal Institute not only drafted the proposed amendment described
above, it actively but unsuccessfully sought the support of at least three other
organizations.
1155 15th Street, NW, Suite 1111
Washington, DC 20005
T 202.347.7722
F 202.347.7727

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