USPAP Course – Everything You Need To Know

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How much something is worth is really a subjective opinion. A seller who is trying to maximize their profit may think their house is worth more than what a buyer might think. The appraiser’s job is to act as a referee that is neutral in this tug of war between buyer and seller.

In the real world, appraisers are often pressured by mortgage lenders, brokers, and real estate agents to come up with a property value that will help them close a real estate transaction in order to make the most money. If an appraiser bends to this pressure, bad things happen. Consumers are left footing the bill for other people’s greed. This is, in part, what fueled the Great Recession of 2008.

There had to be a national standard setup to make sure appraisers didn’t fall victim to this pressure and keep them accountable. Regulators decided to achieve this by requiring appraisers to take a course that educates and reminds them of their ethical obligation to remain unbiased and objective.

What is it?

The Uniform Standards of Professional Appraisal Practice (USPAP) sets the minimum standard of quality control for appraisers by requiring education every two years. It establishes the Standards and Statements that cover the development and reporting of valuation that all appraisers must abide by to ensure that the appraisal report is independent and remains free of bias.

There are also Advisory Opinions that are non-binding but is meant to serve as a guide. The USPAP does not instruct an appraiser on what specific appraisal method to use. It simply requires that appraisers be familiar with and correctly employ methods that other appraisers, who are also capable of working on a similar assignment, would find acceptable to the intended users of the appraisal.

There isn’t just one USPAP course. There are several variations of the USPAP course intended for different purposes. However, you only need to take one USPAP course at any given time. The only exception is if you have been subject to a penalty by your state appraisal board or you are in a discipline-specific association that is requiring it. In either of these cases, they will be notifying you directly if you need to take an additional USPAP course.

Who needs to take it?

  • Anyone who wants to become a licensed appraiser must take the 15-hour National USPAP course.
  • Appraisers who are currently licensed must take a 7-hour USPAP National Update course (or its equivalent) once every two calendar years.
  • Appraisers who have been subject to disciplinary action by regulators may need be required to take the 15-hour National USPAP course.

USPAP Courses

Here is the complete list of USPAP (commonly pronounced as YOOS-PAP) courses that are available. You will want to make sure you take the right one.

If you are a real property appraiser:

7-Hour National USPAP Update Course
Available online and classroom
Fulfills USPAP requirement
Counts as Continuing Education (CE)

7-Hour USPAP Update Course for Non-Residential Real Property 
Available online only
Fulfills USPAP requirement
Counts as Continuing Education (CE)

7-Hour USPAP Update Course for Mass Appraisal
Available Classroom only
Fulfills USPAP requirement
Counts as Continuing Education (CE)

7-Hour Residential Review and Compliance Course
Available online and classroom
Does not fulfill USPAP requirement
Counts as Continuing Education (CE)

15-Hour National USPAP Course 
Available online and classroom
Fulfills USPAP requirement
Counts as Qualifying Education (QE) and Continuing Education (CE)

15-Hour USPAP Course for Personal Property
Available Classroom only
Does not fulfill USPAP requirement
Does not count as Continuing Education (CE)

7-Hour USPAP Update Course for Personal Property
Available Classroom only
Does not fulfill USPAP requirement
Does not count as Continuing Education (CE)

If you are a mass appraiser:

7-Hour USPAP Update Course for Mass Appraisal
Available Classroom only
Fulfills USPAP requirement
Counts as Continuing Education (CE)

If you are a business appraiser:

15-Hour USPAP Course for Business Appraisal
Available classroom only
Does not fulfill USPAP requirement
Does not counts as Continuing Education (CE)

When does it have to be completed?

There is a new edition of the USPAP course that is published every two years, beginning on January 1st of even-numbered years. For example, there is a new edition of the USPAP course for January 1, 2020 to December 31, 2021, January 1, 2022 to December 31, 2023, January 1, 2024 to December 31, 2025, etc…

The USPAP course must be completed by the year that it was approved for. In other words, if you have signed up for the 2020-2021 National USPAP Update course from an approved education provider, you have until December 31st, 2021 to complete that course. The course certificate would not be accepted by the state appraisal board if you completed it on January 1, 2022 or later.

In practice, if you are already a licensed appraiser, you will most likely be trying to complete the USPAP by your license renewal date, which can occur earlier than the date the USPAP course expires for most people.

How much does it cost?

The USPAP is the most expensive appraisal course no matter where you take it because appraisal schools are required to pay royalties to The Appraisal Foundation.

Also, since this course is tightly regulated, it has the most rigorous standards compared to any other appraisal course. The Appraisal Foundation requires appraisal schools to make sure students have mastered the topics. Typically, that means you have to score 100% on all the quizzes and pass them twice. Fortunately, most CE courses don’t require final exams at the end.

Here is a list of the three biggest appraisal schools that offer the 7-hour National USPAP Update course.

OnCourse Learning$189.00Click here for more details
McKissock$199.99Click here for more details
Appraisal Institute$250.00Click here for more details

Background

As a result of the savings and loans crisis in the 1980’s, Congress passed The Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) to give the Appraisal Subcommittee (ASC) the authority to oversee the appraisal standards and licensing qualifications for the nation.

Around the same time, an ad hoc committee representing the nine major U.S. and Canadian appraisal organizations formed an independent entity called The Appraisal Foundation (TAF) and developed the USPAP.

TAF has three independent boards:

  • Appraisal Standards Board(ASB) – publishes, promotes and maintains the USPAP
  • Appraiser Qualifications Board (AQB) – sets the national minimum standards for appraisal licensing. States have the discretion to place additional requirements.
  • Appraisal Practice Board (APB) – offers voluntary guidance to appraisers, regulators, and users of appraisal services on recognized valuation methods and techniques, emerging issues, and other topics that may arise for all valuation disciplines.