The Louisiana Real Estate Appraisers Board was created by Act 472 of the 1987 Louisiana Legislature, otherwise known as the Louisiana Real Estate Appraisers Law. The general purpose of the law was to bring the state into compliance with Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989.
Background Info In the early 1980's, the crisis in the savings and loan industry highlighted the need to improve appraisal practices throughout the United States. The difficulties and losses experienced by many lending institutions illustrated the importance of ensuring that appraisals are based upon established, recognized standards, free from outside pressures.
In 1986, nine leading professional appraisal organizations in the United States and Canada formed the Ad Hoc Committee on the Uniform Standards of Professional Appraisal Practice. Agreeing upon a generally accepted set of standards, the eight United States committee members adopted those standards and thereafter established The Appraisal Foundation in 1987 to implement the Uniform Standards of Professional Appraisal Practice. The Appraiser Qualifications Board was included in the Foundation structure to develop and promote meaningful criteria by which the competence of appraisers could be measured. The Uniform Standards of Professional Appraisal Practice was adopted by the Appraisal Standards Board of the Foundation on January 30, 1989 and is recognized throughout the United States as the generally accepted standards of professional appraisal practice.
Headquartered in Washington, DC, the Appraisal Foundation is directed by a Board of Trustees. The Board of Trustees appoints members to and provides financial support for the AQB and the ASB (described below).
With the 199 enactment of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA), Congress gave these two boards considerable responsibilities.
Appraiser Qualifications Board (AQB)
The AQB establishes the qualification criteria for state licensing, certification and re-certification of appraisers. FIRREA mandates that all state certified appraisers must meet the minimum education, experience and examination requirements promulgated by the AQB.
Appraisal Standards Board (ASB)
The ASB sets forth the rules for developing an appraisal and reporting its results. In addition, it promotes the use, understanding and enforcement of the Uniform Standards of Professional Appraisal Practice (USPAP).
FIRREA requires that real estate appraisals used in conjunction with federally-related transactions be performed in accordance with USPAP. More than 80,000 state certified and licensed appraisers are currently required to adhere to USPAP. USPAP contains the recognized standards of practice for real estate, personal property and business appraisal.
The authority of USPAP extends beyond FIRREA. Since 1992, the Office of Management and Budget (OMB) has required federal land acquisition and direct lending agencies to use appraisals in conformance with USPAP.