Appraisals Vocab List Unit 1

Appraisal Foundation

The Nonprofit corporation established in 1987 and headquartered in Washington, D.C., sponsored by major appraisal and appraisal-related professional and trade groups.

Appraisal management companies (AMCs)

Any corporation, partnership, sole proprietorship, subsidiary, unit, or other business entity that administers networks of independent contract appraisers to perform real estate appraisal services for clients.

Appraisal Practices Board (APB)

Created by the Appraisal Foundation to issue voluntary guidance to appraisers on emerging valuation issues in the marketplace.

Appraisal Report

This reporting option contains sufficient information to lead the client and other intended users of the report to the appraiser's opinions and conclusions.

Appraisal Standards Board (ASB)

Created by the Appraisal Foundation and responsible for establishing minimum standards of appraisal competence.

Appraiser

One who forms an opinion of a specified value.

Appraiser Independence Requirements

Fannie Mae directives that took effect October 15, 2010, to help insure that appraisals are objective and not subject to any form of coercion.

Appraiser Qualifications Board (AQB)

Created by the Appraisal Foundation and responsible for establishing minimum requirements for licensed and certified appraisers and licensing and certifying examinations.

Computer-assisted mass appraisal (CAMA)

Use of computerized databases and techniques in valuing commercial and residential properties for tax assessment purposes.

Department of Veterans Affairs (VA)

Federal agency that provides education, health, housing, and other benefits to qualified veterans of one of the military services.

Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank)

Became law July 21, 2010, and greatly increases federal regulation of financial services through the Federal Reserve Board, including changes to the Truth in Lending Act (TILA) that prohibit use of coercion or other attempts to influence appraisals.

Economic Stimulus Act of 2008

Legislation passed in early 2008 intended to assist taxpayers and homeowners at a time of economic downturn and increased home foreclosures.

Fannie Mae

Formerly the Federal National Mortgage Association, created by Congress in 1968 to establish a secondary market for home mortgages and now privately owned although supervised by the federal government through the Office of Federal Housing Enterprise Oversight (OFHEO).

Federal Deposit Insurance Corporation (FDIC)

An independent federal agency whose purpose is to insure the deposits in commercial banks.

Federal Housing Administration (FHA)

The Federal Housing Administration; insures loans made by approved lenders in accordance with its regulations.

Federal Housing Finance Agency (FHFA)

Created in 2008 to serve as regulator and conservator of Fannie Mae and Freddie Mac and regulator of the 12 Federal Home Loan Banks.

Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA)

Federal legislation that mandates state licensing or certification for appraisers performing appraisals in certain federally related transactions.

Freddie Mac

Formerly the Federal Home Loan Mortgage Corporation, created by Congress in 1970 to provide a secondary market for mortgage-backed securities and now privately owned but under the supervision of the Office of Federal Housing Enterprise Oversight (OFHEO).

Government-sponsored enterprises (GSEs)

One of the organizations comprising the secondary mortgage market, such as Fannie Mae, that is supervised by the federal government through the Office of Federal Housing Enterprise Oversigh (OFHEO).

House Finance Board

Federal agency created to replace the Federal Home Loan Bank Board and provide regulatory oversight of the Federal Home Loan Banks.

House Price Index (HPI)

Indicator of house price trends in various regions of the United States, developed by the Federal Housing Finance Agency (FHFA).

Housing and Economic Recovery Act of 2008 (HERA)

Intended to help the housing market, HERA provided new guarantees for owners of subprime mortgages, provided funding for Fannie Mae and Freddie Mac and placed both organizations in conservatorship, and created the Federal Housing Finance Agency.

Office of Thrift Supervision (OTS)

A government agency created by the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) that governs the practices of fiduciary lenders-such as commercial banks and savings associations.

opinion of property value

The conclusion of a property's defined value reached by an appraiser after consideration of the relevant data concerning the subject property, comparable properties, and the marketplace as of a specified date.

scope of work

The amount and type of information researched and the analysis applied in an appraisal assignment.

subprime lending crisis

Loans made to borrowers with credit scores that do not qualify for the lowest interest rates.

Truth in Lending Act (TILA)

Enacted in 1968 and implemented by the Federal Reserve, TILA offers protections to consumers in credit transactions, including mortgages, primarily by requiring disclosure of loan terms and obligations.

Uniform Standards of Professional Appraisal Practice (USPAP)

Minimal criteria for appraisal competency promulgated by the Appraisal Foundation at the direction of Congress, to be applied to appraisals that require the services of a state-licensed or certified appraiser.