Quality Quarterly Q4 2017 - Issue #35

FREQUENTLY ASKED QUESTIONS

FAQ No. 65 – New Assignment/ Same Property EA Q “I recently prepared a report for a bank client. A few weeks later a new bank client called and asked if we could issue the report to them. I got the original report released from the first client, received a new engagement letter and delivered the new report. I added an extraordinary assumption (EA) on condition of the subject since, a new inspection was not required. The time between reports was about 6 weeks. Do we have a policy regarding adding the EA if the time frame excess a defined time or limit?” A This issue occurs occasionally and we have not previously prescribed an EA for use in such situations. As a result of discussions with the QC Committee, the following EA should be included when we are issuing a new report to a different client: We assume that there have been no changes to the physical characteristics of the subject property from the date of our inspection to the date of value Note: Take care not to divulge the name of the original client to the new client. This will help ensure that confidentiality is maintained. FAQ No. 66 – Certification Question Q “The last few clients I have worked with required the addition of this exact statement in the Certification: “The Appraisal Assignment was not based on a requested minimum valuation, a specific valuation, or the approval of a loan.” Is this something that needs to be added to the templates?” A The language in our templates is consistent with that recommended in USPAP, and this appears to be dated verbiage. Please refer any comments to Scott Schafer for discussion with the client.

5 OUR APPRAISAL PRACTICE