What is required for an appraisal used in federally regulated transactions?

For an appraisal used in federally regulated transactions, compliance with Uniform Standards of Professional Appraisal Practice (USPAP) standards is essential. These standards ensure that appraisals meet a high level of professionalism and accuracy and are recognized nationally. USPAP provides a framework for ethical conduct, competent performance, and the proper completion of appraisal assignments, which helps to maintain integrity within the real estate market. Federal regulations mandate that appraisals for federally related transactions comply with these standards in order to safeguard the interests of both the lender and the borrower.

While state certification, independent verification, and affiliation with a national organization may be relevant in other contexts, they do not specifically define the requirements for federally regulated transactions in terms of the appraisal process. Compliance with USPAP is the primary requirement that ensures consistency, reliability, and adherence to the necessary professional guidelines for appraisals in this context.