Recognition of Assignment Conditions (AO-30)

USPAP creates an obligation for appraisers to recognize and adhere to applicable assignment conditions. The appraiser’s identification of the intended use and intended users drives the applicable assignment conditions. The relevant laws and agencies’ appraisal regulations and guidelines are assignment conditions for real property appraisals for use by a federally regulated financial institution. These assignment conditions include, but are not limited to, the following:

Laws, principally Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA);

Regulations, primarily the following agency appraisal regulations:

–	Office of the Comptroller of the Currency (OCC) 12 CFR 34, Subpart C;
–	Federal Reserve Board (FRB) 12 CFR 225, Subpart G;
–	Federal Deposit Insurance Corporation (FDIC) 12 CFR 323;
–	Office of Thrift Supervision (OTS) 12 CFR 564; and
–	National Credit Union Administration (NCUA) 12 CFR 722.

Guidelines provided in the agencies’ bulletins and issuances, including documents such as:

–	Interagency Appraisal and Evaluation Guidelines;
–	Independent Appraisal And Evaluation Function;
–	Frequently Asked Questions on Residential Tract Development Lending;
–	The 2006 Revisions to Uniform Standards of Professional Appraisal Practice; and
–	Frequently Asked Questions on the Appraisal Regulations and the Interagency Statement on Independent Appraisal and Evaluation Functions.

The guidelines identified in this Advisory Opinion are subject to change. Appraisers are cautioned to communicate with their client on the current guidance that is applicable in a given assignment. Reference can be made to the website of the applicable federal financial institutions regulatory agency for these documents and more information on current bulletins and applicable issuances. The website of The Appraisal Foundation (www.appraisalfoundation.org) also contains links to the agencies’ documents.

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