In a move that sent tremors throughout the appraisal community, the Appraisal Institute withdrew its sponsorship of The Appraisal Foundation on September 7.
The Appraisal Institute is the most prestigious real estate organization and has more than 25,000 members and 91 chapters throughout the world. I am an affiliate member of AI (the designation for non-appraiser real estate professionals). The Appraisal Foundation was founded in 1987 by eight major appraisal organizations to help regulate the appraisal profession within the US. It is perhaps best known for its promulgation of the Uniform Standards of Professional Appraisal Practice (“USPAP”) which contains the generally accepted standards for professional appraisal practice in North America.
AI and the Appraisal Foundation have been fighting throughout this year regarding AI actions relating to proposed legislation. The Appraisal Foundation claimed that AI improperly sought to influence other Appraisal Foundation members to support legislation that may have been contrary to the Foundation’s interests. The Foundation ultimately sanctioned AI for its alleged actions.
The AI Board of Directors’ letter to the Foundation stated: “The Appraisal Institute must be able to discuss freely issues of concern to, and advance the interests of, its members, the profession and the public, which The Appraisal Foundation has made clear, is inconsistent with Foundation sponsorship. Moreover, the Foundation has decided to punish the Appraisal Institute for actions that it did not commit. That decision is grossly unfair, unacceptable, and attacks the very integrity of the Appraisal Institute.”
AI’s statement regarding its withdrawal can be found at appraisalinstitute.org/newsadvocacy/news/2010/090710_AI_WithdrawalFromTAF.aspx
It is truly sad that these two important organizations cannot work together. Hopefully, cooler heads will prevail and will close this rift.