After the savings and loan crisis in the 1980s, and again in 2008, the banking industry responded with new rules and additional safeguards for better risk management. One of the most significant changes involves aircraft appraisals.
Prior to 2008, a simple market valuation by a resale broker, often with just a quick look at the current edition of the Aircraft Blue Book, was sufficient to secure as much as a 90% loan-to-value ratio for a pre-owned aircraft. That is no longer so. The lender is required to have a certified appraisal. Today, most banks, leasing companies, and insurance underwriters require that all loan collateral, including business jets, have an aircraft valuation performed by a qualified, certified appraiser before financing is approved. Those appraisers must comply with the Uniform Standards of Professional Appraisal Practice (USPAP), which was created in 1989 by the Appraisal Foundation, and is the generally accepted standard in Canada and Mexico as well as the U.S..