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Just Got A Call About E&o

Discussion in 'General Appraisal Discussion' started by Verne Hebert, Jul 25, 2005.

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  1. Verne Hebert

    Verne Hebert Senior Member

    0
    Feb 25, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Montana
    I just got a call from one of the loan guys at a local bank. He told me we have to get E & O because the OCC has told the bank that all appraisers have to have E&O.

    Historically here, the appraisal community has eschewed E&O insurance; the problems it can create for good appraisers is greater than the potential benefit..........and you know what I am talkin about.

    The only appraisers here, and they are few, that have E&O are those that have been hammered by the state on poor work, and those that have been doing substandard work and have been sued more that a couple of times.

    I believe the OCC has dictated this. I am shocked the government regulatory agency dictates this.

    Any thoughts on this one.
     
  2. Tina

    Tina Senior Member

    0
    May 31, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    I'd like to see the OCC directive <_<

    TB
     
  3. Chris Colston

    Chris Colston Elite Member

    0
    Jul 24, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    Most likely they are auditing THAT bank are not happy with the files they have seen. There is one bank, in my area, that has been under OCC control for the better part of 5 years. They closed the fee panel and the OCC has to approve every appraiser on the list. They open the lsit onece a year and you have submit a lenghty application, reference both client and personal, E&O, and 3 samples. Makes it very difficult to do work there.
     
  4. Hal Mann

    Hal Mann Senior Member

    0
    Jan 19, 2005
    Professional Status:
    Certified General Appraiser
    State:
    New York
    Something tells me that some controversy lurks in this statement!
     
  5. Randolph Kinney

    Randolph Kinney Elite Member
    Gold Supporting Member

    83
    Apr 7, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    <_< No assets, not much of a bank account ... gee, you need E & O insurance. How else can a lawyer make it worth their while to sue you?
     
  6. Rudy Canoza

    Rudy Canoza Senior Member

    0
    Sep 27, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    I'm afraid I don't know what you are talking about. I have had E&O from different providers for 16 years...it just sits in my file cabinet. It never does anything to me.

    /Do I have the "good" E&O? Is there an "evil" E&O?
     
  7. Verne Hebert

    Verne Hebert Senior Member

    0
    Feb 25, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Montana
    Their is no good and bad E & O; just "insurance".

    The thought as been, if one has E&O one is more likely to sued--it welcomes the suit--you have deep pockets.

    Why do you think lenders want a reassigned appraisal to be "rewritten" in their name? The rights to the appraisal can be reassign and used--it doesn't have to be "rewritten'.

    However when it is rewritten, you E & O is now on the hook.

    And when borrowers want to sue because of the water in their home, the one you appraised 7 years ago, and they want to sue you --you tell them, sorry friendo I don't have insurance, and it ends.

    I have everything in trust. No one will sue me, there is nothing for them to get.
     
  8. Rudy Canoza

    Rudy Canoza Senior Member

    0
    Sep 27, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Correct me if I'm wrong here...don't they have to have a reason to sue you and don't you have to do something wrong to get sued and lose the lawsuit? I mean, I have a homeowners policy and people aren't lining-up to sue me. I have auto insurance and people aren't running me off the road. I have life insurance...okay, we won't go there...

    Anyway...I'm just saying...
     
  9. Ray Miller

    Ray Miller Elite Member

    0
    Feb 20, 2002
    Professional Status:
    Licensed Appraiser
    State:
    Wisconsin
    As I have said befoe.......................It just takes that one time with out insurance.

    Been there done that. No thank you.
     
  10. Mountain Man

    Mountain Man Elite Member

    25
    Jan 15, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Georgia
    That sounds too much like the verbal UW request we receive all of the time <_< are you sure it came from the state OCC??
     
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