Real Estate Appraisal Forum

appraisersforum.com logo
The Premiere Online Community for Real Estate Appraisers!
 Fastest Way to Find a Real Estate Appraiser Enter Zip Code:
 
 
Go Back   Appraisers Forum > State Forums > Individual States > Pennsylvania
Register Help Our Rules Calendar Archives Mark Forums Read


Closed Thread
 
Thread Tools
  #1  
Old 10-28-2010, 09:07 PM
jnordquist's Avatar
jnordquist jnordquist is offline
 
Join Date: Sep 2007
Location: Pittsburgh
State: Pennsylvania
Professional Status: Certified Residential Appraiser
Posts: 966
Default BPO Agent in PA gets smacked with fine



The respondent is not certified as a real estate appraiser. She holds a real estate license. Her employer noticed payments on her 1099 received from LSI, a foreclosure company, for two property valuation reports. He reported these payments to the Board. The Commonwealth determined that these reports were appraisals completed without proper certification. Evidence indicates that more than two reports were completed, but additional records cannot be subpoenaed because the company is located out of state. The Commonwealth recommends $2,000 in civil penalties and a cease and desist order. The consent agreement presented by the prosecution was deliberated by the Board in executive session and was approved.
Board members voiced frustration with the Boardís inability to discipline the company that solicited the reports. Vice-Chair ******* noted that HB2334, legislation to regulate Appraisal Management Companies in Pennsylvania, would prohibit companies like LSI from soliciting Broker Price Opinions (BPOs). The Board noted that BPO requests have increased due to a rising number of foreclosures.
Chairman ******* noted that HR4173, the Dodd-Frank Financial Reform Bill, prohibits BPOs from being used as the primary basis to determine the value of a piece of property for the purpose of loan origination in conjunction with the purchase of a consumerís principle dwelling. The provision is intended to codify GSE policies that prohibit the use of BPOs in mortgage loan origination. Board prosecution noted that any state legislation introduced will need to conform to this piece of federal legislation. Discussions took place on whether the Dodd-Frank Bill refers to individuals valuing the loan portfolio, or the loan risk, instead of the property itself. If the property does not change hands it is not considered a financial transaction.
If this issue continues to raise concerns, the Board will pursue outlets of notifying the public that they are looking at this issue and actively prosecuting these cases.
Sponsored Links

  #2  
Old 10-28-2010, 09:43 PM
NORTON NORTON is offline
 
Join Date: Oct 2007
State: California
Professional Status: Certified Residential Appraiser
Posts: 1,904
Default

good to hear
  #3  
Old 10-28-2010, 11:11 PM
Laughing Heir's Avatar
Laughing Heir Laughing Heir is offline
 
Join Date: Oct 2007
Location: Steamtown
State: Pennsylvania
Professional Status: Certified Residential Appraiser
Posts: 1,337
Default

I was talking to a Realtor today, the guy sells between 50 and 75 REOs every year. He's my friend, and we talk candidly with each other. He was flipping out about a listing that he's had for several months, it's soooo overpriced that he finally spit the hook. The asset manager will not drop the list price because another agent is 'valuing' the property at its current asking price. We did some research and found out that the Realtor that completed the BPO for the asset management company has been licensed for two years and has sold one house. Talk about experience you can trust ...

It would be interesting to see if Realtors finally get it through their heads that they cannot complete BPOs and get away with it. Maybe they'll start turning in each other because of situations like the one I described.

One can hope.
__________________
"If you think it's expensive to hire a professional to do the job, wait until you hire an amateur."
  #4  
Old 10-29-2010, 07:02 AM
Mike Kennedy's Avatar
Mike Kennedy Mike Kennedy is offline
 
Join Date: Sep 2003
Location: Southern Hudson Valley
State: New York
Professional Status: Certified Residential Appraiser
Posts: 27,374
Default

"If the property does not change hands it is not considered a financial transaction."

........Oh?
__________________
Kill the Contract Review Bull$eye - Now.
  #5  
Old 10-29-2010, 07:58 AM
jnordquist's Avatar
jnordquist jnordquist is offline
 
Join Date: Sep 2007
Location: Pittsburgh
State: Pennsylvania
Professional Status: Certified Residential Appraiser
Posts: 966
Default

I'm willing to bet that the agents are paid directly for the BPO's, another PA violation.
  #6  
Old 10-29-2010, 08:09 AM
Marion Rhodes's Avatar
Marion Rhodes Marion Rhodes is offline
 
Join Date: Feb 2006
Location: Poconos
State: Pennsylvania
Professional Status: Certified General Appraiser
Posts: 9,577
Default

Part of the problem comes from the Real Estate Commission and PAR. Check their websites. They maintain that clients really just want a CMA for a listing and are using the wrong terminalogy. It is also legal for Salespeople to be paid for a CMA so long as they have that in writting prior to doing the work.

But, the new FRB ruling says that salespeople performing valuations are to be protected from cohersion, therefore they can not have the listing. The Real Estate Commission needs to rethink their giant loophole.

.
  #7  
Old 01-15-2011, 09:42 PM
ARRE ARRE is offline
 
Join Date: Dec 2005
State: Pennsylvania
Professional Status: Certified General Appraiser
Posts: 96
Default

Marion,

Have you heard anything more about this?? I was just in the class with Joe Fisher (who had nothing but nice things to say about you) in Williamsport, and he didnt have any more info on this problem in PA. I was also speaking with Melanie McLane, and she said the RE commission said they were too busy checking font type in ads to be bothered with anything else. Is this something that can come under the Appraisal Board?

Thanks,
Justin Reis, SRA
  #8  
Old 01-15-2011, 09:58 PM
TEL2002's Avatar
TEL2002 TEL2002 is online now
 
Join Date: Jan 2002
Location: Louisiana
State: Louisiana
Professional Status: Retired Appraiser
Posts: 8,126
Default

Why didn't the state also go after LSI?
Sponsored Links

Closed Thread


Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump




Copyright © 2000-, AppraisersForum.com, All Rights Reserved
     Terms of Use  Privacy Policy
AppraisersForum.com is proudly hosted by the folks at AppraiserSites.com

Fastest Way to Find a Real Estate Appraiser Enter Zip Code:
Partner Sites:
AppraiserUSA.com - National Appraiser Directory AllDomainsUSA.com - Domain Name Registration
DeadbeatListings.com - Deadbeat ListingsAppraiserSites.com - Web Hosting for the Professional Real Estate Appraiser
Find FHA Appraisers - FHA Appraiser Search Commercial Appraisers - Commercial Appraiser Search
Relocation Appraisal - Find Relocation Appraisers Domain Reseller - Business Opportunity
Home Security Buzz - Home Security Info Radon Testing - Radon Gas Info
My Medicare Forum - Medicare Info Stop Smoking Help - Help Quitting Smoking
CordlessPhoneStore.com - Great Cordless Phones AndroidTabletCity.com - Android Tablet Computers

Follow AppraisersForum.com:          Find us on Facebook            Follow us on Twitter


All times are GMT -5. The time now is 01:24 PM.

SiteMap: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61, 62, 63, 64, 65, 66, 67, 68, 69, 70, 71, 72, 73, 74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86, 87, 88, 89, 90, 91, 92, 93