Appraisers able to hide and prosper

[Bob Ipock]

Folks,


Rep. Bill Current of Gaston County is now looking into the issue of appraisers names being included in the recorded documents along with the mortgage brokers. House Bill 313 (passed and now law) requires that the name of the loan originator be included and recorded on every deed of trust. This is to make it easier to track who was the originator of each loan. The original plan was to include the appraisers name along with the mortgage broker. When the bill was in committee (please see the bill by using the link)


http://www.ncga.state.nc.us/Sessions/2007/Bills/House/HTML/H313v9.html



the chairman (Rep. Walter Church) told all of the legislators that the appraisers name was already public record and there was no need to include appraiser in the law. This of course is untrue.

Rep. Church also told committee members that he was an appraisers and he knew that the appraiser's name was already public record. Again, this was untrue. Rep Church is not and never has been a licensed or certified appraiser in North Carolina. Now he says that he meant to say that when he was with some small town bank and he he did "appraisals" as part of his loan officer duties. This was before appraiser licensing even came along.....back in the 1980's.

Why is it important for the appraiser's name to be included in this state law? The primary reason is to protect the public. The reason is that crooked, dishonest, incompetent appraisers are destroying this business and there has to be a way to track them.

When you see homes selling and closing for inflated prices...there is no way to track the appraiser involved. This means that the crooked, dishonest, incompetent appraisers are destroying your ability to make a living because you refuse to buckle under. It also means that thousands of homeowners are upside down on there homes due to inflated appraisals.


Why would you object to having your name recorded along with the deed of trust? Not the appraisal report.....just your name license number. Don't you sign your name on every report and take responsibility for them? I have yet to hear a valid objection, perhaps you have one.

Please email all legislators on this issue and let them know how you feel...either way. NOBODY is protecting the honest appraisers and the bad guys are taking over because NOBODY is standing in their way.

Please contact all legislators and especially Rep. Current tell them where you stand and why.


internete-mail@ncleg.net

WILLIAMACURRENT@AOL.COM

 

[TJSum]

Back in the early 90's, Prince Georges County, Maryland MLS system used to put the appraiser's name on each listing that had gone to settlement status.

 

[David Beasley]

Why would you object to having your name recorded along with the deed of trust? Not the appraisal report.....just your name license number. Don't you sign your name on every report and take responsibility for them? I have yet to hear a valid objection, perhaps you have one.
internete-mail@ncleg.net

WILLIAMACURRENT@AOL.COM

Bob, you won't hear a valid objection because your ears are biased.

This is a really bad idea. It will harm "good" appraiser's business by opening them up to even more frivolous complaints and will not cause a single lost license of a "bad" appraiser, I'd bet a $100 on that.

You said it yourself: we produce, sign and "stamp" a report. Someone wants to complain, they should have that in their hands - so we can literally face our accusers. Otherwise, the amount of frivolous complaints will skyrocket and the amount of "bad apples" weeded out will still not be reduced. All this will ultimately do, IMO, is cause us self-proclaimed "good appraisers" to have to field many more phone calls and produce historical reports (as best we can given Gramm-Leech-Bliley) and eat into our productive time just to "prove" we did a "good" job years ago. And all the while, the skippies will continue to skip.

Personally, I'd be against this 100% and will inform my local reps to that effect if and when a bill with this in it appears here in Raleigh. If it would actually serve your purpose, I could support it, but I just don't think it will aid in reducing the amount of "bad" appraisers in this state, at all.

I am curious as to what the NCAB and various E&O providers would think about such legislation? Or do we just want to end-around them and push this blindly ourselves with the increased liability be damned?

 

[Bob Ipock]

You can put my name anywhere you wish regarding my appraisal reports. Are they perfect...not likely. Are they untruthful or fraudulent.....not even a possibility.

One of the so called "appraiser organizations" lobbied against including the appraisers name on the list. The same organization/e members make up over 30% of the most recent disciplinary actions.

http://ncappraisalboard.org/

It was no surprise they did not want to make it easier to track down those that have something to hide.

 

[Bob Ipock]

You are certainly entitled to your opinion.

The name of the closing attorney, buyer and lien holder have been on every deed of trust recorded in NC for many years. To the best of my knowledge this has not caused the sky to fall on any of them and it has created a paper trail back to some slack attorneys who failed to perform proper title searches.

The GLB has NOTHING to do with this at all. If the law required inclusion of appraisers there is no reason it would be different than those license holders already included on the deed of trust.

Since anonymous complaints are no longer allowed, I would not expect any big increase in complaints. If the NCAB would make some common sense changes to the complaint process and the investigators duties, there could be a huge savings in time and money.

If the NCAB is not doing their job as to "lost licenses" then some reform needs to take place at the NCAB. I predict you are going to see some reform sooner rather than later.

I am willing to suffer some inconvenience in order to shine light on who the appraisers were on the 50+ sales and or loans with sales prices or loan amounts that are beyond any rhyme or reason (that have been sent to me by area appraisers). I fully believe that if tracked and graphed data you would see a direct correlation between foreclosures and inflated appraisals as well as who is churning out those inflated appraisals.

Including the appraiser in the law would not likely increase any workload at the NCAB. If they get a complaint and there is no appraisal attached....it goes in the trash pretty fast. No appraisal....nothing to investigate. This change would not record any appraisals ...only the identity of who performed them.

Appraisers were left out of this law because of lies and false propaganda. Appraisers should have been included...we are no better than the mortgage brokers.

I asked people to respond as to how THEY feel about the law. In fact, I encourage it and am glad to hear you voice an opinion even if it differs with mine.

 

[Couch Potato]

My opinion is in line with yours UC. I am proud of my work and don't fear complaints from people whose loans closed. The only ones angry with me are the ones whose deal didn't close because I wouldn't hide the truth.

 

[JRS at OBX]

My concern is that this policy would unfairly target appraisers that work for subprime lenders.

Relocation and estate guys can be number hitters and skippys too. Their names won't be popping up all over the registrar of deeds office on the foreclosure papers.

I have appraised several houses when the borrower is making a last ditch effort to consolidate debt and avoid foreclosure. Should I avoid all of those jobs so my name doesn't come up more often? These lenders need GOOD appraisals. I'll give them one. This increases the chance that my percentage will be a little higher when somebody compiles the data and publishes a list.

You know somebody is going to compile the data. Are you going to be perceived as a number hitter because you have twice as many foreclosures than skippy in your county? How about when that same skippy has a few foreclosures in every county in the state? (Actually that might be a positive aspect of the law. We could figure out who really has geographical competency)

I just really don't see the real benefit. I have more problems with appraisers coming into my area with no geo-competency than number hitters. They come into the area because AMCs won't pay the going rate for a good local appraiser. I won't do that job for $235 but the guy in Raleigh will.

Now if our name, license number, percentage of appraisals you perform in the county, and fee you were paid (not paid to AMC) were listed on the deed of trust....that might tell you something.

If they put the appraisers names, I want them to put whether an AMC did the hiring and which AMC. The AMCs aren't even listed on the HUD-1 are they?

But when it comes right down to it, I don't really care either way. I don't have anything to hide.

 

[Bob Ipock]

Relocation and estate guys can be number hitters and skippys too. Their names won't be popping up all over the registrar of deeds office on the foreclosure papers.

The name would be on EVERY deed of trust..not on "foreclosure papers"

The only time a regulator would be interested in who did the appraisal would be when there was a complaint of some type.

Has there been a rampage against attornies who do mostly sub-prime closings? Or against surveyors of recorded plots that have excessive foreclosures?

Complaints don't mean crap unless there is something to back up the complaint...as in a copy of the appraisal (which would certainly not be recorded).

The fee you are paid is not an issue. You have the same USPAP requirements regardless of the fee. A low fee will not get you off the hook for a bad appraisal.

AMC's are not regulated at all in NC. Email your legislators about that while you are at it. Or email the NCAI, NCAR, NCPAC, NAFIA and ask them what have done to get AMC's regulated.

You don't have anything to hide nor do I.........but there damn sure must be some appraisers that do.

I just went Thur a 7-8 month process of having 2 complaints filed against me......neither from a recorded deed, neither with any merit and both with a copy of the appraisal. It was no fun for me but the truth prevailed and the investigator told me his recommendation to the board would be to dismiss both cases. I hope that will be the case.

However you feel......get involved. Legislators hear very little from appraisers about ANYTHING and because of that they don't DO ANYTHING for appraisers.

 

[Michigan CG]

Relocation and estate guys can be number hitters and skippys too. Their names won't be popping up all over the registrar of deeds office on the foreclosure papers.

I do a lot of relocation work, and if you are not accurate you are removed from the list. I have been within 2% of the selling price of every relo I have done in the last 2 years (pardon me while I take time to pat myself on the back).

As for estate work most of it is referral, and you most of the time have to meet with the client and explain everything to them. You had better know what you are doing!

I think it is an excellent idea to put the appraiser and everyone involved on the deed. I have nothing to hide.

 

[JRS at OBX]

The name would be on EVERY deed of trust..not on "foreclosure papers"

I'm pretty sure the deed of trust is in the foreclosure papers somewhere. If the appraisers name is not being associated with foreclosures, why would it matter if it was on the deed of trust or not?

The only time a regulator would be interested in who did the appraisal would be when there was a complaint of some type.

I'm not worried about regulators, I'm worried about the public perception. How is the data going to be used and who is going to collect it. How will it be presented?

Mr. Appraiser, the underwriter rejected your appraisal because the appraisercheck service shows you as being associated with 4 foreclosures last year.

Is that so far fetched?

The fee you are paid is not an issue. You have the same USPAP requirements regardless of the fee. A low fee will not get you off the hook for a bad appraisal.

I think the fee paid is more important than you think. You know as well as I do that plenty of the bottom dollar AMC workers are pumping out bad work.

AMC's are not regulated at all in NC. Email your legislators about that while you are at it. Or email the NCAI, NCAR, NCPAC, NAFIA and ask them what have done to get AMC's regulated.

I have! I do! I will again! :new_smile-l: I even have a separate email address set up so I don't have to put up with all the junk email propaganda my representatives send to tell me how good of a job they are doing.