Is reviewing appraisals in another state illegal?

[Lee Lansford]

Exactly what is a state board in one state going to do about a reviewer in another state who doesn't hold a license in the first one?

Well, when the attorneys get involved, I don't know if I would want to be on the receiving end of the focus of their attention. Beyond the attention given to the individual reviewer, the entity engaging the reviewer probably doesn't want the attention, either.

 

[Stone]

Well, when the attorneys get involved, I don't know if I would want to be on the receiving end of the focus of their attention. Beyond the attention given to the individual reviewer, the entity engaging the reviewer probably doesn't want the attention, either.

What does that actually mean? It doesn't answer my question. What is a state board in one state going to do about a reviewer in another state who doesn't hold a license in the first one?

I'm not trying to argue about the different types of reviews and the different types of SOW, or whether it is good to be reviewing out of state. I'm just curious what exactly a state board will do about it. "Getting the attorneys involved" doesn't actually answer that.

 

[Lee Lansford]

What does that actually mean? It doesn't answer my question. What is a state board in one state going to do about a reviewer in another state who doesn't hold a license in the first one?

I'm not trying to argue about the different types of reviews and the different types of SOW, or whether it is good to be reviewing out of state. I'm just curious what exactly a state board will do about it. "Getting the attorneys involved" doesn't actually answer that.

Illinois has issued a couple (that I'm aware of) of "cease & desist" orders against appraisers licensed in other states (but not IL) and who have performed Std. 3 reviews on properties located in IL.

Again, I don't know what may come, but, I wouldn't want to be on the receiving end (whether as the individual appraiser or the entity engaging the appraiser) of the attention and focus.

 

[Stone]

Illinois has issued a couple (that I'm aware of) of "cease & desist" orders against appraisers licensed in other states (but not IL) and who have performed Std. 3 reviews on properties located in IL.

Again, I don't know what may come, but, I wouldn't want to be on the receiving end (whether as the individual appraiser or the entity engaging the appraiser) of the attention and focus.

No argument that I wouldn't want a government entity at least trying to go after me. I recalled Brian writing about going after some out of state appraisers performing reviews but I didn't recall what he said the board could legally do. Sounds like you guys have continued on that path. When Illinois finally has closure on any of those I'll be interested in the results as it seems like there isn't a lot a board can do to someone who isn't actually practicing in their state.

I don't do in-state reviews let alone out of state ones, but I do find this to be an interesting subject.

 

[Ken B]

Here is the crux of the question - what enforcement authority does a state board have over someone not located in that state?

The very simple answer is none, regardless of any threats or grandstanding from the state board.

If someone can provide any evidence of a state regulatory agency being successful in any enforcement action against someone conducting business outside of that state, I will reconsider my position.

 

[Elliott]

You forgot Catch 22. If the reviewer isn't an appraiser then USPAP doesn't
apply to them as a reviewer. I imagine if the reviewer is an appraiser, they
limit their scope with some hocus pocus words.

 

[Lee Lansford]

Some will always choose to roll the dice and take their chances.

 

[Stone]

Some will always choose to roll the dice and take their chances.

There will be more who choose to do so when nobody will tell them what the actual consequences are.

 

[Ken B]

Article 1, Section 8 of the U.S. Constitution is silent regarding rolling of the dice. It is not silent regarding the powers reserved for the Federal Government in regulating commerce between states. Commerce can take the form of goods or services.

 

[Lee Lansford]

There will be more who choose to do so when nobody will tell them what the actual consequences are.

I don't know what the eventual consequences might be.

But, again, I would not want to be the appraiser who learns first-hand what the consequences are.