Dodd-Frank provision and Mandatory Reporting

[Meandering]

:laugh:

OK, you see that an employee of a named entity who is doing reviews has no obligation to raise a concern with their employer regarding the Dodd-Frank provisions.

I'm not as convinced as you, but I'm not discounting your position/arguments.

And, yes, if I were hired off the street to do reviews as an employee, I would raise my concern on day one (I'd raise it in the interview).
But that's me. :new_smile-l:

And me, but that's cause I have more spine then brains some days, but would never advocate for anyone else to risk the potential consequences, just because I'm of the attitude of F em if they can't take a joke.

I typically raise all my concerns regarding appraisal practice and what the client(employer) is requesting if I believe there may be an issue, conflict, or if I just have a concern.

Most of the time, my concerns are resolved.
Sometimes I bring up an issue that the client hasn't considered, and they change their policy... like when a national lender used to require the Cost Approach on all their appraisals regardless of its applicability: I spoke to the EVP that oversaw loans and appraisals: raised my concern that making a blanket requirement like that more likely degraded the quality than added to it. He agreed and the policy was changed.
Or, like the time when a client sent out a revised engagement agreement stating that they wanted "or assigns" on their client-line. I raised my concern (discussed on this forum, BTW) that "assigns" is not a client-type identifier and that could mean anyone. They agreed (they explained what they were trying to achieve, and it was legitimate); they changed their policy to identify the other potential client.
Obviously, I've had disagreements with clients: like the ones who have told me to "give no value" to the unpermitted addition because it doesn't have permits. Those clients didn't agree with me and we ended up parting company.

So I don't hesitate to bring my concerns up with my clients or employer.
I doubt that you would either.
But I asked for your opinion (because of your work regarding Dodd-Frank, and I believe you know it better than most.. myself included) and wanted to hear it, so I appreciate your response.

:new_smile-l:

Thank you for your insight. I don't interview for "jobs". I did a few years back, but decided if I want a "job" I'll go back to my old profession, and that this was just a bad dream. But so far, I'm just content to live the dream and don't read the want ads.

I bet most of you would crap yourselves to know what I did a previous life, but that's neither here or there.

Well you and I can agree, I think the point we agree on is that each individual must educate themselves to the point that they thoroughly understand the laws, rules and regulations that we, and if applicable, our employers must abide by, and not take a few sentences from here and there and make blanket decisions. And that, we must live by our own code of what's right and wrong with the understanding that we all choose the hills we die on, just some of us choose every hill where a potential fight might exist. So choose who you follow, very carefully.


.

Merry Christmas Denis.

May your New Year bring you much joy and prosperity.

.

 

[hastalavista]

Well you and I can agree, I think the point we agree on is that each individual must educate themselves to the point that they thoroughly understand the laws, rules and regulations that we, and if applicable, our employers must abide by, and not take a few sentences from here and there and make blanket decisions. And that, we must live by our own code of what's right and wrong with the understanding that we all choose the hills we die on, just some of us choose every hill where a potential fight might exist. So choose who you follow, very carefully.

I do agree with you on this!

Merry Christmas Denis.

May your New Year bring you much joy and prosperity.

.

And to you and everyone on this forum!

 

[ctapraser]

Recently my neighbor wanted me to look at an appraisal that was done on his property and give him my opinion. I asked if he wanted a review and he said no just my opinion :Eyecrazy:. I also see that several appraisers have come into possession of appraisals that they have complained about on this forum, however they did not submit the appraisal to their State Appraisal boards as the Dodd-Frank provision 14.7.1.2.1. and Mandatory Reporting would suggest they do.

Separately I also had a conversation with a member of my States FREAB. She knows that I am a staff appraiser and what company I work for. She commented that other appraisal companies have been reporting appraisers per Dodd-Frank but that my company has not, why not? My question to the forum is; what is your opinion as to what level the appraisal has to rise to, or sink to, in order to be reported to your States Appraisal board?

Uhh, you are an appraiser, when you gave him your "opinion" you just completed a review.:icon_mrgreen:

Happy holidays!!

 

[Wm. Hattaway]

Uhh, you are an appraiser, when you gave him your "opinion" you just completed a review.:icon_mrgreen:

Happy holidays!!

Never gave him my opinion. He had the numbers he wanted and when I explained what was involved in giving my opinion he did not pursue it any further.

 

[Terrel L. Shields]

My question to the forum is; what is your opinion as to what level the appraisal has to rise to, or sink to, in order to be reported to your States Appraisal board?

Since I am not qualified as a reviewer and therefore not able to opine on the subject of USPAP compliance, I will not report anyone save over something so awful that it smacks of an almost certain deliberate act of non-compliance (Be it fraud or not is a legal question.)

As for looking over a report prepared for someone else. A "review" as far as I know would be a formal assignment involving a client, a scope of work and a fee. Merely looking at a report and making some comment over it does not constitute a review. No more than commenting upon the fact the land in front of Walmart sells for a lot of dollars per square foot.

 

[Noreen]

Frank/Dodd
SEC. 1472.
``(e) Mandatory Reporting.--Any mortgage lender, mortgage broker,
mortgage banker, real estate broker, appraisal management company,
employee of an appraisal management company, or any other person
involved in a real estate transaction involving an appraisal in
connection with a consumer credit transaction secured by the principal
dwelling of a consumer who has a reasonable basis to believe an
appraiser is failing to comply with the Uniform Standards of
Professional Appraisal Practice, is violating applicable laws, or is
otherwise engaging in unethical or unprofessional conduct, shall refer
the matter to the applicable State appraiser certifying and licensing
agency.

You are not involved with your neighbor's transaction.

Yes, here is my question, under my license I AM BOUND by Confidentiality to my client, AM I BREACHING THAT ETHICAL STANDARD OF CONFIDENTIALITY if I then forward a document I acquired due to an engagement by a client????

 

[Riick]

AM I BREACHING THAT ETHICAL STANDARD OF CONFIDENTIALITY if I then forward a document I acquired due to an engagement by a client?

I think maybe I did not survive the end of the world last week,
and I'm living in a different world, one most related to the middle ages
where they discussed how many Angels could dance on the point of a pin.

In the real old-world .....
When I worked as a reviewer for big Pasadena lender, I wondered out loud why we didn't turn in some of the appraisals we saw to the State Boards.
Bottom line was, of course, the bank's bottom-line.
Turning someone in would cost us more time and money than just putting the guy on our do-not-use list. So, no one was turned-in; skippy lived to write more reports.
I expect, despite that section in D/F, that 99% of lenders & AMCs will turn in only the absolute worst offenders (however THEY define that), and, they will need to be pushed to do so by their own compliance people, who'll say something like "Everyone else turns in 1 appraiser per 8,000 reports, so we need to too, or else the regulators will be in - asking questions."
.
...Remember, it doesn't have to be high quality, nutritious, healthy, clever, or even rational... it just has to comply with the letter of the law, and LOOK GOOD.

 

[Meandering]

Yes, here is my question, under my license I AM BOUND by Confidentiality to my client, AM I BREACHING THAT ETHICAL STANDARD OF CONFIDENTIALITY if I then forward a document I acquired due to an engagement by a client????

I am not a USPAP instructor.

In my mind, it would be a violation of USPAP Confidentiality if you obtained the report from a client and then shared the report with anyone else, even the state, without due process of law mandating it. But, to be sure, you should check with a USPAP instructor from your state who also knows your state laws regarding this question.

 

[Noreen]

I am not a USPAP instructor.

In my mind, it would be a violation of USPAP Confidentiality if you obtained the report from a client and then shared the report with anyone else, even the state, without due process of law mandating it. But, to be sure, you should check with a USPAP instructor from your state who also knows your state laws regarding this question.

I did a review and this guy included enclosed porches of the comparables to bring the GLA in line, of 5 comparables, FOUR had the wrong GLA along with other serious information/unverified errors). I sat here and thought it through and decided, there was no way I would have ever gotten a copy of that report if I had not been engaged to do the desk review, I informed my client of the errors, reported that the report had serious credibility issues and was not reliable enough to lend on and kept my own ethics of confidentiality to my client. When all is said and done, MY ethics are my responsibility.

 

[BRCJR]

For regulated lenders there is a guideline for the reporting of an appraiser.
See footnote 37 in the Interagency Appraisal and Evaluation Guidelines.