Mreac Investigation Thoughts/help Needed

[DWiley]

I strongly disagree. It provides a readily available avenue to bully appraisers. State board can't ignore a complaint but there's a world of difference between considering the merits in an administrative setting as opposed to going straight to an investigation. Requiring the appraiser to respond and produce a workfile for a meritless complaint is a punishment in and of itself, is overly stressful and may cascade into actions that are career ending.

In my state the distinction you make did not exist. As soon as I started looking at it, that was an "investigation." Sometimes my look was pretty brief, and a workfile was not always requested.

USPAP requires a workfile to be in existence prior to issuance of a report. So, how is asking one to provide the workfile a burden or a "punishment?" In a lot of cases it was the workfile content that led to the matter being dropped.

I suppose it might be a burden if one did not actually have a workfile, but in such a case, it SHOULD be a burden

 

[Non Sequitur]

USPAP requires a workfile to be in existence prior to issuance of a report. So, how is asking one to provide the workfile a burden or a "punishment?" In a lot of cases it was the workfile content that led to the matter being dropped.

Considering the age old debate of what should be in a workfile, IMO you're down playing the significance of a state agency who holds all of the cards demanding anything from one of its licensees. That attitude and brushing off the stress and the one sidedness of the process is one of the reasons many multi-generational appraisal practices aren't training their children.

I suppose it might be a burden if one did not actually have a workfile, but in such a case, it SHOULD be a burden

There's nothing funny or cute about this process, just ask anyone who's been through it.

 

[djd09]

They can hang anyone, anytime, for any reason. There is no justice. Just a witch hunt. The best advice is to avoid appraisals that may lead to upset clients.

 

[Non Sequitur]

They can hang anyone, anytime, for any reason. There is no justice. Just a witch hunt.

I wouldn't paint all boards with that brush, but there's been more than a few examples of witch hunts. I'll say Louisiana has a good board and process, some other states not so much.

The best advice is to avoid appraisals that may lead to upset clients.

I agree 100%.

Take Oregon as an example, a late report is a USPAP violation per OR bureaucrats . So how many appraisers up there took notice and now refuse assignments based on that? Also do you think part of the supposed shortage up there has anything to do with appraisers refusing assignments that have the potential for client/borrower/Realtor drama?

 

[DWiley]

Considering the age old debate of what should be in a workfile, IMO you're down playing the significance of a state agency who holds all of the cards demanding anything from one of its licensees. That attitude and brushing off the stress and the one sidedness of the process is one of the reasons many multi-generational appraisal practices aren't training their children.
There's nothing funny or cute about this process, just ask anyone who's been through it.

Oh, I understand the stress very well. I have had a complaint filed against me, and I have been through the process from that end as well.

I have also seen rogue state boards, and I have seen them first hand by working on cases were state boards did terrible things. But, I also know that is a small minority of cases. We tend to read the dramatic headlines, but when a state board reviews a case and handles it fairly, which happens the majority of the time, there are no headlines. I don't lump all boards into a basket based on the headline cases, just as I don't lump appraisers into a basket based on the headline cases.

The point of that last sentence was that some view producing a workfile as a burden because they don't have workfiles, and THAT is a problem. Producing a supporting workfile should be a critical element of all assignments, but many were not trained that way.

 

[djd09]

Take Oregon as an example, a late report is a USPAP violation per OR bureaucrats . So how many appraisers up there took notice and now refuse assignments based on that? Also do you think part of the supposed shortage up there has anything to do with appraisers refusing assignments that have the potential for client/borrower/Realtor drama?

I agree with Oregon. To fix it appraisers need to stop accepting assignments with "due" dates.

 

[timd354]

New Mexico's board has setup a process where they don't even notify the appraiser until they determine the claim might have some merit. Frivolous claims are basically ignored so as not to put appraisers through all of this that the OP has gone through for something that may be complete BS. Also, there are no anonymous complaints. You have to submit a notarized complaint form. That alone probably keeps a lot of people from filing frivolous claims.

That is the way things ought to work. State action based on anonymous complaints is how things typically work in totalitarian regimes like the old Soviet Union. In a free country, everyone should absolutely be allowed to face their accuser.

 

[DWiley]

That is the way things ought to work. State action based on anonymous complaints is how things typically work in totalitarian regimes like the old Soviet Union. In a free country, everyone should absolutely be allowed to face their accuser.

In a formal action the accuser is the State, not the complainant

On a more serious note - I understand the angst some have with anonymous complaints. But I think there are also times when anonymous complaints are best. In the past I have sent anonymous complaints because I did not want the fact that I (as a former chief reviewer/investigator for my state board) was the party submitting the complaint to influence how the complaint was considered. The case should rest on the evidence, not the people involved.

 

[Terrel L. Shields]

The requirement to investigate every complaint is essential for public trust.

BS. It allows the public to punish an appraiser with a mere accusation even when totally without merit. Show me any other regulated profession where this is required. Investigators have run two forumites out of being an appraiser when the investigation had nothing. One the (newbie) Investigator tried to apply AI standards to the one report. So D** stood up,handed him his license and quit on the spot. He went to work for HP as a systems programmer. The other was accused by the same investigator of "lawyering up" because he was going to law school. His sin? He applied a $10/SF adjustment for a basement using pairing with a single sales pair. Basements in Little Rock are rare but the HO complained because the value wasn't high enough. He had to quit since he couldn't have a blemish on his record to sit for the bar exam. Last time I talked to him he worked as intern to one of the largest law firms in LR. And, the forumite in my post above from MO, also quit in disgust and went back to brokerage in Springfield. Running people out of business by frivolous complaint is a huge issue- the elephant in the room.

When were the most complaints filed? In the distressed years of 2008-2011. Were appraisers worse in those years? L no. Thus the complaints are predominately about value and boards arrogantly say they don't address "value" issues, but in reality they do exactly that and 99% of complaints are value driven. Looking for USPAP violations outside the narrow nature of the complaint shouldn't be allowed. The trust of the public is a canard akin to the tooth fairy.

 

[djd09]

In a formal action the accuser is the State, not the complainant

And when the "state" aka the government accuses, constitutional rights kick in. Which includes but not limited to the 6th amendment.