Illinois Board Issues Warning On Hybrid Appraisals

[Evincere]

Good read. New article

ILLINOIS BOARD ISSUES WARNING ON HYBRID APPRAISALS

http://www.workingre.com/illinois-board-issues-warning-on-hybrid-appraisals/

“Weaver reminds appraisal management companies (AMCs) that AMCs registered in Illinois sign a certification that they will “utilize Illinois licensed appraisers to provide appraisal services within the State of Illinois” (Sec. 225 ILCS 459/40).

“If it is clear that unlicensed inspectors are providing filtered data to appraisers…then AMCs have breached this section of the Act and are subject to enforcement action. In its simplest terms, third party ‘inspectors’ can tell an appraiser what they see, not provide their opinion of what they see. In short, we’re not telling anyone not to provide hybrid reports; we’re just spelling out the consequences,” warns Weaver.”

 

[Tawfik Ahdab]

That is most reasonable. And cleverly explained.

 

[andrew81]

https://www.idfpr.com/Forms/DRE/RENews/IDFPR%20Monthly%20Newsletter%20-%20February%202019.pdf

 

[EddieB]

I feel that more State boards will follow this approach. Thanks for posting this Evincere

 

[djd09]

"Analysis
Craig Capilla, an Illinois trial lawyer with the Franklin Law Group who concentrates in real estate appraiser cases, warned appraisers in 2018 about state disciplinary complaints from the IDFPR (See Navigating Hybrid Appraisals). Capilla says that the Illinois Appraiser newsletter offers important takeaways for both appraisers and AMCs. “For the individual appraiser, it is important for them to understand that they are ultimately responsible for any data they include and choose to rely on in an appraisal report. If an appraiser is uncertain of the accuracy of the data provided to them, they must either verify that the data is correct or they may not rely upon that data. A client cannot insist that an appraiser rely on data that the appraiser does not reasonably believe to be accurate,” says Capilla."

no scoping away responsibility, finally, common sense.

 

[DWiley]

It is very reasonable ... until you apply the exact same standard to the comps, making every appraisal done illegal.

 

[Michigan CG]

So I am going to assume that everyone against hybrids NEVER did a 2055 based on interior photos from a Realtor who got their license two weeks prior to that listing............ This is a Scope of Work Issue and nothing less. The SOW rule is a great tool for appraisers and the Hybrid thingy pushback is because of idiot AMCs telling appraisers they can complete a report subject to Standards 1 and 2 in an hour and some idiot appraisers are doing them for fees that are absurd................ This is all about fee; if the AMCs were offering $300 no one would complain.

 

[DTB]

"Analysis
Craig Capilla, an Illinois trial lawyer with the Franklin Law Group who concentrates in real estate appraiser cases, warned appraisers in 2018 about state disciplinary complaints from the IDFPR (See Navigating Hybrid Appraisals). Capilla says that the Illinois Appraiser newsletter offers important takeaways for both appraisers and AMCs. “For the individual appraiser, it is important for them to understand that they are ultimately responsible for any data they include and choose to rely on in an appraisal report. If an appraiser is uncertain of the accuracy of the data provided to them, they must either verify that the data is correct or they may not rely upon that data. A client cannot insist that an appraiser rely on data that the appraiser does not reasonably believe to be accurate,” says Capilla."

no scoping away responsibility, finally, common sense.

Uncertain of the accuracy of the data
Appraiser must rely on data that the appraiser reasonable believes to be accurate.

Which one is it? Does reasonably believe mean certainty of the data?

So if the appraiser reasonably believes the data provided is accurate, they're good to go. Seems like a nice sized truck could drive right through that one.

 

[George Hatch]

Unless otherwise required by law, the "I certify that, to the best of my knowledge and belief" qualifier in our Appraiser's cert is literally the verbatim standard of practice for appraisers.

If you had reason to challenge the accuracy of the public records info or info from any other data source then that would be a good reason to decline to rely on it. Or, if you really think that appraisers are commonly expected to be omniscient WRT the accuracy of all the data they use then you probably shouldn't be appraising anything without conducting your own original research into all the various legal, physical, economic and social attributes of your subject property.

 

[Eli]

It is very reasonable ... until you apply the exact same standard to the comps, making every appraisal done illegal.

My bold. Who is “YOU”?

A licensed professional to perform an inspection or appraisal perhaps? That makes no sense does it?

You need to do a presentation at TAC. Please let me know when you schedule it.

Call Peter with LIA or George. Maybe we can get some CE out of it. Get JT and Phil Crawford too.