Anonymous Complaints

[Terrel L. Shields]

A state board member spoke to our NWAAS group and mentioned that although anonymous complaints were accepted by the state, these complaints have mushroomed and virtually all of them deal with only one issue..value. The explosion of these complaints has resulted in info overload and most seem quite frivolous on the surface.

The board may consider several options. Gut it out and keep on keeping on. Raise the bar for anonymous complaints, giving them less weight than those complaints that are signed; or, create some intermediate step. Last, simply dismiss them. When the board was created anonymous complaints were dismissed. Apparently, there is also a pending case or two where boards stand to lose the ability to pursue anonymous complaints under the notion that a person has a right to confront their accuser.

A state agency also appears to have a hand in making anonymous complaints which could be construed as an effort by a Dept. of appraisers who do not have to comply with USPAP [though they oft aver that they are], to discourage appraisers from taking positions against them on condemnation cases.

I understand WHY people don't want involved. They fear reprisal. They know that they personally will have to take time to fill out a form. They don't want it to be seen as "professional jealousy".

However, the board is at a tipping point. They simply cannot handle any more complaints that they have. From Divorce appraisal and measurement differences as the two most common reasons for a complaint, Value issues are the one big topic. Measurement issues are the second (a separate post will follow on that)

So what say ye?

 

[Rice Brewer]

What is really going on, Terrel? PM me.

 

[Jeff Horton]

I had an opportinity to informaly review... well really just look over a appraisal recently done by someone I know. Heck all the Appraisers in our small town know each other. This appraisal was sloppy. Value was probably close but the Appraisal was riddled with errors and was used in legal proceedings. She had really put the clients between a rock and hard spot. It needed to be throughly reviewed and for reasons I won't go into it needed to go before the board. I was glad I was not in the position of having to do that. It's times like that you like being able to turn them in anonymously. But I don't think it's totally right that just anyone can turn one in either. There needs to be some accountability too.

One thing Alabama does that I like, is they refuse to get involved in value issues. They will only look at how the value was arrived at. If there are not technical issues they will not address if the value was right. If a complaint is only about value, as I understand it, they reject it.

 

[Elliott]

Terrel said, The explosion of these complaints has resulted in info overload and most seem quite frivolous on the surface.

USPAP created a standard for the states that doesn't deal with 'value' it deals with
not getting your SOW correct, or not fully supporting effective age, or not using
paired sales analysis. Fifteen years out, TAF has produced a glut poorly trained
appraisers and is partially responsible for a $1 trillion financial meltdown and
the current credit crunch. State boards and their complaint process has essentially
been consumer oriented.

The orientation of USPAP and state boards should have always been about
'value.'

 

[Greg davenport]

Terrel

Here’s “our” take on this.

Our office has filed more than our share of complaints with the board. Of the complaints we have filed, at least two appraisers have lost their license because of the investigations that followed, one is appealing a suspension, two have been sanctioned, and the rest have agreed to some form of “Consent Agreements”. I know it works, but I also know it has problems.

Our office will NEVER sign another complaint again. We did, but that was before someone filled a complaint against us in retaliation of a complaint we filed.
We have ****ed off at least one of the bigger appraiser/realtors in the central Arkansas market because he was sanction for creating a misleading report(a complaint we signed). The person who filed the complaint against us is appealing his suspension with the courts now, but the complaint he filled against us never made it past a probable cause panel. (An almost 6 month ordeal that should never have happened.)

I will say that when we file a complaint, It is based on USPAP issues, and they are spelled out clearly and to the point. We will list the “low” points in the report, but don’t list each and every one, just enough to get the boards attention, and let them do the “true” investigation and finding of facts.

We have seen both sides of the complaint process. When its allowed to work, it works, but the rise in number of complaints and the issues being report are about to break it. The board just does not have the man power to deal with the problem, but at the same time they are “required” to deal with it.

An option could be to have a panel of appraisers who are allowed to do a Standard 3 field review for the board. This review would then be used by the probable cause panel to determine if a full investigation (by the board) is needed, or if it just needs to be round filed.
The goal would be to take some of the work load off of the board,(some of the research and a limited finding of facts) that allows them to deal with true issues, not the ****ing matches, and the low value complaints.


Signed
A office that will NEVER sign another complaint!

 

[George Hatch]

The problem with automatically ignoring all anonymous complaints is that some of them may be well supported, the lack of identity notwithstanding.

No reviewer worth their salt bothers with criticizing opinions independent of everything else, and states shouldn't have to invent the wheel on those types of complaints.

What would probably be helpful would be if the states published the criteria they consider to be serious enough to warrant investigation. For example, at what point does an error in GLA become serious enough to warrant discipline? An error that is large enough to affect the value conclusion is one thing, an error that it too small to notice on an adjustment grid is another.

A lot of appraisers live in fear of reviewers and underwriters and state board investigators playing "Small Rule Gotcha" (tm Santora) wherein minor infractions get totally blown out of proportion. That kind of environment doesn't contribute to the public trust in the appraisal profession and on that basis alone should be considered a violation of USPAP.

In my view, the states should develop reasonable and consistent expectations, distribute them liberally, and then retain the discretion to dismiss the complaints that don't meet that thresshold.

 

[Ken B]

More than a few years ago, I attended a State Law course which was taught by a recently past Chairman of the State Appraisers Board. He stated that any complaints submited to the Board which were strictly value based were round filed. Such an action seems reasonable to me. Value, being an opinion, is not actionable. However, failure to ethically and competently develop that opinion of value should be actionable.

It seems reasonable to require a complaint, anonymous or not, to identify faults in the report which lead to an opinion of value which is not credible. Otherwise, the complaintant is wasting valuable time and resources.

 

[Karl]

IF you feel as though you have to be anonymous. Put the points of discussion in order & re read the complant yourself to be sure that it is valid enough to get attention. Stop sending in C.S. Seems folks now are simply sending in any & everything thinking it will elimanate competition.

Does the mistakes in the report justify a investigation?? Value ALONE!! is NOT a Appraisal Board Issue. How the Value was arrived at!! That is what you have to PROVE!!!. IF you have sent it in, & can NOT put enough info to prove that the report violates the preamble to USPAP. I think the board should just say dismiss>

 

[Midwest Guy]

I do not complain about value, I do mention if substantially better comparables were available if they represent a different picture.

these complaints have mushroomed and virtually all of them deal with only one issue..value. The explosion of these complaints has resulted in info overload and most seem quite frivolous on the surface.

 

[Webbed Feet]

To All,

We have a couple of posts here that are overly focused on a complaint being ONLY about value and proposing that all such complaints be tossed out.

Gives me a question. If a complaint comes in ONLY about value, from a person that has no idea how to detail USPAP violations, and it turns out the report is for Fannie on a 03/2005 form with the following: A "five acre" appraisal was done on a 90 acre property; only one comp (the report is missing any others) five years old and in Cambodia was used when the subject is located in Montana; the person signing the report is not a licensed appraiser; it's for a FRT with a transaction value of 20 million for a refinance; and it's also based on a HC the SFR property is an international airport.....(zoned SFR 80 acre minumum for farming of course)..... Obviously, in this case the entire complaint should be tossed out because the complaint was ONLY about value? .. Any board should turn a blind eye on the rest of it?

Right? How "reasonable" was tossing out that complaint, and taking no action to protect the public trust, was that as a decision by a public agency on this one? No need to pick my example apart. Just insert any set of conditions for an appraisal that would equal the worst appraisal you and your board has ever seen in the history of USPAP. But hey, the complaint was ONLY about "value," so toss out the complaint.

Webbed.

P.S. I really believe a few posters have posted from the view that complaints somehow are only filed by professional real estate appraisers that should know when, and how, to file a complaint. Versus the public that may have no idea what USPAP even means, but just know something is horribly incorrect and can only express their complaint in terms of value as that is the only way they understand how to do it. Because the entire appraisal process and reporting completely baffles them. Bottom line, the reports have to be looked at for all complaints.