AP news reports VA Appraisal Decision.

[Daystar]

Associated Press
VA regulators block appraisers from online systems
By MITCH WEISS , 11.20.08, 03:34 PM EST

Regulators in Virginia are the first nationwide to actively discourage real estate appraisers from using online systems that could allow unscrupulous agents and lenders to remove critical information from the appraisal report.

The decision this week by the Virginia Real Estate Appraiser Board is aimed at ensuring consumers see every detail of an appraisers' report.

When appraisal reports are altered, consumers can end up overpaying for the property. That's because critical information that can reduce a home's value, such as property damage or a home's proximity to railroad tracks and highways, for example, can be hidden from prospective buyers.

"This is about the integrity of appraisals," said board chairwoman Diane Quigley. "I'm just surprised why aren't the regulators aren't more interested in it."

The issue was brought to the board in February by George Dodd, an appraiser from Mechanicsville, VA., who complained that some companies that transmit appraisal reports to lenders are forcing appraisers to convert the electronic documents into a format that allows the report to be altered and information removed.

Dodd said the conversion allows pictures, data on comparable sales and lists of necessary repairs to be removed from a report. That, in turn, makes it easier for rogue agents to sell a home for a higher price and lenders to make a larger loan.

"If I'm the consumer and I'm buying a piece of property, I want to know that I have an independent estimate of what its worth," said Dodd, 49, who has worked as an appraiser for 25 years. "That way I know the information I'm getting about that property hasn't been distorted, changed or altered in any way or form. I don't want anyone manipulating the information."

 

[Workbox]

Thank you VREAP, many of us Applaud you for taking the steps in the protection of the American Public. CHEERS!

Also, to Mitch Weiss who has taken the time to understand this part of the American Economy and how it has a huge impact in the well being of our financial system. Thank You.

To all those Appraisers that have Sacrificed so much. Bless You.

 

[Chris Colston]

Please post the link to the article.

 

[Ken B]

http://www.wsls.com/sls/news/state_..._estate_appraisers_from_online_systems/21700/

So, if I read that right, Mr. Turner reportedly stated that an appraiser whose report is altered after delivery can face a $2,500 fine and possible loss of license? Is that correct? Because that isn't what he stated on this forum a couple of days ago. That is actually pretty much the opposite of what he stated on this forum.

 

[Don Clark]

Please post the link to the article.

Chris,

This is in myn local newspaper, The Virginian Pilot-Ledger star. Article is to the right. Click on article and it should enlarge:

http://epilot.hamptonroads.com/Defa...anPilot&enter=true&AW=1227273483998&AppName=1

 

[George Hatch]

Funny, that article doesn't breathe one word about the primary reason most appraisers hate the ENV. file formats.

The ends may or may not justify the means. However - and as has been repeated several times already - a backdoor solution won't solve the problem because merely closing a door doesn't solve anything.

I predict that - if datamining is what they want to do - FNC and other TAVMA members will use other ways to datamine our pdf reports because it's worth it to them to do so. They probably have it figured out already.

 

[PropertyEconomics]

Funny, that article doesn't breathe one word about the primary reason most appraisers hate the ENV. file formats.

The ends may or may not justify the means. However - and as has been repeated several times already - a backdoor solution won't solve the problem because merely closing a door doesn't solve anything.

I predict that - if datamining is what they want to do - FNC and other TAVMA members will use other ways to datamine our pdf reports because it's worth it to them to do so. They probably have it figured out already.

And if they had been smart George they would have done so quietly from pdf files and no one would have been the wiser. Its when you show your cards but dont describe the game you are playing that the problems arise. This slap in the face may well get their attention .. and Im sure you are right .. it already has.

 

[DWiley]

Mr. Turner reportedly stated that an appraiser whose report is altered after delivery can face a $2,500 fine and possible loss of license? Is that correct? Because that isn't what he stated on this forum a couple of days ago. That is actually pretty much the opposite of what he stated on this forum.

PDFs make up the bulk of appraisal reports, and if one does not use a real digital signature PDFs are VERY easy to change.

I wonder if those applauding will still be in the same mood when they are the one facing a fine because a client used free software from the Interent to change something in a report.

 

[Maverick]

And if they had been smart George they would have done so quietly from pdf files and no one would have been the wiser. Its when you show your cards but dont describe the game you are playing that the problems arise. This slap in the face may well get their attention .. and Im sure you are right .. it already has.

http://appraisalnewsonline.typepad....e-there-is-a-state-board-that-cares.html#more

"This was a landmark example for the case of the appraiser’s as the appraiser sent a PDF of the file to the lender. What the lender ended up putting front of the underwriter to review was an AI Ready converted file. Understand this one point about this example: the appraiser did not convert the report. The appraiser had sent the report as it was prepared in the forms software in PDF format only.

In this case, the underwriter had called to ask for clarification on some issues I the report. In the course of the conversation the appraiser realized that some pages must be out of order or something of the nature. The appraiser asked for a copy of what the underwriter had and received the AI Ready version of the report. The mortgage company had an AI Ready format conversion done on the report"

 

[George Hatch]

PE,

And if they had been smart George they would have done so quietly from pdf files and no one would have been the wiser. Its when you show your cards but dont describe the game you are playing that the problems arise. This slap in the face may well get their attention .. and Im sure you are right .. it already has.

I agree that the lack of transparency on their part has added fuel to the conspiracy fire. Maybe at the outset they didn't have the technical ability to do their dastardly deeds without some cooperation from appraisers. Maybe at the outset of all this they needed to withhold that information in order to build their market share. After all, 5 years ago appraisers had options and we could have sunk that ship. But right now they're in the driver seat and there's nothing that stops them from showing us all their cards and giving us the ultimatum of taking (all of) it or leaving it. What can the appraiser herd do; ignore all those big clients because we don't want to contribute to the AVMs?


You know as well as I do that in the IT business 6 months is a long time. For all we know the techno-geeks may have already bought themselves plenty of time to make their transition. That might explain their as-yet low key response to the VA board's decision. OTOH, if it's something they think is worth fighting for I'm pretty sure their pockets are deep enough to run over the board in court.

Of course, it's equally possible that there's another explanation for their lax response - maybe they weren't datamining to begin with. I have no idea one way or the other.

----------------
Another element to all this back-n-forth that I find disappointing is the lack of discussion about the role in this conflict of the two dominant appraisalware vendors. I've seen a few stray comments tredding on the periphery of this aspect but nobody seems to want to openly discuss the apparent possibility that this conflict is being waged, in part, as a proxy battle for market share.

As far as I can tell, all or almost all of the complaints about morphing reports and internal formats that don't mesh seem to be coming from the users of the less-compatible appraisalware suite(s). I've even heard opinions expressed (privately) that the lack of compatibility if at least one of these appraisalware suites isn't accidental or unintended. There are some appraisers who believe it was deliberate and that seamless compatibility is readily possible from any vendor.

Not that it doesn't take two to tango; there are a lot of appraisers who think the "insider" appraisalware vendor has oriented themselves more to what the clients and users want rather than what the appraisers want.


Now I really don't know what is and what isn't in this whole thing. But I'm trying real hard to keep an open mind about it all. I'm trying to define my personal interests in terms of what's best for our society, rather than what's best for me as an individual or me as a business owner or (even) me as appraiser. I believe my long-term viability as an appraiser depends on it. I also think that more appraisers should think about how to provide what the intended users of our appraisals (especially the taxpayers) need rather than focusing so much on what we or our clients want.