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Appraisal And Real Estate Conflict Of Interest

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Bearcat Bri

Freshman Member
Joined
Jun 9, 2004
Professional Status
Certified Residential Appraiser
State
Ohio
Received a letter of dismissal from a lender today citing that they had found out that I hold a Brokerage License and a Certified Residential License in the State of Ohio and that it is a conflict of interest in the eyes of FHA and Dodd Frank. Not sure if anyone has seen this before, but I talked to the client and they don't want to get rid of me. They do, however, feel that they have to based on Dodd Frank. I have been dual licensed for 20 years and been doing business, without incident, with this specific client for 5 years. I have never completed an appraisal on a piece of real estate that I or any agent in my real estate brokerage had involvement. This is a dangerous precedent in my opinion. The appraisal coordinator/HVCC supervisor at the lender stated that I could possibly appraise properties really high to inflate the same market where I sell other pieces of real estate to make more commission.

I already know the answers on this one, but was curious if anyone else had seen something similar.

"Please accept this letter as our notice that you are being removed from "LENDER XYZ's" panel of appraisers due to a conflict of interest. This decision was based on evidence that you are actively marketing yourself as a Real Estate Agent while continuing to appraise properties under your Ohio Appraisal License for our Cincinnati office.

Based upon Guidance from FHA, they have directed lenders and the appraisers to avoid even the appearance of a conflict of interest with regards to appraisal independence. Within the Dodd Frank Wall Street Reform and Consumer Protection Act, it states:"no certified or licensed appraiser conduction, and no appraisal management company procuring or facilitating, an appraisal in connection with a consumer credit transaction secured by the principal dwelling of a borrower may have a direct or indirect interest, financial or otherwise, in the property of transaction involving the appraisal."

Therefore, based upon FHA and Dodd-Frank guidance regarding appraisal independence it is our opinion that your dual capacity of an active Real Estate Agent and Appraiser represent a conflict of interest."
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
They are full of crap.

There is no such thing in Dodd Frank.

Make them cite the section of Dodd Frank they are referencing.

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Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
And you should speak with a GOOD real estate attorney/anti-trust attorney.

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Bearcat Bri

Freshman Member
Joined
Jun 9, 2004
Professional Status
Certified Residential Appraiser
State
Ohio
And you should speak with a GOOD real estate attorney/anti-trust attorney.

.
LOL Not worth it for retaining this lender, but if this becomes wide spread, it could be problematic. FYI already spoke to the Philly HOC and they confirm what we already know.
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
LOL Not worth it for retaining this lender, but if this becomes wide spread, it could be problematic. FYI already spoke to the Philly HOC and they confirm what we already know.

Send your letter to the state board to enforce AMC oversight.

:ROFLMAO:

They registered the idiots and took their money, now they can tell them they are idiots and take more of their money.

that'll stop it from spreading.

.
 

Andy Taylor

Member
Joined
Sep 22, 2003
Professional Status
Certified General Appraiser
State
North Carolina
Using that reasoning an appraiser could not do an appraisal in the appraisers own area as he would have at least an indirect interest in property values increasing.
 
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