Appraisal Bias

[chad hampton]

I have several friends who are executives of companies, whenever they get a Workmen’s Comp. claim, or someone sues them, any time they can settle for under 150-200 K they just go do it. They’ve had low wage employees show up drunk and get hurt and walk away with six figures.

It’s a real easy way for a $20 an hour employee to get a good six-figure check. They are furious with their legal department but it’s what they recommend.

It’s pretty clear this couple was looking for a payday. Good for them. Oh the pain and suffering they must’ve gone through.

 

[glenn walker]

I have several friends who are executives of companies, whenever they get a Workmen’s Comp. claim, or someone sues them, any time they can settle for under 150-200 K they just go do it. They’ve had low wage employees show up drunk and get hurt and walk away with six figures.

It’s a real easy way for a $20 an hour employee to get a good six-figure check. They are furious with their legal department but it’s what they recommend.

It’s pretty clear this couple was looking for a payday. Good for them. Oh the pain and suffering they must’ve gone through.

Its called risk management and anyone familiar with Liberal California Courts and Juries knows they best just write a check and move on.

 

[djd09]

i told them cert 23...dum dum USPAP guru and the E&O lawyer said to write a more defined client statement...wrong

 

[glenn walker]

i told them cert 23...dum dum USPAP guru and the E&O lawyer said to write a more defined client statement...wrong

Case over move on

 

[djd09]

i guess one would understand cert 23 if they actually filled out their forms...

 

[djd09]

i guess one would understand cert 23 if they actually filled out their forms...

which makes USPAP useless...i told you so

 

[George Hatch]

The appraiser made lots of assertions about their limitations in their appraisal reports. (we all do, every day) NONE of those assertions prevented the lawsuit from being filed because that isn't the function of disclosing those assumptions and limiting conditions. One thing it did do was to prompt a couple of the elements of the complaint to get tossed out, though.

 

[Terrel L. Shields]

I got a first real estate license in 1979

Discrimination laws were passed in 1977. Illinois was the first state to pass a law against redlining. Laws against Age discrimination was passed in 1975. 1972 laws also applied anti-discrimination acts. Prior to 75, it was hard to get a 30 year loan if you were over 60.

 

[djd09]

cert 23...i told you so

 

[Terrel L. Shields]

The use of borrower-engaged appraisals for GSE and related residential assignments was prohibited 30+ years ago. Long before you took your first Appraisal 101 course.

Yet it happened a long time afterwards. Still does. Further, an Agent or Borrower can nix the lenders choice of appraiser and get away with it too...hard to enforce such laws without proofs.

Oh the pain and suffering they must’ve gone through.