Disciplinary report - April 2008

[laynelucia]

Im just curious. Who keeps the board members in check? I mean, are they using proper techinques in their analysis of the appraisal files and complaints? Is there power absolute?

 

[Charley Horse]

I believe it's the Appraisal Subcommitte that monitors the state appraisal boards... or at lest that's what I think I recall from my last CE USPAP course... I could be wrong.

Nobody's power is absolute... except for ONE and I'm not going to bring religion into this discussion...

 

[Michigan CG]

I think that one does not need to worry about the board in most states unless they (the appraiser) is incompetent, fraudulent or dishonest. The boards don't have time for simple mistakes, there are bigger fish to fry.

 

[redfish]

Maybe Dave can back me up here, but the State Board requests a workfile. I have heard that the biggest complaint or maybe the most consisitent complaint is an incomplete or poorly recorded workfile.The apparaisal report (provided to the client) is a summary of what you should have in your workfile. I would love to be able to request every appraisers workfile that I am completing a review on. At least that way I could see more into what the appraiser was thinking.

 

[laynelucia]

I think that one does not need to worry about the board in most states unless they (the appraiser) is incompetent, fraudulent or dishonest. The boards don't have time for simple mistakes, there are bigger fish to fry.

I have spoken to over 20 Appraisers in Michigan in the "Take USPAP" course or 0-1000 fines and in every case, it appears a much better solution could have been remedied other than permanently ruining the appraisers record. If you look very closely at the fines and cases the board handles, you will see that your statement "bigger fish to fry" is completely incorrect.

 

[Michigan CG]

I have spoken to over 20 Appraisers in Michigan in the "Take USPAP" course or 0-1000 fines and in every case, it appears a much better solution could have been remedied other than permanently ruining the appraisers record. If you look very closely at the fines and cases the board handles, you will see that your statement "bigger fish to fry" is completely incorrect.

Actually, the state (from what I have been told) takes very serious consideration to the fact that revoking a license can impact an appraiser, and their family considerably.

I would theorize (not speaking for the state) that they are trying to be humane with many people and after the misconduct is described to them (in detail) and the "Take USPAP" or $0-$1,000 fines are remedied out that the appraiser will try to become a competant, ethical, moral and educated appraiser.

There are about 4,000 appraisers in Michigan, some who have been trained very badly, some who do not even have a clue what they are doing, but have the opportunity to better themselves through education. We all have things to learn, some more than others. The state (again not speaking for the state) is giving them a second chance with the $175 USPAP class or a $1,000 fine. Better than revoking their license, don't you think?

I do not know if you do any review work or have access to other aqppraiser's work, but I can tell you that I do, and have seen some of this garbage called appraisals and I am shocked.

When an appraiser takes four comparables in the Detroit Metropolitan area in the "boom" selling time (2005) with plenty of comparables available comes up with a value of $206,500 and the "adjusted" final values of the comparables are from $165,000 to $224,000 it makes a person wonder where that magic number came from. By the way, the $165,000 house was across the street (same size, same age). There was no narrative to explain the rationale for the "value", only a value. I am guessing it is a number hit....the $206,500. That is what the client needed. Oh, this house is now a foreclosure, which will be paid for by honest taxpayers and citizens.

Imagine houses valued at $116,500 by an "appraiser" with final adjusted value ranges from $65,000 to $120,000; I have seen similar reports with no justification. Once again, number hitting.

The folks who get these "Take USPAP" and $0-$1,000 fines maybe should be happy that they still have a license.

 

[Kali the Boston Terrier]

lol...123456789

 

[Michigander]

I believe many appraisers don't know what they are doing and that by requiring education, and having gone through the disciplinary hearing, become better appraisers when done. What worries me is that it is just one USPAP class and not a series of courses with a quality education provider. They might take the course from someone who doesn't really have the chops, and if they got into trouble in the first place, it is either due to lack of ethics or lack of knowledge (or both). Taking a course from some of these mom and pop shops in MI is a travesty and won't likely teach them anything. So, Dave and John if you are reading this; how about making them take something that will actually educate them?

The disciplinary action (of the fine and education) should stay on their records. Clients should be able to see whether the appraiser has had run ins with the state. Just my opinion.

 

[David Molenaar]

I typcially try to pick classes were there is a weakness. I had a file several years ago on some properties in the City of Detroit. The sales approach as $200,000, cost approach around the $200,000 range. However, the income approach was $1,200,000. Yes, 1.2 mil. Therefore, I had them take a 30+ hour clase on income capitalization as it was apparent that they had no idea what they were doing. This was an income property, small commercial properties.

 

[Kali the Boston Terrier]

Maybe they got the Sales and Cost really wrong?