Doing Reviews

[Pamela Crowley (Florida)]

This is another re-post that I thought deserved to be in the new forum.

Do yourself and all ethical appraisers a huge service. Complete a full Standard 3 Review listing all areas that are not correct. Keep it factual and very non-emotional. Provide a grid of the best comparable sales and why they are the best comparable sales found. Do your appropriate due diligence. List each item that was not correct and what USPAP Standard was violated.

Set is aside for a day or two then pick it all up and look it all over again. Check for areas you might have missed and areas where maybe it was really a typo. I comment on any errors that appear to be a typo and downplay it as such.

Then, SEND THE WHOLE THING IN TO YOUR STATE BOARD!!!!!

Do this for yourself. Do this for all the ethical appraisers in this nation.

DO NOT wait for any bank, mortgage company, underwriter or loan officer to do what's right. They won't.

IF WE DON'T DO SOMETHING TO CLEAN UP OUR OWN PROFESSION, WE BECOME A HUGE PART OF THE CAUSE OF THE PROBLEM.

I am NOT advocating sending in any appraisal that is just a difference of opinion on minor points or has some typos. I am NOT advocating any 'witch hunt'. I AM saying that we all need to do what we can to help stop this madness and that includes sending in ALL the incompetent and fraudulent appraisals we can get our hands on!!!

 

[Tim Hicks (Texas)]

Pamela, if you send the review to the State Board without the clients permission aren't you violating USPAP with regard to violating your lender/client relationship? This would make you, as the reviewer, in direct viloation of USPAP and your actions no better than the appraisal you reviewed. I agree, I wish it could and should be done, but the reviewer is subject to the same rules as the person reviewed. You are right, though, I have never been able to get permission from the lender to send the original appraisal and the review on to the state board. I have a feeling that because you violated the lender/cleint relationship that the state would somehow come down harder on you than the obvious criminal in this situation. If I am wrong on this, somebody, please point this out. I have a whole stack of apprasials and reviews I would love to send to the state.

 

[Francois K. Gregoire]

Pamela, if you send the review to the State Board without the clients permission aren't you violating USPAP with regard to violating your lender/client relationship? This would make you, as the reviewer, in direct viloation of USPAP and your actions no better than the appraisal you reviewed. I agree, I wish it could and should be done, but the reviewer is subject to the same rules as the person reviewed. You are right, though, I have never been able to get permission from the lender to send the original appraisal and the review on to the state board. I have a feeling that because you violated the lender/cleint relationship that the state would somehow come down harder on you than the obvious criminal in this situation. If I am wrong on this, somebody, please point this out. I have a whole stack of apprasials and reviews I would love to send to the state.

Tim,

You pose a valid question. The answer, although not 100% clear, can be found in the Confidentiality Section of the Ethics rule of the USPAP.

ETHICS RULE

This is the part which interests me the most:

Confidentiality:

An appraiser must protect the confidential nature of the appraiser-client relationship.

An appraiser must act in good faith with regard to the legitimate interests of the client in the use of confidential information and in the communication of assignment results.

An appraiser must be aware of, and comply with, all confidentiality and privacy laws and regulations applicable in an assignment*.

An appraiser must not disclose confidential information or assignment results prepared for a client to anyone other than the client and persons specifically authorized by the client; state enforcement agencies and such third parties as may be authorized by due process of law; and a duly authorized professional peer review committee except when such disclosure to a committee would violate applicable law or regulation. It is unethical for a member of a duly authorized professional peer review committee to disclose confidential information presented to the committee.

Depending on state law, this might answer your concerns.

 

[Karl]

Announcement 02-02 I think Fannie Mae is gonna do what Pam suggest we do.

 

[Red Blumenstock]

Tim,

I think that the USPAP makes it very clear in the Confidentiality section that "State Enforcement Agencies" are an exception to the confidentiality rule. That is on lines 312 and 313.

I have steadfastly followed that exception and I agree wholeheartedly with Pamela. If we want to be considered to be professionals, we must act like it and that includes cleaning up our own act.

Red

 

[Jim McGrath]

Pamela, if you send the review to the State Board without the clients permission aren't you violating USPAP with regard to violating your lender/client relationship? This would make you, as the reviewer, in direct viloation of USPAP and your actions no better than the appraisal you reviewed. I agree, I wish it could and should be done, but the reviewer is subject to the same rules as the person reviewed. You are right, though, I have never been able to get permission from the lender to send the original appraisal and the review on to the state board. I have a feeling that because you violated the lender/cleint relationship that the state would somehow come down harder on you than the obvious criminal in this situation. If I am wrong on this, somebody, please point this out. I have a whole stack of apprasials and reviews I would love to send to the state.

Tim, on page 78, #126 of the 2002 FAQ of the Appraisal Foundation it states:
"An appraiser must not disclose confidential information or assignment results prepared for a client to anyone other than the client and persons specifically authorized by the client; STATE ENFORCEMENT AGENCIES and such third parties may be authorized by due process of law; etc...

The Appraisal Foundation goes on to state that it is the opinion of the ASB that a reviewer may, absent any higher precedent law or regulation, file a complaint with a state appraiser board without the consent of his or her client.

Hope this answers your concern.

Jim McGrath

 

[Ray Ohler]

Remembering back to an old posting. I let Bob Ipock know that the state STILL had not gotten back to me yet when I posed precisely the question about confidentiality and breach thereof. To wit: As of today, neither the state board of real estate appraisers (note: I did not use caps) nor the state prosecutor's office (no caps again) has gotten back to me to answer the question. I told Bob I ran it past an attorney I know who is boning up on representing appraisers in front of the boards. He "thinks" the only way an appraiser MIGHT be cited is if the client (one who ordered the review from him) found out and filed a complaint. As far as "due process" goes, it is MY belief that means "subpeona". That would NOT hinder an appraiser who spotted a truly "fraudulent" appraisal from filing a complaint and an explanation in detail of all the deficiencies in the report and leaving out just who you did a review or "re-appraisal" for. If they (the state) ever gets back to me I will let this forum know THEIR opinion.

 

[Bob Ipock]

Sorry no one got back to you from your state board. My state board got back the same day I sent an e-mail asking the question. Their answer was "no", there is no problem with a complaint being filed.


Bob

 

[Jim McGrath]

state board of real estate appraisers (note: I did not use caps) nor the state prosecutor's office (no caps again) has gotten back to me to answer the question. .

Ray, the use of caps to emphasize or show a particular point in a long message is common practice. Are you saying this is offensive to you?

The purpose is to point out to those who just skim through messages something they might otherwise overlook.

But if you wish to wait for an attorneys opinion that is certainly your right, I will go with what the Appraisal Standards Board says in their official documents.

Also, remember there are always at least two attorneys with different opinions in every court case.

Jim McGrath

 

[Ray Ohler]

No Jim, you missed the point. Happens a lot on a forum because the written word does not come out like the spoken word. I happen to use capitals to emphasize certain phrases for just that reason. What I was saying about the lack of caps was because I'm not sure the PA board OR the state prosecutor's office DESERVES caps. Proper nouns should be capitalized, I didn't. As far as filing a complaint, I agree with Bob, no problem. If you supply a copy of your review or re-appraisal I don't believe there should be a problem either but, these days who knows? As far as filing a complaint, I don't take that lightly and I DO know about that. I don't believe a complaint SHOULD be filed as part of a "witch hunt". However, when you either review a report or provide a "re-appraisal" of another's work product, and that work product has NUMEROUS misstatements of fact or when an appraiser SAYS they performed or checked public records or MLS info and by their statements COULD NOT have (assuming the proper time frame for recording, etc.) then BY ALL MEANS, send the report to the state along with a DETAILED explanation of all the deficiencies and copies of all pertinent records. I don't believe you should have to provide your review or re-appraisal unless it is requested via subpeona. That is, unless you have the written permission of your client. The statement ..."State Enforcement Agencies and such third parties as authorized by due process of law"... I believe is ambiguous enough to get a crack defense attorney a few points. "Well, your complainant violated USPAP himself". These days NO ONE IS RESPONSIBLE FOR ANYTHING, IT ALWAYS IS SOMEBODY ELSE'S FAULT. To me, at least, DUE PROCESS does not cover an appraiser filing a complaint against another appraiser. I can't get the Pennsylvania State Board of Certified Real Estate Appraisers OR the State Prosecutor's Office to give me a direct answer. Until then, any complaints I file will be with the appraiser's report and complete details and evidence of records I feel are pertinent.