Evaluations & USPAP - Question from a bank staff appraiser

[Terrel L. Shields]

That used to be a thing back in the day, and the worst an appraiser could expect to happen to them if they got caught telling the lie was they might lose that one client.

One of the first complaints to Arkansas was an Appraiser-Realtor who use two of his rentals as "comps" although they had not sold. He just said that's what they were worth and were listed for same. One board member said they should jerk his license, but the man was represented by a state senator. That Senator kept them in court until the guy actually died AND he was personally responsible for seeing that the board did not get enough money nor were allowed to hire a paid investigator. Board members had to do the investigations until about 1996. So, you could certainly get spanked in both Arkansas and Oklahoma although there was some feeling their way forward at first. By 2000, they were quite aggressive, and our investigator was a CG and excellent reviewer but could nitpick which resulted in several sanctions overturned in the courts.

the impetus for cutting an investigator position came from the board.

Depends upon who is getting the money taken in, the board or the agency who runs the board. The Insurance commissioner runs Okla. So, it's their budget and as a result, they have used local appraisers to vet reports submitted for licensing. That's kind of problematic when you have a CR vetting a commercial or farm report. I had a bank use a OKC appraiser to review a chicken farm and she called and confessed she did not have a clue about a chicken farm and had never been on one. So, I walked her through the valuation section on what costs were applicable, how I dissected the sales, and she was particularly interested in how I came up with the income numbers.

 

[George Hatch]

Still a problem at the state govt which can only be corrected by that govt.

I don't understand why there's even a disagreement about that.

 

[Mejappz]

Yet the leader of that charade is on the board of TAF.

Fast forward to the 32:00-minute mark. Look who gives REVAA the red carpet treatment. Yeah, public trust. REVAA is going to be an outstanding partner. LOL

 

[Overimprovement]

If it looks like a duck, walks like a duck, quacks like a duck, its either a duck... or just a bird.

I'd like to see what happens when someone goes duck hunting without a license but when they get caught by the DNR, they can simply call it a generic bird and not be prosecuted.

But the duck said "I identify as a bass". Here's my fishing license officer...

 

[Mejappz]

Yep RSDS is currently entangled in a lawsuit with an appraiser who was forced to violate USPAP or not get paid. But Pete liked it.

 

[George Hatch]

If you think there's legal recourse to do so, why don't you sue TAF for violation of their bylaws.

 

[sputnam]

Yep RSDS is currently entangled in a lawsuit with an appraiser who was forced to violate USPAP or not get paid. But Pete liked it.

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I would like to know the details of that. No one can force you to violate USPAP. Doing it to get paid is wrong. No ifs, no ands, no buts. Not getting paid is also wrong... there are legal remedies when someone legitimately owes you money.

 

[Zoe]

That is my mentor (on my CR). He told me recently at a USPAP class that I should get into "Evaluations" on Commercial Property. I said, "Mike, why did I go through all the classes, experience, that difficult exam etc. to earn my CG then if a licensed CG is not necessary on these multi million $ properties. He didn't have an answer for me, but I knew it already, based on who i know at that "age" in the areas covered his territory. Multiple retirement income streams, eligible for social security, etc. It is OK to "dabble" if you don't need an actual income from appraisal. Appraising for fun is different from trying to earn a living. As I learned when the CG I was supposed to replace at the firm wouldn't retire until the state took his license (happened years after I left). Nobody realized I did that guy's work for him FOR YEARS. I had much respect for him. He was a WWIi Vet and he taught me a great deal, but at a point, you are taking income from young appraisers with families to supplement your boredom. I'm not going to do that. In fact, I'm becoming rather tired of the whole business. The next post will be George saying how "Bitter" I am. Betcha.

Ironic his name was Mike. You likely know the head or chief appraiser I was referring to. I don't think he would mind me sharing his name. He was broker and owned Statewide Appraisal Services in Tennessee. He went through a divorce and met a lady deep in congressional appraisal business in a Midwest State.

Mike Orman had independent appraisal offices in Memphis, Nashville and Knoxville. He was national president of NAIFA or IFA. NAIFA was also known as IFA. He told me they offered him too much money to turn the position down at a big bank. It is a mid-west State. I still call him from time to time on certain things. But I am not sure he could help anybody in Wisconsin on this issue posted in the original post.

He worked hard in trying to get appraisal and AMC fees separated on truth in lending disclosures and for appraisers to be paid for their intellectual data/datum.

I still think either a State bank regulator or a State appraisal board member or lawyer would be the best person for the Original poster to ask in Wisconsin.

I think when they commingled fees on APPRAISAL/AMC is when Mike Orman threw in the towel on independent fee appraiser.

I know it is not the same Mike because he is a licensed appraiser. IFAS.

Another big kicker there is I am sure he wanted to be with his new wife and she didn't want to move to the Memphis area.

The appraisal board member in Wisconsin would probably refer the OP to the lawyer that represents the appraisal board.

A State bank regulator lawyer would be a good one to ask also.

Your paying for the legal advice already in your licensing fees and State taxes in Wisconsin.

 

[chad hampton]

Do you think the bigger the corporation the more they play by the rules? It’s exactly the opposite. I’ve sat in rooms and listen to RSSS push whatever they are selling. It wouldn’t surprise me if they turned out to be the most corrupt organization in an industry full of large corrupt organizations.

 

[BRCJR]

With the various opinions and positions on Evaluations---all I can say is they are legal and lenders use them.

If nothing in your state law prohibits:

A commercially competent residential Appraiser would do well to contract with local lenders and do commercial Evaluations on properties with transaction values up to 500,000.

They can be done in less time than a URAR at twice (or more) the fee.

Do not like them do not do them, period.

Fight the change, swim against the current, do what you want but, the Evaluation will become a more common product, since the transaction threshold was raised to 500,000, for commercial transactions.

Added to the demand will be the loss of the CG as they age out and retire.