Florida Appraisal Board auditing all appraisers?

[Howard Klahr]

I just don't see where they have the man power. The investigators are for all licensed professions. They are not dedicated appraiser investigators. They may have just come from a general contractors office and headed to a barber shop after leaving yours.

That is not an accurate statement. The division of real estate does have dedicated investigators and there are those that focus on the appraisal cases.

 

[Joyce Potts]

That is not an accurate statement. The division of real estate does have dedicated investigators and there are those that focus on the appraisal cases.

Their funds have been cut and they're operating under tighter scrutiny via the DBPR in Tallahassee which is exactly why I had serious doubts about the original audit statement when I first read it. It made no sense.

Frank got to the bottom of it. I understand the instructor from McKissock who started it has a good reputation as an instructor so I'd be asking him where he got his information.

Based on my experience with the FREAB, the investigators that I've encountered are REASONABLE. And don't forget that even if an investigator finds cause it has to go through Probable Cause Panel and then the real process begins. A well written, supported and TIMELY response to a complaint can put the whole thing to bed right there, in many cases. They are not out on a witch hunt -- again, based on my experience.

 

[WMOORES]

Howard, I stand corrected, you are correct. I brought this up in CE over the weekend. We had an investigator in our office around 2002 over a valuation issue on a land appraisal. (not mine) I was sure she said she was heading to a barbershop after leaving.

 

[wickedness1]

I was also in USPAP this week with this same instructor. To clarify: He did NOT say that they were auditing EVERY appraiser but he did say that it "appeared" they were auditing every 10th appraiser on their list or so... to take place over the next year+.

He stated the state has 9 investigators and they can conceivably do 2 audits a day. He also said the state isn't seeing nearly as many complaints, so basically these audits will be filling time.

He received his information from a prior student who was the subject of an audit in February of this year. The student received a letter & called and made an appointment for the auditor to come do the review. Student said auditor was very pleasant and it lasted about 3 hours. Auditor found minimal things wrong after going through their audit "check list". Instructor basically forewarned us that if we are a subject of an audit, don't ever try to "doctor" files, etc. and to make sure we have a signed certification and have everything from the chart on page A-24 of USPAP Book.

 

[Joyce Potts]

That is not an accurate statement. The division of real estate does have dedicated investigators and there are those that focus on the appraisal cases.

Much different than initiating investigations or audits of appraisers absent of a complaint.

 

[hastalavista]

California floated that idea (audits) several years ago. It was poorly received by the appraisal community, and the idea was never enacted.

My guess is in California (and I'd say the same goes for the Great State of Florida) there are enough formal complaints made to keep investigators plenty busy; they probably don't have the time add random audits to the schedule.

I will say this: California has become better at formalizing and publishing the complaints. They are legal filings, similar to a criminal or civil complaint. A PDF of the complaint can be found for the more recent filings.

http://www.brea.ca.gov/html/EnforcementActions.asp

 

[Ms. Janet]

I know of several people who have had random audits in FL during the past 3 weeks.

 

[Michael Tipton]

I know of several people who have had random audits in FL during the past 3 weeks.

I'd expect the state to audit all appraisers based in La La Land, FL.

 

[Red Flint]

California floated that idea (audits) several years ago. It was poorly received by the appraisal community, and the idea was never enacted.

My guess is in California (and I'd say the same goes for the Great State of Florida) there are enough formal complaints made to keep investigators plenty busy; they probably don't have the time add random audits to the schedule.

I will say this: California has become better at formalizing and publishing the complaints. They are legal filings, similar to a criminal or civil complaint. A PDF of the complaint can be found for the more recent filings.

http://www.brea.ca.gov/html/EnforcementActions.asp

Very worthwhile reading. If you click on the 'effective date' column header, it will scroll to the 2014 actions. The content of the 20-40 page PDF decisions certainly make USPAP come alive in true investigative sense. Delving deeply into the accusation material reveals how important due diligence is when reporting subject property characteristics, zoning, comparable discussion, and valuation methodology, even in a form report context.

 

[Joyce Potts]

Interesting, Janet.