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Fraudulent Appraisers

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Larry Davis

Freshman Member
Joined
Mar 20, 2002
A lender has complained vehemently about my so-called low ball appraisal. Two of my comps were identical and on both sides of the subject next door. They showed me another appraisal that was done on this property that was much higher. I researched it and found extensive fraud. The gross living area for the comps were all way off comparing data for prior appraisals and the tax records, not to mention the comps were on a lake with deep water rights, and some were forelclosed, and some had prior sales within a year that were not disclosed. I told the lender that my appraisal was correct. I decided to tell them I was filing a complaint against the appraiser with the appraisal board. I was told not to tell anybody anything as it would affect the livelyhood of the appraiser, then I found out they still use the guy. I was told its not my duty to be a policeman. That it might affect their loans closed and in process. I did not seek this out. The lender faxed me the appraisal, and complained against my appraisal. My opinion is , that it is the right thing to do to file the complaint and forget anymore business from them. Or should I bury my head in the sand, and pretend it never happened. This appraiser apparently gets a lot of business based on inflated appraisals.
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
File the complaint!!!!

You don't have that lender as a client anymore anyway.

Just do it.... it's the right thing to do. You've been handed a gift!

I had a stupid lender do the same thing to me last week. It's being sent in with a complaint.

Lucky you!!!
 

Willie

Senior Member
Joined
May 30, 2002
Professional Status
Certified General Appraiser
State
Tennessee
I would get anything you can in writing. Any communication. Keep it and do the right thing. Appraiser is the small fish. It sounds like you're not only dealing with a small chump change crook appraiser, you are dealing with a major lending institution that is rotten at the core, one that is screwing every borrower it deals with, knowingly. Imagine owning the house in the middle. You get ready to sell it, and same house on both sides is asking substantially less. Sounds like fraud, through and through.
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
I would report the lender to Fannie as well as the appraiser to the state. It'll take the state longer to investigate the appraiser than Fannie to check on the lender. I would also report the lender to whoever in the state licenses lenders (if they are required to be licensed). You have been advised that there is possible wholesale fraud taking place by the lender themselves.

Roger
 

Jeff Horton

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Alabama
I have to agree. Turn the appraiser in and turn in the Lender. They are not stupid and they use this appraiser because of what he does. Maybe they claim they don't know what he is doing but they do. Thats why they use him.

FHA is about to hold lender responsible for the appraisal and I hope everyone else does to! I think it is you duty to turn in the fraud to both your Appraisal board and lender to whoever you can.

I just read where the FBI is investigating Lender Fraud, they might be interested too.
 

Rick Neighbors

Senior Member
Joined
Jan 19, 2002
Professional Status
Certified Residential Appraiser
State
Texas
Just be glad that you can file a complaint. Here in Texas, we have been told that they are not accepting any more complaints filed by one Appraiser against another. Has to be the homeowner, or someone injured in the process.

I know an Appraiser that caught another appraiser making up comps. They still wouldn't accept his complaint.

Ain't that just peachy??? :angry:

Rick
 

Jeff Horton

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Alabama
Sounds like all the Appraisal laws are really working aren't they!

Yall need any help in Texas? Sounds like the Wild West (for Appraisers) ain't dead!
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
Whooa, I agree. Both lender and appraiser are scum, so file!

I was told its not my duty to be a policeman.
If we don't police ourselves..... who will???? Every profession in the world make it easy for other professionals file complaints...... except real estate.

That it might affect their loans closed and in process.
Aaaw, poor thing. I just know it will really hurt those poor HO's that really need that 3rd mortage. :angry: :rolleyes:

This appraiser apparently gets a lot of business based on inflated appraisals.
Every town has at least one, but that does not mean it is right or okay.
Now go get 'em. :gunfire:
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
It is our job to police our own industry.
 

Oregon Doug

Senior Member
Joined
Jan 15, 2002
Professional Status
General Public
State
Oregon
Larry - let me make sure that I understand this: You have a copy of an appraisal that you strongly believe to be fraudulent and you are asking if you should just ignore it?

All of these folks have told you to file a complaint against the appraiser (at a minimum) and I add my vote to that tally. Yes, we are the policemen in our industry and if we don't police ourselves, we will all be painted with the same brush as the crooks.

Let me add one more thing - read the Conduct section of the Ethics Rule, lines 268 - 270 that state in part: "An appraiser must not...KNOWINGLY PERMIT an employee or other person to communicate a misleading or fraudulent report."

Since you know that it is a fraudulent appraisal, if you permit the appraiser to communicate that fraudulent report without objection on your behalf - would you be in violation of the Conduct section of the Ethics Rule of USPAP - I think you would.

You know what you gotta do - do it!

Oregon Doug
 
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