From QC/Fraud Dept Appraiser

[Pamela Crowley (Florida)]

Sent to me to post by a Quality Control/Fraud department appraiser with a large national lender:

For years many folks on the forum have been preaching the
gospel of properly describing the subject property as far
as upgrades and condition and not relying on boilerplate
language that doesn't lead the reader to any conclusion
about the subject.

For years forumites have been telling each other (and
anyone who will listen) that it is imperitive that an
appraisal paint a true and accurate picture of the subject
property, and then to describe how the sales that are used
in the report are truly comparable.

For years forumites have complained that this level of
detail makes it difficult for them to compete against
appraisers who slam out the work product that is so generic
that it could be almost anyhouse almost anywhere.

Now the time is coming around that the people who have
actually lived up to their mantra are starting to see the
benefit of this detail. There is enough information in the
appraisal (and likely photo archives, if not in the
appraisal, at least in the workfile) backing up the claim
of the condition of the property. There are photo archives
(hopefully in the appraisal, but if not, in the archive)
showing the appraiser actually did drive by and take photos
of the sales used in the report so that they could see how
those sales really looked on the outside and if they were
subject to any positive or negative influence that the
subject was not.

Now that so many of our individual work products are being
scrutinized (from the various threads on this topic on the
forum), the appraisers who actually developed an appraisal
that lead the reader to a clear understanding of the
subject property and how it compared with the sales that
were used, are finally in a good position.

I applaud the appraisers who stuck by their guns and took
pride in their work product. I hope that the appraisers who
were too generic in their descriptions will understand now
the benefit of really developing and communicating a
credible work product and will undertake to do so in the
future.

This is the time that we are owning up to our work product
of a couple of years ago, or more recently, because the
market has changed significantly and more and more lenders
and home owners are crying foul.

We are all responsible for the work we create that other
people are rely on. No one should be shifting the blame
onto the parties that relied on our reports and later found
fault with them. If we mess up, we really do need to own up
to it and strive to correct the problem in the future. If a
lender decides that they no longer will accept our work
product because of mistakes they have found that are
significant enough for them to lose confidence in accepting
our work, that is not the lenders fault but our very own.

So those of you who are careful in being accurate in your
descriptions, both positive and negative; those of you who
truly take pride in developing and presenting a credible
and defensible product, this is finally your time. It was
and is worth the extra effort!

 

[Mike Kennedy]

... a Quality Control/Fraud department appraiser with a large national lender:

So those of you who are careful in being accurate in your
descriptions, both positive and negative; those of you who
truly take pride in developing and presenting a credible
and defensible product, this is finally your time. It was
and is worth the extra effort!

Excellent !!............"let the word go out from this time and this place to allllll Lenders........." :icon_idea:

 

[xm39hnu]

Pam,
Be sure to convey our gratitude to that appraiser for taking the time to compose that post. It is much appreciated.

 

[Workbox]

I am humbled....and count my blessings.

 

[CANative]

Not to be negative, but I'll believe it when I see it. Right now I'm not seeing any benefit except to my self respect.

 

[Roscoeman]

Pam,

Thank you for your continued efforts!

I am so grateful that you take the time to forward all of us on the forum vital information!

Please forward my thank U's to the appraiser.

 

[Terry McCulloch]

I was once accused by an LO that I don't work with anymore (of course) of having too much "drama" in my reports. I just had to ask him "WHAT????" He just responded very seriously "too much info, know what I mean?" ... go figure.

Thanks Pam...

 

[Ms. Janet]

I really don't understand the post. What has changed other than the people who actually may not be too worried about a defensible and credible appraisal are the appraisers who may be receiving the bulk of the appraisal work?

I had an appointment this morning. Did I miss something?

 

[Renee Healion]

Stuart Smalley. I recognize the tone.

Meanwhile, I'll just keep listening to Jiminy Crickett. That's who keeps me honest in my work.

 

[xmmcsmielr]

HERE's A COUPLE OF THINGS THAT IMPROVED

Part of the answers to what has changed for the better was in a seminar I attended in Scottsdale Arizona a few weeks ago taught by Richard Hagar, SRA.

Mr. Hagar said that Federal enforcement agencies, including Homeland Security, are intensifying efforts to prosecute mortgage / appraisal fraud.

Homeland Security is involved, because terrorist cells in the U.S. and abroad are funding their operations with proceeds from mortgage / appraisal fraud.

Felecia Rotellini, Superintendent of the Arizona Dept of Financial Instituions and two of her investigators were at the Hagar seminar (Identify and Prevent Real Estate Fraud). Ms. Rotellini and Mr. Hagar encouraged Arizona appraisers to keep a log of the we-need-at-least appraisal calls/faxes/emails and forward the log to Financial Institutions. Ms. Rotellini said that a pattern of such requests is grounds for suspension of mortgage licenses.

That is a major change in Arizona.

The Hagar seminar is excellent, and he is teaching it again in April, both in the Phoenix area and in Tucson.

While the Arizona Board of Appraisal has not demonstrated any improvement over their dismal performance during the past decade, other departments in Arizona government are talking the talk. Hopefully, they will produce results to curtail the rampant fraud in Arizona.

The Arizona legislature is close to passing loan originator licensing, similar to Washington State's recent legislation that revealed a large percentage of the loan originators up there were convicted felons. Mortgage companies are already licensed, but not their originators. So, the new law should improve the enforcement efforts. Sadly, the effective date of the law is a few years into the future.

Mr. Hagar brought copies of court docs to the class that showed severe jail sentences and heavy fines imposed on participants in fraudulent transactions, including appraisers.

That's a welcome change from lack of any apparent enforcement.

With Homeland Security involved, copies of emailed appraisal reports are fair game for Homeland scrutiny without warrants, since national security is at stake.

While I don't like uncontrolled law enforcement agencies infringing on constitutional rights, the relative ease at which numerous mortgage fraudsters operate is unacceptable, too.

There are many promising reports about intensified law enforcement focused on outlaw appraisers, among others = WELCOME CHANGES.