GAO Audit of Federal and State Appraisal Regulation

[Francois K. Gregoire]

Good Morning All,

In a March 12, 2002 letter to David Walker, Comptroller of the United States, Senator Paul Sarbanes, Chairman of the Senate Commitee on Banking, Housing and Urban Affairs, and Senator Zell Miller of Georgia call for a GAO study "assessing both the state and federal appraisal systems as set forth in Title XI of FIRREA."

All I have is a fax copy of the letter, and it's too long to list all the details. but, among the issues and entities to be examined are the ASC, the Appraisal Foundation, the ASB, the AQB, electronic appraisals and appraisal fraud.

Here is a link to the Appraisal Foundation News Release

NEWS RELEASE

Interesting development, eh?

 

[Tom Hildebrandt]

Frank

All part of Georgia's Master Plan?

Thanks for the info.

Regards

Tom Hildebrandt GAA

 

[Anonymous]

Frank:

I read one of your articles. Very good. The FREA magazine, "The Communicator" has 2 good articles in it this month, about all of our problems in the industry. All of these entities need an overhaul, as you mentioned.

One thing, I would be careful about giving any more authority to the State Boards, since we have seen a few States become overzealous in their disciplines and fines. We do know, there is an underlying attitude of some Board members, (promoted by their association) usually designated appraisers, to "get rid of more appraisers", theres too many, etc.. We've seen a lot of this in Chicken bleep violations that are merely an excuse for fines. Unfortunately, we need evidence to support a restraint of trade violation by them. Using a government board to promote a personal adgenda.

The ASC was originally supposed to be an enforcement arm, over the States, and should be. There must be a way to keep these people from getting out of hand.

Personally, I belive in the American principle of a free and open market place. It benefits all of us.

I would also like to see some type of lottery system to choose the appraiser, for the whole industry. Another thing that might help is, a sworn statement by every entity that is in the chain of a financed mortgage, to state: I am not aware of any other appraisal performed on this property within the last 12 months. If there were other appraisals, those copies are included in the loan package, for review. (Under penalty of law)