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Karl

Thread Starter
Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Arizona
Karl Keeler and I went to observe the Board in March 2007. I wanted to see how the board conducted itself and how it handled complaints. Out of 10 years of appraising, I have been fortunate enough never to have had to appear before the board. The board was an entity that I respected/feared. I can now say that I have witnessed the broken board in action.

While I was there I saw a lady ADMIT that she had sent FALSE documentation to the State of AZ to expedite a trainee to be licensed. I watched her go home with a 30 day required vacation--I mean Suspension. I heard Charles J. Havranek, Vice Chairman give Eugene Rowe a free pass on an appraisal that Eugene had completed because it was NOT a federal transaction. The complaint involved an unsupervised trainee over inflating an appraisal. I watched a Certified General ADMIT that he E-Mailed his signature to a licensed appraiser. The Certified General stated that had he known the appraisal was sooo bad he wouldn't have emailed his signature. He felt bad about it and promised he had learned his lesson. The board DISMISSED the case.

I left the board meeting disgusted. I realized that an appraiser could do just about anything and be let go or at worst---be required to take a USPAP class again. Yes, the board is broken. I know it.

I still question the wisdom in having the appraisers under the Real Estate Department. I have heard only hearsay about them. I have no experience on how the Department of Real Estate works. I fear that we think that the grass is greener with the Real Estate Department when the grass is actually rotten. The following are a few questions I have about joining the Department of Real Estate.

*From my understanding, there are over 70,000 realtors that the R.E. Department currently police. How many investigators does the department have?

*What is their ratio of investigators to realtors verses our ratio to appraisers?

*How back logged are R.E. Department's investigators?

*How can we have realtors police appraisers? Do they understand how appraisal's work? Do they understand the complexities of appraising a mall, gas station, ware house, mine? For that matter, do they understand how to appraise a house? Every time I have appraised a home when a realtor is involved, they give me the worst "comps" available. Are we going to have them police us?

In appraising, I utilize the Tucson and Phoenix MLS. The Tucson MLS is a good/reliable resource. The Phoenix MLS tends only to be about 70% accurate. Many times the R.E. agents will list homes that have closed when they haven't. They will state that a property sold for zzz amount when it actual sold for $30,000 to $40,000 less. The MLS listing will state all kinds of features about the property when in reality the property doesn't have those features. The last question that I have is this is. If the R.E. Department allows for fraudulent and misleading representation to be published on a system that we all rely on, how can we trust that they will police us properly?

Yes, our Board is broken. It needs a major overhaul before our profession is dead. I don't think that going under the Department of Real Estate is the answer. I think we need to make changes to our current board. I believe the board members need to be paid. Many of the board members put in 20-30 hours a week reading the various complaints, reviewing which classes should be allowed, and trying to stay up with the various laws that effect our profession. They have to be very thick skinned due to the personal attacks on them individually. One ex-board member told me that it cost him a $100,000 in appraisal work to be a board member. His wife has told him that she'll get a divorce if he ever goes back on the board.

We need to have less non appraisers on the board. In fact, I am puzzled why we have non appraisers on the board. I thought we are suppose to be judged by our peers. I would suggest that the non appraisers (general public) be on committees that support the board, but not on the board itself.

We need to have the investigators take classes on reviewing. They should be certified to review residential reports and/or commercial reports. Too often, I have heard of a commercial appraiser reviewing a residential report and not have a clue on what to do. There is a reason why the new law was passed that commercial appraiser's must have experience in residential appraising before they do a residential assignments.

We need to have more investigators working for the board.

The board needs a subcommittee to review which appraisal reports are egregious and which ones are frivolous. Larry Abbott receive a complaint through the board, in which, the person stated that Larry never showed up to do an appraisal on their property. Larry didn't show up to do the appraisal for them, because he never received the order. The board still expected him to respond to the complaint. Now, every two years when he renews his license he has to state that he has had a complaint, though it was dismissed.

The board needs another subcommittee to perform regular audits on appraisers. If we know that the board is going to audit our files, how much better are our work files going to look? Will the board find orders stating that the lender needs a minimum values? We need to have more investigators working for the board.

Consider this.... Lets say that a person is before the board, states that they have only committed the egregious mistake once. The board can them verify it through auditing the appraiser's files. Let say that an appraiser takes on a known trainee who can't measure a house and has been known for committing egregious mistakes. The board could continuously audit the appraiser's files to verify that the appraisal work is being done correctly. This will most likely cause the appraiser to decide that the trainee is not worth the hassle. Let say, there is an appraiser who gave their license to the board voluntary. They then start working under another appraiser as a "trainee" (Robert Crumb comes to mind). The board can continuously audit the appraiser's files until he decides it's not worth having that ex appraiser work for them.

I do like that the board allows for mentors. I believe that mentors should take classes on how to mentor. When I was watching the board in March 2007, there was an appraiser who was on probation. His mentor was not with him. The appraisals that he had turned into the board for reinstatement was terrible. Debra Rudd wanted him to stay on probation, but the other members all thought the appraiser had served enough time on probation. She got out voted. The question that bothers me so much is where was the mentor? Why were there bad appraisals being turned into the board as samples? Shouldn't the mentor review the work and verify that the appraisals are good? Shouldn't the mentor be required to appear before the board and answer for the work that this appraiser was outputting?

The board is broken, but I don't believe that going under the Department of Real Estate is a good idea. We as appraisers need to fix our board before it's too late.

Sincerely,
Brent Hillman
License #:21518
[email protected]

(520)
 
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USPAP Compliant

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
My friend, until more appraisers go and observe their boards in action nothing will change. Find out for yourself...believe no one else. Investigate, observe, question...appraise the evidence. Make up your on mind.

I kept hearing these "conspiracy theories", "crazy accusations", "unfounded rumors", "sour grapes" et al fro a few appraisers in NC. I could not believe it was all true. I owe all of them an apology because it pretty much was all true. In fact it was worse. The more meetings I attended, the more FOIA documents I asked for, the more I looked at budgets and case summaries....the more convinced I became that there was and still is a conspiracy at the NCAB. A conspiracy of incompetence, dishonesty, lack of ethics, "pay to play" politics and a complete refusal to discipline appraisers who were investigated and found to be guilty. My disgust is primarily with the appointed board members and the lat two lap dog executive directors. If there was a "back bone" transplant.......most of these guys would need one.
 

Sheikh Yerbouti

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Arizona
I'd be more inclined to step up, but according to some, I'm one of the puppetmasters responsible for this mess. Go figure. :shrug:
 

mpb5431

Freshman Member
Joined
Apr 3, 2007
Professional Status
Licensed Appraiser
State
Arizona
I just learned about this while checking in on the ABoA today... holy moly!

I found the first post by Karl very enlightening, thank-you. It appears to me I will now have to make an appearance at my first board meeting soon. I got to see this myself.

My first thoughts are...
1) Certified General appraisers can appraise more than just real estate .(right?)
2) Maybe the AZ Dept. of Financial Institutions would be a better fit... it could lead to more effective controls over undue influence of appraisers.

PS. I immediately came back to this forum for additional information. Other than reading the bill, i did not see any comments from the board regarding this. Why would they not even make a statement of their position on the matter?
 
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Karl

Thread Starter
Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Arizona
The Board can NOT make public statements. Attend some meetings & then you'll get a feeling as to those that care & those that don't. You can be your own judge.
 

Julie Friess

Freshman Member
Joined
Jul 3, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
New Board Member and Politics

Dave, I heard you were part of the Phoenix Power Clique. I can't imagine. :0>
We have a new Certified Residential Board Member who has been appointed who has less than 2 years as a certified appraiser, has a reputation of having a really bad temper and being very mean to his employees, told his employees that his objective in doing reviews was to eliminate the competition and there are reviews out there on his own work on houses presently in foreclosure and complaints at the Board for him and his employees. Welcome to Arizona. :shrug:
 

Billie Hiser

Sophomore Member
Joined
Dec 20, 2004
Professional Status
Licensed Appraiser
State
Arizona
Julie,
Has this guy already gone through Senate confirmation?
 

Sheikh Yerbouti

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Arizona
Dave, I heard you were part of the Phoenix Power Clique. I can't imagine. :0>

I wish.

Any reason not to post the name of this new board member? I doubt if I know him if he's that new. So now we have TWO loose cannons on the board. Peachy.
 

Julie Friess

Freshman Member
Joined
Jul 3, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
No reason not to post his name. His name is Michael Marquess. No, he has not been confirmed by the Senate yet. What happens if a Board member has serious complaints filed against them?
 

USPAP Compliant

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
Your board appointments have to be confirmed by the Senate? All members?


In NC the Governor appoints FIVE members with no confirmation required. The President Pro-Tem of the Senate and the Speaker of the House each appoint one and they are confirmed on the last day of the session along with ALL board and commission appointments. Every appointment always passes. There are hundreds of appointments made in one single vote.
I am sure that it must be a coincidence but every appraisal board member he has appointed has been a contributer to his campaign fund. Sometimes you get what you pay for.
 
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