Lawrence R.
Senior Member
- Joined
- Mar 27, 2007
- Professional Status
- Certified General Appraiser
- State
- South Carolina
Just sent to Jim Clyburn, Majority Whip
Since I am in his district. Goes to his legislative director....
I am writing you to plead with you to speak to the Congressman on behalf of residential and commercial real estate appraisers in the state of SC. There are currently about 3500 or more appraisers licensed in this state. In light of the current state of affairs in the mortgage industry, honest and ethical appraisers have seen their business shrink over the past 5 years as the lenders have clamored to find those who can work fast and cheap, and shirk their responsibilities of due diligence. Understandably, legislators are clamoring to get on top of this situation. Enter HR 3221. In and of itself, the bill seems to have many good provisions.
However, the idea that appraisers be bonded annually based on the amount of transactions values; etc…in order to appraise for federally regulated transactions is going to be cost prohibitive at best. There are already Civil penalties, criminal proceedings and hefty fines that can be levied against appraisers who commit fraudulent and negligent reports to facilitate others defrauding the general public (like mortgage brokers, appraisal management companies, and hard money lenders). We also carry Errors and Omissions insurance to cover mistakes. Bonding will only provide a financial safety net to those who are dishonest—and basically create another system to go broke when the chips finally fall.
Those of us who are struggling to keep it together will have to go further into financial straits to purchase this additional “fraud insurance” so to speak.
Please consider striking this provision from the bill under your current review. I hear it is coming back to the house.
One further note:
Please do some research on what is called the appraiser’s petition. It has been circulating for a few years now. We have been the lone voice in the wilderness crying out against this despicable, predatory lending practice of defrauding the public and “shopping” for a compliant appraiser to grease the wheels of deceit.
Myself, and many others, believe that the Appraisal management Companies and large lenders have acted in restraint of free trade by threatening the appraiser with loss of income if he or she does not go along to get along. These groups are so big they represent 70-90 percent of the typical appraisers’ income. Many otherwise honest appraisers are forced with the decision to refuse offensive and illegal requests to defraud the public, or to coalesce and keep food on the table.
I would in no way condone such an action, but I am sympathetic to their dilemma. The main side effect is that those of us who refuse to go along have been drummed out of the residential lending field and have been forced to seek “shelter in the storm” by working second jobs or taking staff appraiser positions at much lower pay. This creates a vacuum in the residential lending side of things, which the unethical appraisers amongst us were all too happy to fill.
Just in a time where the mortgage industry needs us the most, we have exited the profession in the name of morality. Many of us watch at the sidelines, hoping the new scrutiny will create an environment for us to once again take the lead in our profession.
Then we hear HR 3221 wants to raise the barrier for entry. We are hopeful this provision regarding bonding will not stand.
Thank you for your time.
I personally think many legislators are largely in the dark about just how bad the industry has become, and could benefit with a few minutes one on one with a few good appraisers. I would be happy to donate as much time as necessary at the Congressman’s convenience, or his staff—to discuss exactly how this mess has become what it is.
Some helpful links for further information:
http://appraiserspetition.com/
www.appraisersforum.com
Since I am in his district. Goes to his legislative director....
I am writing you to plead with you to speak to the Congressman on behalf of residential and commercial real estate appraisers in the state of SC. There are currently about 3500 or more appraisers licensed in this state. In light of the current state of affairs in the mortgage industry, honest and ethical appraisers have seen their business shrink over the past 5 years as the lenders have clamored to find those who can work fast and cheap, and shirk their responsibilities of due diligence. Understandably, legislators are clamoring to get on top of this situation. Enter HR 3221. In and of itself, the bill seems to have many good provisions.
However, the idea that appraisers be bonded annually based on the amount of transactions values; etc…in order to appraise for federally regulated transactions is going to be cost prohibitive at best. There are already Civil penalties, criminal proceedings and hefty fines that can be levied against appraisers who commit fraudulent and negligent reports to facilitate others defrauding the general public (like mortgage brokers, appraisal management companies, and hard money lenders). We also carry Errors and Omissions insurance to cover mistakes. Bonding will only provide a financial safety net to those who are dishonest—and basically create another system to go broke when the chips finally fall.
Those of us who are struggling to keep it together will have to go further into financial straits to purchase this additional “fraud insurance” so to speak.
Please consider striking this provision from the bill under your current review. I hear it is coming back to the house.
One further note:
Please do some research on what is called the appraiser’s petition. It has been circulating for a few years now. We have been the lone voice in the wilderness crying out against this despicable, predatory lending practice of defrauding the public and “shopping” for a compliant appraiser to grease the wheels of deceit.
Myself, and many others, believe that the Appraisal management Companies and large lenders have acted in restraint of free trade by threatening the appraiser with loss of income if he or she does not go along to get along. These groups are so big they represent 70-90 percent of the typical appraisers’ income. Many otherwise honest appraisers are forced with the decision to refuse offensive and illegal requests to defraud the public, or to coalesce and keep food on the table.
I would in no way condone such an action, but I am sympathetic to their dilemma. The main side effect is that those of us who refuse to go along have been drummed out of the residential lending field and have been forced to seek “shelter in the storm” by working second jobs or taking staff appraiser positions at much lower pay. This creates a vacuum in the residential lending side of things, which the unethical appraisers amongst us were all too happy to fill.
Just in a time where the mortgage industry needs us the most, we have exited the profession in the name of morality. Many of us watch at the sidelines, hoping the new scrutiny will create an environment for us to once again take the lead in our profession.
Then we hear HR 3221 wants to raise the barrier for entry. We are hopeful this provision regarding bonding will not stand.
Thank you for your time.
I personally think many legislators are largely in the dark about just how bad the industry has become, and could benefit with a few minutes one on one with a few good appraisers. I would be happy to donate as much time as necessary at the Congressman’s convenience, or his staff—to discuss exactly how this mess has become what it is.
Some helpful links for further information:
http://appraiserspetition.com/
www.appraisersforum.com
