I Advised Borrower To See An Attorney.....

[Leon Stewart]

Richard:

The point I was trying to make was that in suggesting that someone seeks legal advise, there's usually preceeding related dialog to justify the reccommendation of the legal action. Myself personally, generally I just try to stay away from situations that does not involve the Task I was hired to preform, and the only information I give is that which is contained in my Report, but in your case, don't forget to get paid for these additional services you are performing.

Leon

 

[Richard Carlsen]

Don't worry. If there is one guy who won't forget to be paid it is me.

However, in this case, the appraiser who may be involved has a reputation for creating comps and a few other shady things over the years. It may be that I will do a little "pro bono" work to make sure the attorney understands what is involved here.

 

[Leon Stewart]

Richard:

I guess, Guilty as suspected. Your statement does indicate your purpose in this case, so it dosen't really matter how this situation evolves. It seems as if your objective is to eliminate your competitors from the market.

If an Appraiser makes up Comps, it seems as if the Lender who hired him should have primary responsibility to correct the situation. In most cases an Appraiser doesn't have access to the Report to make an evaluation, unless they are acting as the Reviewer, and the Reviewer is employed by that same Lender to complete his Report and foward it to the Lender. If the Lender wanted the Appraiser to be sued by the borrower, the Lender would have done it themselves.

Leon

 

[Terrel L. Shields]

A lender rarely turns in an appraiser. First, it is often to their benefit that the appraiser has lied. Second, it is time consuming to complain. Third, the quick solution is to blacklist the appraiser. I know 2 right now that are on the bad boy list over not getting reports to the client in the time they said they would...often 1 or 2 WEEKS late.

In the case of bogus comps, I would not hesitate to turn an appraiser in. Professional jealousy claim or not. In my state the board can initiate an investigation upon oral complaint from any source. I would not attempt to do the case for them, only point the investigator in the right direction.

As for Reviewers. Seems several that turned in appraisers in Ar got burned for providing non-compliant reviews by the very board they complained to. Talk about shooting yourself in the foot. No wonder so few of us are ever sanctioned.

 

[Pamela Crowley (Florida)]

Turning in a truly bad appraiser has NOTHING to do with 'getting rid of the competition'. It's a public service! It also helps clean up this profession which is badly needed.

 

[Leon Stewart]

A lender rarely turns in an appraiser. First, it is often to their benefit that the appraiser has lied. Second, it is time consuming to complain. Third, the quick solution is to blacklist the appraiser. I know 2 right now that are on the bad boy list over not getting reports to the client in the time they said they would...often 1 or 2 WEEKS late.

In the case of bogus comps, I would not hesitate to turn an appraiser in. Professional jealousy claim or not. In my state the board can initiate an investigation upon oral complaint from any source. I would not attempt to do the case for them, only point the investigator in the right direction.

As for Reviewers. Seems several that turned in appraisers in Ar got burned for providing non-compliant reviews by the very board they complained to. Talk about shooting yourself in the foot. No wonder so few of us are ever sanctioned.

Some Loan Officers will try to find ways to document the reason for not using a particular appraisers services. They usually will try and discredit him/her, and sometimes they will even use a Review to accomplish this. A Lender is just like everyone else, so why would a Lender report an appraiser to the State Board, and if it's found out that the Appraiser didn't violate anything, the Lender could possibly be sued. If a lender is dissatisfied with an appraisers work, all the lender has to do is not use their services. Generally lenders use various tricks that will allow them to continue to use those appraisers who get the values they need to close their deals, which is their main objective.

It's somewhat strange that a State Board would accept an Oral Complaint from someone over the phone. It would seem as though the Board would have to have some documentation and a written formal complaint to initiate an investigation. That's elementary. If your Board in Arkansas can perform helter skelter procedures like that, the appraisers in that state are in deep trouble. You will rarely find a borrower or a seller completely satisfied with a quality, honest appraisal report.

I agree with your State Board when they review the Reviewers Complaint for errors when they are filing a complaint about errors in an Appraiser's Report. I'm supprise that more State Boards are not scrutinizing Complaints from Reviewers to keep them from filing frivolous error ridden complaints. The Reviewer should have a responsibility to attach a copy of the Appraisers Response to the Reviewers Complaint.

In my market a Lender sends a copy of the Reviewers Report to the Appraiser to have him/her respond to certain discrepancies in the Review. The Reviewer should be required to attach a copy of this responce to the Complaint that he/she is sending to the State Board.

Leon