Illinois Appraisal Licensing Act

[Pat Butler]

Hopefully the upcoming AMC law will place these same obligations on the AMC for disclosure. There's just far too many rules for appraisers based upon actions that we can't ultimately force onto our clients if they don't want to cooperate. And, like usual, honest appraisers such as myself will lose business as dishonest appraisers will fail to follow through on these rules and get away with it due to a lack of enforcement.

Remember the old rule about having to report the individual's name who actually placed the appraisal order? I bet maybe 50% of the appraisals I reviewed complied with that.

How many appraisers are complying with GLB? There are similar rules with respect to the appraiser having to have an intimate knowledge of the client's operations with respect to what aspects of GLB they are complying with versus what's left for the appraiser. I'd say there's close to a 99% non-compliance rate with appraisers.

It would be great if these new rules were followed by a comprehensive enforcement so that good appraisers weren't put at a competitive disadvantage. But history shows otherwise.

 

[Lee Lansford]

...

It would be great if these new rules were followed by a comprehensive enforcement so that good appraisers weren't put at a competitive disadvantage. But history shows otherwise.

Before there is "enforcement", there must be a "complaint".

Many years ago (back in the day when mortgage brokers "managed" appraisers), it was not at all unusual, when I was talking with various appraisers, that they would complain (to me) about "such & such is unacceptable" and "so & so did 'this' or 'that'". I would ask "Did you forward your concern on to our state's appraiser licensing regulatory agency?" The answer was most frequently "well, no, I didn't".

Oh, well.

 

[Brian Weaver]

Hopefully the upcoming AMC law will place these same obligations on the AMC for disclosure. There's just far too many rules for appraisers based upon actions that we can't ultimately force onto our clients if they don't want to cooperate. And, like usual, honest appraisers such as myself will lose business as dishonest appraisers will fail to follow through on these rules and get away with it due to a lack of enforcement.

Remember the old rule about having to report the individual's name who actually placed the appraisal order? I bet maybe 50% of the appraisals I reviewed complied with that.

How many appraisers are complying with GLB? There are similar rules with respect to the appraiser having to have an intimate knowledge of the client's operations with respect to what aspects of GLB they are complying with versus what's left for the appraiser. I'd say there's close to a 99% non-compliance rate with appraisers.

It would be great if these new rules were followed by a comprehensive enforcement so that good appraisers weren't put at a competitive disadvantage. But history shows otherwise.

I think you answered your own question. You saw 50% of reports that did not comply with the Act...yet...did you turn them in?

Lee is right. If nobody complains...its like it never happened.

 

[Mr. Lisle]

I think you answered your own question. You saw 50% of reports that did not comply with the Act...yet...did you turn them in?

Lee is right. If nobody complains...its like it never happened.

I think what Pat is trying to get at, and is my concern also, is that until IL passes the AMC legislation it will be very hard for an appraiser to be in compliance. I know that most of the AMC's turn all of info over simply because they don't need too, it is an appraiser issue. The same issue with any issues with AMC's, until they are licensed and mandated they have free reign and will just go with skippy that doesn't follow they guidelines anyway. What can an honest appraiser do when the AMC refuses to hand over the said documents, besides refuse to work with them? What I would like, and I think Pat was trying to get at, is for this type of thing to fall on the AMC, to work in IL they need to disclose all of this upfront, and if not, they can't work in IL.

This took effect on 1/20/2011, correct?

 

[ddnma]

Before there is "enforcement", there must be a "complaint".

Many years ago (back in the day when mortgage brokers "managed" appraisers), it was not at all unusual, when I was talking with various appraisers, that they would complain (to me) about "such & such is unacceptable" and "so & so did 'this' or 'that'". I would ask "Did you forward your concern on to our state's appraiser licensing regulatory agency?" The answer was most frequently "well, no, I didn't".

Oh, well.

Lee, how long after you turn someone in should it take to get punished??

 

[ddnma]

Hopefully the upcoming AMC law will place these same obligations on the AMC for disclosure. There's just far too many rules for appraisers based upon actions that we can't ultimately force onto our clients if they don't want to cooperate. And, like usual, honest appraisers such as myself will lose business as dishonest appraisers will fail to follow through on these rules and get away with it due to a lack of enforcement.

Remember the old rule about having to report the individual's name who actually placed the appraisal order? I bet maybe 50% of the appraisals I reviewed complied with that.

How many appraisers are complying with GLB? There are similar rules with respect to the appraiser having to have an intimate knowledge of the client's operations with respect to what aspects of GLB they are complying with versus what's left for the appraiser. I'd say there's close to a 99% non-compliance rate with appraisers.

It would be great if these new rules were followed by a comprehensive enforcement so that good appraisers weren't put at a competitive disadvantage. But history shows otherwise.

What bugs me is that it appears that the states (not just IL) are having problems enforcing their own rules on the appraisers so they make more laws: whether it is a lack of people power, a lack of money who knows...who does this new rule benefit? Are appraisers going to suddenly abide by these rules? I don't think so. I guess it is counter to my Libertarian leanings... There is talk of "getting" the AMC's... yeah right, more rules which nobody follows? If the appraisers performed their appraisal in accordance with the laws already on the books...see State Licensing and USPAP....we would be much better off. The AMC's would be forced to change because the appraisers wouldn't play ball with them unless they (the AMC) did it correctly. They would have to pay C&R otherwise, they wouldn't have anybody to complete their 1004 for $200. The stupid things they ask for that are against rules would stop.

I can't tell you how many times I see: per USPAP guidelines, all sales are within 1 mile and 6 months..blah blah blah... or my favorite: It is against USPAP to provide a value without at least a drive-by of the property... really? How did these appraisers get their license? How do they still have it?


...sorry for the rant.... back to work now...

 

[Brian Weaver]

"I can't tell you how many times I see: per USPAP guidelines, all sales are within 1 mile and 6 months..blah blah blah... or my favorite: It is against USPAP to provide a value without at least a drive-by of the property... really? How did these appraisers get their license? How do they still have it?"

After we deal with rules in the March newsletter...this will be a topic for April.

 

[ddnma]

"I can't tell you how many times I see: per USPAP guidelines, all sales are within 1 mile and 6 months..blah blah blah... or my favorite: It is against USPAP to provide a value without at least a drive-by of the property... really? How did these appraisers get their license? How do they still have it?"

After we deal with rules in the March newsletter...this will be a topic for April.

Great, let me know if I can help.

 

[Lee Lansford]

Lee, how long after you turn someone in should it take to get punished??

And the answer is..."it depends".

On the "fast-track" for speedy disposition are those instances where the licensee NEVER responds to the department's demand for a response to a complaint. These will typically end in revocation of the license.

Licensees' have rights and there are times when the fair exercise of these rights extend the process.

As someone once observed to me regarding other matters of a legal nature, the wheels of justice may grind slowly, but they grind fine.

 

[ddnma]

"I can't tell you how many times I see: per USPAP guidelines, all sales are within 1 mile and 6 months..blah blah blah... or my favorite: It is against USPAP to provide a value without at least a drive-by of the property... really? How did these appraisers get their license? How do they still have it?"

After we deal with rules in the March newsletter...this will be a topic for April.

Great, let me know if I can help.