Illinois Appraisal Licensing Act

[ddnma]

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.

Spoken like a true Chicago politician Lee!

 

[Lee Lansford]

Spoken like a true Chicago politician Lee!

In this instance, aka "the truth".

 

[ddnma]

In this instance, aka "the truth".

It's easy to claim "the truth" when you're talking Chicago politician speak...

 

[BrianMasterson]

I submitted my first "compliant" report to an AMC (Inhouse Solutions) this afternoon. In the interest of being proactive I let the person at Inhouse who was my primary contact know that the report was consistent with Illinois' recently enacted administrative rules. She was unaware of the new rules.

As an aside I was at a local watering hole tonight and ran into two fellow residential appraisers. Neither was aware of the new rules. I forwarded both of them the link from ICAP. There's lots going on in our industry right now. Both promised to renew their membership in hopes of keeping current with our "evolving" industry.

 

[Lee Lansford]

I submitted my first "compliant" report to an AMC (Inhouse Solutions) this afternoon. In the interest of being proactive I let the person at Inhouse who was my primary contact know that the report was consistent with Illinois' recently enacted administrative rules. She was unaware of the new rules.

As an aside I was at a local watering hole tonight and ran into two fellow residential appraisers. Neither was aware of the new rules. I forwarded both of them the link from ICAP. There's lots going on in our industry right now. Both promised to renew their membership in hopes of keeping current with our "evolving" industry.

Brian, as you are aware, with approximately 2/3 of IL licensees not a member of either ICAP or any professional association of appraisers, ignorance among many licensees as to what is occuring in the profession is not at all unusual.

Our Mr. Weaver has promised to address the matter of the RULES in March edition (available, probably, in late-Feb.) of "IllinoisAppraiser". Also, the RULES will be a matter of discussion at Tuesday's (Feb. 8) meeting of the Appraisal Board.

Lee

 

[Lee Lansford]

It's easy to claim "the truth" when you're talking Chicago politician speak...

Hop in your car or take a train to downtown (the Thompson Center on west Randolph St.) Chicago for Tuesday's (2/9) meeting of the R.E. Appraisal & Disciplinary Board.

The meeting (NOTE...public seating is very limited) begins at 9:45 am and is on the 9th floor (one has to go through security to get to the 9th floor). The meeting will be interrupted with a Formal Hearing; I surmise, but can't be certain at this point, that the Hearing will be brief. Included in the meeting is the "Administrative Report" which details the status of complaints.

 

[Tony V]

I submitted my first "compliant" report to an AMC (Inhouse Solutions) this afternoon. In the interest of being proactive I let the person at Inhouse who was my primary contact know that the report was consistent with Illinois' recently enacted administrative rules. She was unaware of the new rules.

As an aside I was at a local watering hole tonight and ran into two fellow residential appraisers. Neither was aware of the new rules. I forwarded both of them the link from ICAP. There's lots going on in our industry right now. Both promised to renew their membership in hopes of keeping current with our "evolving" industry.

Brian...I am interested in how these rules shake out...Did the AMC provide you with a letter regarding the agreement between themselves and the lender...or did you have to opt for one of the other options??

 

[Pat Butler]

Talking about enforcement, my company name is Appraisal Services, Inc. and is properly registered as a corporation in Illinois. There are probably at least a few dozen appraisal companies using some variation of "So-and-So Appraisal Services" in their business name. Many have never properly registered their name as a dba or corporation. The Secretary of State's office requires business names to be legally distinguishable yet fails to enforce their own rules. Furthermore, many of these companies will answer their telephone by saying "Appraisal Services" without including their full company name.

These types of appraisers are the hacks who know nothing about forming a business in Illinois.

Many of those companies are illegally using my corporate name when answering their telephone. The license act/rules includes a section about having to comply with dba laws. Can I file a complaint against each of these companies so that they can be put out of business? All it would take is for your office to call each of these companies and see how they answer their phone (not in conformance with their 'registered' name).

It would take 5 minutes per company and would eliminate the confusion that now exists in the marketplace when clients aren't sure which "Appraisal Services" they placed an order with.

Somehow I don't think that enforcement is ever going to take place.

The State of Illinois has gone overboard on new laws without having the money to support the enforcement of those laws. I do feel bad for Brian as his office is doing the best it can with limited funding. And it doesn't make sense to keep putting the onus on appraisers to have to 'retrieve' hard to get data from clients as compared to putting the onus on the regulated clients to have to provide this information without being asked.

I've already mentioned GLB. How many appraisers really comply with this? Most of my clients are private clients and every one of them receives the proper notice. It would be great if someone could audit appraisers for their compliance in this area, but it isn't going to happen either. So it's just another law that forces us competent appraisers to have more work while the incompetent ones get away with at a competitive advantage.

Let's take site sizes in an appraisal. How many appraisers actually have access to plat maps? I pay thousands of dollars each year for a Sidwell subscription, and prior to that paid one of my assistants to drive to the Assessor's offices to trace the Sidwell book. Yet, I can review appraisals all day long and can claim that the majority of reports have innaccurate site areas. It's even more ridiculous in recent years do to the fact that so many of our counties now have online data at no charge. The typical appraiser doesn't even have the ability to run a CAD program to calculate site areas. Again, can I turn in hundreds of appraisals I've reviewed where the appraiser's site areas are way off? It would be great to retain a competitve advantage over the appraisers who are just winging it with site areas and saving lots of time and money over those of us who carefully calculate site areas in a CAD program using very accurate plat maps.

I get phone calls all the time from prospective clients seeking a fee quote for litigation work. It's no longer a suprise to see that so many of my competitors are only charging $200-300 for an appraisal to be used in court. They don't have the foggiest idea of how much more extensive the SOW needs to be for that sort of work. Many of those appraisers don't even ask any detailed questions from the caller in order to even understand their situation. You can call many appraisers in Illinois and simply ask, "How much do you charge for a divorce appraisal?" and get an instant quote without the appraiser even asking any questions. How do they quote a fee without knowing the SOW? Simple, they couldn't care less. Do you think that might possibly be a source of 'leads' for your office to audit those appraisers?

 

[Brian Weaver]

Talking about enforcement, my company name is Appraisal Services, Inc. and is properly registered as a corporation in Illinois. There are probably at least a few dozen appraisal companies using some variation of "So-and-So Appraisal Services" in their business name. Many have never properly registered their name as a dba or corporation. The Secretary of State's office requires business names to be legally distinguishable yet fails to enforce their own rules. Furthermore, many of these companies will answer their telephone by saying "Appraisal Services" without including their full company name.

These types of appraisers are the hacks who know nothing about forming a business in Illinois.

Many of those companies are illegally using my corporate name when answering their telephone. The license act/rules includes a section about having to comply with dba laws. Can I file a complaint against each of these companies so that they can be put out of business? All it would take is for your office to call each of these companies and see how they answer their phone (not in conformance with their 'registered' name).

It would take 5 minutes per company and would eliminate the confusion that now exists in the marketplace when clients aren't sure which "Appraisal Services" they placed an order with.

Somehow I don't think that enforcement is ever going to take place.

The State of Illinois has gone overboard on new laws without having the money to support the enforcement of those laws. I do feel bad for Brian as his office is doing the best it can with limited funding. And it doesn't make sense to keep putting the onus on appraisers to have to 'retrieve' hard to get data from clients as compared to putting the onus on the regulated clients to have to provide this information without being asked.

I've already mentioned GLB. How many appraisers really comply with this? Most of my clients are private clients and every one of them receives the proper notice. It would be great if someone could audit appraisers for their compliance in this area, but it isn't going to happen either. So it's just another law that forces us competent appraisers to have more work while the incompetent ones get away with at a competitive advantage.

Let's take site sizes in an appraisal. How many appraisers actually have access to plat maps? I pay thousands of dollars each year for a Sidwell subscription, and prior to that paid one of my assistants to drive to the Assessor's offices to trace the Sidwell book. Yet, I can review appraisals all day long and can claim that the majority of reports have innaccurate site areas. It's even more ridiculous in recent years do to the fact that so many of our counties now have online data at no charge. The typical appraiser doesn't even have the ability to run a CAD program to calculate site areas. Again, can I turn in hundreds of appraisals I've reviewed where the appraiser's site areas are way off? It would be great to retain a competitve advantage over the appraisers who are just winging it with site areas and saving lots of time and money over those of us who carefully calculate site areas in a CAD program using very accurate plat maps.

I get phone calls all the time from prospective clients seeking a fee quote for litigation work. It's no longer a suprise to see that so many of my competitors are only charging $200-300 for an appraisal to be used in court. They don't have the foggiest idea of how much more extensive the SOW needs to be for that sort of work. Many of those appraisers don't even ask any detailed questions from the caller in order to even understand their situation. You can call many appraisers in Illinois and simply ask, "How much do you charge for a divorce appraisal?" and get an instant quote without the appraiser even asking any questions. How do they quote a fee without knowing the SOW? Simple, they couldn't care less. Do you think that might possibly be a source of 'leads' for your office to audit those appraisers?

We don't "audit" without a complaint. As for the Sidwell question, an appraiser who pleads poverty for failing to have proper tools doesn't cut it with the board. The last two Formal Hearings we had appraisers who wouldn't even avail themselves of the FREE stuff that's on-line. Both are facing revocation. Here's the thing...there isn't a single appraiser who can gripe about enforcement in Illinois. Nobody shows at the hearings who isn't a lawyer, clerk, or department personnel. Most of the appraisers are in or around Chicago and that's where most of the hearings are held...but nobody shows. Nobody calls to see when the next one is. I've been posting the schedule in the newsletter and will continue to do so...but folks need to show more than a passing interest "after-the-fact".

Don't feel bad for me or prosecution. Feel bad about a profession that spends more time reacting to things than being proactive. ICAP and the other appraisal organizations need to get it together and soon.

Dodd-Frank is still being hashed out. We are submitting an AMC bill next week. The Illinois Appraisal Act sunsets at the end of this year...there's a full plate for 2011.

AMCs need to watch what laws get passed in every jurisdiction. It is NOT our job to try to find them all to see what they think about this or that. Their lack of knowing about what's coming won't be an excuse anymore than it is for appraisers.

We do a newsletter every month. Not every quarter or every year...every single month. The information is there...but Illinois appraisers need to wake up and go find it. Remember, your board has to comply with everything that was passed...just like you. Don't expect any breaks from them.

 

[BrianMasterson]

Brian...I am interested in how these rules shake out...Did the AMC provide you with a letter regarding the agreement between themselves and the lender...or did you have to opt for one of the other options??

The AMC did not provide me with a letter and I did not ask for one. They have been named as the client as they were the party that engaged me as the appraiser.