Is reviewing appraisals in another state illegal?

[Mike Garrett RAA]

Aside from the different state issue, I believe it is a good idea the reviewer hold at least the same license level. Perhaps that doesn't apply to certified general doing residential. I am pretty convinced a trainee (registered appraiser in my state) shouldn't be doing reviews at all.

I know of one case where the company hired to do reviews was in Denver and they hired trainees to do field reviews in other parts of the state. The Certified General who owned the company would review the review and sign as supervisory reviewer who did not inspect in the case of field reviews. The state board found fault with that process and the certified general was found guilty of failure to supervise.

It also appears AMCs are using unlicensed people to perform reviews for UAD compliance. This is a grey area...in my opinion.

 

[Lee Lansford]

There will be more who choose to do so when nobody will tell them what the actual consequences are.

I suppose that if and when an appraiser--who is in receipt of a "cease & desist" order--is found to be in violation of the "c&d", it is then that we all will have the answer which you seek.

 

[hastalavista]

And, I doubt any state would charge an appraiser in a different state with a violation of their state law and then extradite that appraiser for punishment. That would be laughable.

I agree, and that is not what I meant when I said enforcement reciprocity.
What I meant is that if there is licensing reciprocity (which we are moving toward) between states, there needs to be an enforcement reciprocity as well. That arrangement seems simple enough to me:
If I'm doing appraisal work in another state and there is a complaint against me due to my work in that other state, then the appropriate licensing regulator to investigate that complaint is the other state's board.
If that board sanctions me for my work in that state, they don't have to extradite me; they just have to send their findings to my state who can then take the appropriate enforcement action (fine, additional education, whatever).

If I get a ticket for driving in Vegas and I don't pay, the local cops in my state can pull me over and throw me in jail if it goes to warrant.
Same principle.

 

[Ken B]

I agree, and that is not what I meant when I said enforcement reciprocity.
What I meant is that if there is licensing reciprocity (which we are moving toward) between states, there needs to be an enforcement reciprocity as well. That arrangement seems simple enough to me:
If I'm doing appraisal work in another state and there is a complaint against me due to my work in that other state, then the appropriate licensing regulator to investigate that complaint is the other state's board.
If that board sanctions me for my work in that state, they don't have to extradite me; they just have to send their findings to my state who can then take the appropriate enforcement action (fine, additional education, whatever).

If I get a ticket for driving in Vegas and I don't pay, the local cops in my state can pull me over and throw me in jail if it goes to warrant.
Same principle.

Not even close to being the same.

 

[Mr Rex]

Depends on what the review appraiser was wearing and what dress codes are in force in your state.

 

[hastalavista]

Not even close to being the same.

Ken, why not?

If we are going to have reciprocal licensing, how do we not also have reciprocal enforcement?

 

[Ken B]

1. If one drives in a state in which they are not licensed, they are subject to the laws of that state. In one drives in the state in which they are licensed, a neighboring state cannot find them in violation of that neighboring state's driving laws.

2. If one drives in a state in which they are not licensed and they are found in violation of that state's driving laws, the state in which they are licensed may or may not be a signatory to various interstate agreements. If not, then the home state is not likely to do anything regarding enforcement of violations occurring in other states. For more info: http://autos.aol.com/article/out-of-state-speeding-ticket/

To my knowledge, there is no similar interstate agreement for appraisers. Regardless, since the review process did not take place outside of the home state, no other state has jurisdiction over the action.

I think the "reciprocal licensing" issue is a red herring as it is not automatic as in the case of vehicle driver licensing. To be similar, one would not be required to apply for licensure in any state other than their home state in order to appraise in any other state.

 

[hastalavista]

I think the "reciprocal licensing" issue is a red herring as it is not automatic as in the case of vehicle driver licensing. To be similar, one would not be required to apply for licensure in any state other than their home state in order to appraise in any other state.

(my bold)

It isn't yet (the automatic), but that is what we are moving toward.
The standardization of licensing requirements and the standardization of the enforcement matrix are part of the steps designed to get us to national reciprocity.

 

[DTB]

Does everyone agree, that all things being equal, it is preferable for appraisal to be performed by a local appraiser and that the review of said appraisal is best performed by a local appraiser?

If so, everything is window dressing and IMO nonsense. If lenders were required, if they wish to loan money in State X, to use local appraisers (define local, I know) and local review appraisers, everyone would be best served. The public, the lenders, F+F and appraisers would all benefit.

Probably the reason it will never happen, back to my Hopium pipe. :blush:

 

[Stone]

Does everyone agree, that all things being equal, it is preferable for appraisal to be performed by a local appraiser and that the review of said appraisal is best performed by a local appraiser?

I presume you are talking about a standard residential assignment. If so, yes, I believe it is best done by a local appraiser. If you are speaking of appraisals in general, than I wouldn't agree. There are many types of assignments where I'd much rather have someone from across the state (or farther) look at my work than a local person with less experience in the type of property (physical) or property rights being appraised.

But, yeah, assuming it is the first type, I think most would agree with that. Doesn't mean someone from a distance wouldn't be qualified, but all things being equal I'd rather have someone in the area looking at it.