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NCAB verses Tom Hildebrandt - The case of the clueless board

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I just read that article for the third time and the more I read it the clearer I see the underlying problem. I will catch hell for saying what I am about to say, but I had rather catch hell now and inherit heaven later. Let me try and put Tom Hilderbrandt’s, Steve Vertin's, and David Johnson’s cases in perspective as I see these cases.
First a little historical background: I work in a city of about 50,000 in Southside Virginia. My dad went into the real estate business in the early 1960’s, and I entered the business with him in 1972. There were no designated appraisers in this city or immediate area. My dad wanted me to get into the appraisal business and explained the facts of life to me.
Only 52 miles north of us is another city slightly larger, or was at the time, that had many MAI’s and a large AI Chapter. My dad had taken classes in the same town with the old Society of RE Appraisers. My dad explained to me that the reason for the concentration of MAI’s was that the Virginia Dept of Transportation had a large office there and these AI people made a living doing condemnation work. They were basically trained by a couple of MAI’s and it was kind of a close-knit old-boy-inter related society. In other words, condemnation work was their private domain.
In the late 1980’s when talk started about appraisal regulation I joined their AI Chapter and started taking appraisal classes from the AI. I completed all requirements for the RM designation except writing the demo appraisal, and all of the course work for the MAI designation, all without a mentor and all on my own. When I was having my experience credit evaluated for the then RM designation, an old MAI was talking to me and said, “Austin, this is a tough damn business to get into.” He was right, but I did it anyway without any help from anybody other than the AI education programs. What the old MAI meant was, you have bucked the system and gotten away with it.
I never made any further attempt to get an AI designation for various reasons of personal preference. Only one of these reasons is related to this narrative. In my opinion, the AI is the father of real estate appraisal and the historical soul and body of the profession. I have no complaint about their standards, ethics, and professionalism. Their aim is high and their intentions are good in general. I have thoroughly enjoyed my affiliation with the AI, especially the local chapter that was recently merged out of existence. Almost all of my appraisal friends are or were until today MAI’s or SRA’s.
Having said all of the above, there is in my view a collective group psychology within the AI body, not all of them, that hold the opinion that “we are god’s, and how dare anybody question us or the status quo.” Last year I was taking the required 6-year USPAP class at our AI chapter and the instructor was a 72-year-old MAI who has been around for a long time. He was teaching and telling stories of the old days and he said jokingly after one of his stories, “Yes, back in those days, we MAI’s were like gods. Nobody could question us.”
Now, I have said all of the above to set this scenario up: Lets take David Johnson’s case first. Who turned David Johnson in to NCAB and for what motive? As I understand it, David was turned into NCAB by an AI member SRA basically because she appraised a property at around $200,000 and David appraised it at around $250,000, then the property eventually sold for $252,000 approximately making her look bad. Why was David turned in? I mean the motivation, not the charges. We can always rig the charges to cover our tracks. Answer: Because David Johnson dared to disagree with an SRA. How dare you undesignated David Johnson disagree with the gods that be! Your punishment is death.
Now in the Tom Hilderbrandt case, what was the motive behind his being turned in to the NCAB? Answer: Who turned him in and why? He was turned in by an MAI because Tom made the MAI look bad and had to be liquidated. Who do you think you are undesignated Tom Hilderbrandt questioning the view of one of the god’s! You are condemned to death.
There is another thread running on this board with a similar case against MAI, Steven Vertin. What was the motive behind the actions against Steve? I can’t say for sure, but five will get you ten young Steve rustled the feathers of one of the old gods somewhere along the line. This activity is not confined by any means just to those that are non-AI members. MAI’s are notorious for turning each other in to the AI on various charges. Same motive: How dare you question the status quo of the old guard? I once had an AI instructor in capitalization Theory who was turned in to the AI on ethics charges because he was adjusting cap rates for property appreciation. The AI studied the charges for two years, decided he was correct, and hired him to teach classes on the subject.

SUMMARY: Is what I just stated an indictment of the AI? Absolutely not intended to be. This problem is not confined to the AI. What am I trying to say? What do these three cases have in common? The state appraisal boards are in my opinion being used as enforcement tools or method of punishment by a group of egocentric and small-minded individuals to deal with any who dares to cross paths with the gods that be. Not all of the self proclaimed gods are AI members. There are similar clicks in other organizations and local areas that are just as bad and just as dangerous.
Given the vagueness of USPAP (1-1b & 1-1c), the nature of the appraisal environment we live in as described above, and the unqualified and arbitrary police power vested in the state appraiser boards ruled over by political appointees (organizational affiliation is the surest path to political appointment in the good old boy network), what we are witnessing is a modern day GASTAPO style protection racket used solely for the purpose of liquidating those whom dare question the god’s that be. In essence, the state is making its powers available for the sole purpose of carrying out private vendettas against any person who dares to threatens the status quo.
One other little tidbit about this news article of interest: I looked up in the year 2000 AI directory the names of the other two appraisers involved in this news article who lost their license, and neither are listed as AI members. The factions involved in this case are MAI’s on one-side and undesignated non-AI members on the other. If this narrative offends anyone, as my grandmother use to say, “If the shoe fits, wear it. If it doesn’t fit, put it down.”
 
Austin,

Unfortunately, your scenario is correct and is just the way mankind in general works. Makes me sad for mankind and makes me question how 'civilized' and evolved we really are when the petty egos of the self proclaimed 'gods' can do so much harm.

Prove me wrong and I will say I stand corrected.
 
I, sadly, agree with Austin & Pam. I have actually turned down an assignment when I knew litigation was probable and the other side had an "old boy" type MAI. I really thought that the client would be better served by someone who had as much influence as the OBMAI. And then, of course, there was the knowledge of Tom's plight. A good residential fee just isn't worth that kind of hassle!!

I am outraged at reading the article, Tom. It appears you have shown a great deal more gentlemanly restraint than I in not turning in the airport's appraiser for USPAP violations and not suing his &#@ off for attempting to rob you of your ability to make a living in your chosen profession -- all for the purposes Austin so ably outlined. I have no doubt that, at the end of all of this, the NCAB and Clapp will be slinking out with their tails between their legs!

Best wishes,
Nancy

By the way, please understand that I do not put all MAI's into the OBMAI category!
 
I read the newspaper articile - wow, makes your head spin ! Looks like your up againist a lot of political crapola. At least it seems you got some ammo in the fact that the jury agreed with you. Wish you well and good luck !
 
First of all, I wish you the best Tom. I agree with an earlier post referancing your reputation around here. You have always come across as a very knowledgable appraiser.

I have read Austin's post, and as with the others, sadly agree. I believe in theory that our collective summation of Clapp's reasoning is valid, however, I am intrigued by the boldness and extent of his accusations. Tom is in the big leagues today, in a place none of us want to be. With that being said, so is Clapp and his cronies. Are we to believe that the plantiffs are so politically tied that this much publicity doesnt faze them? Seems to be an awful big gamble on the part of Clapp and Co. It seems painfully obvious, low balling was Clapp's MO here. And we can all make are own conclusions as to how often, the extent, and why this MO was/is applied. If you were Clapp why would you go through the hassle of all this? Is it really to protect the name of the old guard?

I guess that is my curiosity here, why go to this extent unless you where pretty damn positive of the outcome. And if he is positive of the outcome, who is in bed with who and why?

The journalist appeared to write a good unbiased column. The article raised as many questions though as it gave answers. Maybe a little investigative reporting wouldnt hurt the good guys here..........

Again, Good Luck Tom. Hopefully, Innocent until PROVEN guilty still applys in your part of the world.

MRM
 
I have also read the article, and like other posters, agree with Austin, at least to a point. To agree 100% might give him too much confidence :wink:

I have to believe that Tom will survive this and be a better person and appraiser for it.

One item caught my eye in what Austin or someone mentioned, that of a low ball appraisal. My question would be, is it not just as much of a violation to under value a property as it is to over value a property :?:

If that is the case, and I am sure it is, the NCAB, on it's own volition could, and should bring charges against the acussing appraiser who kow balled the value of the property in question. I say that hoping that this would not open up a deluge of charges against those who report violations of other appraisers. However, in this case, I think there is ample cause.

Don
 
Looks very well written David.

Good luck Tom, there doesn't appear to be any good reason you have to go through this, but.... :?

Knock 'Em Dead! :twisted:
 
Thanks to all for the support. Heres a quick update.

The board admitted they have no formal adminsitrative rules for the probable cause and the notice of hearing, that the board attorney can just add on charges after probable cause to cover anything they like, and that they can do anything they wish in the investigative process. In essence the board is free to perform a full fledged witch hunt.

The investigator admitted that he only spoke to the airport authority and to the complaintant in this case. He never spoke to me, and only did a cursory check of my work files and paid no attention to my formal (11 page) response to the complaint, that he never spoke to my client because he understood that the client was happy with the work product. In short, he admitted that he went witch hunting.

Yesterday went as expected. Mike Clapp MAI testified to his value conlcusion ($24,000 P/A) that he did nothing to research the property history outside of the actual 48 acres in the take ( a 8.2 acre piece was taken by the airport, settled at about $50,000 P/A and had been under contract to another buyer at $75,000 P/A) and that he accepted without question his clients (expressed by a third tier bureaucrat) determination that the project was Fed Ex. He also admitted that he accepted without question the clients depiction of the flood plains and wetlands.

He testified that he did not do a review of my work product although he reported to the board that he did a review, but we have sworn deposition in which he says he did express by phone a long list of problems with my report to his attorney client. He claims it is ok to do this outside of standards because he was just trying to help his client out. This is apparently fine by our board staff, no problems ethically there.

We have just gotten into the other MAI who is scheduled to testify. This guy is Donald Johnson who did a standard three review for the airport attorney. He is testifying at this hearing with that work product as his basis. In that review he made a site visit, spoke to the airports attorneys, and read the report. He never spoke to my client, or reviewed my work file or talked to me. He says he does reviews like this for lenders all the time so it is perfectly OK.

I agree that that is perfectly ok for lending reviews, they are the clients who ordered the appraisal under review. I say that if a third party asks for a review, extra care needs to be taken to ensure that the scope of work and the report are considered in the context of the requirements established by the client and as understood by the appraiser.

Foolish me, but I always thought the scope of work in a work assignment also had to be appropriate for the particular task. Strikes me that is one thing to present some off the cuff remarks to be helping an attorney preparing for a court case, but another to be making the same off the cuff remarks at a case to determine professional malfaesance. I wonder who is teaching standards and ethics to these guys.

One interesting quote from this guy, "the report for a condemnation case must be understood by everyone in god's green earth." Our board staff attorney then suggested that the standards requirements for report to not be misleading meant that the report could not be misleading to any one, and that the client and intended user had nothing to do with that. She then objected to the 2002 FAQ discussing scope of work and intended use which says that enforcement agencies are generally not intended users and must use extra care in understanding the development and reporting requirements in the context of the client and intended use. She suggested that since this was mere guidance, that the ASB opinion was irrelevant. In short, if the board says a report is misleading, it must be so.

Off to court, looks like this may go three days, my attorney says he is having great fun. I hope he has so much fun he pays me!

Regards

Tom Hildebrandt GAA
 
Tom,
Thanks for the update!!! It's truly amazing to read of the rampant lack of regard for USPAP and the obvious lack of regard for preparing a thorough, well researched appraisal!! WOW!
Keep the faith! I STILL think you'll have Clapp & Co slinking off with their tails......maybe in a wringer, where they belong!!

Nancy
 
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