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Newbies Please Read This

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Well, if some guy told you different, I must be all wrong about it. Sorry.


Like I said before, you have MISSED THE FUNDAMENTAL CONCEPT.

Your fee CANNOT be contingent upon the outcome of the appraisal, whether your fee is a million dollars or zero dollars. No matter how honest you think you'll be. No matter what the drunken lunch guy says. IT IS A CLEAR AND DIRECT VIOLATION OF THE ETHICS RULE IN USPAP TO BASE A FEE CONTINGENT UPON THE RESULTS OF AN APPRAISAL ASSIGNMENT!!!!

You can now interpret my comments as an ATTACK.
 
Originally posted by Jeremy Noland@Dec 13 2003, 05:38 PM
Actually met a gentleman on my state's appraisal board who snickered when I brought up the fact that I came to appraiserforum.com for advice. His words went something like, "Those people have time to work 50-70 hours a week and still sit and write on numerous topics for their own kicks. Going to the internet for advice is like cold calling someone for legal advice. Only go to people you know." I guess he is right since I have no idea if you guys/gals are real or 'posers'.
Wouldn't bother guys and gals. He's not comming back. He made that clear in his post.
 
Oh man he's on to us. He figured us all out. We are not really appraisers, just a bunch of board people pretending we are. I hope this doesn't get out.
 
Jeremy "No Land" ..... I have a great idea .... since we are all wet when it comes to USPAP ..... and since we are all stupid when it comes to appraising .... and since your "guy" at the luncheon has such a high opinion of us and our comments ... why don't you just buzz off and do it your way? We will look forward to reading about you in the "Disciplinary Actions" section of the appraisal periodicals.

I can't believe that you could be so stupid as to attack the credentials of the people here. Not me, of course, because I am truly a nobody in this business, but a lot of these folks are AI instructors, long time professionals, business owners, MAI's and more.

Tell you what ..... when the backs of your ears dry up .... and you recover from the lessons that you are going to learn the hard way ... come on back .... we won't hold a grudge and will be happy for you to educate us all in the practice of appraising and how not following USPAP gets you in deep water .... I am not sure you can to prison for it, but then I have never studied the reprisals, since I have no intention of violating the rules ...... But if you do ... I am sure you can explain to "Bubba/Betty" how you are right and the rest of us who are trying to help you are still wrong ... maybe they will let you have some time on the computer in the library and you an log in and tell us how you are doing .... I am sure that Tom and Tina will find your "Tales from Jails" post very interesting .... it might even keep them up for days!!

And for the record .... I am still not attacking you .... mostly, I am feeling sorry for you ..... if you continue in your current direction, not only are your not going to be welcome here, but you are likely to not be welcome anywhere in the appraisal industry and that is going to hurt.

Sorry we gave you such bad advice ..... If it were me ... I don't think I would be asking anymore.... Everyone knows you can't get information from the Internet ... <_<
 
Jeremy "No Land" :D

I still get assignments from a mortgage broker named Nancy Lendall.
 
Greg ... he's a wannabe who'll never be .... :lol:

Shirley "You Con"
Jeremy "No Land"

Starting to see a pattern ..... :asleep:
 
When an appraiser does not charge a fee because a loan does not close or the value does not meet expectations, he or she has done an accepted an assignment that was subject to a subsequent event and/or a pretetermined values. Clearly a USPAP violation.


Worse yet, you enable the lender to throw your appraisal in the trash and find someone ELSE to provide the predetermined value or needed figure to make the deal work. This means that an unsuspecting borrower is being mislead about the value of the home. In addition you are allowing an appraisaL THAT IS NOT CREDIBLE AND IS MISLEADING to be communicated.


This is all about ethics. When you conspire, enable and aid and abeit the lender in misleading the borrower with a jacked up, inflated appraisal....you are neither doing good business or inspiring public trust.

Just because a state board member has opinion does not mean the opinion is correct. Many (if not most) state board members are political hacks appointed based not on their ethics, honesty, experience or knowledge.....but rather on how big a check they wrote to buy their appointment.
 
Jeremy,

Please do at least read this:

http://appraisersforum.com/forum/index.php?showtopic=12680

Not all state appraisal board members know what they're doing either.

The following is directly from USPAP 2003 I added the bold in the areas you REALLY NEED to read!!!!!!!

ETHICS:

Management:

The payment of undisclosed fees, commissions, or things of value in connection
with the procurement of an assignment is unethical.

Comment: Disclosure of fees, commissions, or things of value connected to the
procurement of an assignment must appear in the certification and in any
transmittal letter in which conclusions are stated. In groups or organizations
engaged in appraisal practice, intra-company payments to employees for business
development are not considered to be unethical. Competency, rather than financial
incentives, should be the primary basis for awarding an assignment.

It is unethical for an appraiser to accept compensation for performing an
assignment when it is contingent upon:

1. the reporting of a predetermined result (e.g., opinion of value);
2. a direction in assignment results that favors the cause of the client;
3. the amount of a value opinion;
4. the attainment of a stipulated result; or
5. the occurrence of a subsequent event directly related to the appraiser's
opinions and specific to the assignment's purpose.


Advertising for or soliciting assignments in a manner that is false, misleading, or
exaggerated is unethical.


Comment: In groups or organizations engaged in appraisal practice, decisions
concerning finder or referral fees, contingent compensation, and advertising may
not be the responsibility of an individual appraiser, but for a particular assignment,
it is the responsibility of the individual appraiser to ascertain that there has been no
breach of ethics, that the assignment is prepared in accordance with these Standards, and that the report can be properly certified when required by Standards Rules 2-3, 3-3, 5-3, 6-8, 8-3, or 10-3.

***********************

From STANDARDS RULE 2-3:

(This Standards Rule contains binding requirements from which departure is not permitted.)

Each written real property appraisal report must contain a signed certification
that is similar in content to the following form:


I certify that, to the best of my knowledge and belief:

* the statements of fact contained in this report are true and correct.

* the reported analyses, opinions, and conclusions are limited only by the
reported assumptions and limiting conditions and are my personal, impartial,
and unbiased professional analyses, opinions, and conclusions.

* I have no (or the specified) present or prospective interest in the property
that is the subject of this report and no (or the specified) personal interest with
respect to the parties involved.

* I have no bias with respect to the property that is the subject of this report
or to the parties involved with this assignment.

* my engagement in this assignment was not contingent upon developing or
reporting predetermined results.


* my compensation for completing this assignment is not contingent upon
the development or reporting of a predetermined value or direction in value
that favors the cause of the client, the amount of the value opinion, the
attainment of a stipulated result, or the occurrence of a subsequent event
directly related to the intended use of this appraisal.


* my analyses, opinions, and conclusions were developed, and this report
has been prepared, in conformity with the Uniform Standards of Professional
Appraisal Practice.

* I have (or have not) made a personal inspection of the property that is the
subject of this report. (If more than one person signs this certification, the
certification must clearly specify which individuals did and which individuals did not make a personal inspection of the appraised property.)

* no one provided significant real property appraisal assistance to the
person signing this certification. (If there are exceptions, the name of each
individual providing significant real property appraisal assistance must be
stated.)

Comment: A signed certification is an integral part of the appraisal report. An
appraiser who signs any part of the appraisal report, including a letter of transmittal, must also sign this certification.

Any appraiser(s) who signs a certification accepts full responsibility for all elements of the certification, for the assignment results, and for the contents of the
appraisal report.

When a signing appraiser(s) has relied on work done by others who do not sign the
certification, the signing appraiser is responsible for the decision to rely on their
work.

The signing appraiser(s) is required to have a reasonable basis for believing that
those individuals performing the work are competent and that their work is
credible.21

The names of individuals providing significant real property appraisal assistance
who do not sign a certification must be stated in the certification. It is not required
that the description of their assistance be contained in the certification, but
disclosure of their assistance is required in accordance with SR 2-2(a), (B), or
&copy;(vii), as applicable.
 
1. the reporting of a predetermined result (e.g., opinion of value);
2. a direction in assignment results that favors the cause of the client;
3. the amount of a value opinion;
4. the attainment of a stipulated result; or
5. the occurrence of a subsequent event directly related to the appraiser's
opinions and specific to the assignment's purpose.

this is so important that I put it right into my engagement letter to put everyone on notice that I take no direction in value. We have to live by this, it is crucial!
 
the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.

This was where No Land was confusing the issue.

Pam - it must have taken you all morning to type all that. You're very dedicated. :P
 
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