NY, FirstAM & WaMu article

[Carnivore]

Cooperate in exchange for immunity comes to mind!


What does Karl always say? "I did not know how oorly trained I was. How can I help you?"

 

[Dutchman]

Being an appraiser who has done a lot of work for LSI/WAMU, I have no fear of my name being found on a list of any kind. My appraisals speak for themselves and if any one wants to review them, have at them. I;m not saying that all are perfect but you'll have a hell of a time proving fraud, number hitting or intentional malfeasance. Sure there maybe a comma out of place, and address transposed and a misspelling occasionally but nothing even remotely intentional approaching fraud.
When I read about the fear that is evident on this board about being reviewed, I wonder. Actually I don't wonder. I do a lot of review work. I have 15 years of experience and have been a certified appraiser for the last 10 years. Of the appraisals that I review, 10% are outstanding appraisals, 25% are good appraisals and another 15% are passable but unfortunately the most predominant work I see is pure unadulterated crap. I could regale you with stories about neighborhood boundaries that if you read them closely include the entire county or a city of 180,000. Appraisals without even so much as one page of addenda. Milllion dollar properties being described as standard. Some appraisers wouln't know market data if it stared them in the face. I just reviewed an appraisal of a $7 millon property (new construction) without a cost approach. Excuse that was given that there were no comparable land sales.
I can understand why these appraisers are afraid of being reviewed. They would instantaneously lose their license if state boards were up to par and they need to lose their license.
I believe that the state boards have the right to see your workfile anytime. I believe that includes visiting your office and asking to see it on the spot.

I am all for the state boards getting proactive instead of reactive.

Another thought, maybe the appraisal profession should look at civil engineers, surveyors and accountants and their licensing procedures

 

[Stone]

When I read about the fear that is evident on this board about being reviewed, I wonder.

What fear of being reviewed? Since I'm one of the ones commenting, I'll re-state that I've never done work for Wamu and I've NEVER done AMC work. I don't even do mortgage work anymore. (BTW - that is why I'm willing to accept I might have a different view if that was part of my practice)

EVERY assignment I do is reviewed quite thoroughly. Every one. There are plenty of appraisal practices where this is common.

What I, and I think others, am saying is that forcing people to defend themselves for nothing more than doing work for an AMC is a bit much. I find it particularly odd that people who are on this board discussing what they believe to be abuse by a state board are so quick to try and put a bunch of other folks through the same thing. It just doesn't add up to me, but since I don't have a dog in this hunt, I guess I'll just say "have at it".

 

[Francois K. Gregoire]

No body can stop me from doing my job correctly. If they choose not to use me or to use me, I still have a personal ethic I will not compromise for anyone. I will change professions first. Appraisers shouldn't be pressured but even if they are they should never succumb to that pressure no matter what. And, in fact, if no appraiser did, then pressure would go away. Every bank and mortgage company would understand that pressure would not work...

Lender pressure did not occur in a vacuum..It occurred because willing appraisers prostituted themselves for a cut rate fee.

Well said Terrel. Every single appraiser has a choice and free will.

 

[hastalavista]

"Lender pressure did not occur in a vacuum..It occurred because willing appraisers prostituted themselves for a cut rate fee."

Suitable for framing and a prominant spot on every appraisal office wall.

WELL SAID !!!!!!!!!!!

I agree with half the statement; fees are a side-issue. The appraisal is either credible or not. The appraiser submits to pressure or she/he does not.

And when I say "side issue", I'm not saying there isn't a correlation. What I am saying is this: If a client is value shopping, are they going to pick the appraiser who can be influenced to make the deal work and pay a higher fee, or, pick a low fee and not be able to influence the appraiser?
If influence is the determining factor (which many times it is), then fee is secondary.

What we have here is a process that has been able to categorize a set of appraisers who do both: Charge low fees and allow themselves to be influenced.

While I'm glad this issue is coming to light and I think there will be some significant positive changes that might improve our profession, I also think there is a significant risk of negative fallout. With EappraiseIT (and they are not the only one), we have an appraisal management company run by an appraiser that is also staffed by appraisers and that hire so-called independent appraisers to provide what is supposed to be a professional, independent and unbiased opinion of value. It is the appraiser who is the final defender of the integrity of the process. When the general public reads the story, is it unreasonable to presume that they will lump all appraisers into the category of "value-hitters to get work"?

I hope the AG follows all the leads and hangs the guilty parties (metaphorically speaking, of course). I think Pam is entitled to feel relief and a righteous sense of vindication by this action (and by more to come, which I think we will see soon). And I say this sincerely as a peer who does not always agree with Pam's characterization of the issue but who also has 100% confidence level in the validity of some of the specific issues Pam has mentioned or alluded to.

But professionally speaking, I don't feel much like celebrating.

 

[Shelley Anderson]

Cuomo's office is challenging the Feds to do their jobs. Many of us spent much more than 5 minutes, some numerous times, communicating with the NY AG. They seriously learned all about it and those emails in the suit are just a tiny peek at the evidence they have.

eAppraiseIT, WAMU, and LSI... and a whole lot of appraisers, will need to come up with something much better than the weak blustering denials the e and W have vomited out so far.

"We are surprised and disappointed by the allegations in the (Cuomo) complaint related to eAppraiseIT. We have absolutely no incentive to have appraisers inflate home values," officials said in a statement.

The above statement from WAMU is just about the biggest lie that I have seen so far. If only I had 20/20 hindsight. I had some conservations with a "hand selected" employee that I wish I had recorded!!!!

 

[Ray Miller]

Mike,

We have a list, if it is proven that the list was a list of appraiser who would hit the numbers then why not use it to start to clean up the profession? If you don't use the list from the AMC's then where do you start?

Every one of those inflated appraisals has an appraiser name on it. Should the world say: its ok you got caught this time we know you may have inflated appraisals, but were not going to check you out, just don't do it tomorrow. Sort of sweep it under the rug.

As for tossing them to the big bad wolf, If enough good appraisers got tossed to the wolf or lion may be there would be reason for the state boards to change thier actions. May other appraiser who were toss to the wolf would start some counter actions brcause of the state boards actions. Or is it better to say ah another blood trail, but its not mine so I am not going to worry as long as the wolf stays away from my door. Sort of like a buch of sheep.

If they are good appraisers and they approve of the state wolf, then they should not fear that big bad state wolf, if they do fear that big bad state wolf, just maybe they should start working at getting things changed so they don't live in fear of the big bad state wolf know as goverment regulation. Some where down the line the storm troopers might start showing up at your door. Then it is to late for change or change will cost a lot more.

You know me and my feelings, yes we can agree to disagree and still speak to each other on the street.

 

[Riick]

I personally am amazed that anyone on this Forum who has been
involved in the Retail / Residential end of the appraisal business
can say they're shocked or amazed at what the Lenders have done.

What I'm amazed about is that it is coming to light!
Under public view and possibly even prosecution !

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

As to the unethical people in our profession, every profession has its Lemons:
· Doctors who sell prescriptions for controlled substances,
· Lawyers who abscond with funds in their trust,
· Accountants who cook the Books for the likes of Enron.

Now I may be wrong here, but methinks that
Mr. Skippy - Doctor | Lawyer | Accountant –
made VERY good $$$$ as a result of their actions.

On the other hand, with appraisers, apparently "Skippy"
has been working his bluddy *ss off for reduced fees from
the AMCs, and, whilst underpaid is whipped into unethical
behavior by the carrot of increased volume, and the stick of Zero volume.

How have appraisers gotten themselves into this position?

Are we part of a Profession, or are we a group of foolish Sweatshop Workers,
deluded into thinking we're Professionals by our (powerless) Organizations
and those minimum standards State Certifications and Licenses?

 

[Joyce Potts]

"We are surprised and disappointed by the allegations in the (Cuomo) complaint related to eAppraiseIT. We have absolutely no incentive to have appraisers inflate home values," officials said in a statement.

The above statement from WAMU is just about the biggest lie that I have seen so far. If only I had 20/20 hindsight. I had some conservations with a "hand selected" employee that I wish I had recorded!!!!

Hey Brad(d) Ellis and Rich Heyn--how about that hearsay? What say you--is that post opinion or fact? Or worthy hearsay that could lead to more discovery that could result in fact or fiction?

Please tell us what the courts will do.

 

[Stone]

You know me and my feelings, yes we can agree to disagree and still speak to each other on the street.

Cool. And I would probably feel like you if they had taken my business. I'm just not convinced from what I read that the number of dirty appraisers is as high on that list as some of you guys think. But, I really do like the idea of dirty appraisers getting a little nervous.