Publish Appraisal as Public Record??

[xm72mhd]

There are some good spins in here about why publishing appraisal reports may have unintended negative repercussions, all of which may be transparent. But, the question underlying the thread has to do with appraisal fraud detection and thereby improving the profession.

It seems the premise is that daylight is cleansing.

Don't we already have some systems in place regarding this? The board here, in my opinion (as you have heard before), is not very active, but they do maintain disciplinary records that are available to the public.

Most of us know who is doing shaky work and we know which agents and lenders are shady. It doesn't seem to be very difficult to detect closed sales that are not "right".

So why do we need this? Will it somehow improve what we do?

 

[Doug Meyer]

How about if we just sent the estimated value to the county treasure so they can update their file on that home!! Homeowners would pay taxes on the appraised amount, not assessed valuations and would possible new data to update their assessed valuations. Assessed valuations here in Indiana are a mess. Bet homeowners/brokers would not push values into the stratosphere!!

 

[Fred]

There are some good spins in here about why publishing appraisal reports may have unintended negative repercussions

That's funny. Is that another way of saying that those who jumped quicly onto the 'shortcut-to-utopia' bandwagon haven't thought it through? I'd probably call those inevitable consequences.

 

[Fred]

Austin really hit the nail on the head.

He did, but I though I at least came close when I posted.
"Anyone want me to review every one of your reports for an “indication” of fraud?"

I put this in a category of those who always think they can regulate their way out of regulatory ineffeficiencies. Imagine the backlog the state appraisal boards when everyone tries to regulate eveyrone else out of business.

You could always voluntarily take your appraisal reports to the recorders office.

 

[Bobby Bucks]

Publish Appraisal as Public Record??
I can’t believe this is being given any serious consideration. The same ones who scream the loudest about data theft/extraction from certain software vendors argue in favor of putting reports where they most certainly would be available for download in PDF format? Sounds like yet another way to hasten the journey to the “buggy whip” business. I’m convinced that the fire breathers in this place are more interested in buggy whips for those they oppose anyway. I suppose for some it would be worth the pain to go out of business to have the satisfaction of using the cat o nines on a competitor who differs in methodology.

 

[Austin]

A System That Has Merit

Here are two things the state boards could do and cure most of the problems.

1. Every appraiser sends in a monthly report of the address, tax number, etc. of every property they appraise by e-mail for entry into a data base. See suggestion 2 below.

2. Have a state random audit predicated on properties that receive more than one appraisal within a certain time period. If two appraisals show up in say 30 days, the second or third appraisal gets an audit by requiring the subsequent appraisers to send a copy to the state board who would then forward the report to a selected of peer reviewers. Then pick say two reports at random per year off the list for submission to the review panel.

Then too, when the problems crop up, just do a search of the property address and see who did the appraisal. Si or no amigo. Wouldn't cost much either. Then send out a quarterly news letter reporting all audit reviews if the outcome is negative. That ought to cause some sleepless nights in some quarters. I would also require all illegal appraisal request and comments from lenders be reported and reported in the news letter and a copy sent to all mortgage companies and lenders doing business in the state. Cut the lights on in a dark room and you can watch the cock roaches head for the cracks and corners. :new_2gunsfiring_v1:

 

[Pamela Crowley (Florida)]

That sure sounds good to me, Austin!!!!!

I wonder how many are signing off of over 100 reports a month, especially those that 'did' inspect or show as having done them all by themself. I know of at least one AMC that is checking up on that statistic and checking where the properties are located. "Gee, that appraiser must use a fast helicopter to have been all over the whole state in one day."

Oh, and all addresses of 'comp check necessary before I will order the written form appraisal or pay you' need to be sent, at least by those that don't play that game. Easy to get the subject address out of them!

 

[Stephen J. Vertin MAI]

"I want to make a wager no one will accept. You people that think this is a good idea, why not post your last appraisal on this forum and let us take a look at it?"

I will take you up on that Austin. I just finished a 1,614,000 square foot hospital for a court case with a retrospective value of November 11, 1998. It is nearly 20 megs with the addendum. I hope you have a large cup of coffee

 

[airphoto]

Observed the distress about including floor plans in the (prospective) filing of appraisals. Why is that a problem, or pictures a problem? Floor plans (or, at minimum dimensions) are available from the assessor? Detailed floor plans available from the building inspector/code enforcer? At the least, interior photos and floor plans could be excluded from the filing. I'm sure no one would be interested in including the various definitions and limiting conditions from any such filing ..

Legistlative fiat, remember?

 

[Aubrey Williams II]

Hello all,

I am sure this has probably been discussed or batted around in some form before, but I wanted to run this idea by the good folks here on this forum.

I thought about this the other day and the more I think about it, the more I think it may be a way to help clean up this mess of an industry.

If the appraisal report were recorded as public record along with the deed of trust/mortgage docs at closing, a LOT of the crap that appraisers are pulling would stop. I cannot tell you how many times I have had an appraisal (with names redacted) faxed to me to prove I'm an idiot and dont know what I am talking about! Or the lender/broker/borrower has an appraisal that they tell me about but will not provide a copy of it - for obvious reasons.

Appraisers know they can hide behind the "confidentiality" shield and get away with almost anything, because the broker and/or loan officer involved will keep silent also. After all, most work on commission and will do/say damn near anything to close a loan. If the appraisal report were made public (after closing), then this crap would stop.

I know there are those that are going to say that the information in the report is confidential. That may hold weight BEFORE closing, but what in the report is confidential AFTER closing?? The new owners name, price paid, date of sale, lender, loan terms, etc. all become public knowledge after the sale. The property specifics (assesor/tax records) are public knowledge BEFORE the sale/refinance. So what is left after closing that is confidential?? Other than the appraisers' name and appraised value, I cannot think of anything.

I'd like to hear more thoughts on this subject - I'm sure there are things I haven't thought of or considered, but it seems like a pretty logical and easy step to me to clean things up. Nothing like the light of day to make folks do the right thing!!!

While it may be an effective tool for deterrance and humiliation, I doubt it will make a significant impact on improving appraiser conduct. It would also be difficult to adopt a policy of full disclosure while respecting the spirit and regulations of confidentiality.

There really needs to be a system like this on mortgage companies, appraisers and builders. If people had a site they could go to that exposes a broker or banks misconduct, overstating of value (underwriting-appraising), complaints and sanctions all in one place, that would make a huge dent in unethical practices by appraisers and lending institutions.