Publish Appraisal as Public Record??

[xm4yb7]

I dont think that would be such a huge issue. After all, the data you have accumulated outside of data providers is still available to anybody that wants to assemble it. You did. Sure, you may make it SLIGHTLY easier for a third party to see it, but unless they have the time/inclination (and permission/resources) to download/save/accumulate/analyze data for ALL the sales recorded, a single transaction wouldnt do them much good. And if they are big enough to consider doing that, they probably have already subscribed to or operate an AVM and have the data anyway.

The beauty of making the report public would be so that an appraiser who KNOWS there was fraud/hanky-panky involved in a deal could later prove it or make some effort to report it and clean this mess up. They could simply go to the Register of Deeds and get the report (usually the SECOND report done)and see if it merits further investigation or action. I have had many cases over the years where this would have come in very handy. I refused to do what they wanted or came in low - they ordered another appraisal from the town Skippy, and use it to fund a loan. If that report were on file, I'd at least have some recourse given the fact that usually I lose a client over these deals!

I have appraisals thrown at me all the time with black magic marker all over them that are absolutely fraudulent - and the lenders won't tell you who did them!!! That way they can use the same guy again!

It's gotta stop. I think this a good start...

Sorry, I should have stated that I was talking about commercial appraisals. The subscription services only are a starting point. We have to dig deeper into each comparable to obtain information beyond what is listed through public records. We have to talk to brokers and leasing agents about the current market rents and concessions. The published reports provide a broad picture, but the only way to get a detailed view is thought interview after interview. It has taken a lot of energy to establish relationships with them. I would be very upset if I found this information in another appraiser's report without our knowledge. Why should I be the only one who has to kiss up to a broker for information?

 

[Marcia Langley]

I have a love/hate relationship with this idea the same as I do with the current confidentiality expectations.

From purely the appraiser's point of view (not client or homeowner, the most powerful players in the public debate), on the one hand it would be a relief to have the whole report a public record. On the other hand, with no confidentiality restrictions at all, we could be innundated with calls from anyone, any time wondering why we did not use such and such a comp or, "You lowered the value of my whole neighborhood", or "They raised my taxes because of you", or, "that's not the way I remember Grandma's house", et cetera, et cetera, et cetera...

 

[Hal Mann]

It would surely be effective, but there are too many repercussions for it to be workable.

 

[William Rightsell]

Marcia makes some good points. How would we deal with questions from the public? I guess you could just say that you cannot discuss it as they were not an intended user or client.

Maybe a new form could be developed to be recorded which would be a summary of the report - one that shows what GLA/Bath Count/Condition, etc was reported for the subject and all comps (along with the comp addresses), but not the actual adjustments?? Maybe even the adjusted sales prices of the comps. The raw data. That way if an appraiser used comps from a clearly superior neighborhood, or fudged bathroom counts or GLA or condition of comps etc it could be a basis for further investigation.

Also, can we please limit the discussion to mainly residential work?? There are much different considerations involved with commercial work that could hijack the thread and turn it in different directions. I dont want to offend the commercial guys here, but if we could limit this to the residential side maybe some good ideas can come out of this.

There has to be a way to make the whole process more transparent so that the industry can police itself. The lenders sure arent going to help us much with that - they like the "bad apples" because they facilitate getting the "hard" ones closed...

 

[xm4yb7]

Regulators group residential and commercial under the same umbrella, real estate appraisal. I am sure that many people would object to one side being treated differently then the other. There is fraud on both sides. If you only posted residential reports, it would imply that fraud only exists or is more prevalent in residential appraising. Unless the state agencies separated the fields and regulated each on their own, all new plans would have to work for both residential and commercial.

 

[Aubrey Williams II]

William,

I agree that more has to be done to discourage appraisers from unethical activity, the question is how so?!

I think the confidentiality requirement is unlimited in duration on any work assignment you performed.

Someone correct me if I am wrong?

 

[Mike Kennedy]

I agree that more has to be done to discourage appraisers from unethical activity, the question is how so?!

Mandatory License Revocation after hearings indicating fraud. Doctors lose theirs, Lawyers get disbarred, Appraisers get a small fine, slap on the wrist, USPAP course........and sent on their merry way. Anything short of License Revocation is "taxation without representation".

 

[Marcia Langley]

Aubrey,

You are correct about the status quo. William is thinking outside the box about possible future changes to the status quo.

 

[Fred]

I wonder what makes anyone think s/he will be safe running around in a minefield. For example,

Mandatory License Revocation after hearings indicating fraud

Anyone want me to review every one of your reports for an “indication” of fraud?

 

[Bob Ipock]

You are wrong.

The duration of real estate confidentiality can be changed by the legislature at will. We have the Statute of Frauds and are a "race state" in NC and that palces certain requirements on real estate transactions.

If state or Federal law called for public recording.....USPAP confidentiality would mean nothing. State or Federal Law would trump USPAP.


There are all kinds of doccuments that are recorded in a the register of deeds
office at the local courthouse, with the Secretary of State (state level) and with other agencies.

If a deed of trust can be recorded and made public record....and they are daily in many states,...it would be just as easy to require that appraisals be recorded as well.

I would not be in favor of recording appraisals but am doing all I can to see that legislation in passed in my state to record the names, addresses and contact information for ALL PARTIES involved in any time a real estate transfer is recorded. Appraiser, real estate brokers on both sides, lender and mortage broker, attorney etc.