Realtor Ethics

[Terrel L. Shields]

Realtor Magazine has an article about ethics. Seems that California has a 5 yr. program that may expand enforcement of the Realtor Code nationally.

Details are sketchy but 2 things standout. Putting the Realtor's info out in a website that is only going to be viewed by ...Realtors...the general public will remain in the dark.

Second, was the deafening silencing of the lambs...appraisers. But they do publish an email address. ... ethics@realtors.org

So I emailed them. This is a small part of it.

But, by far, the most serious issue is that when Realtors attempt to blacklist certain appraisers because of some failed deal from the past. They refuse entry to the dwelling, etc. This clearly is an effort to damage the client – appraiser relationship with the bank. And Dodd-Frank, FHA, and Fannie Mae are clear that such interference is unacceptable. The borrower (thus, through their agent) is strictly forbidden to choose the appraiser in a federally related transaction (FRT) and banks are not supposed to kowtow to such demands. This is spelled out in 2010 in the Interagency Guidelines for Federally Related Transactions.

Were a Realtor-agent to interfere with another Realtor-agent’s clients then it is actionable. And it should be actionable when a Realtor attempts to interfere with the selection of the appraiser. And I think it is no great leap to think it may explicitly violate Dodd-Frank and the appraiser independence standards adopted therein.

 

[gregb]

Was inspecting a VA property today. The realtor said the biggest thing she missed was not being able to work with the Mortgage Broker on selecting the appraiser...I said the biggest thing I missed was the number of banks with fee appraiser panels who have gone to AMC's er I mean former Mortgage Brokers...

 

[glenn walker]

Both are correct .. The appraiser was placed under AMC's and the Realtors are having to deal with out of area appraisers who are coming from 100 miles away. I never had any problems with mortgage brokers it's the AMC's that take the appraiser off the list if the number is not hit !!!!

 

[glenn walker]

There is no phone number for Dodd and Frank and I cannot even believe old time appraisers believe there is someone they are going to contact : ) LOL

 

[Mike Kennedy]

Dood Funk Enforcement Hotlines


Police Department Voice Mail - YouTube

IF U GET A BUSY SIGNAL - ALTERNATIVE NUMBER BELOW

The Irish Mental Health Hotline Answering Machine - YouTube

 

[Don Clark]

Realtor Magazine has an article about ethics. Seems that California has a 5 yr. program that may expand enforcement of the Realtor Code nationally.

Details are sketchy but 2 things standout. Putting the Realtor's info out in a website that is only going to be viewed by ...Realtors...the general public will remain in the dark.

Second, was the deafening silencing of the lambs...appraisers. But they do publish an email address. ... ethics@realtors.org

So I emailed them. This is a small part of it.

Terrel,

The Realtor has a fiduciary duty to protect their clients interest. If the appraiser is not geographically qualified, then the Realtor can very well refuse them entry. If the appraiser

1. Does not have access to local MLS
2. Ask the Realtor for comps
3. Does not know where the courthouse is
4. Needs directions(except of new construction) to the property
5. Their office is over 75 miles away

Very likely the appraiser is not qualified to do the appraisal.

When asked, I gladly tell the Realtor or anyone else about my 40+ years in real estate in the local market, and over 30 years as an appraiser.

I taught a 2 hour course on the new AMC Regulations for Virginia a week ago. Had over 20 students, appraisers and realtors and told them the same thing. Also, gave them a copy of Dodd-Frank so they would know what they can and cannot do.

 

[J Grant]

Terrel,

The Realtor has a fiduciary duty to protect their clients interest. If the appraiser is not geographically qualified, then the Realtor can very well refuse them entry.

TA Realtor is not an atty with a sworn duty to protect a client. The Realtor bought the seller an offer or may be the listing agent who listed the property. Regardless of duties a Realtor has, or thinks they have to a client, the buyer has certain rights, and the right to an unbiased selected appraiser via allowing their lender to choose with no interference is one of them.
[/COLOR]
No matter what excuses about appraiser competence, it's a violation of TILA for a Realtor to refuse entry, (and by refusing entry they put their seller into breech of contract per seller contractual obligations to allow appraisers and inspectors of borrower to enter property)

If the appraiser

1. Does not have access to local MLS
2. Ask the Realtor for comps
3. Does not know where the courthouse is
4. Needs directions(except of new construction) to the property
5. Their office is over 75 miles away

Where is this list that entitles a RE agent to break the law in Dodd Frank?

Very likely the appraiser is not qualified to do the appraisal.

When asked, I gladly tell the Realtor or anyone else about my 40+ years in real estate in the local market, and over 30 years as an appraiser.

I taught a 2 hour course on the new AMC Regulations for Virginia a week ago. Had over 20 students, appraisers and realtors and told them the same thing. Also, gave them a copy of Dodd-Frank so they would know what they can and cannot do.

If you are teaching violations of TILA I don't know what to say.

WTF in Frank Dodd is an exception to the regulations of appraiser independence that permits a Realtor to block entry to an appraiser? Provide a link or paste from it, not your own interpretation about refusing entry to an appraiser who asks directions/ over a certain mileage, asks for comps etc.

 

[J Grant]

Dodd Frank Enforcement Hot line..

Who ya gonna call....Ghostbusters!

Seriously, since Realtor website had an article referencing this, then file a complaint to RE board, state atty general, state banking commission, let bank compliance officer know, consumer protection bureau, anyone want to add to possible list?.

 

[Terrel L. Shields]

The Realtor has a fiduciary duty to protect their clients interest. If the appraiser is not geographically qualified, then the Realtor can very well refuse them entry.

Don
Read the NARs ethics rules regarding relationships with the other NAR members and most appraisers are appraiser members. The Realtor has no authority to limit access to the appraiser when it clearly violates the very premise of TILA and FIRREA. The interagency guidelines are clear. The bank chooses the appraiser...not the borrower, not the borrower's agent. Denial of access is improper.

But beyond any bank rules, where in the NAR ethics document does it give a Realtor the right to deny another Realtor access to a property, blacklist an appraiser, or otherwise interfere with the business activity of another NAR member. When did a Realtor ever bellyache about an agent from 100 miles away selling a property locally because they "didn't know the market"?

 

[RSW]

Don
Read the NARs ethics rules regarding relationships with the other NAR members and most appraisers are appraiser members. The Realtor has no authority to limit access to the appraiser when it clearly violates the very premise of TILA and FIRREA. The interagency guidelines are clear. The bank chooses the appraiser...not the borrower, not the borrower's agent. Denial of access is improper.

But beyond any bank rules, where in the NAR ethics document does it give a Realtor the right to deny another Realtor access to a property, blacklist an appraiser, or otherwise interfere with the business activity of another NAR member. When did a Realtor ever bellyache about an agent from 100 miles away selling a property locally because they "didn't know the market"?