Review

[jimcmurray]

I was wondering if any of you, who do field reviews, have ever had a similar experience. I was asked to do a field review. I do not enjoy most reviews, because they normally send the ones which they have serious concerns out, but never seem to send out the ones which basically need a stamp of approval. To get down to the basics. I reviewed an appraisal on a house which had been sold within 12 months prior. So I had the benefit of two reports basically. The one I reviewed was in my opinion $20,000 over the subjects market value. There were many discrepancies between the two appraised values mine had more above ground square footage and less basement area than the previous appraiser reported. My appraiser left the area for more prestigious homes which were not as similar, mine was a quad, he used ranches and a two story. I found quads in the immediate area and used them. I came in $20,000 under my assignments value.

I was relaxing at home a few days later when I received an angry call from the appraiser I reviewed. He proceeded to tell me that the report was for his best client and that he had to make value for them. He then began to argue with my conclusions. I try to have an open mind but when he said he had to make value for his best client, my mind somehow slammed shut.

He said he was going to go to the State Board where he had friends. I thought I was very diplomatic. I do not relish the idea of a State review because they will nit pick any small item when they cannot find a real issue it seems. I am not too concerned, even though I know the State will slap my hand for not crossing every "T" and dotting every "i" they think I should have. I truly believe even with his friends on the board he should receive a more severe blow.

I will stand behind my review/appraisal plus the previous appraisal on the same house.

I do not believe I will accept anymore reviews because anymore you have to supply a new appraisal on almost every one now. I do not like to being threatened. When I feel the other person was committing at the very least a morale crime.

How do you handle these calls. This was the only one and probably the last.

 

[Blue1]

First of all, screen ALL your calls. I know some will disagree, but in the long run it can save you a lot of grief. (i.e. upset homeowner, agent, etc. that you should not be discussing the report with anyway, etc.) Secondly, make sure you have a good copy of that appraisal.......it may be the only copy in existence right now. (Hopefully it was FAXed to you and has a FAX date on it). Lastly, if that appraisal is as bad as you say it is, I can't see that appraiser taking it to the state board, frinds or not.

Good Luck, hang in there......

 

[Larry Lyke]

In addition to what Blue1 said...

My response is always "Que sera, sera. " "Bring it on, Big Boy!"

Sounds to me like you may be foiling a appraiser's career.

Why don't you write up your own package and ship it off to the state board with a transcript of how you remember the conversation with the threatening appraiser, that you just related to us. And do it right now and be first.

The state might like to do a "field" investigation themselves -- like make a house call to his office.

Protocol (to me) suggests I may not call the review appraiser under any circumstances. The reviewee's comments should be only to the client.

You want to get that threat on record as soon as possible. It may be just the item to make those "friends" recuse themselves at the hearing. That type of thing is usually an idle threat, but you can't be too careful.

 

[jtrotta]

jim;
1) how did the other appraiser get your name :?:

2) were you orginally supplied his name :?: if they supplied it, did you ask permission to call the other appraiser and discuss the issues :?:

3) You state you had the benefit of 2 appraisals and the one you reviewed in your opinion was $20,000 over the subjects market value. Did you determine that while you were looking at both; or how did you come to that conclusion :?:

4) You then go on to say; there were many discrepancies between the two appraised values mine had more above ground SF and less basement. Then you go on to say; MY appraiser left the area for more prestigious homes which were not similar; mine was a quad, he used ranches and a 2 story. I found quads in the immediate area; I came in $20,000 under my assignments value.

From reading what you wrote, I cannot make a determination, as it is totally unclear. It sounds as though you didn't do the review and that would trouble me, if I were the other guy - I would have some questions.

8)

 

[Pamela Crowley (Florida)]

I agree with Larry. Protect yourself first. I think that if I were threatened like that I would file the complaint immediately and let the chips fall where they may. Double check your review, file the complaint and then put the file away. Try not to think about it again unless it comes up.

I try to do each and every review ready to go to the State if the client so chooses. I have pushed for a couple of them to send both the original and the review to the state. Hey, the state's investigation work is already done in the review. I do know of at least one lender that did just that. I've also had the appraiser that I was reviewing call me about the mistakes he had made and we've become friends since. He now has the program I told him about to verify information about properties in that county where it really is difficult. He had cut corners for speed and doesn't do that anymore.

Having an appraiser call and threaten because you did you job correctly and he didn't?...... take him down.

 

[Ben Vukicevich SRA]

Hey L,

See. Now you know why I said in the other post that I don't do reviews and that you could have my share.

They a'int worth one (wasted) day messing with state boards.

Ben

 

[Larry Lyke]

Ben --

I do just enough reviews to satisfy my clients that I can do them. I do NOT solicit review business at all. And they know this.

BUT, I also have a heart for somebody who's being abused by another appraiser.

I know that you don't have to be afraid of a state board at all -- unless you might have reason to be so.

 

[BarbaraNJ]

Must agree with jtrotta-----how in the heck did the (other) appraiser get your name??? Any reviews that I have ever done have had the appraiser "blacked out" or cut off, and I must assume that the review that I do is just as confidential. (I hope)

I can tell you my own experience with the State Board. Remember, ANYONE can report you to the State, even if THEY (themselves) are POSITIVE that YOU ARE CORRECT!!

Unfortunately, as more people become aware that a complaint can be made, more are doing so. A good percentage of the complaints are made because the applicant did not get their money, or the lender/mortgage company did not get to make the loan, or the applicant was a "big deal" who took all their accounts away from the bank, etc.

The State MUST investigate ALL complaints. At the very minimum, it will cost you the time spent in copying all of your files and some time on the phone (and away from appraising). If the State finds anything they cannot comprehend or decide on, there may be a hearing. Everyone I know that has appeared to testify alone says they are sorry that they did not bring an attorney, because it seems that the board members are alot more careful in their decisions and actions when a lawyer is present.

Just as anyone can sue you and drag you into court, anyone can report you to the board.

The truely unfortunate thing is that you do not have a recording of the original appraiser telling you that this was his best client and that he "had" to make the value.

Good Luck to You, and as I tell the local appraisers, "Welcome to the Wonderful World of Appraising !!!"

 

[Larry Lyke]

There's all sorts of complainants.

A couple of years ago I was asked to respond to a 4-page Q&A prepared by an assistant attorney general. A complaint had been lodged against a loan broker by a disgruntled borrower.

The loan broker was eventually cleared, but a lot of manpower went into it. In Minnesota we take the consumer very seriously.

 

[Ben Vukicevich SRA]

L,

Ha. Read the post below by Barbara and tell your "not to be afraid" theory to those guys in North Carolina; Johnson and Hildebrant.

Messing with the state board or even FHA on a field review, is just non-productive even if you're totally, 100% correct.

Never been there. Don't even want to know what goes on.

Ben