Reviewing a Poor Appraisal

[bobburnitt]

A bad report is a bad report.

BB in Texas

 

[Bemis Pownall]

in these parts the board wants the accused to be able to face his/her accuser.

 

[Francois K. Gregoire]

For instance, I am not necessarily in favor of investigations initiated based on anonymous complaints. What's your opinion on this?

George,

To be honest, I could argue either way on that question, but I tend towards recognizing anonymous complaints. This may a result of the influence of Florida Real Estate and Appraisal License Law and Administrative Procedures. As long as I've been licensed, anonymous complaints have been accepted.

Here in Florida, complaints against regulated professionals must generally by in writing and signed.

(1)(a) The department, for the boards under its jurisdiction, shall cause to be investigated any complaint that is filed before it if the complaint is in writing, signed by the complainant, and legally sufficient. A complaint is legally sufficient if it contains ultimate facts that show that a violation of this chapter, of any of the practice acts relating to the professions regulated by the department, or of any rule adopted by the department or a regulatory board in the department has occurred.

There is, however, a provision in the Statute creating the Department of Business and Professional Regulation allowing investigation of certain anonymous complaints.

The department may investigate an anonymous complaint if the complaint is in writing and is legally sufficient, if the alleged violation of law or rules is substantial, and if the department has reason to believe, after preliminary inquiry, that the violations alleged in the complaint are true. The department may investigate a complaint made by a confidential informant if the complaint is legally sufficient, if the alleged violation of law or rule is substantial, and if the department has reason to believe, after preliminary inquiry, that the allegations of the complainant are true.

Over the past two years the Florida Real Estate Appraisal Board has disciplined several appraisers as a result of allegations made in anonymous complaints. I don't have any statistics handy as the the number of this type recieved, or how many are determined to be legally sufficient. Based upon the number making it to the Administrative Complaint stage, it appears as though few are determined to be legally sufficient, or meet the standard cited above.

We'd all like to be given the opportunity to know and confront our accuser. Based on my recollection of the anonymous complaints we've heard, most respondents had a pretty good idea of the source, but it certainly is not the same as seeing their signature on the form.

In the event you're interested, HERE'S a synopsis of the procedure in Florida.

 

[Dan/Fla]

I just finished the desk part of a field review. I was going to just pull all the sales and worry about it tommorow. It is a Nassau county property, way out in Gods country. I will admit I was looking for a reason to turn it down Rt & Box for address, with no street name on report or on Property card. Have plat maps for county and curious how far out it is. Noted have to cross another lot for Ingress/Degress, not noted in report, looked more into report noted right away census tract wrong. Ok lets see how bad is this report is, pulled sales, Sale 1 road name no address but had a RE# so pulled it, Nope, no such number, OK pulled street No sale matching price and date, tried whole county search for mouth / year for that value found 1 sale but does not match any info in report, and this sale is 20+ miles from subject & sale location in report. Sale 2 Hey I have used it before but the one I used was located on creek/marsh front no mention of this in report reviewing. But this fact was noted in Public records. Sale 3 sold for price mention, info appeared correct, but look further it quick claimed back to seller 5 months prior to Appraisal date and only 2 months after sales date, so appears to me to be a no sale. Looked at all 3 comps only 1 within closed within 12 months, that is sale 3 the no sale. Subject came up in sales search it sold 10 months prior to inspection, not noted in report that it for $126,100 then. Highest sale used in report sold for $315,000 final value appraiser gave home was $395,000. I bet the appraiser is going to wonder way did they review me? Best laugh of the report was driveway dirt, then under car storage are for driveway it states 4 CAR, can not wait to see all properties to fill in the blanks. .

 

[David C. Johnson]

Frank, it looks a little like you may be getting the opportunity to meet Dan/Fla's assignment before long!

dcj

 

[Joker]

George and Frank,
The appraiser is certified in Ohio. I checked with the Appraisal Division of the ODOC and was told that anonymous complaints are not accepted. Furthermore, the complaint needs to be in writing and the complaintant needs to be willing to attend the formal complaint hearing. It would be better if the complaint came from the consumer simply so it would not appear that I have an ax to grind against my competition. The state would take the complaint more seriously. The client, however, just intends to not use this appraiser again and inform all of their associates accordingly. Believe it or not, the geographical area may be 5-10 counties large but since the area is rural, the players are limited. If I do turn in this gentleman, I may lose the respect of my client and some of their commercial borrowers (who also do business with other clients of mine). As a professional decision, it's clear what I should do. As a business, decision, it could cost me more than my time attending the hearing.

 

[Larry Lyke]

Doug --

What you are saying is that the lenders wag the dog, which of course means they reserve the right to impose their version of ethics on their investment community. It's a bad situation.

You are trapped.

 

[Joker]

You're right, Larry :arrow: DIYD/DIYD :?

 

[Dave Doering]

Doug,

I totally understand your delema. It seems that both appraisal and lending regulations and the enforcement of compliance seems to fall on the shoulders of the appraiser. As an example lenders are continuously requesting "retitles" and other accomodations or having individuals order their own appraisals for lending purposes. Yet, so as not to be "misleading" we are even responcible for ensuring that all parties are aware of the various banking regulations such as the requirements for direct engagement or the confidentiality requirements that seem to be so easily overlooked in the interest of making the deal. What a system.

I have read numerous posts by William Senter on this forum expounding the collective benefit of the Appraisal Guild. I would think that this would be an ideal opportunity for he and the Guild to demonstrate its effectiveness. I would be interested if the Appraisal Guild or any other professional organization would be willing to file complaint (much like a "friend of the court" suit in a legal manner). Your reluctance to proceed with respect to your professional responcibilities is another by-product of the indirect pressure and intimidation that all appraisers face every day. IMHO, this is the reason for the existence of appraisal organizations...to stand up for the individual. Will any organization step up to the plate on this?

 

[Joe Birrell (NY)]

Here's an alternative for you, which works well given the right circumstances. I like you was reluctant to turn in the appraiser, as I waited for the possible future events to unfold.

Yesterday, I recieved a notice to appear at a state hearing as their critical witness aganist the appraiser. This was a long saga starting last summer when a homeowner got ripped off on a contract flip (FHA-HUD case). The appraiser was obviously the enabler of the fraud scam. I did a "review" of the appraisal and gave the owner a detailed narratve report.

As it turned out property owner contacted the NY State Attorney General
and started the ball rolling. Appraiser is now faced with revocation of his license and possible retribution to owner.