State Complaints

[Doug Meyer]

I have noticed an increase of threads here of appraisers who are getting complaints filed against them. Myself, Ray Miller and Bob Heriford have had complaints against them. How many other appraisers have had recent complaints (over the past 2 years) filed and what did you do to combat them? What can we do as an industry to fight back this "blame the appraiser for all the mortgage problem mentality"? This is starting to sound like the S&L crisis many years back when the appraiser got the brunt of the blame. Is this happening again?

These filing of complaints is going to increase in the near future and I believe that all need to be prepared. I know Pam is setting up a Review Commitee, but what else can we all do at this time? Our industry is going to feel the heavy pressure from all of this.

I know in my case after the field reviews were completed the review appraiser has many more USPAP violations than what I was "assessed" for, yet he is on the "loose". Because I "dare" to challenge the AG office, now they are trying to burden me with heavy legal fees, deposition fees and are trying to play hard ball. How many others are now fighting these type of battles?

 

[Joyce Potts]

Collateral Damage

Doug,

Fortunately, I've not yet had a complaint filed on me personally in my 23 years of appraising, but from what I'm seeing, it's only a matter of time.

I'm seeing overzealous state investigators and attorneys who are not appraisers, but with a little bit of 'knowledge' are hell bent on seeking out and destroying an appraiser who is otherwise decent, honest and ethical.

I'm seeing too much collateral damage.

Unfortunately, people like you Ray Miller and Bob Herified are the sacrificial lambs and are having to go through the stress, expense and the damage to your reputations while others who should have had their licenses revoked years ago continue to thumb their noses at me while driving to the bank.

There is no appraisal report out there that someone couldn't take exception to something and therein lies the problem.

Pam C is absolutely on the mark at trying to establish a peer review. I have no problem going before a group of my peers to explain and defend what I did or did not do.

It's time the appraisal community stopped the infighting and join together to get something done to improve the industry, weed out the skippies and protect the innocent. IMO, it starts at the top. The system is broken and the laws that govern both the lending and appraisal industries need re-vamped.

If there is anything I can do, let me know. I have an excellent attorney whom I'm helping with some cases concerning appraisal litigation.

 

[stefan olafson]

Doug,

My problems began back in 1997 when I was appointed to the state appraisal board. A member of that board was of the opinion I was not an "ag appraiser" so shouldn't have been chosen by the governor to sit on the board. Needless to say 90% of my education at that time had come from ASFMRA, the timing couldn't have been worse, we were recovering from our devastating flood which happened in the spring of 1997 and my wife was having major depression problems. Oh, from research done in the past year, I also have come to realize that because I was not a card carrying member of AI, I was the wrong person for the board. Since the inception of the board there have been seven appraisal members, five card carrying AI members (designates) and an original appointee by the governor and myself. I only served less than a month when it became quite obvious one or more of the sitting board didn't want me on the panel. I resigned.... and sent a letter to them giving them quite a lecture. My problems began shortly after that letter was received.

Next Tuesday, March 13th I will be at my Administrative Hearing. This hearing has been a long time coming, my letter of revocation was signed by the appraisal board March 14th, 2003! I have two expert USPAP educators who are going to testify in my behalf, one in person and one by phone. I have three bankers who I have done and continue to appraise for who are going to testify to my qualifications and one attorney who I've done quite a bit of work for. I'm not sure what the board has planned.

If this ever gets completed and I'm back working in the state where I live and was born, I'll happily join the task force Pam is putting together. I have seen most everything in these past four years.

Yes, it's expensive, I've spent over $10,000 on an attorney as well as losing four years worth of work during the busiest time ever for appraisers, my estimate is between $500,000 and $1,000,000 with lost future income of at least the same.

If you believe you're right, then continue on with the fight. As I stated in another post don't sign a settlement agreement, that is tantamount to admitting guilt. Work through the process using the best attorney you can afford.

In the end an appraisal is only your opinion of value, USPAP is a guide on the trip from accepting the assignment to completing the appraisal. There are eleven points in the new USPAP which must be covered in each report, if those are in there, it's going to be hard for anyone to accuse you of wrong doing. USPAP does not require perfection...

Oly in ND Working in MN

 

[Fred]

It's partially cyclical. There was extraordinary volume a few years back and it takes a while for these cases to come up. If you notice, some of the people who posted about board actions are talking about 2002 and 2003 appraisals.

It's ironic, too. This forum has a contingent that urges turning someone in every time there is a post bemoaning some appraisal or review. One fellow posts the records of the different boards complaining about how few lose their licenses. Now, this same forum is creating a volunteer to group to mitigate the damage it helped create.

I have occaisionally read state board cases. The rulings are not pretty. I was an appraiser sanctioned for not using the past tense enough (set aside by a judge). When I look at the deep, profound and intractable differences on even the most fundamental points in forum debates, I suspect one is going to find the same lack of uniform standards in the state board opinions. A lot of people are going to be unreasonably sanctioned and too few of them will go to court to challenge the rulings.

 

[Stone]

It's ironic, too. This forum has a contingent that urges turning someone in every time there is a post bemoaning some appraisal or review. One fellow posts the records of the different boards complaining about how few lose their licenses. Now, this same forum is creating a volunteer to group to mitigate the damage it helped create.

I've commented on this, as well. As long as I have been reading this forum, there has been a vocal group saying "send it to the board" for just about anything. Now, some in that group are starting to say, "whoa, the state has gone too far."

Further (and not to sidetrack this, because this is a subject that is sort of a third rail for some), some of the folks who gleefully post state sanctions based on the fact that the appraiser in trouble had his or her day in court, seem to recoil when a forum member is the subject of the investigation.

Ironic, indeed.

My sympathies and best wishes to Doug, Ray and others who are going through this. I hope never to be stuck in that situation, but am sure that it could happen to pretty much anyone in the business at some point.

Edited to correct a name

 

[Alison Swain]

It is very scary. I was with Joyce (and Pam, and Janet, and Dennis) at the last FREAB disciplinary meeting. It was very clear the prosecutors were blood-thirsty. However, we are lucky here in that our board is comprised of intelligent, fair-minded appraisers and attorneys. Of 36 cases, I would have a difficult time pointing to one that wasn't judged fairly --- some sanctions were stiffened and some eased.

 

[Pamela Crowley (Florida)]

Steven,

I will do the same if/when I am part of a peer review as I would when doing any appraisal review: dig for the truth, not nit-pick the small stuff, and come to an opinion of the quality or lack there of of the appraisal and report in question.

I am aware that some forumites that talk the talk here are not necessarily walking the walk in completing their appraisals. I'm also aware of some that really are being unecessarily persecuted and prosecuted for no good reason. Those that choose to submit their case to the peer review committee will have to take what the committee decides and use it or not. No guarantees.

Yes, I strongly encourage those that find a truly poor appraisal and report to turn it in as a complaint to their State Board. I attend my own States Board Meetings and think I understand how it works. I don't know much about other States, but it appears we are learning about them here.

Nobody knows the real caliber of another appraisers work product until it goes through a thorough review. I'll keep my judgements of that appraiser and their work product open until I see it and verify the quality of it. There are a number of forumites that can attest to this.

I will defend those that deserve to be defended, and nail those that deserve to be nailed.

 

[Joyce Potts]

Excellent Point

I've commented on this, as well. As long as I have been reading this forum, there has been a vocal group saying "send it to the board" for just about anything. Now, some in that group are starting to say, "whoa, the state has gone too far."

Further (and not to sidetrack this, because this is a subject that is sort of a third rail for some), some of the folks who gleefully post state sanctions based on the fact that the appraiser in trouble had his or her day in court, seem to recoil when a forum member is the subject of the investigation.

Ironic, indeed.

My sympathies and best wishes to Greg, Ray and others who are going through this. I hope never to be stuck in that situation, but am sure that it could happen to pretty much anyone in the business at some point.

Stone,

I think you also make an excellent point.

We should be more careful what we wish for!

 

[JoTetherow]

common sense

i too am alarmed when i read about licenses being suspended/revoked for stupid things that do not affect the overall report.

and i am alarmed when i get a really horrible appraisal in for review.

when i review, i try to put common sense at the fore front.

are the comps made up? crucify the appraiser

is it obvious that the appraiser ignored sales in the neighborhood and used inapropriate sales outside to support some rediculous value? lock em up

is the value a little higher than what i might have determined? was an adjustmetn 1k instead of 2k that i might have used? let it go. the appraiser was in the property, not me and it is an OPINION of value...

i have sent reports to the state when i see BLATENT FRAUDULENT crap in the report.

i have also sent state reviews back to the state and said "no problem".

i have also called a client and told them that a report was truly excellent.

crucifying an appraiser because of small errors that dont affect the final value(ranges of price/ages off, flood map # wrong, typos), in my opinion is just as bad as not turning in a truly bad report.

shame on the reviewers that go over a report with the proverbial fine tooth comb for small errors just to show that they did their work. yes, mention the mistakes but if they dont affect the final value estimate and the comps are representative of the subject/market then let it be.

reviewers should use common sense, not draconian principles. everyone is human, we all make mistakes.

3 main ideas run my life, not just appraisals and reviews.

honesty
ethical behavior
fairness

i hope who ever reviews my work feels the same.

jo

 

[Doug Meyer]

i too am alarmed when i read about licenses being suspended/revoked for stupid things that do not affect the overall report.

and i am alarmed when i get a really horrible appraisal in for review.

when i review, i try to put common sense at the fore front.

are the comps made up? crucify the appraiser

is it obvious that the appraiser ignored sales in the neighborhood and used inapropriate sales outside to support some rediculous value? lock em up

is the value a little higher than what i might have determined? was an adjustmetn 1k instead of 2k that i might have used? let it go. the appraiser was in the property, not me and it is an OPINION of value...

i have sent reports to the state when i see BLATENT FRAUDULENT crap in the report.

i have also sent state reviews back to the state and said "no problem".

i have also called a client and told them that a report was truly excellent.

crucifying an appraiser because of small errors that dont affect the final value(ranges of price/ages off, flood map # wrong, typos), in my opinion is just as bad as not turning in a truly bad report.

shame on the reviewers that go over a report with the proverbial fine tooth comb for small errors just to show that they did their work. yes, mention the mistakes but if they dont affect the final value estimate and the comps are representative of the subject/market then let it be.

reviewers should use common sense, not draconian principles. everyone is human, we all make mistakes.

3 main ideas run my life, not just appraisals and reviews.

honesty
ethical behavior
fairness

i hope who ever reviews my work feels the same.

jo

I wish that you would have done the state review appraisals for me!! I have heard that there have been many crappy review appraisals coming back to the state that the board said to "file complaints against the reviewer". Thats pretty bad!!!