Unintended consequence of reviews

[Sadie]

I've turned in 4 in my career, 2 CRs and 2 MAI's. Problem with this state is that they keep most disciplinary actions confidential so you never know if you wasted your time or not.

I think you can do a POIA request because isn't that stuff public knowledge? Here it is. They don't publish names, etc, but you can request the file on individual complaints.

 

[J Grant]

Appraisals would be a lot worse if there were no reviews.

An advantage appraisals have over other forms of valuation is that they can be reviewed, and protocols and standards for reviewing exist for that very reason. An appraisal can also be read and understood by non-appraiser readers, which allows them to agree with it, question it, or challenge it. As annoying as it is to be questioned or challenged, it is actually a good thing ( to a point of course)

 

[Fritz in NY]

It doesn't matter. We are being reviewed by WHO? Qualifications, Experience, Geo-Competence, Someone that had a "Low" appraisal. We are now the Red dot on the dartboard, everyone is attempting to hit it.

 

[Sandra Koutsopoulos]

In one fraudulent case, the owner of 2 apartment complexes was converting them to condos in Long Beach. He showed 3 units being sold at significantly higher than market value in Building 1. Later, he sold 5 units in Building 2 about 1/2 a mile away. The same appraiser was used for both buildings, and he used the 1st 3 oversold condos as comps, which then appeared to support the value in Building 2. However, all 3 sales in Building 1 were sold to Straw Buyers who then never made any payments, and surprise-surprise, those same names were the first 3 "sales" in Building 2, at way over-market prices of course. Misled, the 2 actual buyers of units in Building 2 had been duped based on the 1st 3 "sales" in Building 2, which their lender apparently deemed market value based on the appraisals. All 3 straw buyer units in Building 1 foreclosed, as did the first 3 sold in Building 2. I don't know if the bamboozled buyers for the next 2 units stayed in their mortgages or quit paying.

Meanwhile, Seller retained ownership of all the condos that hadn't sold yet, and made a whopping profit from his fraud, plus at some point as the market rose or was goosed, he could sell those units higher. I don't know what happened to the appraiser. Seller lived in Newport Beach... nice digs. High finance, now scruples.

 

[djd09]

West Virginia Appraisal Board Scheme​

by Jeremy Bagott · Published July 1, 2022 ·

The Doomed Quest to Reform a corrupt West Virginia Licensing Board

“Board members earn money working for a law firm that files lawsuits against appraisers,” said one West Virginia appraiser…

Readers of DC Comics will be familiar with Bizarro World, a cube-shaped planet that is home to a weirdly inverted version of reality. The planet is governed by the Bizarro Code, whose ungrammatical main tenet is, “Us do opposite of all Earthly things!”

But “Bizarro World” doesn’t nearly describe a scheme in which a West Virginia occupational licensing board has joined hands with a law firm that has managed to get its tentacles into the statehouse in Charleston. Incentivized financially to discipline licensees, board members have purportedly been able to earn money as a side hustle when licensees are then sued by the law firm.

In an attempt to shut down this glaring conflict of interest and dislodge the law firm from the musty halls of the statehouse, West Virginia House Bill 4285 was signed into law in April. It took effect this month.

The new law bans any member of the West Virginia Real Estate Appraiser Licensing and Certification Board from disciplining a licensee and then hiring on as an expert witness in a lawsuit involving the licensee. The statute attempts to remove the board members’ financial incentive to penalize appraisers by eliminating the possibility of future revenue attached to their disciplinary actions.

Corrupt West Virginia Real Estate Appraiser Licensing Board Plot Ends

The Doomed Quest to Reform a corrupt West Virginia Licensing Board “Board members earn money working for a law firm that files lawsuits against

appraisersblogs.com

without transparency...public trust will die in darkness

 

[djd09]

i am trying to find one instance where the AMC turned the appraiser into the state...not even in marin city

 

[djd09]

i dont even understand the concept of appraisal reviews...go do your own appraisal

 

[sputnam]

But sometimes, the bad appraiser learns and comes a not bad appraiser. It depends on the individual appraiser.

exactly

 

[sputnam]

An investigator for my state had the same opinion until he became the investigator. The complaintants can get quite nasty and harass the complaint filer.

Unfortunately, it's not uncommon for people thar are given some power to become mini tyrants. I can certainly undestand someone who believes a complaint is baseless being upset with the complainer. To me, it's just not worth the effort.

 

[George Hatch]

I think one problem is that some appraisers go off script when they review. They lose sight of the point that their subject isn't the property itself; it's the quality of the original appraisal. As well, the benchmark for the original appraiser's valuation isn't "accurate value"; but what's "reasonable" given the SOW.

Any reviewer who thinks it's their job to operate on an adversarial basis under the assumption that a compliant appraisal report doesn't exist is doing it wrong. Way wrong. And you especially don't want a state board investigation to be getting out over their skis when it comes to acting in the role of appraisal review.