Unintended consequence of reviews

[Fernando]

They have the authority to do so and you are correct that it does take resources. It can be done as I was lead in developing an audit program for AMCs.

Please only audit the bad appraisers.
Audits for all would take too much time away from appraisers considering they don't make that much now.

 

[alebrewer]

They have the authority to do so and you are correct that it does take resources. It can be done as I was lead in developing an audit program for AMCs.

There are exponentially fewer AMC's than appraiser credentials. And I'm guessing even that didn't result in universal audit? It's poor taste to try to guilt appraisers into turning other appraisers in. Can't speak for CA, but the GSE's keep TX plenty busy with referrals.

 

[TerryRohrer]

IF that is what they disciplined you for then what they did is complete bullsh*t.

There was no discipline. At the administrative hearing, after the testimony and cross of the two complainants (agents in the sale transaction complaining about value), the administrative judge turned to the State's attorney and said, "Well, the complaints are pretty much gone. Do you have anything else?" The State spent the afternoon trying to make something of the minutia like indicated above, and didn't. The judge wanted them to withdraw the complaint during the hearing, but their attorney suggested she had superiors to answer to. The proposed disciplinary action was dropped, but being subjected to the time and expense of the process was, in fact, bullsh*t.

At that time, the "investigators" were appraisers hired by an AMC for the lowest fee. Now, there is reportedly a panel of hand-picked friends of the board members. The state-employed investigator/general certified appraiser, in place for the first 20+ years of the board's existence, would not tailor her opinions to suit the games of the board members and was never replaced when she tired of the conflict and retired.

 

[John Hassler]

There are exponentially fewer AMC's than appraiser credentials. And I'm guessing even that didn't result in universal audit? It's poor taste to try to guilt appraisers into turning other appraisers in. Can't speak for CA, but the GSE's keep TX plenty busy with referrals.

It was a universal audit for AMCs that was developed. And yes, the GSE sporadically sent in complaints.

 

[alebrewer]

It was a universal audit for AMCs that was developed. And yes, the GSE sporadically sent in complaints.

haha. Ok...

 

[alebrewer]

It was a universal audit for AMCs that was developed.

Developed as a universal audit, or deployed universally?

 

[John Hassler]

Developed as a universal audit, or deployed universally?

Deployed universally. This is separate from investigating complaints lodged against AMCs.

 

[BRCJR]

I have done some reviews lately and I am shocked how bad some of these reports are. I think some of these form fillers need to go back to either school or to their mentors. USPAP violations on basically every report that I have reviewed. Lenders or AMC's don't care. What happened to the days or producing a quality report ? This profession is in decline

Regulated lenders should be required to have reviewers pass a class akin to the USPAP to show competence.

 

[John Hassler]

Their mentors are the reason they perform so poorly in many cases...

True to some extent. More significantly it is the lenders who employed those mentors and gave them the financial ability to service and have a trainee.

When it comes to lenders who feed the Fannie/Freddie machine, there is high demand for low competency appraisers.

 

[sputnam]

Regulated lenders should be required to have reviewers pass a class akin to the USPAP to show competence.

That idea has merit. AMC employees have to take USPAP. Why not Lenders? Even better... require that reviewers be seasoned, credentialed appraisers.