Urgent Help Needed - saving my appraisal career

[jay trotta]

A bit about me. 24-years as a Certified Appraiser in an area about 1-hour NE of Kansas City. Yes - a rural area.
I am the only active appraiser in a three county area.
So yes, I am as busy as I want to be.
I enjoy the profession and like the complex assignments I get from time to time.
I completed an appraisal almost 3-years ago in a small town of 2,500+/-.
The home was significant because JC Penny was its original owner. It was purchased by a company that specializes in historic older homes.
The 125-year old home was so clean - you could eat off the basement floors - yes - that clean.
It was 3,000 SqFt and by far - the largest home - and nicest home in the entire town. No comps in the town. No comps in a 20-mile radius like this one.
Therefore I went 25-miles out and found three comps that were similar in three different communities - adjusted for location - and explained in detail the how and what I did to complete the appraisal.
Two-years later the client I appraised the home for - their CEO opened the door and told his 200 employees they were laid-off. Fannie Mae was pissed and audited their files. My appraisal file was one of those selected. I received a letter to appear in front of the state commissioners meeting. I became reacquainted with the particulars of the property and met with the commissioners. I explained the how and what of the appraisal and I felt I left the meeting with a positive outcome. The only thing that came up was the fact that I did not document the site values and any adjustments they may have had.....that's it. Nothing else.
About two weeks later I get a letter from the commissioners office stating that Fannie Mae recommends a 30-hour sales comp approach class and a 4-hour site evaluation class. No "due by" dates and no mention of exams. So I call the commissioners office and ask about the classes and they agree on-line classes would be okay. I then ask them about exams. They said exams are not required. So I plan to take the classes this winter - when our business slows down.

On 12/5 I receive a letter stating both classes have to be completed by 12/31.....the first time dates have ever been mentioned. So I put off some Christmas gathering to take the courses. I even asked the course providers to not take the exams - because I was told I did not have to take them.
So today - after receiving a letter from the course provider that did indeed take the class - passed the exam - but did not sit for the proctor exam - that this 30-hour course does not count because I did not sit for the proctor exam - AFTER the told me I did not have to take the exam.....
Why is this important - because could loose my license because I did not sit for the exam. I was told my the course provider to take the course, take the quizes. take the course final exam - but "call us before the proctor exam because you do not need to take it".....I followed their directions - now I am in a loop
Please take the time to think about this before you respond. I fill I am getting the shaft.....
Is it time to lawyer up ?

Never go before any, Board or anyone else without a Lawyer - let them know up front your prepared. Always keep (in writing) all paperwork, requests and emails in your file's and I do mean everyone, it provides support for future inquiries. Your work files are the most important item you have as a support product, and it would appear you have let things slide.

With 20+ years of Rural appraising under your belt, I would find it hard to believe you lack any knowledge & experience in your area of work. If you had an attorney with you, you would probably have had a better outcome.

 

[Larry Phillips]

Is it time to lawyer up ?

Yes! And quickly.

 

[Elliott]

I just got stopped by the town cop. He's a young fellow and said, "You were going 35 in a 25 zone, and you didn't turn on your turn signal twice." I gave him my information, and he asked me why I was going so fast. I said, "I didn't think I was going that fast (knowing he had no evidence to support the speed) and I was just returning from lunch." He walks back to his car and comes back and says, "I'm just going to give you a warning, but you should use your turn signal." So I return home and I know I wasn't going 35 and there is only one place from the highway where I could have signaled a turn, which was at the 4-way stop and there wasn't any other cars when I made the turn.

The moral of the story? You can be 'right' all day long with state boards and it doesn't make any difference. You just say, "yes sir, no sir, two bags full sir." By acquiescing to unreasonable demands you are effectively saying, **. Administrative law is a joke. Always best to find a really good hill to die on.

 

[togatour]

Call you E&O provider next and talk to a lawyer, PERIOD. Something doesn't add up here....they audited a former client's files and randomly selected yours to scrutinize, then found some missing analysis and referred you to the State Board?

You are missing something here and your lawyer can find out exactly what is going on? Did the loan go bad? Was there fraud involved?

About 25 years ago I had to call my E&O for the only time ever involving a lawsuit that I was served with involving an FHA purchase. I was assigned a lawyer, met with her the next day and within a day she found out that a single minority mother had bought the house and was having trouble making payments. She was given an adjustable rate (and probably a predatory loan) by the mortgage company and when her payment significantly increased after one year, she contacted the local housing authority for help and they initiated the law suit, naming the realtor, the mortgage company, the lender who had purchased the loan, the title company, and me (the innocent appraiser, with E&O insurance $$). Moreover my lawyer had my appraisal reviewed by an established local appraiser and fought to have my case separated from the rest, but that was denied. A few weeks later we went for a deposition. Meanwhile, my excellent attorney found out that the borrower was originally not the one buying the house. It was her boyfriend and the father of her child. So she bought the house for them. He left her after a few months and she was struggling and then when the payment went up, she went for help....and the housing authority filed suit for her.

The suit was settled with the lender giving her a fixed rate, and the rest of us chipping in for a year of taxes and legal fees. My appraisal was even reviewed by their expert and signed off on (yes there was one nick picky thing involving a flat roof a on a rear entry porch that was noted in my report).

Obviously, as the lawyer explained, we had to settle as it was cheaper that proceeding especially with all of the other parties setting.

My lawyer wrote the nicest letter to the E&O company and complimented me on my professionalism. My premium was never raised. Oh, and by the way....my lawyer too was a single minority mother and the absolute best attorney.

Bottom line, you need a legal advocate.

Also, why not call the provider of the class you took and ask to sit for a proctored exam?? You already completed the course, take the proctored exam and have that behind you.

Best of Luck

 

[Fernando]

I just got stopped by the town cop. He's a young fellow and said, "You were going 35 in a 25 zone, and you didn't turn on your turn signal twice." I gave him my information, and he asked me why I was going so fast. I said, "I didn't think I was going that fast (knowing he had no evidence to support the speed) and I was just returning from lunch." He walks back to his car and comes back and says, "I'm just going to give you a warning, but you should use your turn signal." So I return home and I know I wasn't going 35 and there is only one place from the highway where I could have signaled a turn, which was at the 4-way stop and there wasn't any other cars when I made the turn.

The moral of the story? You can be 'right' all day long with state boards and it doesn't make any difference. You just say, "yes sir, no sir, two bags full sir." By acquiescing to unreasonable demands you are effectively saying, **. Administrative law is a joke. Always best to find a really good hill to die on.

I got a ticket years ago making a right turn.
I stopped for half second and turned.
Cop stopped me and asked why he stopped me.
I said I turn without complete stop and apologized that I was in hurry to pick up my child at school.
I gave me a ticket costing me over $250.
Thus, I never liked traffic cops.

 

[Zoe]

Next time tell your client to get a waiver on that one. Say, I hear waivers are going through well these days.

Tell them just plug that address in the computer and roll with it. Tell them whatever that computer spits out, just go with it.

Tell them something next time and avoid it.

 

[Zoe]

I got a ticket years ago making a right turn.
I stopped for half second and turned.
Cop stopped me and asked why he stopped me.
I said I turn without complete stop and apologized that I was in hurry to pick up my child at school.
I gave me a ticket costing me over $250.
Thus, I never liked traffic cops.

I did get pulled over like that too. But Bartlett PD are very strict. I didn't come to a complete stop at the stop sign. I paid the ticket.

I got pulled over one time at a family member's house and was driving a little sports car. My brother in law was riding with me and he had political connections. I told the officer I was not speeding and asked a few questions and he said I was sitting back at that department store when you passed me. I said sir I never went past that store.

My brother in law went back and told his dad his dad called the mayor. That ticket disappeared.

I never went past that store and wasn't speeding anyway. I just gave the ticket to his dad and he said don't worry about it. I will talk to the mayor.

He clocked somebody else going past him and it wasn't me because I didn't even pass where he said he clocked me speeding. He clocked the wrong car.

I think the mayor said they had some problems with the officer in the past. I didn't jerk an attitude and I would have appeared in court to fight it if it would not have been taken care of because I did not even pass the place the officer clocked me and had an eyewitness to prove it.

 

[Zoe]

Who laid off 200 employees?

I know it is none of my business but why did that **** Fannie off so bad?

You said you did location adjustments. Talk to your E&O company monday morning.

 

[J Grant]

FWIW, since a number of people conclude, "don't accept complex assignments - that would mean missing out on substantial income,, especially those in rural or niche/expensive custom home areas - and the reality is that with WAIVERS, complex assignments may be the bulk of lending assignments,

The main challenge of complex assignments is finding the right comps ( IMO), though there are other challenges. But, a big, expensive, or oddball home is a simpler assignment when there are comps for them, and even a small starter house becomes a complex assignment when there are few good comps.

Of course, in a rural area, larger distances are the norm, but even there, one assumes there are preferred locations or reasons a buyer would choose X location and not Y location or pay more to be in the X location- as well as some reasonable distance radius that most buyers would consider - be it 5 miles or 10 miles.(for example)

The danger with using all very far-off area comps for residential property assignments is it might not address whether the problem child subject might be an over-improvement or under-improvement. A super adequacy for tis area? If all the comps are adjusted down for location, that is a red flag for an appraisal (or if the location adjustment is evident, but was not made)

If there are no similar comps, going back 3 -4 years, within X miles, it might indicate that the area demand for these properties is low. Thus a small under-improvement house might be a tear-down for a vacant lot. The huge sf or custom or historic subject might be a super adequacy and worth less than a reproduction cost. An analysis of that has to be made, whatever one concludes.

It is a good idea, whenever possible, to use at least two closer location sales, even if they are far back in time or need large adjustments.
,

 

[Zoe]

FWIW, since a number of people conclude, "don't accept complex assignments - that would mean missing out on substantial income,, especially those in rural or niche/expensive custom home areas - and the reality is that with WAIVERS, complex assignments may be the bulk of lending assignments,

The main challenge of complex assignments is finding the right comps ( IMO), though there are other challenges. But, a big, expensive, or oddball home is a simpler assignment when there are comps for them, and even a small starter house becomes a complex assignment when there are few good comps.

Of course, in a rural area, larger distances are the norm, but even there, one assumes there are preferred locations or reasons a buyer would choose X location and not Y location or pay more to be in the X location- as well as some reasonable distance radius that most buyers would consider - be it 5 miles or 10 miles.(for example)

The danger with using all very far-off area comps for residential property assignments is it might not address whether the problem child subject might be an over-improvement or under-improvement. A super adequacy for tis area? If all the comps are adjusted down for location, that is a red flag for an appraisal (or if the location adjustment is evident, but was not made)

If there are no similar comps, going back 3 -4 years, within X miles, it might indicate that the area demand for these properties is low. Thus a small under-improvement house might be a tear-down for a vacant lot. The huge sf or custom or historic subject might be a super adequacy and worth less than a reproduction cost. An analysis of that has to be made, whatever one concludes.

It is a good idea, whenever possible, to use at least two closer location sales, even if they are far back in time or need large adjustments.
,

Yeah, you can get in trouble trying to follow those 10%,15%,25% customs on adjustments. Same way on mileage distance. You have to find good comps or just do the cost approach and/or income cap approach and say sales comparison approach was not necessary for credible assignment results. It likely won't be going to a GSE in that situation.

I still would like to know who laid off 200 employees. You think it was an AMC?