Urgent Help Needed - saving my appraisal career

[Zoe]

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 speicallizes 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 fronr of the state commissioneers meeting. I became reaquiranted with the particulats of the property and met with the commsiioners. I explained the how and what of the appraisal and I felt I left the meeting with a postive outcome. The only thing that came up was the fact that I did not document the site values and any adjustments they may have

This last paragraph I don't get.

"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 fronr of the state commissioneers meeting. I became reaquiranted with the particulats of the property and met with the commsiioners. I explained the how and what of the appraisal and I felt I left the meeting with a postive outcome. The only thing that came up was the fact that I did not document the site values and any adjustments they may have"

OP,

This is interesting to me. I think it will be interesting to your E&O lawyer and maybe another lawyer you might hire. So you had inside connection with some people to know fannie mae got pizzed.

So your client told you they were being audited by Fannie mae is the way I read it. Whose CEO opened the door and laid off their employees?

I am really lost in the whole picture and I am not a lawyer. You need a lawyer. Your E&O company can help you and/or refer you to a good lawyer.

Hang in there.

Share the whole story with your E&O lawyer.

 

[Zoe]

Your E&O lawyer has a confidentiality agreement with you. You can share things with them that you can't share here.

In other words, your E&O lawyer is on your side if that makes sense. Spill your guts there and ask the lawyer if they can notify the commission you can't meet their requirements.

 

[mutigerfan]

Celebrity Home Loans, LLC - laying off 200 employees.
https://nationalmortgageprofessional.com/news/former-celebrity-home-loans-employees-headed-court

Spend the day working in the barn - trying to not think about this - unsuccessful.
Turn down the assignment...... - I am the only appraiser in the entire county - no one but me - seriously.
I will start the morning with McKissock - then see my attorney.
I had a true-to-life "crack-head file a complaint against me 10-years ago - he did not do anything but hired an attorney to write a letter - I discussed with my E & O - suit was dropped because he got caught selling said crack. Nothing changed - except my E & O doubled......no thanks of the E & O.
I will just see my personal attorney.

Taking an 3-hour exam 23-years after..... I originally took the 30-hour course - is not what I desire to do.
I passed the latest quizzes and final exam (open-book 80% needed to pass) - but I was told by the Commissioner Office and McKisock I did not nee to sit for the proctored exam. I just want them to honor what they said.

What about the email dated 12/5 that both classes needed to be completed 12/31 ? No dates were ever mentioned prior to this email..... Ever.

 

[Dublin ohio]

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?

On a home of the vintage in the op, it was more than likely fairly common back when it was built. But as areas develop around them, more "modest" home were constructed. Other similar buildings typically exist in the area but either seldom sell or have been converted to commercial use and of course condition is always a factor. The last one I did that was similar was on 3 acres in the middle of a rural city, owned by a county commissioner, about 3000 sf with a restored carriage house that could have held about 3 or 4 carriages and it was part of the underground railroad. Still had one of the hiding places where they hid the slaves which was accessed by a "secret" panel in one of the closets. It had a watchtower that was used to signal between the watchtower in the courthouse so they knew when the slave hunters were coming. Has a sale of a similar building in the downtown area but it turned out to be a B & B. Ended up going 5-25 miles for similar properties in similar rural cities. Sales in those cities were just as rare. So that also says something.

 

[Cob]

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.
,

NO ONE on here is telling anyone to not accept complex assignments, people are saying that they no longer accept complex assignments, I'm not telling ANYONE not to accept complex assignments, I'm stating that I no longer do, anyone else that wants to accept them, knock yourself out, if I lived in rural area and was a residential appraiser doing GSE work and was getting a LOT of the complex assignments, I would seriously start looking for another line of work, because if that's the situation you're in, by 2026, the looking for another line of work part will already pretty much be forced on you.

If residential appraisers completing GSE work can't figure out by now what's in store in the future for this industry, they will keep looking around to try to figure out who moved their cheese. This industry has already started the slow death, you can do a lot of non lending work if you can live off of just that, work for a company and get paid half of what you were making on your own, or leave the industry and make a living doing something else.

 

[OSU Beavers]

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 ?

If I am understating you correctly, the subject property did NOT go into foreclosure and the firing of 200 employees did NOT occur in the subject's small town of 2500 people, FannieMae is just causing you grief because they do not like your adjustments and work file???

No loss, no harm, just being nit picky?

 

[Tom D]

The problem isn't the appraisal. It's the ounce of power that non knowledgeable bureaucrats have to overwhelm you with their stupid. I always told my people, you never want your appraisal to be reviewed. This is the perfect case of hit and run, over the appraisal.

​

 

[J Grant]

Celebrity Home Loans, LLC - laying off 200 employees.
https://nationalmortgageprofessional.com/news/former-celebrity-home-loans-employees-headed-court

Spend the day working in the barn - trying to not think about this - unsuccessful.
Turn down the assignment...... - I am the only appraiser in the entire county - no one but me - seriously.
I will start the morning with McKissock - then see my attorney.
I had a true-to-life "crack-head file a complaint against me 10-years ago - he did not do anything but hired an attorney to write a letter - I discussed with my E & O - suit was dropped because he got caught selling said crack. Nothing changed - except my E & O doubled......no thanks of the E & O.
I will just see my personal attorney.

Taking an 3-hour exam 23-years after..... I originally took the 30-hour course - is not what I desire to do.
I passed the latest quizzes and final exam (open-book 80% needed to pass) - but I was told by the Commissioner Office and McKisock I did not nee to sit for the proctored exam. I just want them to honor what they said.

What about the email dated 12/5 that both classes needed to be completed 12/31 ? No dates were ever mentioned prior to this email..... Ever.

I did not read the email ( of course) , however if the eamil only said that both classes need to be completed by 12/31 and it did not say must sit for proctor exam, that is your proof that you complied with what they asked, and if the proctor exam is needed you will arrange to take it at the next available date it is given in your area.

Imo you dont' need an attorney for that, but that is just my opinion.

WRT Mckissok - they too get audited by states in order to be approved for credits for their continuing ed so they will go by the book -

 

[sputnam]

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.

Typical. You don't like traffic cops because one did his job. The cop wasn't driving your car. You were.

 

[Zoe]

Celebrity Home Loans, LLC - laying off 200 employees.
https://nationalmortgageprofessional.com/news/former-celebrity-home-loans-employees-headed-court

Spend the day working in the barn - trying to not think about this - unsuccessful.
Turn down the assignment...... - I am the only appraiser in the entire county - no one but me - seriously.
I will start the morning with McKissock - then see my attorney.
I had a true-to-life "crack-head file a complaint against me 10-years ago - he did not do anything but hired an attorney to write a letter - I discussed with my E & O - suit was dropped because he got caught selling said crack. Nothing changed - except my E & O doubled......no thanks of the E & O.
I will just see my personal attorney.

Taking an 3-hour exam 23-years after..... I originally took the 30-hour course - is not what I desire to do.
I passed the latest quizzes and final exam (open-book 80% needed to pass) - but I was told by the Commissioner Office and McKisock I did not nee to sit for the proctored exam. I just want them to honor what they said.

What about the email dated 12/5 that both classes needed to be completed 12/31 ? No dates were ever mentioned prior to this email..... Ever.

Okay, that helps me figure it out.

“To date, however, Plaintiff has not received full payment of all outstanding wages and commissions. Plaintiff had also accrued paid time off and vacation days pursuant to his employment agreement for which he did not receive full payment,” the lawsuit states. “Plaintiff is not alone in his experiences, and hundreds of Defendants’ other loan officers and other employees have had nearly identical experiences.”


On the other hand, I don't see how FNMA has a dog in this fight or race to audit their appraisal files. I don't even see how FNMA has the authority to do so.