USPAP violation to get on "Appraiser List"

[OSU Beavers]

A local bank usually has a loan officier who gives all their work to his brother-in-law. They are being polite and letting you
apply.

That is SO true! Will HVCC or IVPI or whatever change that? Local banks with commissioned loan sales people are worse than mortgage brokers sometimes.

 

[BlueDog007]

TC-

That's a good way to do it! I guess I just don't have time to do freebies. Maybe I should make some time.

 

[OSU Beavers]

I have 3 friends, which is rare for an appraiser, one lives in a condo, one in a detached ranch, and the other owns a duplex. Every year I update the appraisals on their property and that's what I use as samples when potential PAYING CLIENTS ask for them.

It ain't rocket surgery.

TC

Who is the client and are those reports on the new forms?

 

[Pat Butler]

It's the address in connection with the data. Think of it this way- if the assessor gets a hold of property data that shows the subject property has a higher market value because of improvements he didn't know about then that violates GLB and the homeowner will certainly be harmed.

Has anyone ever done any litigation work? Oftentimes old appraisals are used in litigation when one side wants to prove that the other party accepted the market value on an old appraisal for some purpose (refi for example). This meant that they were OK with the market value in that appraisal, or else they wouldn't have completed their refi. That old appraisal's value is oftentimes used against their newer appraisal.

So it's common practice to compel the parties to have to provide any appraisals for their property. And guess what? Some parties don't like to provide that data and will actually say that they have no old appraisals on the property.

Now along comes a bozo appraiser who uploads one of those old appraisals to a data mining site, or provides it to a lender. Now the other party finds out that indeed there is an old appraisal on the property through one of these sources. Do you think that homeowner will feel that their non-public information was illegally disclosed. You bet.

I was involved in a case where this happened.

Look at the definition of nonpublic personal information-

(A) The term ''nonpublic personal information'' means personally identifiable financial information -

(i) provided by a consumer to a financial institution;
(ii) resulting from any transaction with the consumer or any service performed for the consumer; or
(iii) otherwise obtained by the financial institution

That encompasses the appraisal for sure unless you can't connect the appraisal to the person.
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[Michigan CG]

This is a very timely thread for me. I got approval from two clients to distribute two commercial reports to potential new clients. For a complex residential where I could not get permission (couldn't find the client) I blacked out all identifying information.

The two commercial reports would not be easy to read if everything were deleted that identified the properties (how many Social Security offices are there in one town?). The other one is way too obvious being across from a major shopping center. So I got permission from both clients (in writing) to submit the reports to the institutions that might hire me for services.

The residential would be almost impossible to identify from everything blacked out on the 1004.

Confidentiality is very defined in USPAP.

BTW....they got hard copies, I did not e-mail them in PDF...I don't really want the potential of my reports traveling the Internet.

I printed 5 copies of each and hopefully didn't waste 1,400 sheets of paper.

 

[BlueDog007]

Timothy-

I provided samples appraisals with EVERYTHING except the address, borrower, parcal #, lender/client. The reports absolutely indicate my technique in producing a report. That is all they should be concerned about. Not the exact address of the appraised property and the opinion of value provided for this particular property.

 

[Michigan CG]

Timothy-

I provided samples appraisals with EVERYTHING except the address, borrower, parcal #, lender/client. The reports absolutely indicate my technique in producing a report. That is all they should be concerned about. Not the exact address of the appraised property and the opinion of value provided for this particular property.

I think that is exactly how to do it (what you did). If some dumb butt cannot see your technique, thoroughness, integrity, due diligence and style from what you submitted then they are not the brightest light on the Christmas Tree.

In my residential report they have numerous interior and exterior photos, 4 pages of additional comments (addenda) and justification of every adjustment. If they cannot understand this I don't really want to work for them.

 

[Mike Garrett RAA]

Geeezzzz....maybe a 7 hour USPAP update class should be taken once a month! Please read FAQ 40, USPAP 2008, page F-19.

Just blows my mind that several USPAP instructor give you the correct answer and then everyone adds their own personal opinion which is completely opposite to what is stated in USPAP.

Some points...Confidential information is that which cannot be obtained from any other source. The address of the subject of an appraisal report is not confidential information.

A client may give an appraiser permission to use an appraisal report as a work sample. It is not necessary to redact any information in that case.

Redacting information in a work sample can render it useless for purposes of review for acceptability of the appraiser's work product.

Another option, which is what I use, is to not provide work samples. "If you want to see a sample of my work, order an appraisal!".

 

[BlueDog007]

Mike-

Several of my clients will NOT give me permission to provide copies of FEE appraisals completed for their use. The reports are proprietary and can't be released to where it identifies the buyer or the subject property. The reports are part of the borrower's loan file and are not allowed to be shared under the Privacy Act. So, without their written consent, I can't provide appraisal copies that identify the address or borrower. That makes a lot of sense to me!

I have always provided sample appraisals whereas the address, tax parcel number, borrower, and lender/client have been removed. This is the first time I have ever had a potential client request/require the subject address. By providing a report including this information (without consent of the original client), along with the value, I would be in violation of the confidentiality law.

 

[Mike Garrett RAA]

Then don't ask them, ask a different client!