We Must Start Policing Our Own!

[Terrel L. Shields]

The Arkansas Appraisal Board's newsletter a year or so ago, thanked the reviewers for turning in the appraisers, but remarked that some of the reviews themselves fell short of USPAP and could result in reprimands to the reviewers.....Maybe time for a refresher course in reviews.

 

[Mike Garrett RAA]

If you review an appraisal and find fraud you must turn it in. Not to do so makes you part of the problem.

Received a request to do a 2055 on a property that was just appraised, in fact the lender sent me the appraisal. They said, "do not contact the other appraiser, do not submit the appraisal report to the state licensing authority. Use 3 closed sales and 3 listings."

I said "Fine, my fee is $350 and can have it back to you in 8 to 10 days".

They said...."cancel the order too expensive...too slow"

I said "Fine, looks like you already got what you are willing to pay for".

Presently teaching the last portion of the Registered Appraisers course for a local real estate school. Told the students if I ever review any of their work and find fraud I will personally do everything I can to see they don't appraise in Colorado. I mean it. Seems the word gets around who their instructor is...and guess who gets the black eye? Just reviewed a report from one of my former students. Convinenced she has gone over to the dark side of the force. Off to the State Licensing Authority it goes!

Lastly, another student, damn...why does it always have to be women.... had applied to the state for two thousand hours of experience credit. She has only been an apprentice for 6 months. Her logic? "Well I can do four appraisals a day and the state will allow 4 hours per appraisal for experience for each appraisal" Lets see......thats 16 hours a day....yep, that would be 2,000 hours in 6 months. Give me a break!

 

[Bob Ipock]

Mike,

No matter how you slice it...incompetent, dishonest and reckless appraisers are at the center of the problem. These folks make sure that the crooked lenders stay in business. We can blame it all on the lenders but the fact remains, SOMEONE is giving them the appraisals they need.

I decided along time ago that I would report any and all appraisals that sink to a level of incompetency, fraud or are severely misleading. I will not make an anonymous complaint but understand why some people do.

At least two appraisers that I know of are no longer in the business due to my complaints and those filed by others. The system sometimes works and most often works slowly.

When we dry up the pool of dishonest and/or incompetent, the like minded lenders will either go out of business or begin using competent appraisers.

I must confess, in my opinion, things are much worse now than they were five years ago... many more bad appraisers, trained by bad appraisers and now training even more bad appraisers.

Keep the faith. Like you, all I can do is keep plugging away for appraisers to wise up and DEMAND that we all play by the same rules.


Bob

 

[Leon Stewart]

The Arkansas Appraisal Board's newsletter a year or so ago, thanked the reviewers for turning in the appraisers, but remarked that some of the reviews themselves fell short of USPAP and could result in reprimands to the reviewers.....Maybe time for a refresher course in reviews.

When the Reviewer misinterpert the Rules and/or makes an error in filing a complaint, gets sued and loses his $ 5,000 per month Client, is the State Board going to pay his Legal Fees and supply him with the work he lost by losing the Client? I don't think so.

leon

 

[Bob Ipock]

Don't worry Leon, those appraisers that you will not turn in will someday take away your $5,000.00 a month client. Just a matter of time.


Bob

 

[P.Johnson]

What timing! I just got a call from a mortgage wholesaler that I did 30-40 reviews for in the past. He asked if I sent in the poor ones to the State because they are getting calls and letters from the original lenders, the appraisers and the State. I anonymously sent in about 10 or so in a large package with my name blacked out. I never thought I would hear another thing. Immediately after hearing from the client, I got worried about the confidentiality provision of USPAP. I probably will not get any more reviews from this company. Being a whisle blower sounds good, but there certainly are risks. Do I need to upgrade my security system from a .38 to a .44? Please keep reassuring me that I did the right thing. Does anyone have any good ideas I can tell my client? Is there anywhere USPAP recommends turning in the poor reports? The lender is worried that they may have to buy back the loans from FNMA or whoever they sold them to. I don't think the State can disclose the information to anyone else.

 

[Pamela Crowley (Florida)]

P. Johnson,

YES!!! You did the right thing!!!!!

I know it's difficult. I'm busy and don't get anything from the local mortgage brokers. I have a reputation to uphold! :roll: Please, don't let this get you down and stop you from doing the right thing. As enough of us grow big enough cajones, it won't be as difficult as it currently seems to be. I've talked lenders into sending in the complaints and gave them time to do it prior to my doing it if they didn't.

You did the right thing!!!!!

 

[Bob Ipock]

Read the "CONDUCT" section of USPAP, under the ETHICS RULE.

it says: AN APPRAISER MUST NOT COMMUNICATE RESULTS IN A MISLEADING OR FRAUDULENT OR KNOWINGLY PERMIT AN EMPLOTYEE OR OTHER PERSON TO COMMUNICATE A MISLAEDING OR FRAUDULENT REPORT.

Now, suppose you glossed over all those reviews you did and someone ELSE turned them in to your state. The Client who ordered the reviews can and SHOULD come after you for not doing your job.

Turning in an appraisal for a complaint in any state, IS NOT a violation of the USPAP Confidentiality rules. State enforcement agencies are SPECIFICLY MENTIONED page 8 of USPAP 2002 (Under the Confidentiality section).

I do not understand why this myth keeps popping up. It just ain't true! You MAY and SHOULD file compaints to the state boards for misleading, incompetent unethical or fraudulent work.


Bob

 

[Farm Gal]

Bob:

Please understand that I am NOT attempting to slang the NAIFA group nor their education processes: Several years ago I sat through Standards fo Professional Practice, where the instructors flat out told the entire class that USPAP PROHIBITED sending bad reports to the state as a violation of the confidentiality clause(s).

I was first surprised, then upset, then offended, then after standing up in the class and stating MY point of view (which coincides with yours) told to siddown and shut-up as the instructors were right and I was wrong. The co-instructor at the time was their head of Education, the other a local appraiser for whom I have had no respect since. I have never and may never take another of their classes, despite having a great deal of respect for many IFA designated individuals, who got their entire education from the NAIFA program. Sort of makes you wonder what they heard in the rest of the classes

I was so angry that I demanded a written retraction, which was never received, complained to the state board (no action there) etc.

So there are/were at LEAST 65 of my peers in this state that had been told in the only USPAP class they would be exposed to for the next 4 years that they were PROHIBITED from turning in a peer if presented the documentation to do so!

Thus one source of disinformation on this matter.

I do not know if this matter has ever been resolved in that group.

Regards,
Lee Ann

 

[Bob Ipock]

I understand. Lots of bad info is put out on a daily basis. All I ask is that people go to THE SOURCE, which is the USPAP BOOK....not the instructor.

USPAP very CLEARLY state that state appraisal board are one of the exceptions to the confidentiality rule. USPAP 2002, page 8, lines 312 & 313.

Would you mind looking it up and confiminging that I have not lost my mind?


Bob