We Must Start Policing Our Own!

[Leon Stewart]

George:

I don't think the Reviewer's Instructions that should be included with the Review Order includes filing a Complaint with the State Licensing Board based on his/her findings. But it's all a Lenders responsibility as far as I can see, since it's the Lender that has the option of selecting and paying a Reviewer to perform duties for the State Board.
But I don't think they are worried to much about it since this process work to their advantage, and their main purposes in the whole matter if to avoid using Appraisers altogether, and this highlight the situation to allow them to continue in the direction of a no-appraiser process system. Either way, and at this stage of appraisal activity the downward spiral for the Appraiser will continue to accelerate, and the Appraiser can do little or nothing to turn it around. The downturn started with "short Form Appraisals" and Reduced Fee's, and it went to AMC Control, and now it's at the AVM Stage, so what's next?

Leon

 

[Terry Russell]

WHAT'S NEXT,
leon,

STAY CLEAN, ADAPT or fade away. I guess when the end of the gravy

train looks like it is rolling out of site, things start looking a little scary out

there, eh? And yes I do a different type of work than many

appraisers. And yes I have read opinions on this forum. What is your

point? Terry

 

[Terrel L. Shields]

My point would be this. IF the case is so clear as to be indisputable, such as a clearly fraudulent comparable, say someone used my property as a "comp" though it had not sold, then I might "turn 'em in" ANYTHING that is not crystal clear, INCLUDING comps that were more distant than I might have used, I am not going to turn in another appraiser.

After all, if you turn me in for that, and you DO NOT manage to get me sanctioned by the Board, I PROMISE YOU a trip to court. Let me tell a little tale as told to me. I used to have a co-signatory who was CG (he died about 3 years ago) who got turned in twice. Once it was by a lawyer who did not want to pay his bill (their side lost.) Nothing came of it. The second was a condemnation case, where the appraiser for the other side (they lost) turned him in. After a full one year plus, a hearing finally established that his report was not flawed to any serious degree (they whined about a couple of income things, but never challenged his value estimate) he was exonerated. The other appraiser then had to "face the music" and was reprimaned by letter for being a sore loser. It hurt enough that I saw that guy working in an office supply store a few months later.

You best be darn careful that you can without a doubt prove what you charge before the board. Next issue, reviewers. Reviewers are about as compliant to USPAP as the general appraisal practitioner. Our state board wrote in a recent newsletter that many of the reviewers who had submitted reports challenging an errant appraisal, in fact, had turned in inadequate Reviews themselves. So.....are a high percentage of appraisers really adequately versed in USPAP? The viewers of this forum are above average familar with USPAP. I could name any number of appraisers who NEVER read USPAP or would even own a copy of it if the state had not sent it to them. They take USPAP on their 5 year schedule and their palms get a little sweaty in class, but first day back at work they knuckle under whatever some fly by night mortgage company wants them to do and, often, expects the mortgage company to defend them should a problem arise.

Be careful about turning just anyone or any report in. It might be you simply don't know enough about it to be making an informed choice and who wants it to blow up in your own face?

Ter

 

[David C. Johnson]

<span style='color:darkblue'>Terrel,

There is something that I like a lot about your post.

It has been mentioned in this thread that it's up to board members -- not complainants -- to decide whether an appraiser's work is "worthy of discipline." In fact, at some appraisal boards if there is nothing of substance to the complaint, the staff can reject it, and board members will never even hear of it. For this reason, someone filing a frivolous complaint would just be wasting their own time. This is how it should work. But it is not -- which is why your post is relevant, and arguably (and sadly) exactly right.

What I like about your post is that it internalizes the basic assumption that there is no guarantee any given board will function reasonably. Your post acknowledges the fact that boards can be incompetent where even the best of appraisals may be subject to challenge with the full authority and power of the state. You understand that the accused looses immediately even if he/she ultimately "wins" since time and effort and money will be required right from the start. The wild card in this thread has been whether or not to take into consideration that such boards exist. And, of course they do.

Turning a report in to a bad board does indeed become a moral and ethical decision.

Bad Boards are a real disaster. Bad boards are caused by bad board member appointments. These appointees then hire and maintain bad staff members, or ones who can be controlled and misdirected, such that they become bad staff members. Such boards may function as hit squads for unethical competitors to damage their competitors. In fact, it's often the most unethical and incompetent of competitors who do the buying of these board positions for this very reason. Another perk they create for themselves is that of circumventing board problems from genuinely faulty work of their own. It keeps them out of trouble. Having everyone they know, and even those that they don't, constantly kissing their hind ends is an unexpected perk, but it's instantly and thoroughly addictive. They want reappointment. They come to need it. They will pay more for it.

Wonder how many days in jail one might get for trying to buy a seat on a jury, particularly to judge a competitor? Wonder how much time any officer of the court should receive for accepting such bribes? Of course, we do not call them bribes in this country, we call them campaign contributions. The criteria for manning state boards often has nothing at all to with efficacy and justice, but rather economics. The reason the stupid and corrupt are favored is because they offer the largest bribes. This is because the positions are worth much more to the least qualified. Again, simple economics.

For appointors this has been a wonderful source of cheap cash for decades. It has been cheap because there has been no price to pay. No one has said much about it. It's been a good bet. Real safe. It's been a sleeper.

However, the damage has been horrendous -- perhaps hundreds of times more substantial than the volume of the bribes. It's been a bad economy. The Appraisal profession needs campaign finance reform.

With the relatively recent publicizing of boards and bribes making for especially bad economies, there may now be a price to pay. It can be a steep one. Real substantial. In fact, the cost has been so significant in one case it has actually altered world history by altering the Presidential election of 2000, and will do so again in 2004. I will post on it this week. You will like it. This is because we want the price to be very high. We want it entirely unaffordable. We need it entirely unaffordable.

dcj</span>

 

[David C. Johnson]

<span style='color:darkblue'>See: "A Presidential Price for Bad Appointments"
in the "Improving the Profession / Political Action"
forum.

dcj</span>

 

[Verne Hebert]

That is the issue that is most disturbing to me. The state of Montana will only entertain USPAP violations. A few years ago I amassed over one hundred appraisals through review that were inconsistent and completely wrought with mortgage scum. This appraiser was trained by an appraiser that was trained by appraiser who was a realtor and easily licensed in 1992. This appraiser knew exactly what he was doing. Making value and making money.

The state after extensive review, and in its infinite wisdom, decided that this appraiser needed more education. I called the state and said give me a break! They said we cant put him out of work!

So the problem is, Is this violater ignorant or stupid. It couldnt be intentional.;

I have fought with the state, DC, and AI for years about licensing. I say give me something for my license fee, to hell with policing ourselves solely.
Give me something for my money each year. How about a little support from the state and the feds.

Verne Hebert

 

[Leon Stewart]

Hello again, Pamela.
Sorry to get long-winded. I just happen to like being an appraiser, and have little room for people that hide from conflict with those who do not want to abide by the rules. I intend, once I get licensed, to go after REO and review work. It may not pay a lot, but it will help to keep the industry clean, and, rather than make a ton of money, I'd rather have some self-respect and be able to look in the mirror and say I did my part today. If it gets to the point I can't make a living as an honest appraiser, I'll simply find another way to make a living, but I won't cry about it and sit on my hands. Go down swinging or stay out of the ring. My dad was a firm believer in that. Guess it sunk in.

Ben you should slow down a bit, and get your license first before you voice an opinion about something you haven't had enough exposure to to have much knowledge of.

Leon

 

[Terrel L. Shields]

Leon

Personally, Ben's post appeared to me to be pretty competent. As for licensing, I have a sub that has been appraising since 1995, no license. At first she did not want to bother, then a hiatus due to Lupus. Now she is working that way and is going thru my old files to reconstruct her work history.

After 7 years I consider her to be highly competent and certainly able to voice her opinion when she wants. Speak your peace Ben.

Ter

 

[Dale Smalley]

I have done many reviews of appraisers work throughout the country and have not turned in a single appraiser. Never did I recieve instructions from my clients to turn anyone in to the athorities. I believe my job as a reviewer is to do just that and not to be an industry policeman. Besides most of you that turn in appraisers are only trying to get rid of some competition in hopes of getting more work. :twisted: :wink:

 

[George W Dodd]

Don't bother turning them into the State Appraisal Board, if they are like the one here in Virginia. I have tried several times to bring the worse offenders to the Board. Based on there findings: the use of an incorrect sales date, incorrect sales price, multiple incorrect GLA, numerous errors about the subject property, ignoring 3 recent sales of identical properties in the subject's neighborhood and going into other neighborhood using less comparable data (all in the same report) DOES NOT MATERIAL VIOLATE USPAP OR STATE REGS.

Thinking of switching my occupation to something that doesn't mean calling myself an "appraiser" -- has such a dirty feeling to it anymore.

I know, I am now a "Real Estate Analysis" and hold the coveted REA designation. Anybody else want to join?