• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Welcome to my world-Appraisers resisting inflating values

Status
Not open for further replies.

Michael Tipton

Thread Starter
Senior Member
Joined
Sep 25, 2005
Professional Status
Certified Residential Appraiser
State
Florida
Appraisers who resist pressure to inflate values said they may be blacklisted.

`Squeeze Another $20-$25,000'

Paul Bodeving saw his business dry up after he was hired by an appraisal management company to evaluate a four-bedroom, 3,500-square-foot house in Grants Pass, Oregon, last February.
After examining the value of comparable homes, Bodeving determined the property was worth $837,000. The appraisal management firm asked him to ``squeeze another $20-$25,000'' in value so the lender could close the loan, Bodeving said. He refused and rarely gets work from the company anymore.
``It's absolutely horrible,'' he said. ``We've never had the pressure we have now.''
Debbie Huber, a Las Vegas home appraiser, says a third of the mortgage lenders who want to hire her are looking for a guaranteed value before she appraises the property.

Pistol-Packing Appraiser

``We get calls like that every hour of every day,'' said Huber, past president of the Nevada Appraisal Commission, the state agency that oversees appraisers.
The problem became so severe in Florida that appraiser Pamela Crowley said she started an e-mail distribution list in 2003 for real estate appraisers to report suspicious sales and refinancing deals.
Crowley said she was forced out of the appraisal business because she refused to report property values that were higher than the actual worth. She has turned the e-mail list into a Web site, and says she now works with a snub-nosed .38-caliber pistol at hand because she's afraid of retribution.
``There are a lot of people who made a lot of money on this whole game and I was hurting them,'' Crowley said.
Appraisers also are being pressured to overlook imperfections in homes or ignore housing trends in a community that might bring a property's value down, said John Oakvik of Tozzer, Oakvik & Associates Inc. in Fort Lauderdale, Florida.

http://www.bloomberg.com/apps/news?pid=20601208&sid=aspX9JNoyFRE&refer=finance
 

Marcia Langley

Senior Member
Joined
Aug 26, 2005
Professional Status
Certified Residential Appraiser
State
Missouri
Really good article. And I do mean that (and it's nice to see our Pam quoted!).

But the newsworthy hook in the story is that the bank was the victim of the crooked MB and appraiser.

In these really big fraud ring stories, the bankers' business practices are never examined.

This article does, however, highlight the pressure that appraisers are under aside from organized fraud rings so I have to give kudos to the reporter for getting that message in there edgewise!
 

Carnivore

Elite Member
Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
The story behind the mess is why we have an over-supply of appraisers. Do you really think this over-supply happened by mistake?

If proper enforcement had been in place, appraisal crime would be drastically reduced. Additionally, proper enforcement would have encouraged appraisers to gain more and more education on there own!!

There simply was no control on appraisers. None!! Any other business would fire incompetent people. Not Mortgage lenders(all of them). Incompetence was rewarded. Competence was eliminated.

The system is upside down by design. The system has way to much lender influence!

Ask yourself why we do not have these problems in Non-lender Clients?
 

Smokehouse

Junior Member
Joined
May 7, 2003
Professional Status
Certified Residential Appraiser
State
Florida
Pamela I didnt know that you were no longer appraising, I must have missed that post. What are you doing now?
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
I did 3 appraisals last year... last one was March '07.

Who would hire me after a google search and eAppraiseIT suing me?????

The few mortgage brokers that manage to find me and don't know what I've been doing with their demands won't hire me after I try to educate them anyway.

I'm hanging on by a thread.
 

moh malekpour

Elite Member
Joined
May 25, 2002
Professional Status
Certified Residential Appraiser
State
California
Convicted Appraiser Exposes Toxic Debt Tie to Inflated Values

Sorry repeated post
 
Last edited:

Joyce Potts

Elite Member
Supporting Member
Joined
Feb 6, 2005
Professional Status
Certified Residential Appraiser
State
Florida
Further down in the article, you will read about Lehman Bros vs. Passarelli & Potts, and Fred Passarelli, individually. I was NOT involved with those appraisals in any way. I wasn't even deposed nor was I required to testify during the nine day jury trial. That said, below is a photo of the so called 5,400 sf, $73,000 building, so don't believe everything you read.

What you can believe is that unless the judge decides to go ahead and issue a directed verdict based on the intended user, your intended user defense IS OUT THE WINDOW my friends. Lehman Bros wasn't named as the client or as an intended user, NOR was there ANY language within the appraisal about that appraisal being good or reliable for any FRT (federally related transaction). In fact, there was specific language in the appraisal SPECIFICALLY NAMING the intended user and the client taken directly from our E&O company's memo.

If you think for one minute USPAP will save your butts when it should, think again.
 

Attachments

  • Sunset Bay.JPG
    Sunset Bay.JPG
    28.8 KB · Views: 24

JRS at OBX

Elite Member
Joined
Jun 13, 2006
Professional Status
Certified Residential Appraiser
State
North Carolina
Pam, good choice on the .38 snubnose! Next time you are up my way, I'll take you to the range. :new_snipersmilie: :new_2gunsfiring_v1:
 

The Matrix

Senior Member
Joined
Apr 28, 2003
Professional Status
Certified General Appraiser
State
Colorado
Prudent real estate lending requires a balance between objective appraisal practices and the lenders objectives...over the past 10-years this balance was lost...lenders gained control over the entire lending process from loan application to the outcome of the appraisal. As long as loan brokers have the legal authority to hire and fire appraisers...the balance will never be restored. I agree with Carnivore's assessment of the appraisal industry....my fear is the corruption is so pervasive and so many people are making money off of it...that the US's endemic lending corruption will eventually destroy the economy. Unfortunately many of the US officials in charge of restoring balance to the system are just collecting government checks and have no idea of what it would take to restore balance to the system.....My $.02.
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks