What I learned at the FREAB meeting

[Couch Potato]

There were three clear points made in the disciplinary portion of this months FREAB meeting:

1) If you commit an obviously fraudulent act, the board wants your head on a platter (or at least your license), as they should.

2) It is a well known fact that given half a chance the state will loose anything. If you are served with a complaint, the only way to preserve your right to dispute the case is to respond in a timely fashion in a manner that provides proof of your response. You must prove you responded and that you responded to the correct address. (Its not that the FREAB doesn't fully recognize the inability of the state to track documents, but they have no control over that ability. The FREAB cannot assume ineptitude by the DBPR and the DRE is why they have no record of a timely response.)

3) Board rules are complex. The FREAB will always follow the rules to the best of their ability, but even the board needs help following them at times. Among those rules is if you fail to respond to a complaint in a timely fashion you loose the right to present evidence of your innocence. All you can present is evidence of mitigation, which is limited to specific categories, one of which is license status. If your offense was related to license status, don't expect the board to realize automatically that evidence from the DBPR files on your license status showing your innocence should be allowed as evidence of mitigation.

 

[Michael Tipton]

Inspection of photographs of the interior of a property and the exterior of the property DOES NOT meet the definition of Did inspect interior and exterior of subject property.

I couldn't believe I heard this "myth" as a defense in one of the hearings on Tuesday.

 

[Francois K. Gregoire]

There were three clear points made in the disciplinary portion of this months FREAB meeting:

1) If you commit an obviously fraudulent act, the board wants your head on a platter (or at least your license), as they should.

If warranted, the FREAB will impose a fairly harsh penalty. If a Respondent is making a second or third appearance before the FREAB due to multiple complaints, that will be considered in the FREAB's deliberations.

2) It is a well known fact that given half a chance the state will loose anything. If you are served with a complaint, the only way to preserve your right to dispute the case is to respond in a timely fashion in a manner that provides proof of your response. You must prove you responded and that you responded to the correct address. (Its not that the FREAB doesn't fully recognize the inability of the state to track documents, but they have no control over that ability. The FREAB cannot assume ineptitude by the DBPR and the DRE is why they have no record of a timely response.)

The cases with claims of "I put it in the mail" tended to take center stage on Tuesday. Prior to this meeting, I can remember only one or two cases with similar claims.

The United States Postal Service provides for Certified Mail with a return receipt for a reason.

3) Board rules are complex. The FREAB will always follow the rules to the best of their ability, but even the board needs help following them at times. Among those rules is if you fail to respond to a complaint in a timely fashion you loose the right to present evidence of your innocence. All you can present is evidence of mitigation, which is limited to specific categories, one of which is license status. If your offense was related to license status, don't expect the board to realize automatically that evidence from the DBPR files on your license status showing your innocence should be allowed as evidence of mitigation.

Competent Counsel is a benefit to Respondents. Appraisers encourage others to use their services because they are valuation and real estate experts. Lawyers encourage others because they are legal and administrative law experts. If treading on unfamiliar ground, doesn't it sound like a good idea to have a guide?

 

[Jesus Barreto]

I am sure this has been said before, but the Freab meeting should be mandatory for Trainees.

It looks like I will be taking additional education, including some law classes in between

In regards to mailing anything to the State. Why would you take the chance of not sending any litigation(or whatever it may be) certified mail?

It was a pleasure meeting some of you. Next time we should wear name tags

 

[nauthead]

If you follow the rules, you really don't have much to worry about. Don't hide problems with the property you are appraising, and save all of the data you used to develope the report. I was interviewed by a state investigator about a field review I completed for Fannie Mae. The field review was forwarded to the state, along with the appraisal under review and a complaint against the individual who completed the original report. The complaint by Fannie led to his revocation last year, and deservedly so.
I was in the process of preparing my log for my general license at the same time. While I was on the phone with the investigator, I asked him what they liked to see in a work file (I wanted to make sure I had everything in there). His basic answer was all of the data used to develop the report, engaement letter, and field notes. I keep all of that plus a video that I take of the interior and exterior of the property. If you look at a lot of the reasons for disciplanary action for the past few years, they relate to true copies of engagement letters and failure to maintain a proper work file.
The state investigators are not trying to play a game of gotcha, they are just following up on complaints. I would suggest that anyone not sure of what an investigator will look for if a complaint is filed call and speak to one.

 

[Dan/Fla]

I listen on line for 1st time, in back ground while working and only wish it was like my DVR and I could pause and rewind, Couple of time I wandered did I really hear what I thought I heard.

Did one Cert really say he had heard it was OK to consider an Interior inspection is to see interior photos?

Though on this next one did not hear case, or penalty; but did hear a board member state a complaint came from a Mortgage Broker whom requested a pre determine value the appraiser gave it to him, then turned the same appraiser in when, the broker had to buy loan back? That is sooooooo funny if it happen that way. If this happen this should be told to all Hit the number Appraisers to scare them straight.

From what I saw/heard sounds like a very interesting day. Sorry I missed it.

 

[Ms. Janet]

Yep, that's what he said Dan! Unbelievable!!!:Eyecrazy:

I needed help from Robert and Howard to understand some of what was happening throughout the day, but, I thought the FREAB was fair and even-handed. I'm looking forward to the April meeting.

 

[Couch Potato]

I agree the FREAB handled all the cases very well. The only case with which I even remotely disagree is the one where the guy claimed, as mitigation, that the declaration of supervisor was, and always had been, in his file at DBPR. Since matters of license status can be presented as mitigation, according to the list that was read, it seems to me that should have been considered. But, given that he was represented by an attorney, who failed to make that claim, maybe I am wrong. In any case, the board did do the right thing and impose the least possible penalty. If the guy had simply responded to the complaint with a certified letter, he would have not placed the board in that awkward position.

With all the thousands of pages of documents being handled, it is not surprising that mistakes are made. It is probably more surprising that so few mistakes are made.

Although I heard the words come out of his mouth, I do not think the gentleman truly believed looking at interior photos was good enough anymore than I think he viewed the subject and comparable sales from the street at a later time. Committing such a misrepresentation is bad, but lying about it when caught just compounds the guilt, IMHO.

 

[Dan/Fla]

Like I stated I was in and out due to work needed to be done and at time needed to think about what I was doing. But I guess what gave me some concern, Was the 1 man stating the investigator wanted to know were his paired sales information on all the sales he did not put report, but were in his work file. Showing why these were not good sales to put in report.

This bothered me; I sometimes read a MLS report, see something and Nope not this one, Example might have a pool or something subject does not have. I will leave in file but do not write down for why I did not use. I guess per the comments made should I state on everyone I do not use why? Other times when there are a lot of sales might pull a one liner of 20 +-sales. at +- SqFt, then choose which are the closest to subject’s location which of these to shoot pics of. Then narrow down further from these when back at office, (love Digital cameras) when I pull entire MLS/Public records then after reading info on each. But, since one liner is in file, should report why each of these 20+- were not used?

I always try to take more sales than what I need. (Because sometimes you really do not know size and or condition till onsite) and start narrowing down after inspecting subject, but most work at this point I am doing in my head. But what I do in my head is not on paper in work file, Do we need to put every detail of our work process in writing? I see some of the point is when asked to explain 2 to 5 years later will we really know what we were thinking that day?

 

[nauthead]

I print the raw data from MLS, maybe 20 sales at the most, on a one page display sheet. From that, I may take 6-8 pictures of comps, depending on the property. I keep the MLS sheets for the sales I included in the report plus the ones I excluded but photographed. I would have to believe that is enough. I also keep my field sketch, PDF copy of M&S estimator, letter of engagement, and PDF version of my report as delivered to the client. In my reports, I include parcel numbers for vacant sales plus parcel numbers of the improved sales, so I see no need to save the property cards. The law states that you must be able to retrieve all necessary info, so as long as the county PA has a website, that should be acceptable. I scan everything and save electronically.
Keep in mind, those in front of the board generally have a good reason for being there.