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What is the solution to lack of effective USPAP enforcement?

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xmmcsmielr

Junior Member
Joined
Feb 4, 2002
The posts I've read on this Forum during the past several years lead me to conclude that only one or two states have effective appraisal boards.

Many posts bemoan the lack of effective USPAP enforcement throughout the United States and point to this failing as the main contributor to an array of problems for our profession.

What is the solution?

Why are the few effective state boards doing well?

Is selection criteria of board members a key to effective USPAP enforcement?

Is a state's political climate the reason its appraisal boards does their job?

What nationwide solution is likely to reverse the pervasive lack of USPAP enforcement?

Should state boards be replaced with federal enforcement of USPAP?

The Arizona Board of Appraisal has a dismal record of USPAP enforcement and recently was ordered by a Mohave County Superior Court judge to reimburse an appraiser for her costs (~$32,000) of defending herself in court against the AZ BoA's inordinate persecution. During the years that this case has lasted, the AZ BoA broke Arizona law. The total costs of just this one case, including personnel from the Board's office and from the Attorney General's office, are close to $75,000. Sadly, the subject appraisal report problems are equivalent to parking violations. This unfortunate donnybrook drained limited resources and, at one point earlier this year, the AZ BoA was out of money for investigations. All this a result of two Board members conspiring to attack a competitor.

My idea for a solution in Arizona is to change the AZ BoA's administrative structure from nine, part-time political appointees to one full time appraisal commissioner. This idea stems from observing two other agencies: the AZ Real Estate Dept and the AZ Dept of Financial Institutions, both of which are led by one full time professional. Both of these agencies are much more effective than the AZ BoA.

IMO, the regulated should not be in charge of the regulation. Enforcement should be placed in the hands of professionals.

Do you have any idea(s) of what can be changed to improve USPAP enforcement?
 

c w d

Senior Member
Joined
Oct 2, 2006
Professional Status
General Public
State
Florida
Mike, I don't understand how removal of the contract from the equation will improve enforcement. Granted, I didn't read the entire thread. Enforcement of USPAP belongs to the states. Any improvements in enforcement must start there.
 

Randolph Kinney

Elite Member
Joined
Apr 7, 2005
Professional Status
Retired Appraiser
State
North Carolina
I suggest you fix it the same way speeding has been fixed.
 

c w d

Senior Member
Joined
Oct 2, 2006
Professional Status
General Public
State
Florida
I suggest you fix it the same way speeding has been fixed.

Excellent suggestion. But, the lenders are so powerful, they'd just get legislation passed to use something cheaper other than an appraisal. Something like an AVM but call it an appraisal value model.
 

Carnivore

Elite Member
Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
I suggest you fix it the same way speeding has been fixed.

That is the fastest and easiest way to implement a change almost overnight.

For example; frauds and liars on appraisal development and reporting should be revoked, PERIOD! That includes trainees! In my state they dont revoke them. they slap them on the hand, make them take a USPAP course and turn them ack loose to do more damage.

Can anyone else show an example fixing a lot of whats wrong almost overnight?

Heres another one; Lie on your application for licensure and you are denied re-applying for five years! My board does not deny them. They publicly embarrass them in front of th eboard and approve most of them.


Can anyone else show an example fixing a lot of whats wrong almost overnight?
 

Scott Lanz

Member
Joined
Dec 13, 2002
Professional Status
Certified General Appraiser
State
Minnesota
Minnesota has a proposed bill (HF4003) that would make any influence from mortgage lenders, mortgage brokers or originators, appraisal management companies, real estate brokers & sales people, buyers, sellers, clients, appraisers and other individuals punishable with either fines, revoke the license or assess other penalties suitable to the professional license of the person.

Also:

A person who violates this section is guilty of a felony, punishable by fine or imprisonment.

The last two fines, last month, included one for $30,000 and one revocation.
 

Randolph Kinney

Elite Member
Joined
Apr 7, 2005
Professional Status
Retired Appraiser
State
North Carolina
Can anyone else show an example fixing a lot of whats wrong almost overnight?
California had a Governor Grey Davis who tripled the license plate tax on all vehicles. Car sales plummeted and service businesses began to layoff people or shut down and move to Nevada. That prompted a recall election. The new Governor was elected and rescinded the tax. Car sales resumed.
 

Carnivore

Elite Member
Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
California had a Governor Grey Davis who tripled the license plate tax on all vehicles. Car sales plummeted and service businesses began to layoff people or shut down and move to Nevada. That prompted a recall election. The new Governor was elected and rescinded the tax. Car sales resumed.

Good example. Much of whats wrong in the apprasial profession can be fixed that easily!

Heres another idea/fix.

Once a person receives there Trainee certificate they must complete 28 hours over the next two years. This CE is Specifically identified by the licensee's State AB related to training a new trainee would need as a matter of normal educational progression with that trainees supervisory appraiser.
 

Karl

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Arizona
Investigators simply drop in and audit files, knowing that this was actually happening would bring many up to par. Major violation I mean Major!! simple cease & descest order, until case resolved. Other violations base the penalty accordingly. The board also need consistancy in the punishments.
 
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