What is the solution to lack of effective USPAP enforcement?

[JonGalt]

Investigators simply drop in and audit files, knowing that this was actually happening would bring many up to par.

I like the way you think. This would help tremendously IMO.

 

[Tudor]

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.

That happens in this state as well. Supervising appraisers that sat in their car (well that is what they told the board) while the trainee did the inspection. Then sign as did inspect and not mention anywhere in the report of what the trainee did. They get ethics classes, mentorship probation, suspension.

They committed fraud, they knew it and you think this was the first and only one they did? All of them need to have the license revoked and the trainee not allowed to submit for license for say another 24 months.

They need to clean out the fraud first then work on the appraisers that can be help with education. Ethics, you either have it or you don't.

 

[Mike Kennedy]

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.

When tens of thousands of "appraisals" suddenly fail to "hit the bullseye" WEEKLY.. and dramatically increase the number of SARS reports and borrower and lender complaints flood the states....... and are publicized - state and fed legislators, and Chief Appraiser and Compliance Officers will no longer be able to hide under rocks and pretend this Farce doesn't exist.

 

[Smokey Bear]

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.

How about splitting that up into the first year and second year - too many leave it all to the last minute as just another requirement to be met, instead of realizing it's part of their training and they should know the stuff at the beginning.

 

[Karl]

How about splitting that up into the first year and second year - too many leave it all to the last minute as just another requirement to be met, instead of realizing it's part of their training and they should know the stuff at the beginning.

How about 90- 120 hours prior to going out at all. Oh that's righrt no enforcement!!

 

[xmmcsmielr]

Karl is 100% correct. It does NOT matter how many hours of class time. If a state's board does not enforce the rules adequately, then the outlaws run the profession.

The AZ BoA's defacto repealment of USPAP, via lack of enforcement, rubber stamps the sweat shop as the business model for appraisers. Given the incentive of low to mid six figure incomes, supervisors can place three trainees in the field and complete ~10 appraisals a day. Assuming a low average of $250 per appraisal times 300 appraisals among the supervisor and three assistants = $75,000 per month. Multiply that times 12 months and the annual gross is somewhere around $900,000.

With no effective enforcement of USPAP in Arizona, men and women focused only on money will certainly operate an appraisal office in the above fashion, even though such an operation will always ... ALWAYS ... cut corners and produce a large number of mistaken appraisal reports.

 

[xmmcsmielr]

Actually that is HIGH six figure incomes, isn't it?

 

[Fred]

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?

Ricardo,
I don't think it can achieve a level you would think is effective. I am not sure how to grade these, but I don't see the effectiveness of USPAP enforcement ever exceeding the effectiveness of the War on Poverty or the War on Drugs or the federal Department of Education.