Who is doing BPO's for the brokers????

[TEL2002]

I did an REO a few days ago. Bump into another guy who was also 'appraising' (his word) the property for the Real Estate Broker. I asked if he was the broker...he said no, I asked if he was a real estate sales agent...he said no, I asked if he was an appraiser...he said no, but he had taken some classes. He said "I do most of the BPO's for this broker, but make most of my money cleaning these houses and changing the locks."

I'm sure glad he took some classes...or I might have reason to be concerned.

Oh well - what the he...

 

[Pamela Crowley (Florida)]

TE,

I would most definately send this information in to your State Real Estate Board, State Appraisal Board, local Association of Realtors, state Association of Realtors and National Association of Realtors.

The longer we ignore situations like this, the less chance we have of correcting it. "Must be OK, they are all doing it." Did you know that some/many/(all?) Relo companies are getting at least 3 BPOs prior to ordering the appraisals? The listing goes to the highest BPO. Think about this scenario. PUSH, PUSH, PUSH those values higher... through the Real Estate Brokers. The spiral is getting faster and higher and making me dizzy. Am I the one that lost touch with REALITY??? Is this spiral being caused by the people that make the most money because of it or is it really "the market"??????

 

[jtrotta]

Took a CEU class last night; anyone caught doing a BPO here looses their license; gets fined; and there is a real possibility, they can go to jail. Most agents will not get involved any longer, unless their just "stupid"

 

[Jeff Horton]

By all means I would turn that in to whoever.

I a not certain on this but I think according to law in Alabama anyone rendering an opinion of value has to be a Lic. Appr. Now I certain that it is not stopping some Broker from doing Market Any. But as Pamela said we have to do our part. If we dont who will?? The Realtors? The Mortgage Lenders? :?

 

[Joe Birrell (NY)]

Deliberate "loop-holes" in the licensing law, lobbied by NAR (and their state associations) is THE REASON this exists in NY, and I would suspect exists in other states as well. BPO's are done in lieu of appraisals all the time, and they are done by brokers and their agents for lenders. Your description of the non-appraiser/non-real estate agent guy is the first time I've heard of that, but it dosn't surprise me.

Imagine NAR's reaction if real estate appraisers where allowed to sell real estate without a license.

 

[Red Blumenstock]

TE,

I certainly agree with Pamela and others who suggested that you refer this to the State Board of Certified Real Estate Appraisers, and the State Real Estate Commission. It is almost certain that this is practicing without any license, real estate or appraising and would violate State Laws.

I contend that we will not be considered to be professionals until we act like it and that includes turning in violators. We cannot complain about violations and violators and then do nothing when we become aware of them.

 

[Residential Appraisal Ser]

Red & Forum: I agree with you Red. The major problem is that if it is not a FRT at $275,000, the way the laws are written gratus NAR, and the signing off by apprasial organizations in many states, there is nothing that can be done under the deminimus. PA is an exception, rather then the rule.

William Sentner
President
American Guild of Apprasiers OPEIU AFL-CIO

 

[Leon Stewart]

Took a CEU class last night; anyone caught doing a BPO here looses their license; gets fined; and there is a real possibility, they can go to jail. Most agents will not get involved any longer, unless their just "stupid"

I didn't know that BPO's were illegal. At least in most States I don't think they are. What about AVM's which can be done by anyone, are they illegal also? If BPO's are outlawed, they'll just start using the AVM's. Most Users of these types of Reports are probably using both interchangably anyway.

leart3

 

[Leon Stewart]

TE,

I would most definately send this information in to your State Real Estate Board, State Appraisal Board, local Association of Realtors, state Association of Realtors and National Association of Realtors.

Pam:

You will be notifying these Agencies and Organizations until you are blue in the face and nothing will happen. All of this activity is taking place on their watch, so they evidently don't consider this (activity) to be improper. If you stop the BPO's they can just as easily use the AVM's or some other format they deem adequate. These organizations you mentioned don't have any control over what's done in this business. They only deal with the inadequacies of the Licensed Appraisers, but they have nothing to do with the appraisal business and whomeverelse does what.

leart3

 

[Pamela Crowley (Florida)]

leart3,

We usually get to choose the battles we want to fight in. When a battle or war is put upon us, we can usually choose to join in or walk away. Those that choose to walk away or try to ignore the fighting going on around them usually are harmed anyway by the cross fire. My chosen battle at this time is attempting to stop the fraud and save myself and all ethical appraisers in the process. I will not get anywhere if all I do is tilt at windmills, whine and moan about it and do nothing else. I am aware that my commitment to this makes me come across as obsessed sometimes. That's OK with me.

For me, if I didn't try in every which way I can come up with, it would be the equivilent of watching a rapist in the act and doing nothing about it. I not only will not just stand by and watch or walk away and try to ignore it... I will do EVERYTHING I can to stop it! This is a commitment I've made to myself and all other ethical appraisers. I ask for help in this cause. Those that want to will help and I appreciate each and every one for whatever efforts they expend.

Does saying "Everybody else does it" excuse the bad behavior? Does saying "The police are corrupt too. They just ignore it" or "Nobody in authority will do anything about it" make it OK and mean that nobody should or could try to bring about a change for the better?

I WILL try! If all I ever accomplish is teaching someone else involved in the process enough to be able to do their job better than before or, giving someone else the courage to do what they know is right, I have won.