Appraisers Speak Out Against "Make The Deal"

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Appraisers Petition Against "Make The Deal"

I've spoken about these issues before in this post.

I've certainly heard of plenty of abuse on both sides of this equation, and there is plenty of motivation for lenders and brokers to abuse the situation by requiring a higher than "real" appraisal value. Still, I think that by reading only the comments from various appraisers one would get a skewed vision of what is going on.

It is part of the appraiser's job to do their best within the rules to get a value that is useful. Theirs is a service occupation, just as mine is. If they are out there hustling for business as most of them are, wanting me to order the appraisal from them instead of another appraiser, they should offer a reasonable level of service. I don't expect to be paid if I can't help the people with their situation. Sometimes I put in hundreds of dollars and dozens of hours of work and it all falls apart because of something beyond my control. Situations like this are part of being in business for yourself. I don't expect to get paid when I can't or don't help the people. Why does the appraiser?

These houses are selling for these prices. If the last three similar houses in the neighborhood sold for $600,000, then this one is likely worth $600,000 also. When the appraiser tries to tell me a house that I've seen and is immaculate and further upgraded than than any of the last three is worth $150,000 less than those sold for, something is wrong, and it isn't with the house.

Basically, what's wrong is they don't want to work. They want to be able to drive over and pop the customer for the bill and let the chips fall where they may. And if the house is really only worth $450,000, the house is only really only worth $450,000. But most of the time, if they worked a little bit, and maybe chose a different sale to compare to, they could justify the higher appraisal, but they don't want to be bothered.

Let me ask you: Somebody bills you $400 or so for work that doesn't help you and in fact makes all of the work you put in worthless, it makes you feel all happy, right? They knew before they went over and asked for the check that they weren't going to be able to get the necessary value. You know something? I'd be more forgiving of him charging me $400 in those circumstances than charging my client $400. If the appraiser called first, and told me he couldn't get value, that gives me a chance to re-work the loan and save everybody's investment in this by talking to the client before the client has written a check for $400. If I can't get the client to accept the new loan, at least they're not telling people I screwed them out of $400 on the appraisal. That's right, the appraiser gets the money, but it's the loan provider that gets the blame for this in the customer's mind. If I tell them about a change before they spent $400, they're not going to be as angry, and even if this loan falls apart they're likely to tell people I was honest and saved them from being out $400 rather than that I took their $400 and didn't deliver. I didn't get that $400 - the appraiser who screwed the loan up did. If I can't turn it into a new different loan, the appraiser is out a little bit of work. I've put ten times as much into making this happen. It's much easier to tell the client their house is only worth $450,000 before they've written that check for $400. The check gets written, and the whole thing is gone up in smoke.

The appraiser, understandably, wants to get paid for their work. So do I. All I ever ask is that they don't intentionally waste my client's money. If they can't get value, give me a chance to re-work the loan, call it all off, or find someone who can get value. In some situations on a sale, this allows me a chance to re-negotiate the price down so my client gets a better price on the house they want. If that appraiser just makes the phone call that gives me a chance to fix it before my client has wasted hundreds of dollars, I will use them again. That's the kind of appraiser I want to work with, not someone who is going to find the value no matter what, leaving both of us open to later problems. But do a "hop pop and drop" ("hop on over, pop the customer for the bill, and drop a useless appraisal on the bank") so that they get paid once while I'm stuck with a pissed off customer who is now going to tell all their friends and family what an awful person I am, and I think they've earned a spot on my personal list of appraisers I will never do business with again. I'll forgive it once, maybe even twice, if this appraiser has a history of calling me first and this time it just happened that they couldn't get value when they thought they could. Treating your customers right is part of the requirements of being in business for yourself, and sometimes this means you did some work and didn't get paid. You want a job with a steady income where you don't take any risks, go find something with a w-2 involved, and the only risk you take is being fired. You won't make as much money, but you will get paid for all the work that you do. For as long as they put up with you.

Caveat Emptor

Original here

UPDATE: Home values here locally have deflated significantly. Right now, the value the appraiser comes back with is not usually an issue unless there have been a lot of distress sales in the neighborhood. The appraisal is rarely a major issue when prices are deflating, because it works by historical sales. Yes, there could be five identical homes sitting on the market and not selling for $10,000 less; but the last one that actually did sell sold for $20,000 more, and the appraiser works off of actual sales.

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18 Comments

dukeofsc said:

I must totally disagree with you concerning your perspective as to what an appraiser's job is. You stated: "It is the appraiser's job to do their best to get a value that is useful." It is the appraiser's job and responsibility to be a disinterested party in the mortgage process and not an advocate of either the seller or buyer. You should read the Uniform Standards of Professional Appraisal Practice referred to as USPAP and also the federal governments guidelines set forth in FIRREA. Now, I do agree that we are offering a service. But I must disagree again when you state that an appraiser should not be paid unless he or she comes up with a value the customer needs. In situations where the appraisal's purpose is the basis for underwriting a real estate mortage what you are advocating could be considered mortgage fraud. If the appraiser does not get paid unless he or she comes up with the value needed then the appraiser has an interest in making the value and therefore is no longer an disinterested party and the appraisal is biased and and the value reported is not reliable but flawed. These comments are based on situations where the appraiser does not feel that the property's value is what is needed.



dukeofsc



(DM Here) Well, duke, you are entitled to your opinion. However, when I've gone to the trouble and expense of attracting clients, and you are asking me to give you revenue, you're going to have to pardon me for not wanting to repeat the experience of having to explain to an upset client who has spent $400 in the form of a check to you, and then I'm the one who has to come along and tell them that they can't have the loan we've been talking about because the appraisal came in too low - particularly when I've got reason to believe that the value is there. I've dealt with too many appraisers with the attitude you have, and every single one of them has ended up putting me in that situation. They use USPAP as a shield for poor business practice and just plain laziness, and I will not put up with it twice from the same person. It is greed, plain and simple. If you don't want my client's order, you are free to refuse it and I will find someone who is A) in tune with good business practice and B) not so broke or so crooked that they're tempted by a few hundred dollars to commit major felony fraud. Because if you are tempted, I don't want to do business with you, either. Nor am I asking anyone to do anything I'm not subject to, myself. When appraisers screw up loans like that, not only do they get paid where I, who have put far more money and effort into the loan, don't, but the client blames me for the loan disintegrating and I get the bad word of mouth while the appraiser gets off scot free.



Most appraisers are pretty good, and I have no problems finding people who are simultanously capable of A and B. Matter of fact, right now I consider myself obligated to find orders for at least one appraiser who made that call and ended up not getting paid either. But for appraisers with the attitude that their fax machine got the order and so they are entitled to be paid, don't expect that fax machine to ring again from me.

hriceb said:

"Matter of fact, right now I consider myself obligated to find orders for at least one appraiser who made that call and ended up not getting paid either."

I sincerely hope that you made the above up as this appraiser is in violation of Federal Regulations. By refusing compensation because the value wasn't as you liked, this appraiser has become an advocate and an interested party - both of which are strictly forbidden. Period.

Consider this scenario: You order an Attorney's Opinion of Title and the Attorney reports a flaw in said title that, in the worse case, kills your deal. Do you not pay him/her? Of course not - they have provided a professional service and deserve compensation for that service. Appraisers are the very same. We provide a services and deserve compensation for our time.

I read where you believe that we should offer opinions that you can "use". We render market based credible and defensible opinions of value based upon years of experience. If you can "use" that number to make a loan, great. If you can "use" that number to prevent you from making a bad business decision, great. Either way, you have "used" our opinion of value and compensation is justified. To tie compensation to a particular opinion belies the entire process and circumvents the checks and balances that should be in place.

Dan Melson said:

No, I'm not making it up - but neither are they breaking regulations. This person looked at the comps and told me the value wasn't there. An honest opinion. You assumed that I then called someone else and got a higher value. Nope. This transaction did not go through. As I've said elsewhere, I don't want to do business with appraisers who will find value no matter what, either. I want an honest opinion as to what value really is. Anything else is dangerous to everyone concerned. If I can't find something that's worth doing given an honest value, everybody is better off dropping it right there.

Furthermore, these actions in no way shape or form violated fiduciary duty to that lender. The lender didn't spend that money on underwriting a transaction that didn't even start, money that they're not getting paid back when the transaction cancels. They didn't risk money. The didn't spend money to find out that they shouldn't risk it. The lender is ahead of where they would have been by any reasonable standard.

What's chapping your hide is the "I'm entitled to be paid" mentality. I have no sympathy for this. Zero. If you want a guarantee of being paid, go to work for someone else, and you will be paid less money, for as long as they put up with you. For an independent businessperson, this attitude is completely unacceptable. I do a lot of work that I don't get paid for. That's the risk I take by being in business for myself, and the same applies to you. If you don't want it, you shouldn't be in business. Here's a cold hard fact for you: You want me to arrange for you to be paid by someone who is likely to be putting money in my pocket, you've got to understand I'm looking out for their interests, not yours. I'm open to reasonable trade-offs. I'm not open to attitudes such as you display. I've dealt with them too often in the past, and been burned every time. You don't like this, tough. You don't want to deal with it? Fine. I can find appraisers who won't insist upon twisting regulations into something they do not, in fact, say.

California is a title insurance state, as are all of the other states I've done significant business in the past. I've never had a title company even attempt to charge my client for a commitment on any transaction that wasn't consummated. Yes, they'd like to. It costs them an average of over $100 to do that commitment. But they understand good business practice - something you plainly do not. If you want to be the sort of appraiser good loan officers and agents want to use, learn. If you want to be the appraiser of last resort, keep doing what you're doing.

hriceb said:

What YOU don't understand is that you appraiser that "looked at comps and the value wasn't there" is legally liable for his opinion as he/she has appraised that property. Read the Regs. Any direction in value (i.e., more than x, less than y), range of values, point values, etc... is an appraisal.

By giving an oral value or direction of value, the appraiser MUST adhere to USPAP. There is no gray area. If others want to do that while adhering to USPAP while taking on the legal liability and do it for free, that is their choice. Not a smart choice but still, a choice.

Oh, by the way, if the State finds out who this was and if he doesn't have a USPAP compliant work file for his oral report, he could lose his license.

I sugest you read Certificate 18 of any URAR you have in your office. Adherence to that certification is mandatory and non-adherence is fraud. It is highly likely that you are dealing with appraisers who are operating outside of FEDERAL and STATE Regulations.

In any potential real estate loan scenario, there are at least two things that must remain independent of an influence: The Credit Report and the Appraisal. To tie payment to the outcome of these two independent reports violates the independent nature of the transaction.

Dan Melson said:

In order to think that's an appraisal and that there is legal liability, you have to ignore the most basic part of business law. No consideration. No warranty, because no transaction. Therefore, no liability.



As I have said, you are twisting regulations to make them appear to say things they do not in fact say.



Oh, and I notice you folks have supressed the referring URL. (sarcasm on) How brave of you. (sarcasm off). Can't take public examination of what you're saying.

hriceb said:

Let me get this straight. If my good friend the dentist mangles my teeth he has no liability if he doesn't charge me. If his good buddy the attorney gives me terrible representation he has no liability under Professional Ethics if he doesn't charge me?

Professional and Legal liability does not depend upon consideration. I bet everybody who holds a professional license wishes that it did.

"Say, I screwed up. I'll just make it go away by not charging for my time and services".

There is no way the following is twisted as they are DIRECT QUOTES from the Uniform Standards of Professional Appraisal Practice, the standard to which all licensed appraiser to held. Non-compliance is not permitted.

Ethics Rule:

"It is unethical for an appraiser to accept an assignment, or to have a compensation arrangement for an assignment, that is contingent on any of the following: the reporting of a predetermined result (e.g., opinion of value); a direction in assignment results that favors the cause of the client; the amount of a value opinion; the attainment of a stipulated result; or the occurrence of a subsequent event directly related to the appraiser’s opinions and specific to the assignment’s purpose."

Per USPAP; Definition of "APPRAISAL: (noun) the act or process of developing an opinion of value; an opinion of value. (adjective) of or pertaining to appraising and related functions such as appraisal practice or appraisal services"/

"Comment: An appraisal must be numerically expressed as a specific amount, as a range of numbers, or as a relationship (e.g., not more than, not less than) to a previous value opinion or numerical benchmark (e.g., assessed value, collateral value)."

As to suppressing a referring URL, I have no idea what you are talking about. This is a public forum, it is not?

Dan Melson said:

Once again, you are twisting things and what regulations do and do not say.

In the case of the dentist or the attorney, there is damage done. Objective damage. In the case of the transaction that does not happen, nobody is damaged. Matter of fact, damage has been prevented.

And someone at the site that is referring all of these appraisers here (at least 50 today) has suppressed the referring URL of the website, so as to prevent my site monitors from recording it and me following the link back. This doesn't happen by accident.

hriceb said:

How can I be twisting what the regulations say when the quotes are directly from the regulations?

You are right, in the cases of the Doc and the Lawyer, damage has been done. However, you missed the point. I (and regulators and fraud investigators, etc...) contend that just "looking at the comps" and rendering an opinion of value is potentially harmful and violates the public trust. Just because we didn't get paid does not mitigate said violation.

Again, ANY rendering of value, direction of value, range of
values, etc... is legally defined as an appraisal. As such we have tremendous liability.

Appraiser Class 101, Case Study
You are a newly licensed appraiser and are at a party at a friends house. During the party, your friend asks what his house is worth. Any number out of your mouth other than you telephone number is an appraisal. Seriously, appraisers have lost their license and faced pretty hefty fines over this very scenario.

I strongly suggest that you invest in a USPAP class from a Appraisal Standards Board approved instructor. You will find it very enlightening.

Again, I know nothing of the referring issue. Can't help you there.

Dan Melson said:

Are they regulations, or are they "professional standards" enacted by a trade group with an eye towards protecting their own interests - like Trial Lawyers and their class action standards, their contingency fee standards, etcetera? My understanding is that they are the latter. Lest it be unclear to you, I'm not impressed by such, in and of themselves. Only if they make a positive difference for the general public through said professional interactions with the public. If they don't, and this one appears to do the exact opposite, they're nothing worth paying attention to.







And let me ask you: Precisely who has been harmed by this disclosure, and a potential transaction that gets stopped before anyone has spent any money, and in what specific way have they been harmed? Go on, I'm waiting. I'm not holding my breath.







As to the "public forum," this site is my personal property, and although it is available to the public, it nonetheless remains my site. It is considered rude and often underhanded to suppress the identity of a referring URL.


hriceb said:

Get off the URL bandwagon. I know nothing of that. You may very well own this domain but you put it out there as a public forum.

USPAP are Federal Regulations as authorized by the Financial Institution Reform and Recovery Act (FIRREA) of 1989. Every state in the union has adopted USPAP as law. Furthermore and more importantly, every State Appraisal Board enforces them with the weight of law.

Appraiser are losing their licenses all over the country for not adhering to USPAP.

As to your assertion that nobody has been harmed, you are wrong. The public has been harmed. The public expects complete impartiality on the part of our profession. By rendering an opinion of value without all facts being known (i.e., no full and complete inspection of the property was completed) a potentially misleading opinion of value has been given. Consider, if you will, that the "comp check" value is so low that you stop the process but that a full inspection would have revealed that the residence is bigger and more finely finished than thought. Who has been harmed? The client whom you say you protect. Heck, even you would be harmed under such a scenario as you might not close a loan that otherwise would have closed.

Dan Melson said:

1) Regarding specific harm to anyone: I didn't think you could name any harm done or any damage done to anyone. Thank you for confirming it. The situation you mention as a hypothetical just doesn't happen - because if the preliminary guess comes in low, that owner is going to tell me all about their upgrades. Nor do appeals to greed work on me when I am considering something in light of the public interest. Thank you for playing, and be sure to collect your parting gifts. Try again if you want.

Regarding regulatory force of law: So what you are saying is that yet another professional trade association has taken advantage of the regulatory system, and that as a result, standards which purport to protect the public but which in fact do the exact opposite have been enacted? Somehow, I doubt these standards can withstand a fully public examination of them on their merits. So I guess it's time to start figuring out what I need to do in order to get them changed. Just because it may be current law doesn't mean that law cannot be changed.

You know, I think I may be able to interest NAMB and NAR in this. Given the current environment, any number of politicians would likely be eager to hold hearings. If that is the way the law truly is, the only ones who would not benefit by changing it is appraisers who cannot or will not perform according to good business practice, which is hardly an argument for keeping it as the law of the land. In fact, it's an additional opportunity for politicians get good publicity by actually protecting their constituents and advancing their interests. I'm certainly in favor of all concerned hashing this out in public, rather than within a self-protecting trade organization that has been entrusted with protecting the public interest but has instead advanced their own. People get emotional about the appraisal. That few hundred bucks they have to pay is the source of more heartache to them than the fact they got hosed for ten thousand or more on the loan.

So you appear to have won a tactical victory. I'm going to think about how I can turn it into a strategic victory for the public.

Have a nice day.

hriceb said:

But I did specify who could be harmed and you know it. You know darn good and well that the situation presented was not a hypothetical but was, rather, generic. It happens and you know it. Perhaps not in your shop but it does happen.



Greed? Where did that come from? I merely pointed out that you could be the harmed party.



Go ahead and call NAMB and the NAR tell them that you want to abolish USPAP and see just how far you get.



Lets see, we find ourselves in sub-prime meltdown and you want to propose doing away with the very regulations that may have prevented the current situation from being a full scale Perfect Storm on the US Housing Market and Economy?



Yeah Right.



Until you succeed, be on notice that any appraiser operating as you have said you want them to is 99.9% of the time operating outside of law and, if caught,will be severely punished by his/her licensing board. In that event, many states are then turning to the LO's, MB's, etc..

Dan Melson said:

But I did specify who could be harmed and you know it.



Bull. That scenario harms no one, because it doesn't happen, which is precisely what I said, not what you represented me as saying.


the situation presented was not a hypothetical but was, rather, generic


As opposed to specific harm done to specific parties. You still have not yet been able to list any of that in a situation that actually happens. I'm still waiting.


Greed? Where did that come from? I merely pointed out that you could be the harmed party


And if it ever happened, it would be my fault. But it doesn't, because in the real world home owners are proud of the work they've done on their property. Furthermore, this was a fairly naked appeal to my desire to get paid. That's what I meant, as if you didn't know.


Go ahead and call NAMB and the NAR tell them that you want to abolish USPAP and see just how far you get.


First off, who said anything about abolishing USPAP? No, just amending its regulatory impact, as well as making appraisers trade association doesn't have the anonymity necessary for tricks like this to work. I didn't precisely have merely calling them in mind, either.


Lets see, we find ourselves in sub-prime meltdown and you want to propose doing away with the very regulations that may have prevented the current situation from being a full scale Perfect Storm on the US Housing Market and Economy?


That's funny! Go ahead and delude yourself if you want, but the things that stopped the bubble from getting bigger are all straightforward macroeconomic forces, as anyone with a shred of economic background is well aware. Indeed, given the complicity of appraisers in general in things varying from simple inflation to outright fraud, the appraiser organization seems to be bending an awful lot of effort against my attempts to protect my client's wallet.

I see self-aggrandizement hiding behind an mask of saying you are protecting the public, a claim that does not stand up under even cursory scrutiny.


Until you succeed, be on notice that any appraiser operating as you have said you want them to is 99.9% of the time operating outside of law and, if caught,will be severely punished by his/her licensing board. In that event, many states are then turning to the LO's, MB's, etc..


Oh, no. I'm going to confirm the regs, but I'm going to honor them precisely - and let all my clients know exactly what they are and why they are in effect. Matter of fact, I'm going to urge NAMB and NAR that not trying to skirt regs is an essential part of getting this changed. I'm going to let every client know that the fact they are risking the appraisal fee is because the appraisers trade organization claims they at risk of "being harmed" by the prospect of a rough valuation that prevents them from wasting their money.

That ought to go over well. About as well as a fancy restaurant serving roadkill.
hriceb said:

I have a Post Graduate Degree in Qualitative Economics. Don't tell me what I do and don't know about macro (and micro) economics. I assure you that adherence to USPAP by the majority in our respective professions has helped to 1) prevent lenders from loaning more than they should on numerous properties and 2) prevent untold borrowers from getting in way over their heads. Without those necessary checks and balances just how bad do you think the current sub-prime meltdown would be?

You are "risking" the appraisal fee just like they are "risking" the credit report fee. It is a fee to an independent third party for information necessary to make a business decision. Tying any fee to the outcome (i.e. credit report or opinion of value) belies the necessary independent status that keeps us all in check.

I am glad to read that you intend to abide by the regs as you now understand them. Perhaps when other have seen the light - whether or not they agree with them - we will all be better off.

Have a pleasant week.

aroell said:

Let me see if I got this right, Dan. You actually are a proponent of your clients being upside down in their mortgage? Your appraisers will appraise the property in such a way that your clients can get their loan? How is that helping your clients? The appraisal fee prevents them from getting screwed and prevents them from getting in over their heads. What would they rather do? Pay $400 for a true opinion of value or pay for the rest of their lives on a property they'll never get their money out of?



Incidentally ..... just because an appraisal doesn't meet your "must have" value does not mean it came in low .... it means it didn't meet your "value".



BTW ... USPAP is law now in many states.



DM: You are putting things in my mouth that I most pointedly said the exact opposite of.



The appraisal, done properly, might possibly keep someone from getting hosed. I fail to see how paying the appraisal *fee* when the value is obviously not there protects them.



Far and away the worst problem was not appraisers overevaluating the property with respect to the market. The problem was agents and loan officers colluding to put people into a property they could not afford, and the people weren't sufficiently informed as to the dangers. This has absolutely nothing to do with the appraisal. It is not an issue that a proper appraisal even addresses.



As for "coming in low" versus "must have" (the latter of which I certainly haven't said - ever) I have consistently re-worked loans and transactions where the appraisal comes in lower than expected, provided it isn't obviously below what the property is worth. When that fails, I let the transaction go. I have never ever given an appraiser a "must have value" and that's one thing I can guarantee I never will. That's fraud and conspiracy to commit fraud, no two ways about it. I just don't want to waste the client's money if the value obviously isn't there.



If USPAP is law, that still doesn't mean parts of it wasn't set for self aggrandizing purposes by a certain trade organization, and it definitely doesn't mean certain parts shouldn't be changed. There have been many shameful things enacted in law. This might be up there with slavery, but that doesn't make it beneficial.

bereal said:

Dan,



As someone who represents himself as "knowing the system", I think it is incumbent on you to acknowledge the truth about USPAP's origins in federal law and further enactment into state law. Your persistent comments regarding appraiser "trade organizations" are unfounded. On the other hand, you continue to cite NAMB and NAR as if they have some higher authority when in face, they themselves are merely trade organizations.



DM: About NAMB and NAR, you're right, that's all they are, trade organizations. I wasn't citing them as an appeal to higher truth - in fact they are just as self-aggrandizing as any other trade organization. But they are trade organizations with political power, and I believe, a reason to want to change the current standards, if indeed the relevant portion is law. end DM



State licensing LAWS require appraisers to adhere to USPAP which was authorized by federal regulation, not a trade organization. If you continue to deny the truth of this, then you are limiting your ability to effectively communicate with those who actually do "know the system".



DM: It may be authorized by federal regulation, but if it was enacted in its entirety, it was enacted by blanket adherence to what was promulgated by a trade organization at least partially for its own benefit at the detriment of the public, and certain parts need to change. end DM



You also should know that the intended use of an appraisal that has been developed for mortgage lending is to provide a market value which the lender can use as a factor in whether or not to extend credit. When a value is given, that is an appraisal. When the decision is made (yea or nay) that is the intended use. Very simply, that is the way it is supposed to work. That is what you are paying for.



Again, if you can not acknowledge this very fundamental fact of the process, you will be at a disadvantage in real world discussions.



DM: I have never failed to acknowledge the benefits of the appraisal. I do not see the benefit to the public of requiring an appraisal *fee* for a transaction that does not happen, which is a classic example of rent-seeking behavior. end DM



Regarding your comments that appraisers opining market value lower than what you wished for are just too lazy to do the necessary work to find the right comps, well, that is simply ludicrous. Appraisers are under enormous pressure to "hit the number" and to "make the deal work".



This pressure comes in the form of loss of income due to withholding of future business by loan originators.



DM: This phrase, "WITHHOLDING OF FUTURE BUSINESS" Are you saying that people should not have the option of not patronizing establishments which do not provide good value? That's what it says to me. If a certain restaurant does not provide a good eating experience, I am certain you are eager to go out and spend your money there again and again. Appraisals are no different from any other business service in this regard. You might like it to be like the New York garbage collection business, but it isn't that way, and there is no reason to allow it to be so, except the convenience and laziness of appraisers. end DM



A truly lazy (and unethical) appraiser will simply take the easy way out and lie and risk losing their license in order to "hit the number" so they can stay in business. Believe me, no appraiser would ever jeopardize their livelihood if it were not a matter of true ETHICS and INTEGRITY. Get real, the appraiser simply has enormous financial incentive to "make your deal work" but absolutely no incentive to undervalue a property.



DM: You had better parse this again. It's nonsense as it sits.

Dan Melson said:

hriceb: About the "Post Graduate Degree in Qualitative Economics". I do not find that to be a credible assertion. Matter of fact, it calls into more serious question your other assertions. Appraisals do nothing to "keep people from getting in over their heads," which I define as buying a property which they cannot afford, no matter the absolute price. Appraisals might, and I stress might, keep people from paying grossly more than a property is worth, but that's a side effect, not the intended target, as you well know and will admit if you are capable of honesty on the subject, as opposed to advocacy.

And I'd hardly describe my situation, as regards abiding by regulations, as having "seen the light", at least from the point of view you're preaching (and that's assuming my fact check comes up the way you say it will). It's simply a way to make it incredibly obvious to everyone concerned that the problem exists, what precisely the problem is and who is to blame for the problem, and that it does need to be changed.

Might take a while. Enjoy it while it lasts.

Dan Melson said:

There has been way too much twisting of what is and is not said on the part of appraisers looking to justify something that is not in the public interest. It is apparent to me that they are not arguing in good faith.



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About this Entry

This page contains a single entry by Dan Melson published on May 31, 2008 7:00 AM.

Links and Minifeatures 2008 05 30 Friday (The Original Memorial Day) was the previous entry in this blog.

Protecting My Buyer Clients Good Faith Deposit is the next entry in this blog.

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