Tagged: assignment results

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Appraiser Confidentiality: USPAP Absurdity

Appraiser Confidentiality: Loose Lips, Big Claims, USPAP Absurdity, and Subpoenas Allegedly “Loose Lips” Cause a Big Claim. A recent and relatively big appraiser liability claim involved a commercial appraiser’s alleged breach of confidentiality.  The damages paid to the plaintiff were significant.  According to the plaintiff’s complaint (my recounting of the facts here is simplified), a lender had engaged the appraiser to perform an appraisal for a construction loan to the developer of a shopping center.  Some of the information received by the appraiser included lease commitments from prospective tenants. The anchor tenant was a well-known retailer.  The appraiser completed the assignment, but...

Summary of Actions Related to Proposed USPAP Changes 0

Summary of Actions Related to Proposed USPAP Changes

Potential changes and additions to USPAP On February 1, 2013, the Appraisal Standards Board (ASB) adopted modifications to the Uniform Standards of Professional Appraisal Practice (USPAP). This action was the culmination of a period of 15 months and multiple discussion drafts, requests for comments, and three exposure drafts. Written comments were received in response to each document, and oral comments were provided at each public meeting. The ASB read and carefully considered every comment, developed a work plan to address the issues brought forward, and adopted revisions for the 2014-15 edition of USPAP. 1. Revisions adopted for 2014-15 USPAP The following...

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ASB Releases Exposure Drafts for AO-13 & AO-21

The Appraisal Standards Board (ASB) has issued the following exposure drafts: Exposure Draft of Proposed Changes to ADVISORY OPINION 13 (AO-13), Performing Evaluations of Real Property Collateral to Conform with USPAP Rationale: The prior version of Advisory Opinion 13 included not only advice related to USPAP, but also some interpretations of the Interagency Appraisal and Evaluation Guidelines.  The Interagency Work Group has suggested, and the ASB agrees, that AO-13 should focus on the application of USPAP and avoid interpretation of the guidelines. When  an  individual  is  acting  as  an  appraiser,  USPAP  applies. The  proposed  replacement Advisory Opinion 13 illustrates that under...

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Possible USPAP Changes

The Uniform Standards of Professional Appraisal Practice (USPAP) is always a work in progress. If you haven’t heard, the Appraisal Standards Board (ASB) is hard at work considering potential changes for the 2014 –’15 edition. On Aug. 15, 2012, the Board released a second exposure draft covering these proposed changes. The ASB’s work plan for the 2014-’15 edition of USPAP includes reviewing and revising as needed the following areas of USPAP: Reporting and Communication Requirements Reporting Options Retirement of Standards 4 and 5 Other revisions and additions as needed to ensure clarity and relevance The deadline for comment on this...

One Small Step for an Appraiser; One Giant Step for the Profession of Real Estate Appraising 4

One Small Step for an Appraiser; One Giant Step for the Profession of Real Estate Appraising

On August 10, the Arizona Board of Appraisal dismissed the USPAP violation complaint filed by Chase Bank against John Dingeman on initial file review. Why is this newsworthy? Because it represents a major victory for appraisers everywhere. Dingeman, has been fighting strong arm tactics employed by Chase Bank in an attempt to force him to violate Client confidentiality by discussing details about an appraisal on a no-defunct loan that Chase acquired. Dingman took his fight right to the street starting a petition on Change.org and other outlets to share his story with fellow appraisers. We are happy to also report...

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Cert 22 With a Twist

I’ve written about this before but it’s well worth repeating. Please keep in mind, this is and has been the position of the Illinois board. If you appraise a property for Client A, and two years later, Client B wants you defend your report, you’re not required to answer their queries about the report created for Client A. What if Client B threatens to blacklist you for not cooperating in the review? When does the client relationship end with Client A? USPAP states: An appraiser must protect the confidential nature of the appraiser-client relationship. That seems clear enough. So, who...

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Memo to KY AMCs

Memorandum to Kentucky Registered AMCs Regarding Appraiser Independence, Objectivity, and Impartiality From: Larry Disney, To: Kentucky Registered Appraisal Management Companies and Credentialed Appraisers, Date: March 29, 2012 Subject: Appraiser Independence, Objectivity, and Impartiality The Kentucky Real Estate Appraisers Board staff has received calls from Kentucky credentialed appraisers in the past two weeks concerning the following issue that is being propagated by Appraisal Management Companies: When appraising one unit residential properties and reporting the results of the appraisal development using a 1004 Fannie Mae form, the appraisers are told that if the cost approach is developed and reported, regardless of reasoning,...

Appraisers Assignment Conditions 3

Client Assignment Conditions & Appraisers

Client Kickbacks No, it’s not what you think. We’re talking about when a client kicks your report back to you because you did something wrong. Or did you? I was looking over a recent ServiceLink order that came in on a complaint. There were 32 requirements spelled out for the appraiser to follow. A four page order sheet with an 8 hour turn time for $200. Eerything was laid out from who could inspect to “your report must include photos of all 4 sides of the subject dwelling” (which is a cute trick for an inside rowhouse or townhome). Let’s...

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