False Claims of Racism Against Appraiser
As a professional real estate appraiser with many years of experience, I have seen my fair share of disputes between homeowners and appraisers. However, the situation I am about to share with you is one that has left me shocked and appalled. It is a story of false claims, intentional infliction of emotional distress, and the damaging effects of a homeowner’s actions on an appraiser’s career, business, and health.
It all started when I appraised a veteran’s home for a potential refinance. From the very beginning, it was clear that he held a deep-seated animosity towards white people. I proceeded with the appraisal, following all the necessary protocols and using my expertise to determine the value of the property. However, the homeowner was not pleased with the value that I came in at and did not get his desired refinance. In an act of retribution, he filed a complaint against me with the Veteran’s Administration, accusing me of discrimination and racism, and went as far as to call me a “white racist appraiser.” The homeowner called me every name in the book in his complaint, making baseless accusations and using racially charged language. Despite this, the VA launched a year-long investigation into the matter. In the end, they found no evidence of racism or discrimination on my part, and a “Close Out” letter was generated.
The homeowner had two refinance appraisals done after mine, which showed that the claims against me were false.
However, this did not stop him from filing another complaint against me, this time with HUD, for alleged racism. But the most shocking part of this whole ordeal came when HUD demanded that the veteran provide the two appraisals that were done after mine. The veteran refused to do so, effectively hiding evidence that could potentially prove his claims against me were false. This was a clear indication that he had intentionally lied in order to slander me, and try to ruin my career, business, and health.
It has now been over three years since this incident occurred, and the effects are still being felt. I have had to seek therapy and medical treatment for the emotional and physical toll this has taken on me. The veteran’s actions have caused me to suffer from intentional infliction of emotional distress, personal injury, and have damaged my professional reputation.
I have been a dedicated and professional appraiser for many years, and it breaks my heart to see my career, business, and health at risk due to false claims made by a homeowner.
I have just started therapy, which means the statute of limitations has just begun. I am now reaching out to the public in hopes of finding someone who can offer me legal assistance or refer me to a law firm that can help me seek justice for the harm that has been done to me.
Steve Cannon of Constantine & Cannon in DC
There is an appraiser in Maryland with the first name of Shane….can’t remember last name….a little effort might track it down
I have other ideas if interested.
The appraiser who is countersuing the homeowner is Shane Lanham. He is being represented by David S. Wachen
https://www.wachenlaw.com/bio
Pat, I am trying to reach you. Please, send me an email: grappraisal@gmail.com (Virginia) Thanks
I am in a similar situation but with an LGBT bias claim. Like you, I am flabbergasted. I have over 30 years that I have dedicated to this profession. This claim has ruined my career, livelihood, health, emotional wellbeing. We need to fight back & be able to get retribution. If anyone knows how to do that, count me in!
When you state “held a deep-seated animosity towards white people” (more specifically real estate appraisers) we must understand that this is the desired effect of the bureaucrats who assert these claims of racism and the DEI industry. In our area we have already received complaints from appraisers that they have gone to inspections where the occupant has told them that they certainly hope the value comes in sufficiently high to secure the loan…followed by “don’t make me play the race card on you”. Isn’t this highly detrimental to the integrity of the appraisal process? TAF of course remains silent, as they are part of the political establishment. Further, does all of the rhetoric, the purpose of which is to generate extreme animus toward the appraisal profession (as well as create a DEI cash cow), promote the public trust in the appraisal process? Isn’t that TAF’s “prime directive”. I wonder what TAF thinks about the fact that their prime directive is being relegated to impotence by the vitriolic narrative, the message it’s sending to the public, and the resultant loathing and distrust of all professional appraisers by the public?
If I had a borrower say “Don’t make me play the race card on you”, I would turn back the assignment to the lender. How can you possibly be impartial after you have been threatened?
Yes, he should have withdrawn from the engagement. I have done this many times. We have to be willing to loose some business. Not all business is good business. It is called risk management and as a business person this should always be at the front of our business decisions. It is sad he going thu this for no good reason. When you have that bad feeling about an engagement, Walk Away!
A friend of mine has started wearing a body cam!
I blame this on the pervasive false narrative of the “racist appraiser.” Because of all those false media articles all appraisers are now assumed “racist” before they even accept an appraisal assignment. What’s ironic is if the homeowner had gotten the over market value they wanted, the appraiser would magically not be “racist.” The thing is a reviewer probably would have caught the over market value. Then the homeowner would have gone after the reviewer? The VA?
It’s actually a crime to file a false report to government agencies. That second complaint to HUD is clearly a false complaint.
If this is the case that is located in Indiana – I do have an attorney to recommend. Her name is Ellen Townsend 317-508-7073. She has dealt with discrimination cases like this. I used her when a home owner didn’t like my value and decided to file a complaint and I was vindicated in the end. God bless you on this journey and I hope that justice is served.
It’s gotten so “woke” that as appraisers we can’t even turn down assignments in certain neighborhoods for fear of being accused of “bias”…my work around is my schedule…I’m booked out for 3 weeks, when would you want me to do it?
thats when you give the homeowner/lender the assessed value the town has come up with and look up what other AMVs give as the market value – and most of the time the value from the assessors is lower – so it should be asked why didnt they go to the assessors office and say they undervalued the property – if they say the OMV is low – i do that with anyone that calls and asks – can not be upset if you think the value is X and then want to pay your taxes on X value – someone is in court now about that – but it is too bad that people do these things
That approach is a little tricky and possibly subjective though, even before anything ‘bias’ comes into play. In each state there are a myriad of factors which play into mill levies, and assessed values. In some states taxation will seem unreasonably low, and that could be tied to senior rate tax relief programs. Not sure if that plays into assessors figures but on a state by state basis, might be a possibility. You need to know your local municipalities and states rules on the matter up and down before engaging in that approach. Avm’s are just an illusion of a more reliable process which human appraisers and human assessors engage in.
Can’t tell if the LGBT bias claim was for or against the issue, but I am reminded about the lenders / AMCs that have asked me to remove / blur / avoid any item, furnishing, photo, magazine, etc. that would suggest or indicate sexual preference (along with religious, black cats, etc), and where that leaves the appraiser submitting a finished “complete” appraisal, especially with named users other than the original client, when they get a report with half the photos blurred out and wondering (and then asking) why the appraiser did that, and what were they trying to cover up. Just think about that as you try and make your handcuffs more comfortable.
Call the Alliance for Defending Freedom or the Thomas More Society as they do pro bono work
ANY/ALL claims of discrimination will NOT be tolerated!! You’re guilty because we have a complaint!!! How can you tell what is in peoples’ hearts? You can’t “prove discrimination”. Reporting value is just that, an opinion of value based on market driven differences. Has been for decades. Recently, it’s about butt hurt feelings. The appraiser discriminated against me!!! No evidence necessary to substantiate the claim! In the time of “cancel culture” this is another threat appraisers must contend with. Why bother anymore?
A huge issue I am seeing is no one is standing up for appraisers, or the profession as a whole. They are just shoving more education on us, which is nothing more than a money grab. Every single appraisal already states we are not biased, and cannot be. We all know that. What would the appraiser gain by completing a biased appraisal? Nothing. What does the appraiser have to lose by completing a biased appraisal? Everything including their license, money, time, reputation, physical/mental effects, the list goes on. Where are the professional organizations coming to our defense? Who is supporting the profession and trying to protect us? Why aren’t those who file false claims dealt with harshly? Isn’t it illegal to file false claims with government entities? I will gladly help toss an appraiser from this profession once they are proven, by peers, to have completed a biased appraisal. I still have not seen proof of one.
TAF gave money to lawyer firms whom were pursuing complaints against appraisers, on recommendation from Brookings, after headmaster Bunton having stopped by the institute for drinks, snacks, and to watch documentary videos about racist appraisal practices.
Thanks for playing. Better luck next time.
Brian, if you have done what is sounds like you have done, then you have violated USPAP. You have given a value, from a person that is perceived to be an appraiser, without performing the necessary work to support the value you have quoted. Even quoting the assessor by you is an appraisal. Be careful and take a complete USPAP class and this time, please stay awake.
I have done the same when the homeowner complained my value was to high. My recollection is that my estimated market value was almost $100,000 more than his assesed value. I shared the fact with the lender that the homeowner had appealed his real estate taxes for the past five years and it can’t be both.
Complained it was too low, not too high.
jeffery
this is done when they come back and say the appraisal is low (like in this article) – so yes i have provided an appraisal – no quoted value – i simply tell them that they should go down to the assessors office and disclose that they (the assessors office) has undervalued the home – if they state that the appraisal is low – its also a joke – as homeowners dont run down to the assessors office to say they are being under taxed – thats it
No. Wrong. Telling the homeowner what the assessor taxable value is public information and not an appraisal. Its also not a violation of USPAP and nobody was asleep reading your nonsense. Its also not a violation of USPAP to tell the homeowner to read their tax bill which is what he actually said. Stop being a butt head!
Yeah where is he getting these ideas from? Just repeating works of someone else, while holding an appraisers license, does not constitute ‘valuation service’. Not as long as you make a simple disclaimer; this is the assessors figure, or this is the avm figure. Nor would saying something like; zillow is full of you know what and you can’t rely on that number, that’s not ‘review services’ either. Repeating what an avm or assessor says, irregardless of licensing does not constitute ‘valuation practice’.
It’s been my experience that sleeping through uspap brings about the best memory retention of the subject matter. Considering we’re forced like economic slaves to take that same damned class every two years. There is a sort of brain drain effect created by the constant need to monetize the class again and again, to so pointlessly reform some of the content every other year. This creates a lot of confusion among the never ending procession of faux educators and the next approved uspap instructor in line. Take that online, get the class done in half the time.
Mr. Assessor: How is it that USPAP clearly address mass appraisal in Standards 5 & 6, also clearly indicating that mass-appraisal mirrors many of the standards that apply to the rest of us, and then they wish to wash their hands of that relationship when confronted? Just curious why USPAP goes into such detail when “that doesn’t apply to us” claims are almost unchallenged?
You could not be more incorrect in your assumption. Stating what the assessor has valued/assessed a property at is a piece of factual information, has nothing to do with USPAP. Please, we do not need false info out there.
Many lenders want the tax card included in the report, clearly showing the assessed value, which is factual information. Yet, the tax card also often includes incorrect information regarding the square footage, which we have to defend against, but never against the assessed value.
With CA capping property values (accessed / taxed values) at no more than 2% per year from the purchase price, accessed values are worthless in CA. Not unusual to see similar homes on the same street with like property values where one person pays $500 per year (old home), and another pays pays $20,000 per year (new purchase).
Seek the truth.
Bill Johnson: Being from California, you make the perfect argument. So, Prop 13 impacts taxes and is the taxing agency. Now… along comes a government project that involves the taking of private property for the public good, whereby an offer of fair and equitable compensation to the property owner is mandatory. They offer the old couple that hasn’t moved for years in order to keep their tax base making them an offer based on the $500 annual tax and associated assessed value. They offer the couple that just purchased their home based on what they just paid, which is considered the current fair market value for taxation purposes. With the understanding that the government agency that sets the assessed value and taxes is also the government agency needing to take the land, and that must comply with federal law regarding fair and just compensation, for taking land subject to eminent domain action. Which one is the fair offer to the property owners; which offer is truly fair and equitable as required under the law, and why?
Appraisers need to sue for financial damages. This needs to include organizations like the GSEs, the Appraisal Institute, and TAF. They all need to be held responsible.
FHFA is above all of them. FHFA is driving all of this. Go to their website and search for appraisal related information. You will be shocked what you find. From the monthly conservator audit and advisement reports for GSE’s, to their appraiser bias advisory papers. Ask for help from the SEC? FHFA is currently developing and undervaluation tool to go alongside their overvaluation tool.
https://www.fhfaoig.gov/sites/default/files/EVL-2023-001.pdf
Consult with Mel Black in NC.
Frustrated Appraiser: Let me purpose a circumstance that I was deeply involved in a few years back. While I do agree that assessed value by a public entity (assessor) is a rather useless inclusion as a reliable source for an appraisal report, what if the appraisal is a right-of-way dispute assignment for a private property owner disputing an offer of what is required to be “fair and equitable” compensation for the taking of private land for the public good. So….. the California County that placed an assessed value on private land at around $8.00 per square foot for years has offered the property owner $2.50 per square foot as “fair and equitable” for the taking of prime frontage of that land for a street widening project. Would you not think it reasonable, since the taking agency is offering only 32% of what they have been assessing the same land at for years, to mention and rely on the assessed value for dispute valuation support assignment? Note that the government agency taking the land is also the taking agency assessing it. Seem like a good discussion? My position was, and remains, that if the taker thinks the land is worth $8.00 for taxation purposes, then it sure ought to be worth at least that amount for eminent domain acquisition purposes. Put you feet in either party’s shoes (private property owner or county roadway widening project manager) and see which one fits best. Would like to hear responses.
The county like an insurance agency wants to make/take money but not give it back. Especially at their own going rate. Simple.
I ran into a similar situation when asked to appraise Tubby Smith’s home years ago. His wife was hostile from the first second she opened her mouth. After enduring her foul mouth for five minutes I called the lender (in front of her) and asked them to reassign the job and quadruple the fee for the next sucker. I wasn’t about to spend 3 hours inspecting that mansion while being verbally abused, much less spend a year in court with her if she disagreed with my value.
You stated that you identified a hostile attitude early on. My point being, nip it in the bud before the problems begin.
Damned if you do, damned if you don’t has become the new normal in the real estate appraisal profession.
The government and those that write the rules have made it illegal (a punishable violation) to refuse an appraisal assignment in an area which consists primarily of non-whites.
The government and those that write the rules also state the purpose of an appraisal is to determine the value of the home/property in its market setting, so an underwriter can make a lending decision. Back in the day, this protected the lender from lending more than the home/property is worth. It also protected the borrower from paying more than the home/property is worth.
Now, in the 21st century, the same government and those that write the rules are telling the public “if you don’t like the value, turn the appraiser into HUD!” And there are those out there that give less than a damn about the appraiser’s lively hood. It’s all about getting the loan. When the appraiser does their job as required by the government and those that write the rules, and the number falls short…the borrower “Plays that Race Card” just like Ms. Fudge and her PAVE cronies have preached for the last two+ years.
So, appraisers, as long as you remain in the profession, regardless of whether you’re appraising for lenders or doing non-lender work, the government and those that write the rules have planted the seed. In today’s world, every time you walk out the door for an assignment, you risk the excruciating pain of being called a racist and being turned into HUD, VA, or whomever.
Yep, you’re damned if you do and damned if you don’t, and the government and those that write the rules could give less than a damn. And sadly, I don’t see a single appraisal organization out there standing up for the profession. It is indeed very sad times in the real estate appraisal profession.
Very true; we appraisers have no one to go to bat for us, the AI takes our money and makes rules that we have to follow that don’t coincide with Federal guidelines…and yet all the agencies are looking to fine us for something. We can’t win this battle, we just have to put up a valiant effort until we all die off.
I think that would make the GSE’s very happy and put most AMC’s out of business.