Mandatory Reporting

Friday, April 27, 2012

I just returned from the AARO (Association of Appraiser Regulatory Officials) conference in Chicago. I spoke on a panel regarding Mandatory Reporting per Dodd Frank.

‘‘(e) MANDATORY  REPORTING—Any mortgage lender, mortgage broker, mortgage banker, real estate broker, appraisal management company, employee of an appraisal management company, or any other person involved in a real estate transaction involving an appraisal in connection with a consumer credit transaction secured by the principal dwelling of a consumer who has a reasonable basis to believe an appraiser is failing to comply with the Uniform Standards of Professional Appraisal Practice, is violating applicable laws, or is otherwise engaging in unethical or unprofessional conduct, shall refer the matter to the applicable State appraiser certifying and licensing agency.

On the panel with me was Mark Liley, chief appraiser at Flagstar Bank, Scott Dibiasio from the Appraisal Institute and Jeff Dickstein with Pro Teck. This topic is an important one that is and will be affecting all stakeholders.

I surveyed Appraisers, State Regulators, Appraisal Management Companies and Lenders just before the conference to get different points of view on the topic with some interesting results. Much to my surprise the majority of appraisers who had fallen victim to a complaint were quite pleased with the process and felt as though they had been treated fairly and expeditiously by their State Regulator. They also stated that the vast majority of these complaints had originated with borrowers. I didn’t ask but I am speculating that these fall into the category of “ the appraisal came in too low.”

Regulators on the other hand stated that the vast majority of their complaints were being filed by AMCs. Once again that was somewhat unexpected. AMCs are in a bit of a quandary. If they file a bunch of complaints you must wonder how much due diligence was done on the front end. On the flip side if you are a large AMC and you aren’t complying with Mandatory Reporting your clients are going to be asking for an explanation. It would not be possible to process hundreds of thousands of appraisals and never seeing an appraisal you didn’t like. This is sort of the “Goldilocks and the Three Bears” dilemma. Not too hot, not too cold but just right. I don’t know what that sweet spot should be I would take a clue from Mark Liley at Flagstar.

Mark stated that Flagstar is ranked as the number 9 lender for total volume in the US. He files approximately one complaint per day. Flagstar is a very distant #9. He did the math and he posits that if the top 10 lenders filed at the same rate then there would annually be about 25,500 complaints filed annually.  One regulator stated he dismisses about 50% of his complaints. So even at that you would be left with 12,250 disciplinary actions annually at current rates of volume.. I am sure I don’t have them all but I have aggregated disciplinary actions since FIRREA and I have just under11,000 disciplinary actions.

You can begin to see very quickly that there is a huge gap between what might be expected “normal” activity and what is actually happening. State Regulators responded to the survey that they were typically seeing less than 25 complaints filed a month. So the big witch hunt for appraisers hasn’t exactly materialized just yet. Mandatory Reporting is the law. Compliance with the law doesn’t seem to have caught on quite yet. Hmm…



True.  There are so many frivolous complaints out there that take a lot of time, enegery and sleepless nights.

The new requirements have many flaws. The point of the law is none the less clear. The worst thing we could do is abandon this because of it being complicated. We all know there are a number of appraisers that are incompetent and a number that lack ethics. I am tired of being beat out of work by the worst of them. I say we dig in and fight hard to mold this into something that works.    JPG 

We will continue to have problems as long as we have AMC's and Lenders that require unatainable results and not willing to pay reasonable fees. AMC's are killing this industry. "I would gladly pay a fee to a union"

Interesting reading all of the comments. I have been telling my wife for some time that this job is no longer fun and that I would really like to get out of the business. I have been doing this in California for 29 years and am left like many wondering what I have to show for all of the time and hard work. I recently sat through a class at $140.00 per where the instructor informed us that that average age of an appraiser in California is now 55 years old. As I am closing in on 50, I looked around the class and sure enough I might have been one of the youngest in attendance. We are a dying breed, who in there right mind with the current environment, education requirements, and eventual low pay would want to get into this business.

This has been interesting reading all the comments.  I have been an appraiser for 15 years.  I worked in a Manufacturing plant for 13 years prior and when I got my Appraisal License and started working, I thought I had really found what I liked doing.  After all it wasn't near the physical work that I had been doing.  But since these past 4 years and the financial meltdown that the country had,  I am so burnt out in this industry now and I never thought I would ever say that when I got into the business.  With changing the Appraisal forms, adding new ones like the market addendum, dealing with AMC's taking part of our money and all the other things that has been happening, is simply not fun anymore.   It takes twice as long to complete an appraisal for less money.  I still see the same things happening that got us into trouble in 2008.  Lenders and Real Estate Agents rolling in the closing costs and raising the sales prices that is inflating values.  There is no way someone should be able to get a $100% loan on a home.  There are reasons why people live in apartments.   Its like giving a 16 year old kid a brand new car that has not worked for a dime to help pay for it.  They are not going to take care of it.  The government wanted a scape goat and the appraisers were targeted.   Good luck to all of you appraisers!!  We are going to need it.  :)

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these days it is much less "fun" than it once was; between unrealistic demands for AMCs for minimal compensation.  ( I was recently asked to complete a report which would have paid less than minimum wage, based on hours needed to complete).  I love this profession but not what has happened to it.  I have been appraising for 28 years.  bd 

Seriously, why? USPAP is so complicated that only college professors or appraisers who do little appraisal work understand it fully! Real estate market is flooded with inventory that is being plucked by investors from all over the world at liquidation prices and we are supposed to report market trends, anticipate future market trends, report inventory levels, report total "comparable" sales. The 1004MC is supposed to match the neighborhood section of the 1004 report and the total number of comparable sales and listings at the top of page 2. Lenders still want the houses they loan money on to fit into a nice tidy box that use to exist prior to 2007 and not have ANY repairs. Appraisals reports are so involved that it takes twice as long to complete the report yet the lenders and AMC's are still looking fort the cheapest appraisers who will work all nite and weekends to meet turn time deadlines. I am rambling but think anybody who does appraisals can relate. Its not fun anymore! When I get an appraisal report on a large complex home, I sigh knowing that I will have to work for very little money or not get the job. Then when I have completed the report, im exhausted and dread starting another report. I have been an appraiser since the late 80's and would leave in a minute if I could find something else. Im looking! But in the the mean time, I am going to continue doing appraisals with the reputation of a slow poke because at the end of each day, I do take pride in quality work and want people to be able to read me report and understand it. When my appraisal is reviewed, I dont want a bunch of call backs for clarification and reconsiderations. But, i will slowly go broke trying to do whats right.

I have 2 children, one 27 considering changing careers, the other 21 and just looking to start a career.  I have been appraising for 17 years, and have been a single mom throughout.  We have had discussions through the years about my kids becoming trainees, and at one time my son even said he'd like to "get into the family business" (of appraising).  I  have always been a bit skeptical and wanted them to find what was right for their own aspirations, and never tried to influence their career choices.  At this point, however, I find myself telling to NOT even THINK of appraising.  It has been a decent living, for this single mom's household over the years.  I've always considered myself to be a fair and honest appraiser, but only a so-so business person.   And being an honest appraiser has definitely put a crimp in the order flow at times (pre-AMC when I lost LOs when I would not 'hit their number').  Even though I am getting more work now than ever, I am working so much that I absolutely have no personal life.  This, and the incredible amount of culpability and the litigatory nature of the mindset surrounding the entire industry is why I'm not going to take my children on as trainees.  the "career" is definitely not worth the strain.  I have enough experience to get into private work for attorneys (and have dabbled), however I have a severe hearing loss and wear 2 hearing aids.  I have found that I absolutely cannot keep up with anything happening in any courtroom.  My expert testimoney is punctured with "pardon me?" and "I'm sorry, I didn't hear that".  I live in a more rural area with smaller courthouses and they do not have any hearing-aid compatible systems, etc.  So...I'm pretty much stuck with the 'form filling'  type of work!At any rate, I just needed to blow off some steam, and re-iterate what has been hashed on for some time now...appraisal work is 'dangerous' and definitely not worth spending the time, money and resources to train for.

I have been an appraiser since 1990 and am too looking at why am I an appraiser.  I cannot think of any but one reason and it isn't good enough anymore to go through the hassles plus, now, get turned in by anyone involved in a transaction if they don't like my appraisal.  I used to think it mattered that I did a good job. It really doesn't anymore. With all the jobs paying so much more which require the level of responsibility, the liability and the education, I can't see staying in it anymore. We are working for less than half of what we used to get for appraisals, I am getting out too. I really don't see much of a future in it anymore. Most appraisers who are over 65 don't have any savings, no retirement and are still working for peanuts. We fight for the fee, we fight to get all the documentation, then we fight to get our appraisals through the "quality control" which is different for every client, then to top it all off, we have to fight for our money when it still isn’t here in 1-2 months.  My gas money is spent immediately yet I have to wait 2-3 months for my money. Why? I ask myself that every day.Why am I an appraiser? I don't have any reason to be one anymore. 

I left the appraisal "industry" in 2007/2008 voluntarily. Most of the negative conditions described here where happening at that time. Only the Gestapo like requirements that facilitate "reporting" on Appraisers remained to be installed. The NAR controls the process and a union will not succeed. Not being an appraiser is the best career move I've made in 25 years.

I have been in the Biz for 32 years both in the residential and commercial side.  During this time I have also appraised in Australia and Canada.  This gives me a great perspective on the Appraisal Industry in America as I still speak with friends in both countries.  HUD, FIRREA, USPAP, HVCC, Dodd-Frank. ....enough bureaucracies for 10 countries and none that has done anything to ensure us Professional longevity - Seperated us from the Employer - Employee relationship with the lending Industry or...last but not least...give us a livable wage.  We are a joke in these countries and I do not argue this point.  Everytime we try to standup to the lenders it is the appraiser's that get screwed.  What's the latest flavor of the month Mandatory Reporting????  This is like a DUI giving the cop a ticket for being inconsiderate!!!  I am calling it quits next year to write a book and I will have to dedicate some space to the Appraisal Industry.  Nobody could make this stuff up, it is that unbelievable.  And lastly....I do agree, nobody should recommend this Profession to anyone...residential or commercial.Nuff Said 

I've been appraising since 1975 and I'm looking to retire abroad as soon as possible. I would never recommend anyone become an appraiser. Unconditional compliance and adherence to every tenent in USPAP would mean completing 2 or 3 appraisals a week, a larger appraisal plant than I already have and bankruptcy. I am working weekends just to comply with current standards and I well know that any one of my appraisals could be taken apart if USPAP standards were the strictly applied to each. I have always contended that one's reputation will ensure work from the right clients, the banks that want a well supported estimate of market value. In order to comply with my own requirements I am living each month upon the previous month's earnings. I can only just keep my head above water. Time to get out and live cheaply in a foreign country. 

I made a change which I started several months ago.  I quit working weekends, totally.  I used to work all day every day during the weekend.  I also quit taking assignments that were more difficult (no small income or jobs that were not fairly compensated), I also started asking for higher fees for assignements that were difficult (7000 SF property on 20 acres  with no comps for miles all for $240) Sometimes I get them and if I don't at least I am not working for below minimum wage.  You know what, my attitude has improved greatly in the last two months.  Luckily I still get work even with these demands (and yes these are with AMC's).  Who knows how long it will last but I have to tell you it feels good and for once I am not stressed about getting reports in.  I know some can't do that, they need the money, believe me I do too but if I am going to try to keep going in this business something had to give.

you sound like me. I am doing like wise. working 18 hours a day, 7 days a week, did not get me anywhere.

New appraiser qualification should be: minimum education of a lawyer, capable of walking on egg shells without damaging them, work for peanuts for AMC's, should always be in fear of treated by local laws, lenders, AMC's, and loosing license; must be expected to perform at a faster pace; deliver appraisals 48 housr after inspection; dont complain; and be willing to be judged by people at many levels and accept every responsibility; It is essentially a report writing contest; stupid profession.....!!!

It now takes 2 or 3 times longer to do a report as pre-HVCC, and all for 1/2 to 3/4 of the pre-HVCC fee.  Little ability to control our own income due to most lender work going to AMCs with "do not compete" clauses (as IF I'd want to be a bloody AMC), "loan buy-back" clauses, arbitrary & time consuming AMC special conditions, no redress if cut by an AMC (they don't have to tell you WHY they don't use you anymore).  Clearly, the Powers the BE would like to simply push a button & get the value; FNMA allowed that on loans starting from 2002 or 2004 if memory serves.  How did that work out for ya?                                                                    AMC: We want this appraisal back in our hands within 48 hours, rain, shine or Sunday; we want you to add all our 'special clauses'; top pg 2 must be same as MC, regardless whether it makes any sense; you must give us your bank acct# b/c we don't want to waste our time writing a check or paying the nasty postage; we want you to use the comps we suggest whether they are comparable or not; the Borrower & Lender must be happy with the report OR WE WON'T SEND YOU ANY MORE WORK! and you can't get this lender's work without us!                                    Yeah, sign me up! 

I have had the pleasure of a borrower complaint to the state board on two occasions, one of which was very recent (still waiting on a response from the board). First one dismissed and I am confident the 2nd one will be too. It is stressful and time consuming to deal with. In my case both were the result of homeowners having unrealistic expectations and taking it out on me (low ball appraisal). What is frustrating to me is that my state board made me jump through the hoops with no credible justification, IMO.

I realize compliance is the law, the article is written from the viewpoint that everyone is very dissapointed that there aren't more appraisers turned in. Almost as if they want more and more appraisers turned in, some kind of goal isn't being reached. Shouldn't a lower number of turn ins to the boards be a good thing? I don't understand what this profession is coming too? I don't hear the realtors complaining that more of their realtors should be turned in to the boards, no one at the banks  are writing articles hoping that the examiners close more banks. Only another appraiser would write an article complaining  that more appraisers should be turned in....I hate my job.   

This article wasn't written by an appraiser, the author and the blog are from the AMC industry. Don't be fooled. When this person goes to a convention of chief appraisers she is talking about the people who hire the people who are frighteningly ignorant of the appraisal process and the real estate industry that we talk to on the phone every day. She is talking about the people who set the practices in the appraisal management companies that break the law every day. They shop for appraisers who'll accept the lowest fees, they set unreasonable turnaround times, the coerce appraisers into making unnecessary changes to reports, they decide that they don't have to pay appraisers for 45 or 60 days. She is talking about the people who call us on the phone and threaten our livelyhood if we don't make the unnecessary changes to our reports that they request. I was told recently by the "chief appraiser" to one of the largest AMC's that it was my job to do what the bank wanted me to and put in the report whatever they tell me to put in. This was over the phone and when I requested that he send me these conditions in an e-mail they dropped me from thier roster. This purpose of the mandatory reporting in first the HVCC and then in Dodd-Frank is to destroy our industry and cause further crisis in the housing industry which will allow further government involvement. There is no serious regulation of the AMC's, all the guns are pointed at appraisers.

All these folks are on here bemoaning Dodd-Frank and the need for least we appraisers are still in the equation. The Tea Party appraiser who wants small government and no regulations are likely, albeit unintentionally, rooting for the end of the appraisal "profession". USPAP is here for the public trust, if we are putting out crappy reports and unable to relay reliable and credible "summary" reports to our clients--- then we shouldn't be in this business. Stop taking shortcuts and put out a good report--- the perfect report has yet to be written by anyone!

everyone of my reports are perfect, whats wrong with you.

Its actually in there, exceptions 1 and 2 to the appraiser independance part of the DODD Frank act. It states that the lender can require any amount of "explination" and can require us to include their own comps "for clarifcation" of the report.

As a small AMC representative (and an appraiser of 25 years) It is hard too imagine what a nightmare this requirement is for both appraisers and AMC's. There is no definition of what type of USPAP violation cross the boundary of "to report" or "don't report" as a USPAP violation. Our state board routinely passes out fines for failure to develop and explain Highest and best use development on residential reports. I have not seen a single residential appraisal (out of thousands) which adds narrative explanation beyond the single line provided for in the standard URAR report. Am I expected to turn in these appraisers? Can my company be fined because I am not turning in these appraisers for what our state board clearly considers a USPAP violation? Many appraisers are routinely late and slow on their performance causing people to lose their locks on their loans and costing them money. Is this a violation of USPAP? When borrowers complain about appraisals & appraisers to us, are we required to tell them to go to the state board for their grievances? Or worse are we required to turn in appraisers if the borrowers say they want us to? If the borrower does report the appraiser (and the state does take action against the appraiser) and we didn't is this a violation of the mandatory reporting requirements for the AMC?  One would have to assume that this would be ruled against the AMC for not reporting it.  This has the potential to become the worse regulatory nightmare our industry has ever seen! Repeal Frank-Dodd and go back to common sense!  - Very unlikely that is going to happen! It appears that it has become impossible to be in compliance with all of these regulations whether one is an AMC or an appraiser! 

AMC turn times are often unrealistic--48-72 hours.  Appraiser needs to not just fill in the blanks, but to actually THINK, which can add some time to completion of the report.  We are not simply data-entry people.  The liability for the "Lock" is 100% on the agent & Borrower.  Takes a couple weeks to do the loan.  So why not order the appraisal at the front end of the process, and not wait until the last minute, as usual?  Then it's "Hurry up, appraiser, the lock is about to expire".  Duh.  Maybe the agent or borrower should have negotiated a longer lock period.  Oh, they probably wanted to make sure the loan was approved subject to the appraisal, so as to squeeze the appraiser to jump through the hoops and catch the blame.  If AMCs would give appraisers 5-7 days to complete the report, we could produce a better quality product consistently without all the interest rate lock drama. Lenders, Agents & Borrowers will adjust. Do Appraisers have responsibility for Borrower losing his lock?  Heck no!

24-48 hours is typically not enough time to do a solid appraisal.  If AMCs gave 5-7 days for completion, most appraisers could comply.  re: Appraisers being faulted for Borrower blowing their Interest Rate Lock?  Absolutely not!!  The liability falls on the Agent for not informing the Borrower of lock implications, the L/O for not ordering the appraisal in plenty of time to get it in, and on the Borrower who probably said he didn't want to pay for the appraisal until he had his loan approved, just subject to appraisal.  But everybody wants to blame the appraiser.  Go take a "Grown-up" pill!

Yeah, and who's reporting the real criminals ... the lenders, the AMC's, the real estate brokers, the builders, etc.? All this does is open the door for a tsunami of creeps to lash out at appraisers when the appraiser doesn't "make value".  This is nothing but revenge for appraisers telling the truth about how they've been treated by lenders, AMC's, brokers and builders for the decades leading up to this debacle. Appraising real estate is not an occupation for emotionally healthy adults. Infinite liability for $250?  Ten times the work for half the money, as just three or four years ago? Incessant abuse by sociopaths? And, we're typically two-three times their age, education and IQ ... Wow, what a job.

Harsh but true!

In CA R E agents have next to NO oversight, No ongoing liability, pay 1/10th the CE & License renewal fees, have a VERY low threshhold for licensing (MLS sheets indicate that 1/2 can't spell or don't have a grasp on the English language), they make significantly more $$$, and don't know how to do a BPO to come up with an accurate value, have been a big piece of the "push value" problem, we are, the appraisers getting dragged over the coals.  Disgusting.

With liability at an all-time high for appraisers, now this? We have the most exsposure for the least amount of money in the entire transaction, and carry all the responsibility when something goes wrong. I have never seen or heard of any profession that has peers so eager to hang each other. Now, when you provide a review product it's your butt thats on the line and is forced to turn another appraiser in?I don't see how the state boards are adequately staffed to handle thses added complaints. We'll be digging up old files for years...I'm going to get out of this profession asap and carry some good tail-end E&O insurance.

Great response.  Right on.  Don't get the tail-end three year policy as it is usually non-renewable.  I got out almost 5 years ago.  It is a terrible change when someone is unhappy with a value and can turn an appraiser in for that type of non-reason.  What a waste of time and earnings and I am sure the appraiser would get put on some type of non work list.  I am now a school teacher.  I don't make nearly the money I did appraising, and you still have to worry if a student says you said something you didn't say but the union carries millions of dollars in insurance and supports honest hard working teachers.  Just don't have a a face book account.

Ever heard of Facebook?  We're creating something similar for appraisers to embarrass their competitors for incompetence.  Perhaps AzzBook would be a more appropriate moniker.  Appraisers throughout the country will able to frame and hang their competitors for one sin and one sin only....accepting low fee AMC work.   The directory will resemble in that it will show their names, contact info, and often their photos.  It will also provide access to the evidence (an email from the appraiser showing that they were willing to work for less than a reasonable fee).  Hopefully after enough azzes have been exposed every appraiser will think twice before they hit the accept button for orders less than $300.  How else can we put an end to the new reverse auction business model put in place by HVCC?  Ever noticed that eveyone complains about the new low fees yet everyone denies playing a part in this extortion scheme?  Remove the rocks these snakes hide under and they'll soon relocate to their old jobs at McDonalds.

I could not have chosen better words and you are 100% correct! 

In the words of Brittany Spears (I cannot believe I just said that), "... She did it again!"  Thank you Joan for bringing real clarity to a topic that all appraisers should be aware of.  This is real-life stuff and we need to be armed with information such as this to remain key players in our industry. As professionals, we simply need to do our job.  Are we going to do that perfectly?  No.  Are mistakes made on EVERY report? Naturally.  Will there be witch hunts (or individuals reporting for the simple purpose of looking like they are complying)? Yep.  Will some of us have to face the tribunal?  Uh Huh.  However, that cannot keep us in fear and hampered from doing our job and loving what we do.  Being an appraiser is still a wonderful profession for which I am grateful to be a part of.  -Dustin Harris, The Appraiser Coach

I thought that too, until I was in front of the board because of some made-up reason, and they bent a rule to fit, and made up stuff to charge me with. They are not on our side, and it makes you re-think each report, wondering, is this next report is going to be the next one they think is a violation, just because its not on the standard cracker-box house. It messes up the whole profession when the complaint system is not handled well.

I have been an appraiser since 1977.  The ever-increasing demand by consumers (banks, now AMCs & others) for lower fees and faster turn times in the residential appraisal market have resulted in my transition to a completely different arena of the industry.  My refusal to compromise on the value of my time, knowledge and experience forced me to eliminate  those clients and, you know what, I don't mind!  I prefer working for clients that appreciate the value of my product. I have never been disciplined in my 35 years and have completed or reviewed something like 25,000 reports.  If all worthy appraisers would take a hard stand, they would find their needs being met and quality would become the norm This would negate much of the need for disciplinary actions. 

Yes, And if all the people in the world could just get along and love each other, there will be peace in the world by Christmas time. 

 I have a question about reviewers who work for banks and are not appraisers.  What rules and regulations do they have to adhere to when reviewing an appraisers work?  Most of them don't even have a copy of USPAP!!!!

Be very carefull with how you think about this new regulation. I have been appraising a very long time and have reviewed thousands of appraisals. I can honestly state that there is usually a USPAP violation in the vast majority of appraisals. For example, do most appraiser's actually use a cost source for their cost approach and derive their acrued deprection directly from market comparisons? USPAP states you must. Do most appraisers report enough information so that the reader can replicate the cost approach? The FANNIEMAE form as well as USPAP state you must. Is an exposure time reported? Were the major adjustments developed with sound methodology? Can the reader discern from the report how these adjustments were derived?Most appraiser fail USPAP on a daily basis. Their reports are too abreviated to meet the most liberal interpration of:USPAP Summary Reporting Comment: Comment: A Summary Appraisal Report must include sufficient information to indicate that the appraiser complied with the requirements of STANDARD 1. The amount of detail required will vary with the significance of the information to the appraisal. The appraiser must provide sufficient information to enable the client and intended users to understand the rationale for the opinions and conclusions, including reconciliation of the data and approaches, in accordance with Standards Rule 1-6. Standard rule 1-4 states: In developing a real property appraisal, an appraiser must collect, verify, and analyze all information necessary for credible assignment results. (a) When a sales comparison approach is necessary for credible assignment results, an appraiser must analyze such comparable sales data as are available to indicate a value conclusion.(b) When a cost approach is necessary for credible assignment results, an appraiser must: (i) develop an opinion of site value by an appropriate appraisal method or technique; (ii) analyze such comparable cost data as are available to estimate the cost new of the improvements (if any); and (iii) analyze such comparable data as are available to estimate the difference between the cost new and the present worth of the improvements (accrued depreciation). It has been my experieince that very few appraisers comply with these requirements and assume that by calling the report a summary they do not need to show their work. I would suggest hat you will likely see a great deal more complaints as AMCs and borrower's start to look for reasons to complain to regulators. USPAP provides such a wide canvas of opportunities for failure that a USPAP violation can likely be uncovered in almost any report. R. J. Kirchner SRA

Complaints made to Virginia's review board goes to (at least it did) reviewers who handle complaints for anyone licensed in Virginia.  That includes hairstylist, plumbers, builders, inspectors etc. Up until last year they had no education nor training in appraising let alone any experience in it.  I have heard they have taken some classes over the past year... at least that offers some hope.

Did else anybody notice that the preamble to this law does not even mention Appraisers by name? Its names everybody but the appraisers, kinda like we don't exsist or could possible have a complaint against the monied commission based industry we support.Good thing their was an Appraisal Institute member to speak on behaf of our industry! Without a voice, we are surely doomed. We need a Union, and a tough one at that, I would suggest aligning ourselves with the Teamsters, they don't take crap from nobody. If we put some of these truck drivers on the Banks and AMC's door steps, things will change for the better. ‘‘(e) MANDATORY  REPORTING—Any mortgage lender, mortgage broker, mortgage banker, real estate broker, appraisal management company, employee of an appraisal management company, or any other person involved in a real estate transaction involving an appraisal in connection

all good comments.........after 30+ years in the profession, it amazes me how much influence/control the appraisal profession has lost at it relates to lender work.  non-appraisal interest groups(lenders/gov't regulators) continue to dictate more appraisal forms, standards/requirements, fee levels with little or more like no input from appraiser groups.  to make it worse there is a segment of the appraisal profession that will just jump at the latest condition even if its unreasonable.  lender interests groups understand have known this very well(for sometime now). so they know with any new appraisal condition they will find a segment of appraisers that will comply.

Don't underestimate how much appraisers are being pressured to come in low.  All appraisers seem to talk about now is how affraid they are of underwriters.  They are running scared and taking an ultra-conservitive approach to evey appraisal, refi or sale.  That's just as bad if not worse than over-valuing a property as it hurts the consumer, buyer, seller or refier directly.  Appraisers should not be terrified of the underwriter.  The appraiser should be telling the underwriter what is happening in the market.  Low-balling is a violation of USPAP as it renders a misleading report.  A value that is not realistic. 

Much of what I do, other than appraisals, is to assist appraisers who are facing sanctions by state regulators or lenders. About 90% of the time what both consider to be USPAP violations are not violations at all. There may be some lack of clarity or some minor error but not rising to the level of a USPAP violation. What some regulators believe about USPAP is laughable. To be able to sanction an appraiser one would first need to know what is and is not part of USPAP.

"Mandatory Reporting is the law. Compliance with the law doesn’t seem to have caught on quite yet." Really Joan...... Appraisal(s) or appraising is based on economic theory with an effort of practical implication.  Government, politicians, bureacrats, AMC's, etc....imposing some type of "form filling" mechanisms within a extremely minimal timeframe do not allow appraisers to accurately express practical implication of economic theory...hence USPAP is to be used as a guideline.... not a law enforcement training manual by the aforementioned "enforcers" .  "There's no way to rule innocent men. The only power government has is the power to crack down on criminals. Well, when there aren't enough criminals, one makes them. One declares so many things to be a crime that it becomes impossible for men to live without breaking laws" ~ Ayn Rand. And who owns the government or the CEO's of the United States corporation that make the statist laws or rules (take a guess)....cause it certainly isn't the vote of "law abiding" citizens.Joan, it is a great achievement that you have promoted yourself into the foodchain of the statists for regulatory prominance in the appraisal profession.  However, I believe your "scope of work" needs cannot come up with solutions and apply those solutions if the problem has not been properly identified yet.  And the problem is "quasi" GSEs, who happen to be (not surprisingly) bankrupt (FNMA, FMAC, etal), imposing Orwellian reporting "forms" coupled with greedy, money hungry AMC's (that provide nothing of "value" to the entire appraisal process)....not to mention they are predominatly bank-owned.  To further add, Prostitution is also illegal....and yet the "enforcers" in your italicized (e) Mandatory Reporting section of this drivel, consistently prostitute themselves daily......for the right amount of money under the illusion of providing something worthy.   I guess that "law" has not caught on quite yet either..... 

What is Joan Trice referring to in the last sentence of this article?"Compliance with the law doesn't seem to have caught on quite yet."  

The ballpark-estimate math sounds about right: 25 complaints/month x 12 months per year x 50 states = 15,000 complaints per year. 

In the past 30 years I have seen alot of changes in the Appraisal Profession (remember when we used Polaroid pictures of the subject & there were no comp photos?). But one thing has never changed and never will: the Appraiser's lot in life. If you want to understand the Appraiser's position in the pecking order, go up to the Northwest and find an old Indian totem pole - look at the expression of the guy on the bottom - that's the Appraiser.Retirement never looked so good