FDIC lawsuit against Appraisal Management Companies

By
Real Estate Appraiser with BAYER APPRAISALS

FDIC is going after Appraisal Management Coupanies for Appraisal Deficiencies - mostly work from the height of the market.


List of some problems found:

1) inadequate analysis of a purchase contract, or failure to report prior listings.

2) Failure to report prior sales within 3-year of the subject property

3) use of improper comps or avoiding better comps

4) applying improper or inconsistent adjustments to comparables

5) omits or misrepresnets significant physical or locational characteristics of the propety

6) Appraiser reported "stable" prices when prices were declining.

 

75% of the appraisals reviewed - provided - were found to contain multiple egregious violations of USPAP and applicable industry standards.  I recognized a few appraiser names on the list - and one property was in my town.

 

 

 

 

 

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Rainmaker
116,817
Myers Jackson
Real Estate Auctions, Land Auctioneer - Tallahassee, FL
Auctioneer

FDIC has their hands in everything and everywhere, tight controls on the money

May 13, 2011 07:40 PM #1
Rainer
421,810
Peggy Chirico
Prudential CT Realty - Manchester, CT
REALTORĀ® 860-748-8900, Hartford & Tolland County Real Estate

Hi Beverly - I had a recent nightmare with an appraiser for declaring a declining market when it wasn't and for ignoring comps in favor of others.  I fought like hell but got nowhere.  Where is the list that you were referring to?

May 13, 2011 07:44 PM #2
Rainmaker
659,620
Realty Works Temecula
Realty Works Temecula - Temecula, CA
Real Estate, Temecula, Murrieta, Menifee

Beverly:  They should go after the original mess makers who make the lending guidelines so loose!

May 18, 2011 07:08 PM #3
Rainmaker
440,895
Mike Young
203kOnLine.com, covering California & most other states - Fairfield, CA
FHA 203k Consultant 707-812-7668

I did an appraisal review for a client years ago. The subject had a swimming pool, his comp 1 was adjusted up saying it had no pool When I went by, it was on a corner lot, I stoped, looked through the rear fence and could see a wonderful pool. Once I adjusted his comps correctly the value was fully supported and all the comps adjusted where they should have been for him. Some people miss the obvious. How could you not look over the fence.

Sep 28, 2012 09:37 PM #4
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Rainer
19,679

Beverly Bayer

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