Poetic Justice

As an appraisal instructor, I often hear complaints by appraisers about having no mechanism in place to halt the unsavory practices they see everyday in the mortgage lending world. 

In an article published by Appraiser News Online, a staff appraiser for Countrywide lost his job in 2009 for airing concerns about deceptive practices that were inflating appraised values.  Normally, the appraiser losing their job and never being heard from again would be the end of the story.

Not this time! 

The appraiser, Mr. Kyle Lagow, filed a whistle blower lawsuit and, as part of the $26 billion mortgage settlement, was awarded $14.5 million.  Provisions of the U.S. False Claims Act allow private parties to sue organizations involved in illegal activity on behalf of the government and then share in the settlement.

Nothing makes me happier than hearing about an appraiser being rewarded (rather than punished, which occurs all too often) for doing the right thing.

Way to go Kyle!

Welcome to 2012 (USPAP)

An even numbered new year means a new edition of USPAP.  I know every appraiser sleeps with a copy of USPAP under their pillow and has read the 2012-2013 edition so many times their copy is already worn out.  Even so,  I thought I would bullet point the major changes:

• Revised definitions: Client, Extraordinary Assumption, Hypothetical Condition.  The definition of Exposure Time was moved from Statement 6 into the Definition Sections.
• A new rule: Record Keeping is now a full blown Rule
• Exposure Time (associated with market value) must now be reported.
• Revised disclosure requirement:  Disclose whether you have or have not performed any services with regard to the subject property within the 3 years proceeding the effective date.
• Standards for Personal Property Appraisal (Standards 7 & 8) have been significantly updated.
• Advisory Opinion 21 USPAP Compliance has been revised to help us understand when USPAP does and does not apply.

See you in the 7 hour USPAP update class!