Teleconference Addresses Independence, Blacklisting, Anonymous Complaints

Appraisal independence was among the hot topics during a February 13 conference call by the Appraisal Institute’s Washington, D.C., office. Over 30 State Government Relations representatives from around the country took part in the call, which addressed current federal legislation, blacklisting and anonymous board complaints.


The call included an overview of last November’s passage by the House of legislation promoting appraisal independence, promoting appraisal designations and increasing enforcement. The bill was originally introduced as H.R. 3837 but was later rolled into H.R. 3915, and then passed through the House. On the Senate side, Sen. Chris Dodd, D-Conn., introduced legislation (S.B. 2452) that prohibits appraisal pressure as well.


“Unfortunately,” according to Justin Morton, Appraisal Institute State Government Relations representative, “Dodd’s bill includes provisions that would require appraisers to become bonded, plus the bill also includes other detrimental provisions.” Morton said the D.C. office is working closely with Dodd's staff to remove these provisions of the bill, and is confident they will be eliminated. The next step is a hearing for Dodd's legislation, which currently has not been scheduled. Morton says it is hoped this will occur by mid-March.


Related to appraiser pressure, Morton also discussed the blacklisting of appraisers, asking call participants whether there is a legislative solution. One response was to write a letter to the president of the company doing the blacklisting and carbon-copying the local office of the Office of Thrift Supervision. Other participants thought that including blacklisting in appraiser-coercion language would be a strong deterrent. South Carolina and Minnesota have such language, and Hawaii is attempting to include such language in its bill.


“It will be interesting to see whether such language can pass through the legislative process and become enacted into law,” Morton said.


Listeners also considered the effectiveness of allowing individuals to file complaints anonymously with their state appraisal boards. Oklahoma is considering such a bill this year. “The ultimate concern is the potential for abuse,” Morton said. “Anonymous complainants can use the process to tie up an appraiser, or they can use it as a means of impeaching an appraiser during a court hearing. On the other hand, anonymous complaints do allow appraisers in smaller communities to lodge complaints without fear of retribution,” he explained.


“This is an issue that is likely best resolved, state by state,” Morton said.