Anaheim Commercial Appraiser Orange County OC, Southern California CA. Anaheim Real Estate Appraiser OC,.
What, in the world, are they Doing wRONG? Appraisal Institute suffers another loss! "AI commercial database bites the dust." Appraisal Institute (AI) will be closing
down the AI Commercial Database on November 1, 2005.
(anaheim commercial appraiser, Orange County Cities, Aliso Viejo, Anaheim, Brea, Buena Park, Costa Mesa, Cypress, Dana Point, Fountain Valley, Fullerton,
Garden Grove, Huntington Beach, Irvine, La Habra, La Palma, Laguna Beach, Laguna Hills, Laguna Niguel, Laguna Woods, Lake Forest, Los Alamitos, Mission
Viejo, Newport Beach, Orange, Placentia, Rancho Santa Margarita, of San Clemente, San Juan Capistrano, Santa Ana, Seal Beach, Stanton, Tustin, Villa Park,
Westminster, Yorba Linda, Real Estate Appraiser Los Angeles, Commercial Appraisal Services, millionaire services, Real Estate Appraiser, Real Estate Appraiser
Los Angeles, find appraiser, find real estate appraiser, Real Estate Appraiser Orange Riverside Ventura San Bernardino Counties, )
THE CALM BEFORE THE STORM!
Appraisal Institute's (mai) Top Dog (John Ross, CEO) Jumps Ship
Ross: "After nine years with the organization, I feel that the timing is good for me to explore other opportunities."
Ross: "I’d like to see the organization (the appraisal institute) strengthen its ties with the academic community. The profession needs to focus now on
developing more theoretically based tools and on things like behavioral finance and economics – which is ultimately what dictates the operation of markets. I’ve
often stated that the mark of any profession is in the development of new theory, and in my estimation there have been few, if any, advances in this regard in
the appraisal profession for the last 25 years or more. I’d like to see the Appraisal Institute more involved in some way in such thought creation."
Are predetermined Appraisal ADJUSTMENTS Legal/Ethical? Please see attached Predetermined adjustments provided by Curtis - Rosenthal, Inc. (MAI
Appraiser Los Angeles) LLC. an MAI Firm. You be the judge and get back with us or call them for this years update. If your property was acquired by the
Los Angeles World Airport (LAWA) you had better read this!
"Posted by Appraisal Police on July 10, 2006 at 00:33:42:
In Reply to: Predetermined Adjustments posted by Cochise on July 09, 2006 at 19:26:17:
Fannie Mae Single Family Selling Guide
Part XI: Property and Appraisal Guidelines
XI, Chapter 4: Reviewing the Appraisal Report (11/08/04)
XI, 406: Sales Comparison Approach to Value (01/31/06)
XI, 406.03: Adjustments to Comparable Sales (06/30/02)
Each comparable sale that is used in the sales comparison approach to value must be analyzed for differences and similarities between it and the property that is
being appraised. The appraiser must base his or her analysis and any adjustments to the comparable sales on the market data for the particular neighborhood
and for competing locat1ons—not on predetermined or assumed dollar adjustments. If an appraiser's adjustments to comparable sales (or the reconciliation of the
comparable sales) are based on unsupported assumptions or personal opinion that cannot be supported by market data, poor quality appraisals that could have a
discriminatory effect may result."
<Anaheim Orange County and Southern California, Real Estate Appraiser Orange, estate appraiser & consultant, Expert Witness, Real Estate consultant, OC, Southern California,
commercial appraiser, appraiser los angeles, real estate appraiser, condemnation appraiser, la commercial appraiser, ca commercial appraiser, Real Estate Appraiser, Real Estate
Appraiser orange county, Commercial Appraisal Services,>
Services: Eminent Domain appraiser appraisal, The Harris Company REA/C
(commercial appraiser los angeles, inverse condemnation appraiser, expert witness real estate, real property, commercial appraiser, commercial real estate, Los Angeles, Estate , Probate,
Trust, Tax, MAI Appraiser, LA, L.A., real estate land los angeles, commercial real estate inspectors, real estate brokers, los angeles, real estate appraiser, Los Angeles, llp, mark to marker,
Land Appraiser, Special Purpose Property Appraiser, Office Property, Commercial appraisal, Restaurant, Apartment, VANDEMA, Southern California Commercial Real Estate, Residential
Appraiser, Apartment Appraiser,California Appraiser,PMI Removal, Certified General, Tax , Multi Family , Bank appraisal institute,Apraiser, comp check, value check, l)
Orange County Cities, Aliso Viejo, Anaheim, Brea, Buena Park, Costa Mesa, Cypress, Dana Point, Fountain Valley, Fullerton, Garden Grove, Huntington Beach,
Irvine, La Habra, La Palma, Laguna Beach, Laguna Hills, Laguna Niguel, Laguna Woods, Lake Forest, Los Alamitos, Mission Viejo, Newport Beach, Orange,
Placentia, Rancho Santa Margarita, of San Clemente, San Juan Capistrano, Santa Ana, Seal Beach, Stanton, Tustin, Villa Park, Westminster, Yorba Linda
Dateline:
INTERNATIONAL RIGHT OF WAY ASSOCIATION (IRWA)
Chapter 1 –Los Angeles County
2006 Annual Fall Seminar
Tuesday, October 24, 2006
Quiet Cannon, Montebello, CA
The Los Angeles World Airport's (LAWA) Director of Economic Development admits that the Manchester Square “Voluntary Purchase” Program is a part of LAWA’s Master Plan. This
statement was supported by one staff member who presented maps indicating that this area has been set aside for parking.
This Freudian slip of the tough could have major legal consequences since under the agencies “voluntary purchase program” homeowners were not paid Fair Market Value which is “the
highest price” required by State Law in condemnation cases.
For years Vivian Howell, an IRWA and LAWA mucky muck, has stated that we are not going to pay them “the highest price” because this is a voluntary program.
This in addition to using unethical appraisal practices like using unqualified appraisal trainees, consultants colluding on values, standardized comparable adjustments, and in some cases-
appraising of property based upon it's existing use, rather than it's “highest and best use.” It is estimated that these combined, secret practices, have cost property owners millions.
The Director also stated that he foresaw a number of inverse condemnation cases being filed against the agency, by current residents, because the LAWA project has left their neighborhood
in a shambles.
If you are a homeowner, property, or seller of property to LAWA in this area we strongly suggest that you contact a qualified Real Estate Condemnation Attorney, or Relocation Expert, and
demand a full hearing into these issues.
Cochise
Commercial Appraiser
Posted by Cochise
Commercial Appraiser
It appears that discrimination is something that the Appraisal Institute knows a lot about. In fact they use to be called The American Institute of Real Estate
Appraisers until they were sued, for discrimination, by the Federal Government. They then changed their name to the Appraisal Institute, same pig, different shade
of lipstick. (The MAI Appraiser Standard, Larry A Mc Coy, MAI) Application Local governments are not immune from proscriptions of Title VIII, and may be sued.
United States v Black Jack ... provides for actions against states and political subdivisions as well as actions against private transactions and practices;
comprehensive purpose of Fair Housing Act)... would be diluted if it were to apply only to actions of private individuals and entities. ... applies to appraisers of real
estate. United States v American Institute of Real Estate Appraisers etc. (1977, ND Ill) 442 F Supp 1072, 24 FR Serv 2d 880, app dismd (CA7 Ill) 590 F2d 242, 48
ALR Fed 657. 42 USCS ? 3604(a, b, d)’
How many errors can you find in this appraisal prepared by Jeffrey T. Nagasaki, MAI of Lea Associates. They also perform similar low quality work for the Los
Angeles Unified School District and the County of Los Angeles. (Condemnation Appraiser, Inverse Condemnation Appraiser)
HOW TO CONDUCT A MAI (MADE AS INSTRUCTED?) APPRAISAL
Quote from David Rosenthal, MAI
Here are some tips from seasoned practitioner, David Rosenthal, MAI (Managing Director of Curtis-Rosenthal, LLC) that can help make your next appraisal
experience easy and productive.
"4. Supply all of your market data, up front. Nothing says that your appraiser has to independently find all of the relevant market information. Data is data, so
make the job easier and share any market data that you have already developed. The appraiser will decide which data to use and how to best use it. Give your
appraiser a running start with the benefit of your advance research."
The Great Texas Bank Job
"The FIRREA Cover Up - FDIC / RTC The South West Scam
The Whitewaters & Castle Grandes of Texas and ALL Across America
The S&L Gold Rush - The Lack Of Public Accounting
If the bank’s board of directors were the ones doing the looting, however, they readily hired a pliant appraiser to cook up whatever appraisal value they wanted.
Behind every fraudulent loan was a fraudulent appraisal. It is nearly impossible for appraisers to render independent appraisals if the people hiring them do not
want one. When I was in public accounting, auditors joked that MAI stood for “Made As Instructed.” The commercial appraisals were largely worthless because
they were not independently rendered. It is so obvious that it should be beneath mention, but that situation still exists.
Even if the bank could not find a bona fide buyer, it was supposed to write down the property to fair market value on the books, taking the loss on its financial
statements. The S&L industry, however, was in dire straits. Reporting a commercial loss on the deal would not look good, and might get bank regulators, auditors
and others asking questions. Here is what the bank did to hide its loss. Another developer showed up, with similar delusions of grandeur and an equally pitiful
pipedream, except his was twice as large. He wanted a $6 million construction loan. The bank hired an appraiser to concoct the appraisal for the original empty
strip mall that valued it at $5 million, even higher than the original pie-in-the-sky price tag that the original developer dreamed up. The MAI commercial appraiser
would appraise it for whatever number the bank wanted. The bank would tell the second developer that it would loan him the $6 million if he would buy the
empty strip mall for $5 million. The bank would loan the developer the money to make the down payment on the empty strip mall, and the first two years of loan
payments. The developer never got his hands on that money, but the bank held it in escrow, taking the money out of the commercial account to make the down
payment and loan payments.
When the bank made the $6 million commercial construction loan to the second developer, and played internal accounting games to concoct the “sale” of the first
strip mall, instead of recording the $1 million loss, it recorded a $2 million gain, had a new performing loan on the first strip mall, and the loan was guaranteed to
have loan payments made on it for two years. Here is a chart to show how the commercial bank hid the loss.
Original loan
$3,000,000
Second MAI and sale price to second developer $5,000,000
Gain on phony sale to second developer
$2,000,000
So, with some fancy games and pliant appraisers, the commercial bank recorded a $2 million gain on its deal making. The reality, however, was that $9 million had
gone out the door, the bank was paying 15% interest to depositors, and no money was coming in, not even interest payments. "
KEEP UP THE GOOD WORK (MAI-Made as Instructed Appraisers? Commercial Appraisers?)
1. The Defendants Improperly Used Bargain Sale Transactions to Conceal the True Financial Condition of Defendant Church Extension 30. From at least 1996 to
at least April 2002, the Defendants and others engaged in a scheme to conceal Defendant Church Extension's mounting financial difficulties in order to, among
other things, entice investors to invest and/or reinvest. Specifically, the Defendants and others improperly used bargain sale transactions to generate false paper
income by recognizing the difference between the price paid by Defendant Church Extension and/or United Management and falsely inflated appraisal values as
non-cash contributions. Some of appraisers used in connection with the bargain sale transactions were Members of the Appraisal Institute, i.e., MAI appraisals.
The appraisals used by the Defendants and others were false for several reasons, including, but not limited to: a) the use of overstated net-operating income
figures, which formed the basis of some appraisals; b) the failure to account for the limited real-estate market of some of the properties, due to federal regulations
and private covenants; and c) the failure to account for potential environmental hazards on some of the real-estate properties. Significantly, because inflated
appraisal values were used, the price paid by Defendants Church Extension and/or United Management was a much closer reflection of the actual value of the
properties than the inflated appraisal values. Thus, as a result of using falsely inflated appraisal values, the Defendants and others artificially increased the amount
of non-cash contributions that Defendants Church Extension and/or United Management recognized as income.
2. Plaintiff notified Defendant on May 25, 2004 that it was exercising its option to purchase the
property. Being in agreement that Plaintiff had the right to purchase the property, the parties agreed
to determine the purchase price by each engaging an appraiser who was a member of the Appraisal
Institute (MAI), with the purchase price to be the average of the two appraisals. Plaintiff engaged
an appraiser from Atlanta, Georgia, while Defendant retained an appraiser from Nashville,
Tennessee. The two appraisals were significantly different. The appraised value determined by
Plaintiff’s appraiser was $1,470,000. The value as determined by Defendant’s appraiser was
$2,375,000.
3. Therefore, on the basis of our review of the record, we conclude that the court properly determined that the plaintiff had met its burden of showing that the city's
assessor (jOHN lEARY, mai) had overvalued the subject property and that such a finding was legally and logically correct and supported by the evidence before the
court.
4. The town’s appraiser, Christopher K. Kerin (Kerin) MAI, determined that the fair market value
of the subject property on the October 1, 1995 grand list was as follows:
Land $4,825,000
Site improvements 1,000,000
Main building 9,175,000
__________
$15,000,000
Our determination (trier of fact) of value of the subject property, as of October 1, 1995 is as
follows:
Land $4,825,000
Site improvements 1,000,000
Building 5,239,819
___________
Total $11,064,819
5. "As a residential review appraiser with 14 years experience, I see appraiser fraud weekly," says a northeastern appraiser who says he is working with the FBI. At
the same time I was turning in these 17 fraud reports, I was warned by a prominent Appraisal Institute member not to submit those of a certain ethnic race
appraiser because he was well politically entrenched and it could backfire on me," notes the source. "Also, at the same time, I confided in a local Member of the
Appraisal Institute (MAI) about the appraisal fraud both in my local area and inside his local AI residential membership. This MAI later told me to be careful
because I could die by the same sword I was wielding (a professional death, not physical death)."
6. False Appraisals
I'm looking at an MAI (commercial appraiser) appraisal right now from one of the most respected appraisers in our area that I know has been influenced in several
ways (the appraisal has been influenced, not him). The representations from the owner of the property concerning zoning, development, potential purchase offers
and comparable sales have boosted the value.
7. Inclosed is a bound hardcopy of the complaint I previously filed with the
North Carolina Appraisal Board against John K. Weaver, MAI, (a.k.a. "Jack"
Weaver, commercial appraiser) who is the Deputy Director and Chief Investigator of the North
Carolina Appraisal Board (NCAB). (This complaint text is also available
online at www.boardwatch.org/htmfiles/complainttext1.htm .) Copies of Mr.
Weaver's complete research files are also inclosed in "bound report format,"
as are copies of four appraisal reports on the subject property in question
at the NCAB hearing in question.
The NCAB sat on the complaint for many months and then participated in a scam
to "sweep the complaint under the rug." Following in this letter is text
extracted from a post I made 11/16/2001 to an online discussion group for
real estate appraisers across the country (www.AppraisersForum.com) which
explains and documents the response of the NCAB. (The full post can be found
at http://appraisersforum.com/bbs/index.cgi?read=20707 .) Also included is a
printout of a website page from www.BoardWatch.org (via the "FAQ" hyperlink
from the homepage) which provides a very brief overview of the whole
situation. As the NCAB shirked its responsibilities in the matter, I am now
asking the Appraisal Institute to investigate the behavior of this Institute
member.
(Commercial Real Estate Appraiser, Los Angeles, Commercial Appraisal Services, and Commercial Appraiser) Orange County Cities, Aliso Viejo, Anaheim, Brea,
Buena Park, Costa Mesa, Cypress, Dana Point, Fountain Valley, Fullerton, Garden Grove, Huntington Beach, Irvine, La Habra, La Palma, Laguna Beach, Laguna
Hills, Laguna Niguel, Laguna Woods, Lake Forest, Los Alamitos, Mission Viejo, Newport Beach, Orange, Placentia, Rancho Santa Margarita, of San Clemente,
San Juan Capistrano, Santa Ana, Seal Beach, Stanton, Tustin, Villa Park, Westminster, Yorba Linda, Anaheim Appraiser, Anaheim Appraisa
8. The behavior of this Member of the Appraisal Institute (MAI) is unacceptable if not outrageous. I've heard no one suggest otherwise. I dislike putting it this
bluntly, but here it is in a nutshell: For the sake of preserving or regaining integrity in North Carolina appraising, it has become necessary to put the Appraisal
Institute to the test. The questions are these:
Is the Appraisal Institute part of the problem in North Carolina?
Is the AI an enabler?
9. If memory serves me correctly, it was members of the Appraisal Institute (the self proclaimed leader of appraisal association, designated with the "prestigious"
MAI that were co-conspirators of the S&L crisis.
Industry organizations are concerned with one thing: their own survival. With appraisal organizations competing for members, they are more focused on their own
self preservation than on the betterment of the industry as a whole.
Originally posted by RStrahan@Jan 28 2005, 03:28 PM
The various trade associations are impotent. The members of the Appraisal Foundation only count as one vote, so they are regularly outnumbered by the members
of the very industry that promotes appraisal fraud.
I believe that a merging of organizations is a necessity. However, I explicitely exclud the AI. The AI has regularly supported AVMs and stood against the interests of
the general practice appraiser, so it is not longer a viable force for change in the industry. In fact, they have often sided with the lending industry against the rest of
the appraisal organizations.
Again, Roger hits it on the nose. An organzation that is purported to be in existance for the appraiser. Today, likely 99% of all residential appraisals are
communicated to the lender and/or clients via email or the internet. We most commonly transmit these in .pdf format since Adobe Acrobat Reader is readily
available to all at no cost. Several lenders want appraisals delivered in what is called AI (Appraisal Institute) ready format. This data format completely rearranges
the data structure of the report. The data is thought to be disseminated into their AVM database. No one but the insiders can prove this, however this format also
does something else which is very disturbing. The appraiser's digital signature is removed from the report itself and transmitted as a separate .jpg file. This
comprimises the security of the report allowing the possibility of data to be changed. It is a violation of USPAP for an appraiser to knowingly comprimise the security
of their digital signatures/reports.
Who would have thought? To comply with the Appraisal Institute brand of appraisal delivery, one has to violate USPAP.
10. Is this accepting an appraisal with a predetermined value?
Hello Curtis,
A member of Appraisal Data Connection is searching for market data.
Diane Gilbert, MAI, (Appraisal Institute, commercial real estate appraiser) is appraising a proposed 60,000 square foot upscale
residential mansion near Orlando, Florida (yes, that's 60,000 square
feet!)
The property is located along the popular Butler Chain of Lakes and will
have numerous atypical amenities including an indoor and outdoor pool, a
bowling alley, indoor skating rink, a huge ballroom and colonnade, media
rooms, 2-story library, 10 bedroom suites, and staff quarters.
Diane is looking for sales of similar huge top quality residential
properties anywhere in the U.S.
Sales in excess of $15 million are preferred, (MAI COMMERCIAL APPRAISAL) and sales along waterfront
or some type of resort location would be a plus.
Her best contact method is by email. If you can help or know someone who
can, please email Diane directly at:
[email protected]
11. DATE: 08/01/2006 11:56:00 AM
The malleability of (real estate) appraisals has been a fact of life since for as long as I can remember, and that is probably longer than most readers have been
alive. Down around the bankruptcy court, they used to say that "MAI" stands for "Made as Instructed."
Posted by: Buce | August 1, 2006 09:01 PM
http://www.prospect.org/deanbaker/2006/07/housing_appraisals_the_account.html
12. April 12, 2006
Working With (Business Valuation) Expert Witnesses
In real estate, the Appraisal Institute awards a designation, MAI, Member, Appraisal Institute. For a variety of reasons, MAI came to have the derogatory meaning,
"made as instructed." Being an "mai" appraiser, whether in real estate, business appraisal, or any other field of expertise is a prescription for a short-term career.
http://merceronvalue.com/archives/2006/04/working_with_bu.html
13. David, from the St. Louis Chapter of the Appraisal Institute, just told me last week that at a recent seminar, an instructor from Guess Who told the group
attending the seminar in Typical Delphi Scam and Cognitive Dissonance fashion, that appraisers would go out of business if they refused to perform AVMs for the
banking cartel and the GSEs. Sending the Appraisal Institute $950 Bucks in MAI, SRPA, SRA professional dues for 2005 is going to be a really tough decision. If I
can find a real job that pays, they won't get my money anymore. Besides being a State Certified General Realty Appraiser is just as good as having Made As
Instructed behind my name -- because that's what the public perceives me to be anyway now -- a member of the world's oldest profession.
http://www.financialsense.com/editorials/reality/2004/4R1217.html
14. Gesoff v. IIC Industries Inc. et al., in the Delaware Chancery Court decided May 18,
2006
The parent then offered its appraisals, but the Court saw them as flawed and smacking of
made-as-instructed justification after the fact. In particular, its appraiser did adjust downwards a
management projection without any justification, failed to take into account appreciated realty,
and used a small company premium without regard to the fact that subsidiaries were, in effect,
large businesses in their respective emerging markets
15. SAN FRANCISCO BAY RESTORATION PLAN
Commercial real estate Appraiser (Charles D. Bailey, MAI) disciplined; taxpayers paid millions
MANY ERRORS ALLEGED IN PURCHASE OF CARGILL PONDS FOR $100 MILLION IN 2003
By Paul Rogers
Mercury News
Susanna Frohman / Mercury News archives
In 2002, then-Gov. Gray Davis and Sen. Dianne Feinstein, above, announce a $100 million deal for the Cargill salt ponds. Complaint against appraiser Charles
Bailey (MAI) (PDF) The settlement agreement (PDF)
The appraiser (Charles D. Bailey, MAI) whose report helped set the $100 million price taxpayers paid in the 2003 Cargill salt ponds deal has been disciplined on
allegations that he made numerous errors and violated federal standards when he set a value for the property.
The state attorney general's office brought a misconduct complaint against Charles Bailey (MAI) of Mill Valley this summer, alleging 24 significant errors in his
appraisal of Cargill lands for the federal government in December 2000.
Bailey, who denied any wrongdoing, agreed Sept. 27 to a censure of his license, known as a ``public reproval.'' He also will pay $4,000 to cover the costs of the
state investigation. Although he will keep his license and can continue working, any disciplinary action on an appraiser's record is very harmful to his career, said
Deputy Attorney General Char Sachson.
News of the settlement heightened concerns that taxpayers may have overpaid by millions of dollars when government agencies bought 16,500 acres of Cargill salt
evaporation ponds from Hayward to Alviso to Redwood City in March 2003. It also brought calls Tuesday from political leaders for less secrecy in public land deals.
16. IS THIS MAI APPRAISER INCOMPETENCY?
Anyone know any sources of gross sales per store data for specific chains? I am appraising three proposed facilities that are being leased with a level base
minimum rent but actual rent is the greater of that minimum rent or 10% of gross sales. I believe if I use the minimum I could be undervaluing, but am not
comfortable using the projections provided without at least seeing something to compare them to. They are slightly above the minimum rent threshhold.
Paul S. Ness, MAI (commercial appraiser)
www.nessassociates.net
Mr. Ness, MAI was apparently so embarrassed by his own lack of knowledge that he has removed his request from the AppraisalForum.com website. The
sometimes humorous responses are still there however.
We also received this email from site owner (Wayne McKerley) who suggest that we inappropriately used his copyrighted material.
Paul Ness posted this on AppraisersForum.com. You copied it without my permission or without Paul's permission to your web site. You also imply that Paul is
incompetent by adding the heading "IS THIS MAI APPRAISER INCOMPETENCY?". Paul is aware of this also and brought it to my attention.
I ask that you remove this from your website and refrain from using our copyrighted material.
Wayne McKerley
AppraisersForum.com
(Professional Commercial Appraisal Forum?)
17. Appraisal Talk Message Board
Re: MIA Appraiser San Diego, CA
[ Follow Ups ] [ Post Followup ] [ Appraisal Talk ] [ FAQ ]
--------------------------------------------------------------------------------
Posted by mitchell's mother on October 12, 2006 at 15:53:53:
In Reply to: MIA Appraiser San Diego, CA posted by mitchell on October 12, 2006 at 14:44:37:
I need a state licensed or certified appraiser. I am more interested in experience and education than any phony designations, that try to cover up their
lack of experience and education.
18. Times Herald-Record
October 17, 2006
Albany — A real estate appraisal that the City of Middletown relied on to sell off a property two years ago was so riddled with faults that questions later arose over
whether Robert Buckles " (Appraisal Institute, Associate Member) prepared an appraisal with a predetermined value," a state investigator testified yesterday. In the
same hearing, an expert appraiser testified that the appraisal of the 14-acre property on Ruth Court used outdated property sales for comparisons.
Robert G. Buckles, Associate MAI
President
Countrywide Appraisal Services
P.O. Box 1118
Monticello, NY 12701
547 Broadway
(845) 794-2834x300
Fax: (914) 794-2846
[email protected]
Accepts (real estate appraisal) Fee Assignments (more info)
19. LETTER FROM THE (UTAH Appraisal Institute-MAI) PRESIDENT, 2006
I am proud to be a member of this professional organization. I had been ignorant to the extreme member benefits until I began serving on the Board in 1999. I
want to inform you of the advantages regarding Appraisal Institute membership. A few of the programs and promotions by National which benefit members include.
4. Lobbying Efforts
National has a full time staff of three attorneys in Washington, DC working on our behalf to keep up with federal legislation and other initiatives that impact our
profession and to act as a liaison to the local chapters in keeping up with state issues. We also have our own local lobbyist who works with Utah appraisers.
Lobbying is one of those behind the scenes activities that many of us may not give much thought to however, the efforts of these people affect us individually
and our profession in ways that many of us are unaware.
20. Mr. Levy describes in his succinct essay the stranglehold that the banking cartel has on the realty valuation industry. The Appraisal Institute has an affiliate
appraisal management company called REAS (Real Estate Appraisal Services) which operates http://www.aidirectconnection.com. REAS is owned by Charter One
Financial Corporation, the 25th largest bank holding company in the USA, home based in Ohio. Royal Bank of Scotland is in merger and acquisition negotiations
with Charter One to become the 7th largest bank holding company in the USA, after the Bank One and JPChase Manhattan merger as the second largest banking
conglomerate. This conflict of interest doesn't get any more blatant than these facts. ( AI Direct Connection® AI Direct Connection
AI Direct Connection provides the real estate marketplace with an efficient and cost-effective means to acquire quality appraisal services. Appraisers can sign up,
free of charge, to be included on the fee panel, specifying their services or specialties. AI Direct Connection then sells those services directly to the client. FIND
OUT MORE HERE)
21. Excuse me—you're standing on my bonus … reflections on credit culture
RMA Journal, The, May, 2005 by David H. Wesley
Banks have been widely lauded for their performance through the most recent downturn. Pressure for revenue growth has invariably led to deal creep--pricing
concessions, then deal structure concessions (covenant, guarantees, advance rates, etc.), and then the rationalization that otherwise marginal credits are
acceptable. It takes both courage and conviction to remain disciplined and diligent to not trade off your credit risk principles. Looking back at performance during
the last downturn, some things were done particularly well, while others could have been done better.
Following are a few of the excuses that we all have heard (or have used) in the credit approval process, along with their subliminal translations.
We have an MAI appraisal that supports the request.
Translation: The appraisal is a made-as-instructed real estate valuation.
22. Posted by Appraiser Central on October 18, 2006 at 20:00:21:
In Reply to: ai posted by Cochise on October 18, 2006 at 18:29:29:
The Appraisal Institute has had "conflict of issue", issues for many years now. Especially with Charter One Bank and also Washington Mutual (WAMU). The
Appraisal Institute doesn't seem to care. This being "in bed" with Charter One and Washington Mutual was a big part of our boycott of the Appraisal Institute a
few years ago when the AI decided to create their own AVM (AIRD) with Charter One Bank and WAMU as their biggest backers.
Also, the AI can't even advertise without lying. They have been running radio ads here in Massachusetts, where they tout the lie that "Appraisal Institute Members
are better qualified and have more education" than non-Appraisal Institute members. I can't wait till the first homeowner here gets an AI member with only 2 years
experience; and the job is way over their head.
The sooner we as an industry get rid of Appraisal Management companies, and designation "tea clubs", the better off we will be.
orange county commercial appraiser, OC Real Estate Appraiser Los Angeles, Orange County Cities, Aliso Viejo, Anaheim, Brea, Buena Park, Costa Mesa, Cypress, Dana Point, Fountain Valley, Fullerton, Garden
Grove, Huntington Beach, Irvine, La Habra, La Palma, Laguna Beach, Laguna Hills, Laguna Niguel, Laguna Woods, Lake Forest, Los Alamitos, Mission Viejo, Newport Beach, Orange, Placentia, Rancho Santa
Margarita, of San Clemente, San Juan Capistrano, Santa Ana, Seal Beach, Stanton, Tustin, Villa Park, Westminster, Yorba Linda
Posted by Appraisal Police on July 06, 2006 at 22:12:55:
FBI: Appraisal Fraud Serious (Commercial Appraiser, sic); Calls for Industry to Team up with Law Enforcement
July 2006
In a June 14 speech, a Federal Bureau of Investigation specialist said that appraisal fraud has become the most serious form of mortgage fraud. In a presentation
to an American Bankers Association conference in Orlando, Ronda Helig, supervisory special agent for the FBI, said that appraisal fraud accounts for 80 percent
of all the mortgage fraud that is reported and that the average loss per occurrence of appraisal fraud exceeds $60,000. Based on these figures, Helig called for a
cooperative response between industry and law enforcement.
down the AI Commercial Database on November 1, 2005.
(anaheim commercial appraiser, Orange County Cities, Aliso Viejo, Anaheim, Brea, Buena Park, Costa Mesa, Cypress, Dana Point, Fountain Valley, Fullerton,
Garden Grove, Huntington Beach, Irvine, La Habra, La Palma, Laguna Beach, Laguna Hills, Laguna Niguel, Laguna Woods, Lake Forest, Los Alamitos, Mission
Viejo, Newport Beach, Orange, Placentia, Rancho Santa Margarita, of San Clemente, San Juan Capistrano, Santa Ana, Seal Beach, Stanton, Tustin, Villa Park,
Westminster, Yorba Linda, Real Estate Appraiser Los Angeles, Commercial Appraisal Services, millionaire services, Real Estate Appraiser, Real Estate Appraiser
Los Angeles, find appraiser, find real estate appraiser, Real Estate Appraiser Orange Riverside Ventura San Bernardino Counties, )
THE CALM BEFORE THE STORM!
Appraisal Institute's (mai) Top Dog (John Ross, CEO) Jumps Ship
Ross: "After nine years with the organization, I feel that the timing is good for me to explore other opportunities."
Ross: "I’d like to see the organization (the appraisal institute) strengthen its ties with the academic community. The profession needs to focus now on
developing more theoretically based tools and on things like behavioral finance and economics – which is ultimately what dictates the operation of markets. I’ve
often stated that the mark of any profession is in the development of new theory, and in my estimation there have been few, if any, advances in this regard in
the appraisal profession for the last 25 years or more. I’d like to see the Appraisal Institute more involved in some way in such thought creation."
Are predetermined Appraisal ADJUSTMENTS Legal/Ethical? Please see attached Predetermined adjustments provided by Curtis - Rosenthal, Inc. (MAI
Appraiser Los Angeles) LLC. an MAI Firm. You be the judge and get back with us or call them for this years update. If your property was acquired by the
Los Angeles World Airport (LAWA) you had better read this!
"Posted by Appraisal Police on July 10, 2006 at 00:33:42:
In Reply to: Predetermined Adjustments posted by Cochise on July 09, 2006 at 19:26:17:
Fannie Mae Single Family Selling Guide
Part XI: Property and Appraisal Guidelines
XI, Chapter 4: Reviewing the Appraisal Report (11/08/04)
XI, 406: Sales Comparison Approach to Value (01/31/06)
XI, 406.03: Adjustments to Comparable Sales (06/30/02)
Each comparable sale that is used in the sales comparison approach to value must be analyzed for differences and similarities between it and the property that is
being appraised. The appraiser must base his or her analysis and any adjustments to the comparable sales on the market data for the particular neighborhood
and for competing locat1ons—not on predetermined or assumed dollar adjustments. If an appraiser's adjustments to comparable sales (or the reconciliation of the
comparable sales) are based on unsupported assumptions or personal opinion that cannot be supported by market data, poor quality appraisals that could have a
discriminatory effect may result."
<Anaheim Orange County and Southern California, Real Estate Appraiser Orange, estate appraiser & consultant, Expert Witness, Real Estate consultant, OC, Southern California,
commercial appraiser, appraiser los angeles, real estate appraiser, condemnation appraiser, la commercial appraiser, ca commercial appraiser, Real Estate Appraiser, Real Estate
Appraiser orange county, Commercial Appraisal Services,>
Services: Eminent Domain appraiser appraisal, The Harris Company REA/C
(commercial appraiser los angeles, inverse condemnation appraiser, expert witness real estate, real property, commercial appraiser, commercial real estate, Los Angeles, Estate , Probate,
Trust, Tax, MAI Appraiser, LA, L.A., real estate land los angeles, commercial real estate inspectors, real estate brokers, los angeles, real estate appraiser, Los Angeles, llp, mark to marker,
Land Appraiser, Special Purpose Property Appraiser, Office Property, Commercial appraisal, Restaurant, Apartment, VANDEMA, Southern California Commercial Real Estate, Residential
Appraiser, Apartment Appraiser,California Appraiser,PMI Removal, Certified General, Tax , Multi Family , Bank appraisal institute,Apraiser, comp check, value check, l)
Orange County Cities, Aliso Viejo, Anaheim, Brea, Buena Park, Costa Mesa, Cypress, Dana Point, Fountain Valley, Fullerton, Garden Grove, Huntington Beach,
Irvine, La Habra, La Palma, Laguna Beach, Laguna Hills, Laguna Niguel, Laguna Woods, Lake Forest, Los Alamitos, Mission Viejo, Newport Beach, Orange,
Placentia, Rancho Santa Margarita, of San Clemente, San Juan Capistrano, Santa Ana, Seal Beach, Stanton, Tustin, Villa Park, Westminster, Yorba Linda
Dateline:
INTERNATIONAL RIGHT OF WAY ASSOCIATION (IRWA)
Chapter 1 –Los Angeles County
2006 Annual Fall Seminar
Tuesday, October 24, 2006
Quiet Cannon, Montebello, CA
The Los Angeles World Airport's (LAWA) Director of Economic Development admits that the Manchester Square “Voluntary Purchase” Program is a part of LAWA’s Master Plan. This
statement was supported by one staff member who presented maps indicating that this area has been set aside for parking.
This Freudian slip of the tough could have major legal consequences since under the agencies “voluntary purchase program” homeowners were not paid Fair Market Value which is “the
highest price” required by State Law in condemnation cases.
For years Vivian Howell, an IRWA and LAWA mucky muck, has stated that we are not going to pay them “the highest price” because this is a voluntary program.
This in addition to using unethical appraisal practices like using unqualified appraisal trainees, consultants colluding on values, standardized comparable adjustments, and in some cases-
appraising of property based upon it's existing use, rather than it's “highest and best use.” It is estimated that these combined, secret practices, have cost property owners millions.
The Director also stated that he foresaw a number of inverse condemnation cases being filed against the agency, by current residents, because the LAWA project has left their neighborhood
in a shambles.
If you are a homeowner, property, or seller of property to LAWA in this area we strongly suggest that you contact a qualified Real Estate Condemnation Attorney, or Relocation Expert, and
demand a full hearing into these issues.
Cochise
Commercial Appraiser
Posted by Cochise
Commercial Appraiser
It appears that discrimination is something that the Appraisal Institute knows a lot about. In fact they use to be called The American Institute of Real Estate
Appraisers until they were sued, for discrimination, by the Federal Government. They then changed their name to the Appraisal Institute, same pig, different shade
of lipstick. (The MAI Appraiser Standard, Larry A Mc Coy, MAI) Application Local governments are not immune from proscriptions of Title VIII, and may be sued.
United States v Black Jack ... provides for actions against states and political subdivisions as well as actions against private transactions and practices;
comprehensive purpose of Fair Housing Act)... would be diluted if it were to apply only to actions of private individuals and entities. ... applies to appraisers of real
estate. United States v American Institute of Real Estate Appraisers etc. (1977, ND Ill) 442 F Supp 1072, 24 FR Serv 2d 880, app dismd (CA7 Ill) 590 F2d 242, 48
ALR Fed 657. 42 USCS ? 3604(a, b, d)’
How many errors can you find in this appraisal prepared by Jeffrey T. Nagasaki, MAI of Lea Associates. They also perform similar low quality work for the Los
Angeles Unified School District and the County of Los Angeles. (Condemnation Appraiser, Inverse Condemnation Appraiser)
HOW TO CONDUCT A MAI (MADE AS INSTRUCTED?) APPRAISAL
Quote from David Rosenthal, MAI
Here are some tips from seasoned practitioner, David Rosenthal, MAI (Managing Director of Curtis-Rosenthal, LLC) that can help make your next appraisal
experience easy and productive.
"4. Supply all of your market data, up front. Nothing says that your appraiser has to independently find all of the relevant market information. Data is data, so
make the job easier and share any market data that you have already developed. The appraiser will decide which data to use and how to best use it. Give your
appraiser a running start with the benefit of your advance research."
The Great Texas Bank Job
"The FIRREA Cover Up - FDIC / RTC The South West Scam
The Whitewaters & Castle Grandes of Texas and ALL Across America
The S&L Gold Rush - The Lack Of Public Accounting
If the bank’s board of directors were the ones doing the looting, however, they readily hired a pliant appraiser to cook up whatever appraisal value they wanted.
Behind every fraudulent loan was a fraudulent appraisal. It is nearly impossible for appraisers to render independent appraisals if the people hiring them do not
want one. When I was in public accounting, auditors joked that MAI stood for “Made As Instructed.” The commercial appraisals were largely worthless because
they were not independently rendered. It is so obvious that it should be beneath mention, but that situation still exists.
Even if the bank could not find a bona fide buyer, it was supposed to write down the property to fair market value on the books, taking the loss on its financial
statements. The S&L industry, however, was in dire straits. Reporting a commercial loss on the deal would not look good, and might get bank regulators, auditors
and others asking questions. Here is what the bank did to hide its loss. Another developer showed up, with similar delusions of grandeur and an equally pitiful
pipedream, except his was twice as large. He wanted a $6 million construction loan. The bank hired an appraiser to concoct the appraisal for the original empty
strip mall that valued it at $5 million, even higher than the original pie-in-the-sky price tag that the original developer dreamed up. The MAI commercial appraiser
would appraise it for whatever number the bank wanted. The bank would tell the second developer that it would loan him the $6 million if he would buy the
empty strip mall for $5 million. The bank would loan the developer the money to make the down payment on the empty strip mall, and the first two years of loan
payments. The developer never got his hands on that money, but the bank held it in escrow, taking the money out of the commercial account to make the down
payment and loan payments.
When the bank made the $6 million commercial construction loan to the second developer, and played internal accounting games to concoct the “sale” of the first
strip mall, instead of recording the $1 million loss, it recorded a $2 million gain, had a new performing loan on the first strip mall, and the loan was guaranteed to
have loan payments made on it for two years. Here is a chart to show how the commercial bank hid the loss.
Original loan
$3,000,000
Second MAI and sale price to second developer $5,000,000
Gain on phony sale to second developer
$2,000,000
So, with some fancy games and pliant appraisers, the commercial bank recorded a $2 million gain on its deal making. The reality, however, was that $9 million had
gone out the door, the bank was paying 15% interest to depositors, and no money was coming in, not even interest payments. "
KEEP UP THE GOOD WORK (MAI-Made as Instructed Appraisers? Commercial Appraisers?)
1. The Defendants Improperly Used Bargain Sale Transactions to Conceal the True Financial Condition of Defendant Church Extension 30. From at least 1996 to
at least April 2002, the Defendants and others engaged in a scheme to conceal Defendant Church Extension's mounting financial difficulties in order to, among
other things, entice investors to invest and/or reinvest. Specifically, the Defendants and others improperly used bargain sale transactions to generate false paper
income by recognizing the difference between the price paid by Defendant Church Extension and/or United Management and falsely inflated appraisal values as
non-cash contributions. Some of appraisers used in connection with the bargain sale transactions were Members of the Appraisal Institute, i.e., MAI appraisals.
The appraisals used by the Defendants and others were false for several reasons, including, but not limited to: a) the use of overstated net-operating income
figures, which formed the basis of some appraisals; b) the failure to account for the limited real-estate market of some of the properties, due to federal regulations
and private covenants; and c) the failure to account for potential environmental hazards on some of the real-estate properties. Significantly, because inflated
appraisal values were used, the price paid by Defendants Church Extension and/or United Management was a much closer reflection of the actual value of the
properties than the inflated appraisal values. Thus, as a result of using falsely inflated appraisal values, the Defendants and others artificially increased the amount
of non-cash contributions that Defendants Church Extension and/or United Management recognized as income.
2. Plaintiff notified Defendant on May 25, 2004 that it was exercising its option to purchase the
property. Being in agreement that Plaintiff had the right to purchase the property, the parties agreed
to determine the purchase price by each engaging an appraiser who was a member of the Appraisal
Institute (MAI), with the purchase price to be the average of the two appraisals. Plaintiff engaged
an appraiser from Atlanta, Georgia, while Defendant retained an appraiser from Nashville,
Tennessee. The two appraisals were significantly different. The appraised value determined by
Plaintiff’s appraiser was $1,470,000. The value as determined by Defendant’s appraiser was
$2,375,000.
3. Therefore, on the basis of our review of the record, we conclude that the court properly determined that the plaintiff had met its burden of showing that the city's
assessor (jOHN lEARY, mai) had overvalued the subject property and that such a finding was legally and logically correct and supported by the evidence before the
court.
4. The town’s appraiser, Christopher K. Kerin (Kerin) MAI, determined that the fair market value
of the subject property on the October 1, 1995 grand list was as follows:
Land $4,825,000
Site improvements 1,000,000
Main building 9,175,000
__________
$15,000,000
Our determination (trier of fact) of value of the subject property, as of October 1, 1995 is as
follows:
Land $4,825,000
Site improvements 1,000,000
Building 5,239,819
___________
Total $11,064,819
5. "As a residential review appraiser with 14 years experience, I see appraiser fraud weekly," says a northeastern appraiser who says he is working with the FBI. At
the same time I was turning in these 17 fraud reports, I was warned by a prominent Appraisal Institute member not to submit those of a certain ethnic race
appraiser because he was well politically entrenched and it could backfire on me," notes the source. "Also, at the same time, I confided in a local Member of the
Appraisal Institute (MAI) about the appraisal fraud both in my local area and inside his local AI residential membership. This MAI later told me to be careful
because I could die by the same sword I was wielding (a professional death, not physical death)."
6. False Appraisals
I'm looking at an MAI (commercial appraiser) appraisal right now from one of the most respected appraisers in our area that I know has been influenced in several
ways (the appraisal has been influenced, not him). The representations from the owner of the property concerning zoning, development, potential purchase offers
and comparable sales have boosted the value.
7. Inclosed is a bound hardcopy of the complaint I previously filed with the
North Carolina Appraisal Board against John K. Weaver, MAI, (a.k.a. "Jack"
Weaver, commercial appraiser) who is the Deputy Director and Chief Investigator of the North
Carolina Appraisal Board (NCAB). (This complaint text is also available
online at www.boardwatch.org/htmfiles/complainttext1.htm .) Copies of Mr.
Weaver's complete research files are also inclosed in "bound report format,"
as are copies of four appraisal reports on the subject property in question
at the NCAB hearing in question.
The NCAB sat on the complaint for many months and then participated in a scam
to "sweep the complaint under the rug." Following in this letter is text
extracted from a post I made 11/16/2001 to an online discussion group for
real estate appraisers across the country (www.AppraisersForum.com) which
explains and documents the response of the NCAB. (The full post can be found
at http://appraisersforum.com/bbs/index.cgi?read=20707 .) Also included is a
printout of a website page from www.BoardWatch.org (via the "FAQ" hyperlink
from the homepage) which provides a very brief overview of the whole
situation. As the NCAB shirked its responsibilities in the matter, I am now
asking the Appraisal Institute to investigate the behavior of this Institute
member.
(Commercial Real Estate Appraiser, Los Angeles, Commercial Appraisal Services, and Commercial Appraiser) Orange County Cities, Aliso Viejo, Anaheim, Brea,
Buena Park, Costa Mesa, Cypress, Dana Point, Fountain Valley, Fullerton, Garden Grove, Huntington Beach, Irvine, La Habra, La Palma, Laguna Beach, Laguna
Hills, Laguna Niguel, Laguna Woods, Lake Forest, Los Alamitos, Mission Viejo, Newport Beach, Orange, Placentia, Rancho Santa Margarita, of San Clemente,
San Juan Capistrano, Santa Ana, Seal Beach, Stanton, Tustin, Villa Park, Westminster, Yorba Linda, Anaheim Appraiser, Anaheim Appraisa
8. The behavior of this Member of the Appraisal Institute (MAI) is unacceptable if not outrageous. I've heard no one suggest otherwise. I dislike putting it this
bluntly, but here it is in a nutshell: For the sake of preserving or regaining integrity in North Carolina appraising, it has become necessary to put the Appraisal
Institute to the test. The questions are these:
Is the Appraisal Institute part of the problem in North Carolina?
Is the AI an enabler?
9. If memory serves me correctly, it was members of the Appraisal Institute (the self proclaimed leader of appraisal association, designated with the "prestigious"
MAI that were co-conspirators of the S&L crisis.
Industry organizations are concerned with one thing: their own survival. With appraisal organizations competing for members, they are more focused on their own
self preservation than on the betterment of the industry as a whole.
Originally posted by RStrahan@Jan 28 2005, 03:28 PM
The various trade associations are impotent. The members of the Appraisal Foundation only count as one vote, so they are regularly outnumbered by the members
of the very industry that promotes appraisal fraud.
I believe that a merging of organizations is a necessity. However, I explicitely exclud the AI. The AI has regularly supported AVMs and stood against the interests of
the general practice appraiser, so it is not longer a viable force for change in the industry. In fact, they have often sided with the lending industry against the rest of
the appraisal organizations.
Again, Roger hits it on the nose. An organzation that is purported to be in existance for the appraiser. Today, likely 99% of all residential appraisals are
communicated to the lender and/or clients via email or the internet. We most commonly transmit these in .pdf format since Adobe Acrobat Reader is readily
available to all at no cost. Several lenders want appraisals delivered in what is called AI (Appraisal Institute) ready format. This data format completely rearranges
the data structure of the report. The data is thought to be disseminated into their AVM database. No one but the insiders can prove this, however this format also
does something else which is very disturbing. The appraiser's digital signature is removed from the report itself and transmitted as a separate .jpg file. This
comprimises the security of the report allowing the possibility of data to be changed. It is a violation of USPAP for an appraiser to knowingly comprimise the security
of their digital signatures/reports.
Who would have thought? To comply with the Appraisal Institute brand of appraisal delivery, one has to violate USPAP.
10. Is this accepting an appraisal with a predetermined value?
Hello Curtis,
A member of Appraisal Data Connection is searching for market data.
Diane Gilbert, MAI, (Appraisal Institute, commercial real estate appraiser) is appraising a proposed 60,000 square foot upscale
residential mansion near Orlando, Florida (yes, that's 60,000 square
feet!)
The property is located along the popular Butler Chain of Lakes and will
have numerous atypical amenities including an indoor and outdoor pool, a
bowling alley, indoor skating rink, a huge ballroom and colonnade, media
rooms, 2-story library, 10 bedroom suites, and staff quarters.
Diane is looking for sales of similar huge top quality residential
properties anywhere in the U.S.
Sales in excess of $15 million are preferred, (MAI COMMERCIAL APPRAISAL) and sales along waterfront
or some type of resort location would be a plus.
Her best contact method is by email. If you can help or know someone who
can, please email Diane directly at:
[email protected]
11. DATE: 08/01/2006 11:56:00 AM
The malleability of (real estate) appraisals has been a fact of life since for as long as I can remember, and that is probably longer than most readers have been
alive. Down around the bankruptcy court, they used to say that "MAI" stands for "Made as Instructed."
Posted by: Buce | August 1, 2006 09:01 PM
http://www.prospect.org/deanbaker/2006/07/housing_appraisals_the_account.html
12. April 12, 2006
Working With (Business Valuation) Expert Witnesses
In real estate, the Appraisal Institute awards a designation, MAI, Member, Appraisal Institute. For a variety of reasons, MAI came to have the derogatory meaning,
"made as instructed." Being an "mai" appraiser, whether in real estate, business appraisal, or any other field of expertise is a prescription for a short-term career.
http://merceronvalue.com/archives/2006/04/working_with_bu.html
13. David, from the St. Louis Chapter of the Appraisal Institute, just told me last week that at a recent seminar, an instructor from Guess Who told the group
attending the seminar in Typical Delphi Scam and Cognitive Dissonance fashion, that appraisers would go out of business if they refused to perform AVMs for the
banking cartel and the GSEs. Sending the Appraisal Institute $950 Bucks in MAI, SRPA, SRA professional dues for 2005 is going to be a really tough decision. If I
can find a real job that pays, they won't get my money anymore. Besides being a State Certified General Realty Appraiser is just as good as having Made As
Instructed behind my name -- because that's what the public perceives me to be anyway now -- a member of the world's oldest profession.
http://www.financialsense.com/editorials/reality/2004/4R1217.html
14. Gesoff v. IIC Industries Inc. et al., in the Delaware Chancery Court decided May 18,
2006
The parent then offered its appraisals, but the Court saw them as flawed and smacking of
made-as-instructed justification after the fact. In particular, its appraiser did adjust downwards a
management projection without any justification, failed to take into account appreciated realty,
and used a small company premium without regard to the fact that subsidiaries were, in effect,
large businesses in their respective emerging markets
15. SAN FRANCISCO BAY RESTORATION PLAN
Commercial real estate Appraiser (Charles D. Bailey, MAI) disciplined; taxpayers paid millions
MANY ERRORS ALLEGED IN PURCHASE OF CARGILL PONDS FOR $100 MILLION IN 2003
By Paul Rogers
Mercury News
Susanna Frohman / Mercury News archives
In 2002, then-Gov. Gray Davis and Sen. Dianne Feinstein, above, announce a $100 million deal for the Cargill salt ponds. Complaint against appraiser Charles
Bailey (MAI) (PDF) The settlement agreement (PDF)
The appraiser (Charles D. Bailey, MAI) whose report helped set the $100 million price taxpayers paid in the 2003 Cargill salt ponds deal has been disciplined on
allegations that he made numerous errors and violated federal standards when he set a value for the property.
The state attorney general's office brought a misconduct complaint against Charles Bailey (MAI) of Mill Valley this summer, alleging 24 significant errors in his
appraisal of Cargill lands for the federal government in December 2000.
Bailey, who denied any wrongdoing, agreed Sept. 27 to a censure of his license, known as a ``public reproval.'' He also will pay $4,000 to cover the costs of the
state investigation. Although he will keep his license and can continue working, any disciplinary action on an appraiser's record is very harmful to his career, said
Deputy Attorney General Char Sachson.
News of the settlement heightened concerns that taxpayers may have overpaid by millions of dollars when government agencies bought 16,500 acres of Cargill salt
evaporation ponds from Hayward to Alviso to Redwood City in March 2003. It also brought calls Tuesday from political leaders for less secrecy in public land deals.
16. IS THIS MAI APPRAISER INCOMPETENCY?
Anyone know any sources of gross sales per store data for specific chains? I am appraising three proposed facilities that are being leased with a level base
minimum rent but actual rent is the greater of that minimum rent or 10% of gross sales. I believe if I use the minimum I could be undervaluing, but am not
comfortable using the projections provided without at least seeing something to compare them to. They are slightly above the minimum rent threshhold.
Paul S. Ness, MAI (commercial appraiser)
www.nessassociates.net
Mr. Ness, MAI was apparently so embarrassed by his own lack of knowledge that he has removed his request from the AppraisalForum.com website. The
sometimes humorous responses are still there however.
We also received this email from site owner (Wayne McKerley) who suggest that we inappropriately used his copyrighted material.
Paul Ness posted this on AppraisersForum.com. You copied it without my permission or without Paul's permission to your web site. You also imply that Paul is
incompetent by adding the heading "IS THIS MAI APPRAISER INCOMPETENCY?". Paul is aware of this also and brought it to my attention.
I ask that you remove this from your website and refrain from using our copyrighted material.
Wayne McKerley
AppraisersForum.com
(Professional Commercial Appraisal Forum?)
17. Appraisal Talk Message Board
Re: MIA Appraiser San Diego, CA
[ Follow Ups ] [ Post Followup ] [ Appraisal Talk ] [ FAQ ]
--------------------------------------------------------------------------------
Posted by mitchell's mother on October 12, 2006 at 15:53:53:
In Reply to: MIA Appraiser San Diego, CA posted by mitchell on October 12, 2006 at 14:44:37:
I need a state licensed or certified appraiser. I am more interested in experience and education than any phony designations, that try to cover up their
lack of experience and education.
18. Times Herald-Record
October 17, 2006
Albany — A real estate appraisal that the City of Middletown relied on to sell off a property two years ago was so riddled with faults that questions later arose over
whether Robert Buckles " (Appraisal Institute, Associate Member) prepared an appraisal with a predetermined value," a state investigator testified yesterday. In the
same hearing, an expert appraiser testified that the appraisal of the 14-acre property on Ruth Court used outdated property sales for comparisons.
Robert G. Buckles, Associate MAI
President
Countrywide Appraisal Services
P.O. Box 1118
Monticello, NY 12701
547 Broadway
(845) 794-2834x300
Fax: (914) 794-2846
[email protected]
Accepts (real estate appraisal) Fee Assignments (more info)
19. LETTER FROM THE (UTAH Appraisal Institute-MAI) PRESIDENT, 2006
I am proud to be a member of this professional organization. I had been ignorant to the extreme member benefits until I began serving on the Board in 1999. I
want to inform you of the advantages regarding Appraisal Institute membership. A few of the programs and promotions by National which benefit members include.
4. Lobbying Efforts
National has a full time staff of three attorneys in Washington, DC working on our behalf to keep up with federal legislation and other initiatives that impact our
profession and to act as a liaison to the local chapters in keeping up with state issues. We also have our own local lobbyist who works with Utah appraisers.
Lobbying is one of those behind the scenes activities that many of us may not give much thought to however, the efforts of these people affect us individually
and our profession in ways that many of us are unaware.
20. Mr. Levy describes in his succinct essay the stranglehold that the banking cartel has on the realty valuation industry. The Appraisal Institute has an affiliate
appraisal management company called REAS (Real Estate Appraisal Services) which operates http://www.aidirectconnection.com. REAS is owned by Charter One
Financial Corporation, the 25th largest bank holding company in the USA, home based in Ohio. Royal Bank of Scotland is in merger and acquisition negotiations
with Charter One to become the 7th largest bank holding company in the USA, after the Bank One and JPChase Manhattan merger as the second largest banking
conglomerate. This conflict of interest doesn't get any more blatant than these facts. ( AI Direct Connection® AI Direct Connection
AI Direct Connection provides the real estate marketplace with an efficient and cost-effective means to acquire quality appraisal services. Appraisers can sign up,
free of charge, to be included on the fee panel, specifying their services or specialties. AI Direct Connection then sells those services directly to the client. FIND
OUT MORE HERE)
21. Excuse me—you're standing on my bonus … reflections on credit culture
RMA Journal, The, May, 2005 by David H. Wesley
Banks have been widely lauded for their performance through the most recent downturn. Pressure for revenue growth has invariably led to deal creep--pricing
concessions, then deal structure concessions (covenant, guarantees, advance rates, etc.), and then the rationalization that otherwise marginal credits are
acceptable. It takes both courage and conviction to remain disciplined and diligent to not trade off your credit risk principles. Looking back at performance during
the last downturn, some things were done particularly well, while others could have been done better.
Following are a few of the excuses that we all have heard (or have used) in the credit approval process, along with their subliminal translations.
We have an MAI appraisal that supports the request.
Translation: The appraisal is a made-as-instructed real estate valuation.
22. Posted by Appraiser Central on October 18, 2006 at 20:00:21:
In Reply to: ai posted by Cochise on October 18, 2006 at 18:29:29:
The Appraisal Institute has had "conflict of issue", issues for many years now. Especially with Charter One Bank and also Washington Mutual (WAMU). The
Appraisal Institute doesn't seem to care. This being "in bed" with Charter One and Washington Mutual was a big part of our boycott of the Appraisal Institute a
few years ago when the AI decided to create their own AVM (AIRD) with Charter One Bank and WAMU as their biggest backers.
Also, the AI can't even advertise without lying. They have been running radio ads here in Massachusetts, where they tout the lie that "Appraisal Institute Members
are better qualified and have more education" than non-Appraisal Institute members. I can't wait till the first homeowner here gets an AI member with only 2 years
experience; and the job is way over their head.
The sooner we as an industry get rid of Appraisal Management companies, and designation "tea clubs", the better off we will be.
orange county commercial appraiser, OC Real Estate Appraiser Los Angeles, Orange County Cities, Aliso Viejo, Anaheim, Brea, Buena Park, Costa Mesa, Cypress, Dana Point, Fountain Valley, Fullerton, Garden
Grove, Huntington Beach, Irvine, La Habra, La Palma, Laguna Beach, Laguna Hills, Laguna Niguel, Laguna Woods, Lake Forest, Los Alamitos, Mission Viejo, Newport Beach, Orange, Placentia, Rancho Santa
Margarita, of San Clemente, San Juan Capistrano, Santa Ana, Seal Beach, Stanton, Tustin, Villa Park, Westminster, Yorba Linda
Posted by Appraisal Police on July 06, 2006 at 22:12:55:
FBI: Appraisal Fraud Serious (Commercial Appraiser, sic); Calls for Industry to Team up with Law Enforcement
July 2006
In a June 14 speech, a Federal Bureau of Investigation specialist said that appraisal fraud has become the most serious form of mortgage fraud. In a presentation
to an American Bankers Association conference in Orlando, Ronda Helig, supervisory special agent for the FBI, said that appraisal fraud accounts for 80 percent
of all the mortgage fraud that is reported and that the average loss per occurrence of appraisal fraud exceeds $60,000. Based on these figures, Helig called for a
cooperative response between industry and law enforcement.
commercial appraiser, commercial appraisal, commercial appraiser la
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