Friday, March 29, 2024 | The Latest Buzz for the Appraisal Industry

Appraiser Disciplinary Complaints: Who is Filing Them? What for?

We were doing some research for a project and came up with some basic data that appraisers may find interesting about disciplinary complaints to state appraiser licensing agencies.  Who files the complaints? What’s the basis? Well, here’s some data from claims reported to LIA Administrators & Insurance Services in the last three years: 

Source of disciplinary complaints reported by LIA insured appraisers, April 2015 to April 2018:
61%       Borrower or purchaser
16%       Seller
8%         AMC
6%         Lender
5%         Miscellaneous (litigation party, estate beneficiary, other appraiser, etc.)
3%         Real estate agent
1%         Government (HUD)

Alleged basis of complaints filed by borrowers/purchasers:

53%       Appraiser undervalued property
24%       Appraiser failed to discover problem with property
19%       Appraiser overvalued property
4%         Other problem (appraiser offended borrower, appraiser late, appraiser didn’t show up)

Alleged basis of complaints filed by sellers:

93%       Appraiser undervalued property
7%         Other problem (appraiser offended seller, didn’t take shoes off, used toilet and didn’t flush)

It’s important to emphasize that this data is from matters involving appraisers insured in our E&O program (about 15,000 appraisers in all, working in small firms to very large firms), rather than the full population of appraisers.  

This post was originally published on this site

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