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AREAS SERVED:
90001, 90002, 90003,
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90013, 90014, 90015,
90016, 90017, 90018,
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91335, Real Estate
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Riverside Ventura San
Bernardino Counties,
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Empire, OC, San
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Designation, Appraisal
SERVICES:
appraisal institute,
California mai appraiser,
Commercial Appraiser
Los, Real Estate
Appraiser Orange
Riverside Ventura San
Bernardino Counties,
Angeles,MAIDesignation,
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Services, comp check,
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estate appraiser,
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Angeles, real estate
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AREAS SERVED:
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90013, 90014, 90015,
90016, 90017, 90018,
90019, 90020, 90021,
90022, 90023, 90024,
90025, 90026, 90027,
90028, 90029, 90030,
90031, 90032, 90033,
90034, 90035, 90036,
90037, 90038, 90039,
90040, 90041, 90042,
90043, 90044, 90045,
90046, 90047, 90048,
90049, 90050, 90051,
90052, 90053, 90054,
90055, 90056, 90057,
90058, 90059, 90060,
90061, 90062, 90063,
90064, 90065, 90066,
90067, 90068, 90069,
90070, 90071, 90072,
90073, 90074, 90075,
90076, 90077, 90078,
90079, 90080, 90081,
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90089, 90091, 90093,
90094, 90095, 90096,
90097, 90099, 90101,
90102, 90103, 90174,
90185, 90189, 91331,
91335, Real Estate
Appraiser Orange
Riverside Ventura San
Bernardino Counties,
San Fernando
Valley, Inland
Empire, OC, San
Gabriel Valley,
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What's New? (Archives)
IT’S THE LAW-Designation Discrimination is Illegal [FIRREA, Sec. 564.6]: Professional
Association Membership: Membership in an appraisal organization: A State Certified
General Appraiser may not be excluded from consideration for an assignment for a
federally related transaction by virtue of membership or lack of membership in any
particular appraisal organization (Including the Appraisal Institute (AKA MAI Designation)
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. (California MAI Appraiser)
That the current and immediate past Chief Appraisers of the Department of
Justice, each acting in his capacity as a member of the Appraisal Institute,
reviewed the new seminar on Conservation Easements, criticized the inclusion of
Public Interest Value in said seminar? And
that both members were then excluded from further review or activities?
that the cosponsor of the Conservation Easement seminar, the ASFMRA,
continues to complain about the concept of Public Interest Value included in
the materials or added by instructors?
that the AI President failed to have incorrect materials removed that he had
promised ASFMRA would be removed?
that, nevertheless, another proposed seminar on Green Buildings also
contains the same types of Public Interest Value concepts?
That the Chief Appraiser of the Department of Justice recently sent a letter to the
AI President raising issues of appraiser competency and expressing the
Department’s concern about extreme divergences in appraisals prepared for
litigation, and the AI’s administration of standards?
That the State of California, after a lengthy study by state agencies, publicly
concluded that two MAIs had seriously violated USPAP and related
requirements? And
that this was despite a letter from the Appraisal Institute’s Director of Ethics
and Standards Counseling that found no problem with their appraisal?
that the AI took no apparent steps to respond to the State of California’s
concerns about this matter?
that the case has subsequently been cited in a California Legislative
Analyst’s report calling for reforms in appraisal legislation and in the abovecited
letter from the Chief Appraiser of the United States Department of
Justice to 2008 President Pugh?
That the Business Enterprise Value seminar is being continued and is now being
revised for future offerings? And
that this seminar was discontinued years ago when governments in the U.S.
and Canada threatened to sue the AI, because of materials contained in the
seminar and when complaints were received from the American Institute of
Certified Public Accountants and business valuers that the concepts in the
course were counter to USPAP, as well as accounting and business value
standards?
that after raising the above issues, two members who raised them were
dropped from the Business Enterprise Value seminar team?"
http://www.zimbio.com/pilot?ZURL=%2FReal%2BEstate%2Farticles%2F2428%2FAppraisal%
2BInstitute%2BRelationship%2BNAR%2BQuestioned&URL=http%3A%2F%2Fappraisalnewsonline.
typepad.com%2Fappraisal_news_for_real_e%2Ffiles%2FAI_Are_You_Aware.pdf
11. On its Form 1065, United States Partnership Income Tax Return, for calendar year 1998, Marsh
Mountain valued the fair market value of the donation of the 550 acre parcel at $2,750,000 or
$5,000 per acre. This valuation was determined by an appraisal dated December 14, 1998
performed by E. Ted Golden, MAI.
12. In the FPAA issued March 14, 2002, the Commissioner of Internal Revenue ("Commissioner")
determined that the fair market value of the 550 acre parcel as of December 21, 1998, was
$1,100,000, or $2,000 per acre. Accordingly, the Internal Revenue Service increased the taxable
income of Marsh Mountain's partners by $1,650,000 for calendar year 1998.
Hang 'em High
This Appraisal Institute Scandal has been brewing for years, and may be finally coming to a head:
EXECUTIVE SUMMARY
A. General Overview of Investigation
1. Scope
The Staff began its investigation of TNC in July 2003. The investigation
comprised a detailed review of certain TNC programs, activities, practices, and
transactions in light of section 501(c)(3) 1 governing tax-exempt status, unrelated
business income tax, the excess benefit excise taxes, and Federal tax and information
reporting requirements. In addition, the Committee reviewed TNC’s practices regarding
the solicitation, valuation, documentation, substantiation, and reporting of charitable
contributions of property other than cash. The Washington Post reported on some
areas that the Staff reviewed in a series of articles first published in May 2003.2
The use of the “subdivision development analysis” method used by (MAI?) appraisers to
value conservation easements is perceived by some to be abused by appraisers.95 TNC
notes that this appraisal method was used to value the easement that resulted from the
Shelter Island CBP transaction.96 Staff notes that this property may actually be more
valuable undivided and subject to an easement than subdivided and questions whether the
subdivision development analysis may be inappropriate for some transactions.
95 See Nancy A. McLaughlin, Increasing the Tax Incentives for Conservation Easement Donations
– A Responsible Approach, 31 Ecology L.Q.1, 78-81 (2004) (discussing the growing use of the
“subdivision development analysis, ” which generally bases the value of the property by reference
to acquiring the property for subdivision and development as commercial or residential uses, to
inflate the before-easement value in a conservation easement appraisal). See also, Local, State,
and Federal Tax Aspects of Conservation Easements, 2nd Edition, South Carolina Department of
Revenue, March 2005, p. 96.
Steven T. Miller, the commissioner of the tax-exempt division of the
IRS, said that potential valuation problems with conservation
easements have led the revenue service to start 240 examinations of
donors who have taken an open-space easement deduction. The IRS is
considering examinations of another 100 donors who have participated
in easement transactions, he said, and is looking into the easement
practices of many charities.
SEC. 6695A. SUBSTANTIAL AND GROSS VALUATION MISSTATEMENTS ATTRIBUTABLE TO
INCORRECT APPRAISALS.
"(a) IMPOSITION OF PENALTY. -- If --
"(1) a person prepares an appraisal of the value of property and such person knows, or reasonably
should have known, that the appraisal would be used in connection with a return or a claim for
refund, and
"(2) the claimed value of the property on a return or claim for refund which is based on such
appraisal results in a substantial valuation misstatement under chapter 1 (within the meaning of
section 6662(e)), or a gross valuation misstatement (within the meaning of section 6662(h)), with
respect to such property, then such person shall pay a penalty in the amount determined under
subsection (b).
"(b) AMOUNT OF PENALTY. -- The amount of the penalty imposed under subsection (a) on any
person with respect to an appraisal shall be equal to the lesser of --
"(1) the greater of --
"(A) 10 percent of the amount of the underpayment (as defined in section 6664(a)) attributable to
the misstatement described in subsection (a)(2), or
"(B) $1,000, or
"(2) 125 percent of the gross income received by the person described in subsection (a)(1) from
the preparation of the appraisal.
"(c) EXCEPTION. -- No penalty shall be imposed under subsection (a) if the person establishes to
the satisfaction of the Secretary that the value established in the appraisal was more likely than not
the proper value.".
(2) RULES APPLICABLE TO PENALTY. -- Section 6696 (relating to rules applicable with respect to
sections 6694 and 6695) is amended - -
(A) by striking "6694 and 6695" each place it appears in the text and heading and inserting "6694,
6695, and 6695A", and
(B) by striking "6694 or 6695" each place it appears in the text and inserting "6694, 6695, or
6695A".
(3) CONFORMING AMENDMENT. -- The table of sections for part I of subchapter B of chapter 68 is
amended by striking the item relating to section 6696 and inserting the following new items:
"Sec. 6695A.. Substantial and gross valuation misstatements attributable to incorrect appraisals.
"Sec. 6696. Rules applicable with respect to sections 6694, 6695, and 6695A.".
(c) QUALIFIED APPRAISERS AND APPRAISALS. --
(1) IN GENERAL. -- Subparagraph (E) of section 170(f)(11) is amended to read as follows:
"(E) QUALIFIED APPRAISAL AND APPRAISER. -- For purposes of this paragraph --
"(i) QUALIFIED APPRAISAL. -- The term 'qualified appraisal' means, with respect to any property,
an appraisal of such property which --
"(I) is treated for purposes of this paragraph as a qualified appraisal under regulations or other
guidance prescribed by the Secretary, and
"(II) is conducted by a qualified appraiser in accordance with generally accepted appraisal
standards and any regulations or other guidance prescribed under subclause (I).
"(ii) QUALIFIED APPRAISER. -- Except as provided in clause (iii), the term 'qualified appraiser'
means an individual who --
"(I) has earned an appraisal designation from a recognized professional appraiser organization or
has otherwise met minimum education and experience requirements set forth in regulations
prescribed by the Secretary,
"(II) regularly performs appraisals for which the individual receives compensation, and
"(III) meets such other requirements as may be prescribed by the Secretary in regulations or other
guidance.
"(iii) SPECIFIC APPRAISALS. -- An individual shall not be treated as a qualified appraiser with
respect to any specific appraisal unless --
"(I) the individual demonstrates verifiable education and experience in valuing the type of property
subject to the appraisal, and
"(II) the individual has not been prohibited from practicing before the Internal Revenue Service by
the Secretary under section 330(c) of title 31, United States Code, at any time during the 3-year
period ending on the date of the appraisal.".
(2) REASONABLE CAUSE EXCEPTION. -- Subparagraphs (B) and (C) of section 6664(c)(3) are
amended to read as follows:
"(B) QUALIFIED APPRAISAL. -- The term 'qualified appraisal' has the meaning given such term by
section 170(f)(11)(E)(i).
"(C) QUALIFIED APPRAISER. -- The term 'qualified appraiser' has the meaning given such term by
section 170(f)(11)(E)(ii).".
(d) DISCIPLINARY ACTIONS AGAINST APPRAISERS. -- Section 330(c) of title 31, United States
Code, is amended by striking "with respect to whom a penalty has been assessed under section
6701(a) of the Internal Revenue Code of 1986".
(e) EFFECTIVE DATES. --
(1) MISSTATEMENT PENALTIES. -- Except as provided in paragraph (3), the amendments made by
subsection (a) shall apply to returns filed after the date of the enactment of this Act.
(2) APPRAISER PROVISIONS. -- Except as provided in paragraph (3), the amendments made by
subsections (b), (c), and (d) shall apply to appraisals prepared with respect to returns or
submissions filed after the date of the enactment of this Act.
(3) SPECIAL RULE FOR CERTAIN EASEMENTS. -- In the case of a contribution of a qualified real
property interest which is a restriction with respect to the exterior of a building described in section
170(h)(4)(C)(ii) of the Internal Revenue Code of 1986, and an appraisal with respect to the
contribution, the amendments made by subsections (a) and (b) shall apply to returns filed after
December 16, 2004.
(Real Estate Appraiser Orange Riverside Ventura San Bernardino Counties, Commercial Appraisal
Services, millionaire services, Real Estate Appraiser, Real Estate Appraiser Los Angeles, find
appraiser, find real estate appraiser, San Fernando Valley, Inland Empire, OC, San Gabriel Valley, )
Dirty, Rotten, Scoundrels,
OC commercial, A MAI Firm has chosen the lowest of the low advertising schemes, Fear and Lies:
"Don't Risk an IRS Audit Use an Expert MAI Appraisal"
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."
<Appraisal Institute - MAI Designation, Los Angeles and Southern California, Real Estate Appraiser Los
Angeles, Forensic Appraiser Los Angeles, Forensic Appraisal, Commercial appraisal, Curtis-Rosenthal Inc. real
estate appraiser & consultant, Expert Witness, Real Estate consultant, LA, L.A., Southern California, commercial
appraiser, appraiser los angeles, real estate appraiser, condemnation appraiser, la commercial appraiser, ca
commercial appraiser, Real Estate Appraiser, Real Estate Appraiser Los Angeles, Commercial Appraisal
Services, Real Estate Appraiser Orange Riverside Ventura San Bernardino Counties, 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>
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)
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 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) 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)
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) 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 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:
Bayvalue@tampabay.rr.com
11. DATE: 08/01/2006 11:56:00 AM
The malleability of 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
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
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 — An 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
Bob@countywideappraisal.com
Accepts 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.
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.
Successfully using forensic appraisals (appraiser) in the tax courts requires that the property owner
understand the special issues involved with these types of appraisals, as they differ significantly
from typical real estate appraisals. The differences cover the gamut of legal issues from
communication between the client and the appraiser through the legal admissibility of appraisal
methodology.
Kacha v. Allstate Ins. Co. (06/26/06 - No. D046961)
A judgment confirming an insurance commercial appraisal award involving property damaged by a
wildfire is reversed pursuant to an insured's claims that: 1) the award exceeded the appraisers'
jurisdiction, and the trial court erred by finding he waived the jurisdictional rule; and 2) the court
erred by finding he was precluded from challenging the appraisal award because he took
possession of, but did not negotiate, checks the insurer provided him to cover the award.
Los Angeles City, Residential and Commercial Appraisal Coverage Areas: 90001, 90002, 90003, 90004, 90005,
90006, 90007, 90008, 90009, 90010, 90011, 90012, 90013, 90014, 90015, 90016, 90017, 90018, 90019, 90020,
90021, 90022, 90023, 90024, 90025, 90026, 90027, 90028, 90029, 90030, 90031, 90032, 90033, 90034, 90035,
90036, 90037, 90038, 90039, 90040, 90041, 90042, 90043, 90044, 90045, 90046, 90047, 90048, 90049, 90050,
90051, 90052, 90053, 90054, 90055, 90056, 90057, 90058, 90059, 90060, 90061, 90062, 90063, 90064, 90065,
90066, 90067, 90068, 90069, 90070, 90071, 90072, 90073, 90074, 90075, 90076, 90077, 90078, 90079, 90080,
90081, 90082, 90083, 90084, 90086, 90087, 90088, 90089, 90091, 90093, 90094, 90095, 90096, 90097, 90099,
90101, 90102, 90103, 90174, 90185, 90189, 91331, 91335
Los Angeles County, Residential Appraiser, Real Estate Appraiser, and Commercial Appraisal / Appraiser
Coverage Areas: 93510
Agoura 91301
Agua Dulce, Saugus 91350
Airport Worldway (City of LA) 90009
Alhambra 91801, 91803
Altadena 91001
Arcadia 91006 ,91007
ARCO Towers (City of LA) 90071
Arleta (City of LA) 91331
Artesia 90680
Athens 90044
Atwater Village (City of LA) 90039
Avalon 90704
Azusa 91702
Baldwin Hills 90008
Baldwin Park 91706
Bassett 91746
Bel Air Estates (City of LA) 90049. 90077
Bell 90201
Bell Gardens 90201
Bellflower 90706
Beverly Glen (City of LA) 90077, 90210
Beverly Hills 90210 - 90212
Biola Univ. (La Mirada) 90639
Boyle Heights (City of LA) 90033
Bradbury 91010
Brentwood (City of LA) 90049
Burbank 91501 - 91502 / 91506 / 91523
Burbank (Glenoaks) 91504
Burbank (Woodbury Univ.) 91510
Cal State Dominguez Hills (Carson) 90747
Cal State Long Beach (Long Beach) 90840
Cal State Northridge (City of LA) 91330
Cal Tech (Pasadena) 91125 - 91126
Calabasas 91302/91372
Canoga Park (City of LA) 91303 - 91304
Canyon Country (Santa Clarita) 91351
Carson 90745 - 90746
Carson (CS Univ. Dominguez Hills) 90747
Carson/Long Beach 90810
Castaic 91310 / 91384
Castellemare (City of LA) 90272
Century City (City of LA) 90067
Cerritos 90701
Chatsworth (City of LA) 91311
Cheviot Hills (City of LA) 90064
Chinatown (City of LA) 90012
City Terrace 90063
Civic Center (City of LA) 90012
Claremont 91711
Commerce, City of 90040
Compton 90220 - 90222
Country Club Park (City of LA) 90019
Covina 91722 - 91724
Crenshaw (City of LA) 90008
Cudahy 90201
Culver City 90230 / 90232
Cypress Park (City of LA) 90065
Diamond Bar 91765 / 91789
Dominguez Hills, Cal State (Carson) 90747
Downey 90240 - 90242
Downtown Los Angeles (City of LA) 90013 - 90015 / 90017 / 90021 / 90029
Eagle Rock (City of LA) 90041
East Los Angeles 90022
East Los Angeles (City of LA) 90023
East Rancho Dominguez 90221
Echo Park (City of LA) 90026
Edwards AFB 93523
El Monte 91731 - 91732
El Segundo 90245
El Sereno (City of LA) 90032
Elizabeth Lake 93532
Encino (City of LA) 91316 / 91436
Federal Bldg (Lawndale) 90261
Firestone Boy Scout Res. 92621
Florence 90001
Gardena 90247 - 90249
Glassell Park (City of LA) 90065
Glendale 91201 - 91208
Glendale (La Crescenta) 91214
Glendale (Tropico) 91204 - 91205
Glendale (Verdugo City) 91046
Glendora 91740 - 91741
Glenoaks (Burbank) 91504
Granada Hills (City of LA) 91344
Griffith Park (City of LA) 90027
Hacienda Heights (La Puente) 91745
Hancock Park (City of LA) 90004 / 90020
Harbor City (City of LA) 90710
Hawaiian Gardens 90716
Hawthorne (Holly Park) 90250
Hermosa Beach 90254
Hi Vista 93535
Hidden Hills 91302
Highland Park (City of LA) 90042
Hollywood (City of LA) 90028 / 90038 / 90068
Huntington Park 90255
Hyde Park (City of LA) 90043
Industry, City of 91744 / 91746 / 91789
Inglewood 90301 - 90303, 90305
Irwindale 91706
Jefferson Park (City of LA) 90018
Juniper Hills 93543
Koreatown (City of LA) 90005
La Canada-Flintridge 91011
La Crescenta (Glendale) 91214
La Habra Heights 90631
La Mirada 90638
La Mirada (Biola Univ.) 90639
La Puente 91744/91746
La Puente (Hacienda Heights) 91745
La Puente (Rowland Heights) 91748
La Verne 91750
Ladera Heights (City of LA) 90056
Lake Hughes 93532
Lake Los Angeles 93550 / 93591
Lake View Terrace (City of LA) 91342
Lakewood 90712 - 90713 / 90715
Lancaster 93534 - 93536
Lawndale 90260
Lawndale (Federal Bldg) 90261
LAX Area (City of LA) 90045
Leimert Park (City of LA) 90008
Lennox 90304
Littlerock 93543
Llano 93544
Lomita 90717
Long Beach 90802 - 90808, 90813 - 90815, 90822
Long Beach (Cal State Long Beach) 90840
Long Beach (McDonnell Douglas) 90846
Long Beach (North Long Beach) 90805
Long Beach (World Trade Ctr) 90831 - 90832
AIr Port Worldway 90009
ARCO Towers 90071
Arleta 91331
Atwater Village 90039
Bel Air Estates 90049 / 90077
Beverly Glen 90077 / 90210
Boyle Heights 90033
Brentwood 90049
Cal State Northridge 91330
Canoga Park 91303 / 91304
Century City 90067
Chatsworth 91311
Cheviot Hills 90064
Chinatown 90012
Civic Center 90012
Country Club Park 90019
Crenshaw 90008
Cypress Park 90065
Downtown Los Angeles 90013 - 90015 / 90017 / 90021 / 90029
Eagle Rock 90041
East Los Angeles 90023
Echo Park 90026
El Sereno 90032
Encino 91316 / 91436
Glassell Park 90065
Granada Hills 91344
Griffith Park 90027
Hancock Park 90004 / 90020
Harbor City 90710
Highland Park 90042
Hollywood 90028 / 90038 / 90068
Hyde Park 90043
Jefferson Prk 90018
Los Angeles (Koreatown) 90005
Los Angeles (Ladera Heights) 90056
Lake View Terrace) 91342
Los Angeles (LAX Area) 90045
Los Angeles (Leimert Park) 90008
Los Angeles (Los Feliz) 90027
Los Angeles (Mar Vista) 90066
Los Angeles (Mid City) 90019
Los Angeles (Mission Hills) 91345
Los Angeles (Montecito Heights) 90031
Los Angeles (Mount Olympus) 90046
Los Angeles (Mt. Washington) 90065
Los Angeles (North Hills) 91343
North Hollywood) 91601 - 91602 / 91604 - 91607
Northridge) 91324-91325
Pacific Highlands) 90272
Pacific Palisades) 90272
Pacoima) 91331
Los Angeles (Palms) 90034
Panorama City) 91402
Los Angeles (Park La Brea) 90036
Los Angeles (Pico Heights) 90006
Playa del Rey) 90293
Los Angeles (Porter Ranch) 91326
Los Angeles (Rancho Park) 90064
Reseda) 91335
San Pedro) 90731-90732
Los Angeles (Sawtelle) 90025
Los Angeles (Shadow Hills) 91040
Los Angeles (Sherman Oaks) 91403 / 91423
Los Angeles (Silverlake) 90026
Los Angeles (South Central) 90001 / 90003 /90007 / 90011 / 90037 / 90047 / 90061 - 90062
Los Angeles (Studio City) 91604
Los Angeles (Sun Valley) 91352
Los Angeles (Sunland) 91040
Los Angeles (Sylmar) 91342
Los Angeles (Tarzana) 91356
Los Angeles (Terminal Island) 90731
Los Angeles (Toluca Lake) 91602
Los Angeles (Tujunga) 91042
Los Angeles (USC) 90089
Los Angeles (Valley Village) 91607
Van Nuys) 91401- 91403 / 91405 - 91406 / 91411 / 91423
Los Angeles (Venice) 90291
Los Angeles (Watts) 90002/90059
Los Angeles (West Adams) 90016
Los Angeles (West Beverly) 90048
Los Angeles (West Fairfax) 90035
Los Angeles (West Hills) 91307
Los Angeles (West Los Angeles) 90025
Los Angeles (Westchester) 90045
Los Angeles (Westlake) 90057
Los Angeles (Westwood) 90024
Wilmington) 90744
Los Angeles (Wilshire Blvd) 90010
Los Angeles (Winnetka) 91306
Los Angeles (Woodland Hills) 91364 / 91367
Los Feliz (City of LA) 90027
Los Nietos 90606
Lynwood 90262
Malibu 90265
Manhattan Beach 90266
Mar Vista (City of LA) 90066
Marina del Rey 90292
Maywood 90270
McDonnell Douglas (Long Beach) 90846
Mid City (City of LA) 90019
Mission Hills (City of LA) 91345
Monrovia 91016
Montebello 90640
Montecito Heights (City of LA) 90031
Monterey Hills (City of LA) 90032
Monterey Park 91754-91756
Montrose 91020
Mount Olympus (City of LA) 90046
Mount Wilson 91023
Mt. Washington (City of LA) 90065
Newhall (Santa Clarita) 91321
North Hills (City of LA) 91343
North Hollywood (City of LA) 91601 - 91602 / 91604 - 91607
North Long Beach (Long Beach) 90805
Northridge (City of LA) 91324 - 91325
Northridge, Cal State Univ. (City of LA) 91330
Norwalk 90650
Oak Park 91301
Pacific Highlands (City of LA) 90272
Pacific Palisades (City of LA) 90272
Pacoima (City of LA) 91331
Palmdale 93550 - 93552 / 93591
Palms (City of LA) 90034
Palos Verdes Estates 90274
Panorama City (City of LA) 91402
Paramount 90723
Park La Brea (City of LA) 90036
Pasadena 91101 / 91103 - 91107
Pasadena (Cal Tech) 91125 - 91126
Pearblossom 93553
Phillips Ranch 91766
Pico Heights (City of LA) 90006
Pico Rivera 90660
Playa del Rey (City of LA) 90293
Playa Vista (City of LA) 90094
Pomona 91766-91768
Porter Ranch (City of LA) 91326
Quartz Hill 93536
Rancho Dominguez 90220
Rancho Palos Verdes 90275 / 90717 / 90732
Rancho Park (City of LA) 90064
Redondo Beach 90277 - 90278
Reseda (City of LA) 91335
Rolling Hills 90274
Rolling Hills Estates 90274
Rosemead 91770
Rosewood 90222
Rowland Heights (La Puente) 91748
San Dimas 91773
San Fernando 91340
San Gabriel 91775 - 91776
San Marino 91108
San Pedro (City of LA) 90731 - 90733
Santa Clarita (Canyon Country) 91351
Santa Clarita (Newhall) 91321
Santa Clarita (Valencia) 91354 - 91355
Santa Fe Springs 90670
Santa Monica 90401 - 90405
Saugus, Agua Dulce 91350
Sawtelle (City of LA) 90025
Shadow Hills (City of LA) 91040
Sherman Oaks (City of LA) 91403 / 9 1423
Sierra Madre 91024
Signal Hill 90755
Silverlake (City of LA) 90026
South Central (City of LA) 90001 / 90003 / 90007 / 90011 / 90037 / 90047 / 90061 - 90062
South El Monte 91733
South Gate 90280
South Pasadena 91030
South Whittier 90605
Stevenson Ranch 91381
Studio City (City of LA) 91604
Sun Valley (City of LA) 91352
Sunland (City of LA) 91040
Sylmar (City of LA) 91342
Tarzana (City of LA) 91356
Temple City 91780
Terminal Island (City of LA) 90731
Toluca Lake (City of LA) 91602
Topanga 90290
Torrance 90501-90506 / 90277 - 90278
Tropico (Glendale) 91204 - 91205
Tujunga (City of LA) 91042
Universal City 91608
USC (City of LA) 90089
VA Hospital (Sawtelle) 90073
Valencia (Santa Clarita) 91354 - 91355
Valinda 91744
Valley Village (City of LA) 91607
Valyermo 93563
Van Nuys (City of LA) 91401 - 91403 / 91405 - 91406 / 91411 / 91423
Venice (City of LA) 90291
Verdugo City (Glendale) 91046
Vernon 90058
View Park 90043
Walnut 91789
Walnut Park 90255
Watts (City of LA) 90002 /90059
West Adams (City of LA) 90016
West Beverly (City of LA) 90048
West Covina 91790-91793
West Fairfax (City of LA) 90035
West Hills (City of LA) 91307
West Hollywood 90069
West Los Angeles (City of LA) 90025
Westchester (City of LA) 90045
Westlake (City of LA) 90057
Westlake Village 91361 - 91362
Westwood (City of LA) 90024
Whittier 90601 - 90605
Whittier (Whittier College) 90608
Whittier College (Whittier) 90608
Willowbrook 90059 / 90222
Wilmington (City of LA) 90744
Wilshire Blvd (City of LA) 90010
Windsor Hills 90043
Winnetka (City of LA) 91306
Woodbury Univ. (Burbank) 91510
Woodland Hills (City of LA) 91364 / 91367
World Trade Center (Long Beach) 90831 - 90832
Please call for Orange County, Ventura County, Riverside County, San Bernardino, County
Coverage Areas
2006 Appraisal Information Needs Survey Results
During August 2006, the NATIONAL ASSOCIATION OF REALTORS®’ (NAR) Marketing Research
Department invited 86,777 appraiser members and recipients of the Appraisal Section of the weekly
NAR ListServe message to participate in an online survey. Findings reflected in this report were
collected from responses received between August 10th and 25th, 2006.
The goal of the survey was to understand how Appraiser members conduct their business, obtain
appraisal industry information, and make decisions on their appraisal education and designations.
Curtis - Rosenthal, Inc.
Forensic Appraiser Los Angeles, Forensic Appraisal,
Citizens posed many questions about the land exchange, especially pertaining to the values of the properties.
According to the appraiser retained by Carma, the developer, she was asked specifically not to appraise
development value. In the section entitled "Assumptions and Limiting Conditions," article 12 states: "Parcels A and
B have been appraised on a further hypothetical condition which is the same zoning and land use approvals as
pertain to Parcels C through G. This condition was requested by the appraisal client to assist in facilitating the
exchange of Parcels A and B with Parcels C through G." (MAI-Made As Instructed). The appraisal, as stated by MAI
appraiser Burton S. Lee, is faulty, based on the premise that no zoning change would happen to the park that
Carma would be receiving, thus conclusions show "equal" value ONLY if all parcels of land remain in a vacant land
state. Burton, in his report concludes his assessment of Carma's appraisal, stating, "Therefore, in my opinion, the
relative market values presented in the Bonnie D. Roerig, MAI appraisal report dated March 31, 2006 have been
effected by the assumption that all the parcels be valued as parkland and this assumption might have altered the
results of that appraisal so as to create an exchange that may not constitute a "fair market value" exchange."
"What is an MAI appraisal?
There is actually no such thing as an MAI appraisal. There is an organization call the Appraisal Institute that offers
classes and created a designation called an MAI, which stands for Member of the Appraisal Institute. Prior to the
savings and loan crisis there was limited regulation in the appraisal profession and, as such, a membership to a
professional organization was a means for banks to insure an appraiser was generally competent. In 1989 it
became federal law that all appraisers meet new federal standards that are now enforced by each state. The new
laws required education, a work product audit, examination, and continuing education similar to the existing
appraisal organizations. At this time it also became unlawful for banks to require appraisers to be members of any
organization, and or MAI or FREA appraisals, because these organizations were not regulated by any government
agency and tended to lack membership diversity.
What is FIRREA*?
The savings and loan crisis led to significant legal reform in the late 1980s. The reform enacted by congress is
referred to as the Financial Institution Reform and Recovery Act (FIRREA). FIRREA essentially took over the
regulation of the appraisal industry and gave it to the individual states based on new terms and requirements.
FIRREA left the private appraisal organizations somewhat displaced. The Appraisal Institute (the MAI group)
almost went bankrupt and nearly shut its doors, then finally merged with several other appraisal groups and
continues to be a leading provider of appraisal education.
Appraisers licensed post-FIRREA had to meet stricter terms to obtain licenses with the state. Chandos Pacific
Appraisal is a post-FIRREA firm that obtained its educational course work through the Appraisal Institute and is a
member of the Foundation of Real Estate Appraisers.
Older firms tend to be pre-FIRREA firms and the members typically advertise and promote their appraisal
organization membership. Note that none of the private appraisal groups govern appraisers, only the state in
which the appraiser practices has the right to issue appraiser licenses and oversees all appraisal activity. As you
can see, over a decade ago, before state laws became uniform in requiring all appraisers to be audited, trained
and tested, private memberships were the only means a bank had of establishing if an appraiser might be
qualified. Times change and so have lending regulations. If your bank stipulates your appraiser must be a
member of the Appraisal Institute, the Foundation of Real Estate Appraisers, or any other appraisal group, it is
actually in violation of FIRREA and federal banking regulations."
Unknown Author
IT’S THE LAW-Designation Discrimination is Illegal [FIRREA, Sec. 564.6]: Professional
Association Membership: Membership in an appraisal organization: A State Certified
General Appraiser may not be excluded from consideration for an assignment for a
federally related transaction by virtue of membership or lack of membership in any
particular appraisal organization (Including the Appraisal Institute (AKA MAI Designation)
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. (California MAI Appraiser)
That the current and immediate past Chief Appraisers of the Department of
Justice, each acting in his capacity as a member of the Appraisal Institute,
reviewed the new seminar on Conservation Easements, criticized the inclusion of
Public Interest Value in said seminar? And
that both members were then excluded from further review or activities?
that the cosponsor of the Conservation Easement seminar, the ASFMRA,
continues to complain about the concept of Public Interest Value included in
the materials or added by instructors?
that the AI President failed to have incorrect materials removed that he had
promised ASFMRA would be removed?
that, nevertheless, another proposed seminar on Green Buildings also
contains the same types of Public Interest Value concepts?
That the Chief Appraiser of the Department of Justice recently sent a letter to the
AI President raising issues of appraiser competency and expressing the
Department’s concern about extreme divergences in appraisals prepared for
litigation, and the AI’s administration of standards?
That the State of California, after a lengthy study by state agencies, publicly
concluded that two MAIs had seriously violated USPAP and related
requirements? And
that this was despite a letter from the Appraisal Institute’s Director of Ethics
and Standards Counseling that found no problem with their appraisal?
that the AI took no apparent steps to respond to the State of California’s
concerns about this matter?
that the case has subsequently been cited in a California Legislative
Analyst’s report calling for reforms in appraisal legislation and in the abovecited
letter from the Chief Appraiser of the United States Department of
Justice to 2008 President Pugh?
That the Business Enterprise Value seminar is being continued and is now being
revised for future offerings? And
that this seminar was discontinued years ago when governments in the U.S.
and Canada threatened to sue the AI, because of materials contained in the
seminar and when complaints were received from the American Institute of
Certified Public Accountants and business valuers that the concepts in the
course were counter to USPAP, as well as accounting and business value
standards?
that after raising the above issues, two members who raised them were
dropped from the Business Enterprise Value seminar team?"
http://www.zimbio.com/pilot?ZURL=%2FReal%2BEstate%2Farticles%2F2428%2FAppraisal%
2BInstitute%2BRelationship%2BNAR%2BQuestioned&URL=http%3A%2F%2Fappraisalnewsonline.
typepad.com%2Fappraisal_news_for_real_e%2Ffiles%2FAI_Are_You_Aware.pdf
11. On its Form 1065, United States Partnership Income Tax Return, for calendar year 1998, Marsh
Mountain valued the fair market value of the donation of the 550 acre parcel at $2,750,000 or
$5,000 per acre. This valuation was determined by an appraisal dated December 14, 1998
performed by E. Ted Golden, MAI.
12. In the FPAA issued March 14, 2002, the Commissioner of Internal Revenue ("Commissioner")
determined that the fair market value of the 550 acre parcel as of December 21, 1998, was
$1,100,000, or $2,000 per acre. Accordingly, the Internal Revenue Service increased the taxable
income of Marsh Mountain's partners by $1,650,000 for calendar year 1998.
Hang 'em High
This Appraisal Institute Scandal has been brewing for years, and may be finally coming to a head:
EXECUTIVE SUMMARY
A. General Overview of Investigation
1. Scope
The Staff began its investigation of TNC in July 2003. The investigation
comprised a detailed review of certain TNC programs, activities, practices, and
transactions in light of section 501(c)(3) 1 governing tax-exempt status, unrelated
business income tax, the excess benefit excise taxes, and Federal tax and information
reporting requirements. In addition, the Committee reviewed TNC’s practices regarding
the solicitation, valuation, documentation, substantiation, and reporting of charitable
contributions of property other than cash. The Washington Post reported on some
areas that the Staff reviewed in a series of articles first published in May 2003.2
The use of the “subdivision development analysis” method used by (MAI?) appraisers to
value conservation easements is perceived by some to be abused by appraisers.95 TNC
notes that this appraisal method was used to value the easement that resulted from the
Shelter Island CBP transaction.96 Staff notes that this property may actually be more
valuable undivided and subject to an easement than subdivided and questions whether the
subdivision development analysis may be inappropriate for some transactions.
95 See Nancy A. McLaughlin, Increasing the Tax Incentives for Conservation Easement Donations
– A Responsible Approach, 31 Ecology L.Q.1, 78-81 (2004) (discussing the growing use of the
“subdivision development analysis, ” which generally bases the value of the property by reference
to acquiring the property for subdivision and development as commercial or residential uses, to
inflate the before-easement value in a conservation easement appraisal). See also, Local, State,
and Federal Tax Aspects of Conservation Easements, 2nd Edition, South Carolina Department of
Revenue, March 2005, p. 96.
Steven T. Miller, the commissioner of the tax-exempt division of the
IRS, said that potential valuation problems with conservation
easements have led the revenue service to start 240 examinations of
donors who have taken an open-space easement deduction. The IRS is
considering examinations of another 100 donors who have participated
in easement transactions, he said, and is looking into the easement
practices of many charities.
SEC. 6695A. SUBSTANTIAL AND GROSS VALUATION MISSTATEMENTS ATTRIBUTABLE TO
INCORRECT APPRAISALS.
"(a) IMPOSITION OF PENALTY. -- If --
"(1) a person prepares an appraisal of the value of property and such person knows, or reasonably
should have known, that the appraisal would be used in connection with a return or a claim for
refund, and
"(2) the claimed value of the property on a return or claim for refund which is based on such
appraisal results in a substantial valuation misstatement under chapter 1 (within the meaning of
section 6662(e)), or a gross valuation misstatement (within the meaning of section 6662(h)), with
respect to such property, then such person shall pay a penalty in the amount determined under
subsection (b).
"(b) AMOUNT OF PENALTY. -- The amount of the penalty imposed under subsection (a) on any
person with respect to an appraisal shall be equal to the lesser of --
"(1) the greater of --
"(A) 10 percent of the amount of the underpayment (as defined in section 6664(a)) attributable to
the misstatement described in subsection (a)(2), or
"(B) $1,000, or
"(2) 125 percent of the gross income received by the person described in subsection (a)(1) from
the preparation of the appraisal.
"(c) EXCEPTION. -- No penalty shall be imposed under subsection (a) if the person establishes to
the satisfaction of the Secretary that the value established in the appraisal was more likely than not
the proper value.".
(2) RULES APPLICABLE TO PENALTY. -- Section 6696 (relating to rules applicable with respect to
sections 6694 and 6695) is amended - -
(A) by striking "6694 and 6695" each place it appears in the text and heading and inserting "6694,
6695, and 6695A", and
(B) by striking "6694 or 6695" each place it appears in the text and inserting "6694, 6695, or
6695A".
(3) CONFORMING AMENDMENT. -- The table of sections for part I of subchapter B of chapter 68 is
amended by striking the item relating to section 6696 and inserting the following new items:
"Sec. 6695A.. Substantial and gross valuation misstatements attributable to incorrect appraisals.
"Sec. 6696. Rules applicable with respect to sections 6694, 6695, and 6695A.".
(c) QUALIFIED APPRAISERS AND APPRAISALS. --
(1) IN GENERAL. -- Subparagraph (E) of section 170(f)(11) is amended to read as follows:
"(E) QUALIFIED APPRAISAL AND APPRAISER. -- For purposes of this paragraph --
"(i) QUALIFIED APPRAISAL. -- The term 'qualified appraisal' means, with respect to any property,
an appraisal of such property which --
"(I) is treated for purposes of this paragraph as a qualified appraisal under regulations or other
guidance prescribed by the Secretary, and
"(II) is conducted by a qualified appraiser in accordance with generally accepted appraisal
standards and any regulations or other guidance prescribed under subclause (I).
"(ii) QUALIFIED APPRAISER. -- Except as provided in clause (iii), the term 'qualified appraiser'
means an individual who --
"(I) has earned an appraisal designation from a recognized professional appraiser organization or
has otherwise met minimum education and experience requirements set forth in regulations
prescribed by the Secretary,
"(II) regularly performs appraisals for which the individual receives compensation, and
"(III) meets such other requirements as may be prescribed by the Secretary in regulations or other
guidance.
"(iii) SPECIFIC APPRAISALS. -- An individual shall not be treated as a qualified appraiser with
respect to any specific appraisal unless --
"(I) the individual demonstrates verifiable education and experience in valuing the type of property
subject to the appraisal, and
"(II) the individual has not been prohibited from practicing before the Internal Revenue Service by
the Secretary under section 330(c) of title 31, United States Code, at any time during the 3-year
period ending on the date of the appraisal.".
(2) REASONABLE CAUSE EXCEPTION. -- Subparagraphs (B) and (C) of section 6664(c)(3) are
amended to read as follows:
"(B) QUALIFIED APPRAISAL. -- The term 'qualified appraisal' has the meaning given such term by
section 170(f)(11)(E)(i).
"(C) QUALIFIED APPRAISER. -- The term 'qualified appraiser' has the meaning given such term by
section 170(f)(11)(E)(ii).".
(d) DISCIPLINARY ACTIONS AGAINST APPRAISERS. -- Section 330(c) of title 31, United States
Code, is amended by striking "with respect to whom a penalty has been assessed under section
6701(a) of the Internal Revenue Code of 1986".
(e) EFFECTIVE DATES. --
(1) MISSTATEMENT PENALTIES. -- Except as provided in paragraph (3), the amendments made by
subsection (a) shall apply to returns filed after the date of the enactment of this Act.
(2) APPRAISER PROVISIONS. -- Except as provided in paragraph (3), the amendments made by
subsections (b), (c), and (d) shall apply to appraisals prepared with respect to returns or
submissions filed after the date of the enactment of this Act.
(3) SPECIAL RULE FOR CERTAIN EASEMENTS. -- In the case of a contribution of a qualified real
property interest which is a restriction with respect to the exterior of a building described in section
170(h)(4)(C)(ii) of the Internal Revenue Code of 1986, and an appraisal with respect to the
contribution, the amendments made by subsections (a) and (b) shall apply to returns filed after
December 16, 2004.
(Real Estate Appraiser Orange Riverside Ventura San Bernardino Counties, Commercial Appraisal
Services, millionaire services, Real Estate Appraiser, Real Estate Appraiser Los Angeles, find
appraiser, find real estate appraiser, San Fernando Valley, Inland Empire, OC, San Gabriel Valley, )
Dirty, Rotten, Scoundrels,
OC commercial, A MAI Firm has chosen the lowest of the low advertising schemes, Fear and Lies:
"Don't Risk an IRS Audit Use an Expert MAI Appraisal"
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."
<Appraisal Institute - MAI Designation, Los Angeles and Southern California, Real Estate Appraiser Los
Angeles, Forensic Appraiser Los Angeles, Forensic Appraisal, Commercial appraisal, Curtis-Rosenthal Inc. real
estate appraiser & consultant, Expert Witness, Real Estate consultant, LA, L.A., Southern California, commercial
appraiser, appraiser los angeles, real estate appraiser, condemnation appraiser, la commercial appraiser, ca
commercial appraiser, Real Estate Appraiser, Real Estate Appraiser Los Angeles, Commercial Appraisal
Services, Real Estate Appraiser Orange Riverside Ventura San Bernardino Counties, 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>
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)
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 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) 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)
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) 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 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:
Bayvalue@tampabay.rr.com
11. DATE: 08/01/2006 11:56:00 AM
The malleability of 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
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
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 — An 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
Bob@countywideappraisal.com
Accepts 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.
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.
Successfully using forensic appraisals (appraiser) in the tax courts requires that the property owner
understand the special issues involved with these types of appraisals, as they differ significantly
from typical real estate appraisals. The differences cover the gamut of legal issues from
communication between the client and the appraiser through the legal admissibility of appraisal
methodology.
Kacha v. Allstate Ins. Co. (06/26/06 - No. D046961)
A judgment confirming an insurance commercial appraisal award involving property damaged by a
wildfire is reversed pursuant to an insured's claims that: 1) the award exceeded the appraisers'
jurisdiction, and the trial court erred by finding he waived the jurisdictional rule; and 2) the court
erred by finding he was precluded from challenging the appraisal award because he took
possession of, but did not negotiate, checks the insurer provided him to cover the award.
Los Angeles City, Residential and Commercial Appraisal Coverage Areas: 90001, 90002, 90003, 90004, 90005,
90006, 90007, 90008, 90009, 90010, 90011, 90012, 90013, 90014, 90015, 90016, 90017, 90018, 90019, 90020,
90021, 90022, 90023, 90024, 90025, 90026, 90027, 90028, 90029, 90030, 90031, 90032, 90033, 90034, 90035,
90036, 90037, 90038, 90039, 90040, 90041, 90042, 90043, 90044, 90045, 90046, 90047, 90048, 90049, 90050,
90051, 90052, 90053, 90054, 90055, 90056, 90057, 90058, 90059, 90060, 90061, 90062, 90063, 90064, 90065,
90066, 90067, 90068, 90069, 90070, 90071, 90072, 90073, 90074, 90075, 90076, 90077, 90078, 90079, 90080,
90081, 90082, 90083, 90084, 90086, 90087, 90088, 90089, 90091, 90093, 90094, 90095, 90096, 90097, 90099,
90101, 90102, 90103, 90174, 90185, 90189, 91331, 91335
Los Angeles County, Residential Appraiser, Real Estate Appraiser, and Commercial Appraisal / Appraiser
Coverage Areas: 93510
Agoura 91301
Agua Dulce, Saugus 91350
Airport Worldway (City of LA) 90009
Alhambra 91801, 91803
Altadena 91001
Arcadia 91006 ,91007
ARCO Towers (City of LA) 90071
Arleta (City of LA) 91331
Artesia 90680
Athens 90044
Atwater Village (City of LA) 90039
Avalon 90704
Azusa 91702
Baldwin Hills 90008
Baldwin Park 91706
Bassett 91746
Bel Air Estates (City of LA) 90049. 90077
Bell 90201
Bell Gardens 90201
Bellflower 90706
Beverly Glen (City of LA) 90077, 90210
Beverly Hills 90210 - 90212
Biola Univ. (La Mirada) 90639
Boyle Heights (City of LA) 90033
Bradbury 91010
Brentwood (City of LA) 90049
Burbank 91501 - 91502 / 91506 / 91523
Burbank (Glenoaks) 91504
Burbank (Woodbury Univ.) 91510
Cal State Dominguez Hills (Carson) 90747
Cal State Long Beach (Long Beach) 90840
Cal State Northridge (City of LA) 91330
Cal Tech (Pasadena) 91125 - 91126
Calabasas 91302/91372
Canoga Park (City of LA) 91303 - 91304
Canyon Country (Santa Clarita) 91351
Carson 90745 - 90746
Carson (CS Univ. Dominguez Hills) 90747
Carson/Long Beach 90810
Castaic 91310 / 91384
Castellemare (City of LA) 90272
Century City (City of LA) 90067
Cerritos 90701
Chatsworth (City of LA) 91311
Cheviot Hills (City of LA) 90064
Chinatown (City of LA) 90012
City Terrace 90063
Civic Center (City of LA) 90012
Claremont 91711
Commerce, City of 90040
Compton 90220 - 90222
Country Club Park (City of LA) 90019
Covina 91722 - 91724
Crenshaw (City of LA) 90008
Cudahy 90201
Culver City 90230 / 90232
Cypress Park (City of LA) 90065
Diamond Bar 91765 / 91789
Dominguez Hills, Cal State (Carson) 90747
Downey 90240 - 90242
Downtown Los Angeles (City of LA) 90013 - 90015 / 90017 / 90021 / 90029
Eagle Rock (City of LA) 90041
East Los Angeles 90022
East Los Angeles (City of LA) 90023
East Rancho Dominguez 90221
Echo Park (City of LA) 90026
Edwards AFB 93523
El Monte 91731 - 91732
El Segundo 90245
El Sereno (City of LA) 90032
Elizabeth Lake 93532
Encino (City of LA) 91316 / 91436
Federal Bldg (Lawndale) 90261
Firestone Boy Scout Res. 92621
Florence 90001
Gardena 90247 - 90249
Glassell Park (City of LA) 90065
Glendale 91201 - 91208
Glendale (La Crescenta) 91214
Glendale (Tropico) 91204 - 91205
Glendale (Verdugo City) 91046
Glendora 91740 - 91741
Glenoaks (Burbank) 91504
Granada Hills (City of LA) 91344
Griffith Park (City of LA) 90027
Hacienda Heights (La Puente) 91745
Hancock Park (City of LA) 90004 / 90020
Harbor City (City of LA) 90710
Hawaiian Gardens 90716
Hawthorne (Holly Park) 90250
Hermosa Beach 90254
Hi Vista 93535
Hidden Hills 91302
Highland Park (City of LA) 90042
Hollywood (City of LA) 90028 / 90038 / 90068
Huntington Park 90255
Hyde Park (City of LA) 90043
Industry, City of 91744 / 91746 / 91789
Inglewood 90301 - 90303, 90305
Irwindale 91706
Jefferson Park (City of LA) 90018
Juniper Hills 93543
Koreatown (City of LA) 90005
La Canada-Flintridge 91011
La Crescenta (Glendale) 91214
La Habra Heights 90631
La Mirada 90638
La Mirada (Biola Univ.) 90639
La Puente 91744/91746
La Puente (Hacienda Heights) 91745
La Puente (Rowland Heights) 91748
La Verne 91750
Ladera Heights (City of LA) 90056
Lake Hughes 93532
Lake Los Angeles 93550 / 93591
Lake View Terrace (City of LA) 91342
Lakewood 90712 - 90713 / 90715
Lancaster 93534 - 93536
Lawndale 90260
Lawndale (Federal Bldg) 90261
LAX Area (City of LA) 90045
Leimert Park (City of LA) 90008
Lennox 90304
Littlerock 93543
Llano 93544
Lomita 90717
Long Beach 90802 - 90808, 90813 - 90815, 90822
Long Beach (Cal State Long Beach) 90840
Long Beach (McDonnell Douglas) 90846
Long Beach (North Long Beach) 90805
Long Beach (World Trade Ctr) 90831 - 90832
AIr Port Worldway 90009
ARCO Towers 90071
Arleta 91331
Atwater Village 90039
Bel Air Estates 90049 / 90077
Beverly Glen 90077 / 90210
Boyle Heights 90033
Brentwood 90049
Cal State Northridge 91330
Canoga Park 91303 / 91304
Century City 90067
Chatsworth 91311
Cheviot Hills 90064
Chinatown 90012
Civic Center 90012
Country Club Park 90019
Crenshaw 90008
Cypress Park 90065
Downtown Los Angeles 90013 - 90015 / 90017 / 90021 / 90029
Eagle Rock 90041
East Los Angeles 90023
Echo Park 90026
El Sereno 90032
Encino 91316 / 91436
Glassell Park 90065
Granada Hills 91344
Griffith Park 90027
Hancock Park 90004 / 90020
Harbor City 90710
Highland Park 90042
Hollywood 90028 / 90038 / 90068
Hyde Park 90043
Jefferson Prk 90018
Los Angeles (Koreatown) 90005
Los Angeles (Ladera Heights) 90056
Lake View Terrace) 91342
Los Angeles (LAX Area) 90045
Los Angeles (Leimert Park) 90008
Los Angeles (Los Feliz) 90027
Los Angeles (Mar Vista) 90066
Los Angeles (Mid City) 90019
Los Angeles (Mission Hills) 91345
Los Angeles (Montecito Heights) 90031
Los Angeles (Mount Olympus) 90046
Los Angeles (Mt. Washington) 90065
Los Angeles (North Hills) 91343
North Hollywood) 91601 - 91602 / 91604 - 91607
Northridge) 91324-91325
Pacific Highlands) 90272
Pacific Palisades) 90272
Pacoima) 91331
Los Angeles (Palms) 90034
Panorama City) 91402
Los Angeles (Park La Brea) 90036
Los Angeles (Pico Heights) 90006
Playa del Rey) 90293
Los Angeles (Porter Ranch) 91326
Los Angeles (Rancho Park) 90064
Reseda) 91335
San Pedro) 90731-90732
Los Angeles (Sawtelle) 90025
Los Angeles (Shadow Hills) 91040
Los Angeles (Sherman Oaks) 91403 / 91423
Los Angeles (Silverlake) 90026
Los Angeles (South Central) 90001 / 90003 /90007 / 90011 / 90037 / 90047 / 90061 - 90062
Los Angeles (Studio City) 91604
Los Angeles (Sun Valley) 91352
Los Angeles (Sunland) 91040
Los Angeles (Sylmar) 91342
Los Angeles (Tarzana) 91356
Los Angeles (Terminal Island) 90731
Los Angeles (Toluca Lake) 91602
Los Angeles (Tujunga) 91042
Los Angeles (USC) 90089
Los Angeles (Valley Village) 91607
Van Nuys) 91401- 91403 / 91405 - 91406 / 91411 / 91423
Los Angeles (Venice) 90291
Los Angeles (Watts) 90002/90059
Los Angeles (West Adams) 90016
Los Angeles (West Beverly) 90048
Los Angeles (West Fairfax) 90035
Los Angeles (West Hills) 91307
Los Angeles (West Los Angeles) 90025
Los Angeles (Westchester) 90045
Los Angeles (Westlake) 90057
Los Angeles (Westwood) 90024
Wilmington) 90744
Los Angeles (Wilshire Blvd) 90010
Los Angeles (Winnetka) 91306
Los Angeles (Woodland Hills) 91364 / 91367
Los Feliz (City of LA) 90027
Los Nietos 90606
Lynwood 90262
Malibu 90265
Manhattan Beach 90266
Mar Vista (City of LA) 90066
Marina del Rey 90292
Maywood 90270
McDonnell Douglas (Long Beach) 90846
Mid City (City of LA) 90019
Mission Hills (City of LA) 91345
Monrovia 91016
Montebello 90640
Montecito Heights (City of LA) 90031
Monterey Hills (City of LA) 90032
Monterey Park 91754-91756
Montrose 91020
Mount Olympus (City of LA) 90046
Mount Wilson 91023
Mt. Washington (City of LA) 90065
Newhall (Santa Clarita) 91321
North Hills (City of LA) 91343
North Hollywood (City of LA) 91601 - 91602 / 91604 - 91607
North Long Beach (Long Beach) 90805
Northridge (City of LA) 91324 - 91325
Northridge, Cal State Univ. (City of LA) 91330
Norwalk 90650
Oak Park 91301
Pacific Highlands (City of LA) 90272
Pacific Palisades (City of LA) 90272
Pacoima (City of LA) 91331
Palmdale 93550 - 93552 / 93591
Palms (City of LA) 90034
Palos Verdes Estates 90274
Panorama City (City of LA) 91402
Paramount 90723
Park La Brea (City of LA) 90036
Pasadena 91101 / 91103 - 91107
Pasadena (Cal Tech) 91125 - 91126
Pearblossom 93553
Phillips Ranch 91766
Pico Heights (City of LA) 90006
Pico Rivera 90660
Playa del Rey (City of LA) 90293
Playa Vista (City of LA) 90094
Pomona 91766-91768
Porter Ranch (City of LA) 91326
Quartz Hill 93536
Rancho Dominguez 90220
Rancho Palos Verdes 90275 / 90717 / 90732
Rancho Park (City of LA) 90064
Redondo Beach 90277 - 90278
Reseda (City of LA) 91335
Rolling Hills 90274
Rolling Hills Estates 90274
Rosemead 91770
Rosewood 90222
Rowland Heights (La Puente) 91748
San Dimas 91773
San Fernando 91340
San Gabriel 91775 - 91776
San Marino 91108
San Pedro (City of LA) 90731 - 90733
Santa Clarita (Canyon Country) 91351
Santa Clarita (Newhall) 91321
Santa Clarita (Valencia) 91354 - 91355
Santa Fe Springs 90670
Santa Monica 90401 - 90405
Saugus, Agua Dulce 91350
Sawtelle (City of LA) 90025
Shadow Hills (City of LA) 91040
Sherman Oaks (City of LA) 91403 / 9 1423
Sierra Madre 91024
Signal Hill 90755
Silverlake (City of LA) 90026
South Central (City of LA) 90001 / 90003 / 90007 / 90011 / 90037 / 90047 / 90061 - 90062
South El Monte 91733
South Gate 90280
South Pasadena 91030
South Whittier 90605
Stevenson Ranch 91381
Studio City (City of LA) 91604
Sun Valley (City of LA) 91352
Sunland (City of LA) 91040
Sylmar (City of LA) 91342
Tarzana (City of LA) 91356
Temple City 91780
Terminal Island (City of LA) 90731
Toluca Lake (City of LA) 91602
Topanga 90290
Torrance 90501-90506 / 90277 - 90278
Tropico (Glendale) 91204 - 91205
Tujunga (City of LA) 91042
Universal City 91608
USC (City of LA) 90089
VA Hospital (Sawtelle) 90073
Valencia (Santa Clarita) 91354 - 91355
Valinda 91744
Valley Village (City of LA) 91607
Valyermo 93563
Van Nuys (City of LA) 91401 - 91403 / 91405 - 91406 / 91411 / 91423
Venice (City of LA) 90291
Verdugo City (Glendale) 91046
Vernon 90058
View Park 90043
Walnut 91789
Walnut Park 90255
Watts (City of LA) 90002 /90059
West Adams (City of LA) 90016
West Beverly (City of LA) 90048
West Covina 91790-91793
West Fairfax (City of LA) 90035
West Hills (City of LA) 91307
West Hollywood 90069
West Los Angeles (City of LA) 90025
Westchester (City of LA) 90045
Westlake (City of LA) 90057
Westlake Village 91361 - 91362
Westwood (City of LA) 90024
Whittier 90601 - 90605
Whittier (Whittier College) 90608
Whittier College (Whittier) 90608
Willowbrook 90059 / 90222
Wilmington (City of LA) 90744
Wilshire Blvd (City of LA) 90010
Windsor Hills 90043
Winnetka (City of LA) 91306
Woodbury Univ. (Burbank) 91510
Woodland Hills (City of LA) 91364 / 91367
World Trade Center (Long Beach) 90831 - 90832
Please call for Orange County, Ventura County, Riverside County, San Bernardino, County
Coverage Areas
2006 Appraisal Information Needs Survey Results
During August 2006, the NATIONAL ASSOCIATION OF REALTORS®’ (NAR) Marketing Research
Department invited 86,777 appraiser members and recipients of the Appraisal Section of the weekly
NAR ListServe message to participate in an online survey. Findings reflected in this report were
collected from responses received between August 10th and 25th, 2006.
The goal of the survey was to understand how Appraiser members conduct their business, obtain
appraisal industry information, and make decisions on their appraisal education and designations.
Curtis - Rosenthal, Inc.
Forensic Appraiser Los Angeles, Forensic Appraisal,
Citizens posed many questions about the land exchange, especially pertaining to the values of the properties.
According to the appraiser retained by Carma, the developer, she was asked specifically not to appraise
development value. In the section entitled "Assumptions and Limiting Conditions," article 12 states: "Parcels A and
B have been appraised on a further hypothetical condition which is the same zoning and land use approvals as
pertain to Parcels C through G. This condition was requested by the appraisal client to assist in facilitating the
exchange of Parcels A and B with Parcels C through G." (MAI-Made As Instructed). The appraisal, as stated by MAI
appraiser Burton S. Lee, is faulty, based on the premise that no zoning change would happen to the park that
Carma would be receiving, thus conclusions show "equal" value ONLY if all parcels of land remain in a vacant land
state. Burton, in his report concludes his assessment of Carma's appraisal, stating, "Therefore, in my opinion, the
relative market values presented in the Bonnie D. Roerig, MAI appraisal report dated March 31, 2006 have been
effected by the assumption that all the parcels be valued as parkland and this assumption might have altered the
results of that appraisal so as to create an exchange that may not constitute a "fair market value" exchange."
"What is an MAI appraisal?
There is actually no such thing as an MAI appraisal. There is an organization call the Appraisal Institute that offers
classes and created a designation called an MAI, which stands for Member of the Appraisal Institute. Prior to the
savings and loan crisis there was limited regulation in the appraisal profession and, as such, a membership to a
professional organization was a means for banks to insure an appraiser was generally competent. In 1989 it
became federal law that all appraisers meet new federal standards that are now enforced by each state. The new
laws required education, a work product audit, examination, and continuing education similar to the existing
appraisal organizations. At this time it also became unlawful for banks to require appraisers to be members of any
organization, and or MAI or FREA appraisals, because these organizations were not regulated by any government
agency and tended to lack membership diversity.
What is FIRREA*?
The savings and loan crisis led to significant legal reform in the late 1980s. The reform enacted by congress is
referred to as the Financial Institution Reform and Recovery Act (FIRREA). FIRREA essentially took over the
regulation of the appraisal industry and gave it to the individual states based on new terms and requirements.
FIRREA left the private appraisal organizations somewhat displaced. The Appraisal Institute (the MAI group)
almost went bankrupt and nearly shut its doors, then finally merged with several other appraisal groups and
continues to be a leading provider of appraisal education.
Appraisers licensed post-FIRREA had to meet stricter terms to obtain licenses with the state. Chandos Pacific
Appraisal is a post-FIRREA firm that obtained its educational course work through the Appraisal Institute and is a
member of the Foundation of Real Estate Appraisers.
Older firms tend to be pre-FIRREA firms and the members typically advertise and promote their appraisal
organization membership. Note that none of the private appraisal groups govern appraisers, only the state in
which the appraiser practices has the right to issue appraiser licenses and oversees all appraisal activity. As you
can see, over a decade ago, before state laws became uniform in requiring all appraisers to be audited, trained
and tested, private memberships were the only means a bank had of establishing if an appraiser might be
qualified. Times change and so have lending regulations. If your bank stipulates your appraiser must be a
member of the Appraisal Institute, the Foundation of Real Estate Appraisers, or any other appraisal group, it is
actually in violation of FIRREA and federal banking regulations."
Unknown Author
SERVICES SPANISH
TRANSLATION:
el valuador comercial, la
evaluación comercial, el
valuador Los Angeles,
valuador de bienes raíces,
experto comercial presencia
bienes raíces, los bienes
raíces, Real Estate Appraiser
Orange Riverside Ventura San
Bernardino Counties,
valuador comercial, valuador
comercial de bienes raíces,
Valuador Comercial de
bienes raíces Los Angeles,
Propaganda de Valuador,
Valuador Los Angeles,
Valuador de Propiedad,
Valuador de Protocolización,
Valuador de Confianza,
Valuador de Impuesto,
Valuador de MAI, LA, L.UN.,
bienes raíces Los Angeles,
valuador de tierra Los
Angeles, inspectores
comerciales de bienes raíces,
corredores de bienes raíces,
Los Angel
TRANSLATION:
el valuador comercial, la
evaluación comercial, el
valuador Los Angeles,
valuador de bienes raíces,
experto comercial presencia
bienes raíces, los bienes
raíces, Real Estate Appraiser
Orange Riverside Ventura San
Bernardino Counties,
valuador comercial, valuador
comercial de bienes raíces,
Valuador Comercial de
bienes raíces Los Angeles,
Propaganda de Valuador,
Valuador Los Angeles,
Valuador de Propiedad,
Valuador de Protocolización,
Valuador de Confianza,
Valuador de Impuesto,
Valuador de MAI, LA, L.UN.,
bienes raíces Los Angeles,
valuador de tierra Los
Angeles, inspectores
comerciales de bienes raíces,
corredores de bienes raíces,
Los Angel