When engaging an appraisal firm, the language from the preamble to the 2010 Valuation Independence rule published by the Federal Reserve Board states: "As discussed in more detail in the section-by-section of section 226.42(f)(4)(i) (defining '
fee appraiser'), TILA [Truth in Lending Act] section 129E(i)(2) defines '
fee appraisers' to which customary and reasonable fees should be paid to mean 1) individual state-licensed or state-certified appraisers (natural persons), and 2) companies or firms that employ individual state-licensed or state-certified appraisers and receive compensation for performing appraisals."
Mann, MAI, MRICS, is managing director of Collateral Evaluation Services, LLC, and has with a total of twenty-four years of valuation experience: four years as an independent
fee appraiser, two years as a real estate assessor, and eighteen years with banking institutions.
The institution would use this assessment to determine whether to retain the
fee appraiser on its approved appraiser list.
In one case, the contingent
fee appraiser admitted before the jury that his compensation was, in part, contingent on the jury's verdict.(42) Additionally, the appraiser admitted that his contract violated the ethics provisions of the Uniform Standards of Professional Appraisal Practice which are applicable to real property appraisers and adopted by Florida statute.(43) Following these admissions, cross-examination on the myriad appraisal techniques of the biased and unethical appraiser followed.(44) The jury rendered a verdict favorable to the condemning authority.(45) However, one must question whether the testimony of contingent fee expert witnesses and the resulting cross-examination so imperils the administration of justice that the witnesses should simply be disqualified.
* IFA, Independent
Fee Appraiser -- oriented to residential real estate.
He has twenty-five years of valuation experience: four years as an independent
fee appraiser, two years as a real estate assessor, and nineteen years with banking institutions.
MZ: Yes--prior experience as a
fee appraiser is important.
May, MAI, had a long, distinguished career in real estate, beginning in Detroit in the 1920s as vice president of a realty development corporation and then becoming a
fee appraiser for governmental entities during the 1930s.
Johnson has been an independent
fee appraiser for 28 years, having begun as a commercial and residential appraiser for Briggs and Associates in 1979.
Another approach the authors advocate is "to call a professional, independent
fee appraiser" For the assignment of advising a homeowner on pricing decisions, they suggest, "Fees typically range from $550 to $500....
A typical panel may consist of five members with varied backgrounds (e.g., general
fee appraiser, residential
fee appraiser, bank review appraiser, litigation appraiser, specialty property appraiser).
Frost, 2608 Jackson, Sioux City, admitted July 1, 1932;
fee appraiser; treasurer and vice president of Iowa Joint Stock Land Bank; attendee of Oshkosh State Teachers College; member of AIREA Public Relations Committee, 1936; experienced in valuation of residential, apartment, commercial, railroad, stockyard, water frontage, farm, and ranch property.