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Report: #1260946

Complaint Review: YORK AND YORK INC - LEWISVILLE Texas

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  • Reported By: Groovystuff — dallas Texas USA
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  • YORK AND YORK INC 571 W. Main Street; Suite 250 LEWISVILLE, Texas USA

YORK AND YORK INC knowingly and openly committing violations of federal and state laws created to protect home buyers from Predatory appraisal and lending practices. LEWISVILLE Texas

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This is a formal complaint against Appraisal Management Company (AMC) York & York for knowingly and openly committing violations of USPAP guidelines.

Under FIRREA mandate and federal government regulation, any appraiser or AMC that does not follow the Uniform Standards of Professional Appraisal Practice (USPAP), must be reported to the state agency (TALCB) that is responsible for investigating and taking appropriate disciplinary action against the offending appraiser and AMC.

Appraisal Subcommittee (ASC) was created to monitor appraisal standards on a state level to ensure that USPAP guidelines are being met.  To ensure this complaint against the AMC York & York, Inc., will be handled in an appropriate manner, a copy of this complaint will be utilized as a case study and will be brought to the attention of other professionals..

To assist in this complaint process the “TALCB OCCUPATIONS CODE, TITLE 7. PRACTICES AND PROFESSIONS RELATED TO REAL PROPERTY AND HOUSING, SUBTITLE A. PROFESSIONS RELATED TO REAL ESTATE, CHAPTER 1104.  APPRAISAL MANAGEMENT COMPANIES / Texas Appraisal Management Company Registration and Regulation Act,” was utilized as a reference.

As cited in the TALCB Registration and Regulation Act, “the purpose this act is to establish and enforce standards related to appraisal management services for appraisal reports on residential properties located in this state.”

York & York is Appraisal Management Company (AMC) located in the State of Texas and is therefore subject to enforcement for open violations of USPAP guidelines.

When acting as an AMC with TALCB licensing, York & York violated Sec 1104.203 when they and an employee of the AMC:

(1)     Caused, or attempted to cause the appraised value of the assigned property at 6049 West Red Bird Lane, Dallas, TX 75236 to be based on factors other than the independent judgment of the appraiser;

(2)     Caused, or attempted to cause the mischaracterization of an appraised value in conjunction with a consumer credit transaction on the assigned property at 6049 West Red Bird Lane, Dallas, TX 75236.

(3)     Sought to influence and encourage a targeted value for the purposes of facilitating, making, and pricing of a consumer credit transaction;

(4)     Knowingly removed factual information from their work file that included any and all supporting documents referenced and cited from the Dallas Central Appraisal District and this failure to disclose was negligently audited by the AMC before submittal to the Client/Borrower and lender.

(5)     Knowingly transmitted a misleading report that was unjustified to the Client/Borrower, the Seller, and the Lender in order to induce a consumer credit transaction therefore placing probable cause for federal wire fraud violations.

By knowingly engaging in the activities listed above, York & York Inc., committed multiple intentional acts that do not comply with required TALCB Uniform Standards of Professional Appraisal Practice mandates.  The flagrant and open violations by York & York are direct reflections on an industry that supports the management and employees of firms that commit these baseless acts of depravity that fail in their social duty owed to another person or society in general.  The lack of moral turpitude from the management and employees at York & York, Inc., are against the customary rules of right and duty between people and these acts are contrary to justice, honesty and good moral principles.

The failure of York & York, Inc., to comply with obligations they have to the society they serve, particularly when related to probable acts relating to fraud, dishonesty, false statements or moral turpitude erodes confidence in the industry.  By not complying with a standard duty of care and obligations of a respected AMC, York & York, Inc., legitimately leads the public to question whether any of the TALCB AMC “licensed professionals and companies” will comply with his or her obligations under the USPAP mandates.

By issuing a report that included information York & York, Inc., knew or should have known would influence the intended users into an improper conclusion by inducing the Client/Borrower, the Seller, and the Lender into a consumer credit transaction, they committee serious ethics violations in direct violation of USPAP and TALCB AMC guidelines.

Two (2) additional TALCB appraisal review professionals in addition to the Residential Accounts Manager at the Dallas Central Appraisal District (DCAD) confirm that York & York Inc., knowingly and openly committed substantial errors and omissions that significantly affected the assignment results and those conclusions induced the Client/Borrower, the Seller, and the Lender into engaging in a consumer financed transaction.

Jim Pearson of Pearson Appraisals conducted a Retro-Active Appraisal and Appraisal Review to ascertain if USPAP guidelines were followed on the subject property and Mr. Pearson reported as follows:

(1)   The appraisal report issued by York & York, Inc., has significant errors and omissions which is a credibility issue with the appraisal report. Standards Rule 3-3, 2010-11 USPAP.

(2)   Numerous errors in the appraisal include description of the site and improvements, bedroom count, functional obsolescence, and choice of “comparable” market sales data, age of properties, square foot, and lot sizes.

(3)   Including the subject’s Bonus Room square footage as a bedroom into the Grooss Living Area for the Sales Comparison Approach Grid, overstates the subject making the larger Sales Comparisons appear more comparable without adjustments for functional obsolescence.

(4)   The report signed by Kyle Hollowell, TX-1326353, and Guy York, TX-1322777-R SCOPE OF WORK addendum page states Greg York, SRA “certify….the reported analysis, opinions and conclusions were developed, and this report was prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute.” 

DCAD Residential Accounts Manager concluded after his audit investigation that the appraisal report issued by AMC York & York, Inc., contained conclusive misrepresentations of the subject and adjusted the “public record” to reflect these undiscoverable site descriptions.  As a result, Market Value was reduced by over $100,000 from $244,000 to $142,500.

TALCB Expert Witness Greg Stephens was hired to conduct an appraisal review to support the material fact issues noted by Pearson Appraisals.  The sworn Stephens affidavit states the following:

(1)   it is my professional opinion the appraisal report completed by York and  Holloway (the Holloway Appraisal) misrepresented the physical characteristics of the subject property relating to the functionality and contribution value of a room addition adjacent to the master bedroom.

(2)   The appraisal report included the room addition in the living area floor plan and square footage calculations, thus resulting in a misleading report. It contains no disclosure of the discrepancy between the public record information relating to the subject floor plan, nor the legal/permitted nature of the room addition referred to as the third bedroom in the report.

(3)   Additionally, there is no analysis within the report relating to the functional inadequacy of the room addition if it were to be utilized as a bedroom where interior access is only through the master bedroom.

(4)   In the Improvement Comments section page 1 of 6 of the appraisal report, the following statement is noted – “ No functional or external obsolescence was noted.” By making that statement within the report the appraisers were either incompetent or negligent. Incompetent if they did not have the experienced and knowledge to identify the functional inutility, or negligent if they had the experience and knowledge to identify the functional inutility and disregarded it in the analysis of the subject improvements.

(5)   The appraisers failed to comply with USPAP in the development of the appraisal beginning with the Scope of Work Rule by failure to analyze the functional issues relating to the room addition resulted in a failure by the appraisers to comply with the Scope of Work Rule in effect as of the report date by failing to analyze relevant characteristics of the subject property.

(6)   By failing to comply with the requirements set forth in the Scope of Work Rule, the appraisers also failed to comply with the requirements set forth in Standard 1 to correctly complete research and analyses necessary to produce a credible appraisal.

(7)   by failing to analyze the functional deficiencies and legal nature of the room addition and treating it as a third bedroom in the comparison between the subject and the sales, the corresponding adjustments to the comparable sales within the appraisal report do not accurately reflect the market’s reaction to the differences between the subject property and the comparable sales as presented in the appraisal. 

(8)   the appraisal report completed by York failed to adequately describe and appropriately analyze the diminished site utility resulting from the configuration of the site boundaries and the topography of the rear portion of the site.

(9)   By failing to address the site utility issues in the development of the appraisal, real property appraisers York failed to comply with the same USPAP requirements referenced in the discussions regarding the functionality issues of the floor plan per the following.

(10) By describing the subject site as basically rectangular and disregarding the site shape and utility issues, the appraisers also failed to comply with the appraisal report certifications #1, #3 and #9.

(11) York failed to comply with additional USPAP requirements – Standards Rule 1-1 states, In developing a real property appraisal, an appraiser must:

(a) be aware of, understand, and correctly employ those recognized methods and techniques that are necessary to produce a credible appraisal;

(b) not commit a substantial error of omission or commission that significantly affects an appraisal

(c) not render appraisal services in a careless or negligent manner, such as by making a series of errors that, although individually might not significantly affect the results of an appraisal, in the aggregate affects the credibility of those results.

(12) In addition to the deficiencies noted regarding the analysis of the room addition and the diminished site utility, the appraisal report also contained other errors to include:

Site Section:

Incorrect Zoning

Incorrect site description

Incorrectly reported gas to site when there is none

Improvement Section:

No gas heating as reported

No drop stair as reported

(13) the relevant property characteristics consistent with those recognized methods and techniques requiring such appropriate identification and analysis of the relevant property characteristics, including the functional issues relating to the floor plan and the diminished site utility.

(14) The appraisers failed to comply with Standards Rule 1-1 (b) making a substantial error of omission by excluding the identification and analysis of the functional obsolescence of the floor plan and the functional inutility of the site.

(15) The appraisers failed to comply with Standards Rule 1-1(c) by making a series of errors that although individually might not significantly affect the results of an appraisal, in the aggregate affects the credibility of those results.

(16) The credibility of the assignment results are further diminished by the selection and analysis of sales data used to develop the opinion of market value.

(17)  Numerous competitive properties are noted to have been available in lieu of the five used in the appraisal report, which if used, would have produced assignment results reflecting a lower value than derived using the dissimilar and distant data noted in the York appraisal report.

(18)                       The York & York appraisal report refers to Christopher Bruning as the Borrower/Client in 12 of its 19 pages, creates, at best, confusion on the question of whether Christopher Bruning was, in fact a client of the appraisal firm at the time of the appraisal report. An objective reading of the appraisal report, in my opinion, could reach that very reasonable conclusion (i.e. that Christopher Bruning was a client of the appraisal firm at the time of the appraisal report).

 

In summary, Expert Witness Stephens stated, “numerous USPAP violations (each violation being a clear deviation from the applicable standards of reasonable care of appraisers in Texas at the time) were noted in the development of the appraisal and in the report documentation significantly diminishing, in my opinion, the reports credibility and foreseeably resulting, in my professional opinion, in an over-stated value conclusion in the appraisal report that was, in my opinion, reasonably relied upon by the borrower under the circumstances of this case to consummate a mortgage loan using the subject property as collateral.

The AMC, York & York Inc., was charged with auditing and “conducting quality control of a completed appraisal before delivery of the appraisal to the person who ordered the appraisal.”  York & York failed to fulfill their obligation as an AMC and as a result of their action they knowingly supported the predatory practice of performing negligence on unsuspecting Homesteaders.

Just like EVERY other negligent TALCB AMC that gets caught performing in an unethical manner, York & York has attempted to hide their contract of duty to their clients with claims that the Client/Borrower is actually the lending institution.  This is the same unclean hands attitude that has caused financial destruction across the country from negligent AMC performance and without equitable punishment to maintain compliance, the TALCB indirectly encourages this negligent and Predatory behavior for its members.

A family that purchases a property and engages the Homestead Act for tax relief is not the profile of a home buyer that would intentionally sell their residential property after only two years.  This effectively allows the AMC and predatory appraiser to hide “undiscoverable” damages until well after the unsuspecting homesteader discovers the damage after the two year statute of limitations expires.

The AMC, York & York Inc., was charged with complying with USPAP guidelines by selecting an appraiser that could meet the competency rules for the assignment. 

The Texas Appraisal Management Company Registration and Regulation Act specifically states:

SUBCHAPTER E. - DISCIPLINARY ACTIONS AND PROCEDURES AND ADMINISTRATIVE PENALTIES, Sec. 1104.201.  DISCIPLINARY POWERS OF BOARD. 

(a)   The board may reprimand an appraisal management company or conditionally or unconditionally suspend or revoke any registration issued under this chapter if the board determines that the appraisal management company has violated or attempted to violate this chapter or any rule adopted by the board under this chapter.

The Administration section of the Texas Appraisal Management Company Registration and Regulation Act specifically states that in addition to other disciplinary measures, administrative fines would be assessed in the amount not to exceed $10,000 per violation.  Administration fees are based on a number of factors to include: 1) the seriousness of the violation, 2) the amount necessary to deter a future violation; 3) efforts made to correct the violation; and 4) any other matter that justice may require.

The TALCB was established to safeguard the consumer rights of Texas residents.  The significant number of errors committed by York & York, Inc. have been supported by three (3) additional certified appraisal “professionals.” 

The immeasurable financial damage York & York has caused will only continue without proper sanctions to prevent York & York and others form committing the same offenses.  The predatory practices committed by York & York are evidence that an even bigger problem still exists that allows and supports Predators like York & York Inc to continue today.

Since the recession, Federal guidelines have been updated to combat the mismanagement from TALCB AMC representatives and without proper state disciplinary measures by the TALCB residents and homesteaders in Texas will continue to fall prey to undisclosed hardships from these immoral acts

This report was posted on Ripoff Report on 10/13/2015 05:52 AM and is a permanent record located here: https://www.ripoffreport.com/reports/york-and-york-inc/lewisville-texas-75057/york-and-york-inc-knowingly-and-openly-committing-violations-of-federal-and-state-laws-cr-1260946. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content

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