The Illinois Coalition of Appraisal Professionals commissioned a study on identity theft and resulting article that has been widely posted on the internet on appraisal sites. Here is a copy [note: pdf]. The letter written by Brian Weaver, a practicing appraiser for over 25 years and worked as an investigator for the Office of Banks and Real Estate in Illinois. He is referring to a problem that is manifested by the state agencies that publish the license numbers of appraisers on the Internet and the appearance of license numbers on all appraisal reports.
This is an excerpt of a letter written by Chip Wagner, IFA, SCRP, ERC’s 2005 Appraisal Foundation Advisory Council Representative to the Worldwide Employee Relocation Council to bring attention to the RAC membership an issue that is affecting the Appraisal Community.
There is an alarming trend of the fraudulent use of appraiser’s license numbers and unscrupulous individuals stealing the name and license or certification number to use on fraudulent appraisal reports. As you can see from the [Brian Weaver] article, over $40 Million in forgery has been uncovered in Illinois, and it is expected that this might be only the tip of the iceberg.
Online appraisal directories, Department of State Web Sites, Appraisal Reports and printed appraiser directories all publish our license numbers. There is no need to disseminate this to the public. Posting categories would replace the need to post numbers since [honest] users of these directories only look to see the license number and often don’t know the classification.
- Certified General
- Certified Residential
When Chip brought this matter to my attention, my first reaction was “well the Department of State publishes our numbers online for all to see, and most states do the same thing.”
Chip’s response was:
Let me advise you, this is all changing based on the publicity that what is happening in my state is taking place. My state has access to this information password protected now. When I first saw this article on appraiser identity theft, I told my state appraisal board the same thing “this is available on the Appraisal SubCommittee’s website.”
I have been told by my state appraisal director and appraisers on the board that this will be changing because of what is happening in my state.
After thinking about this further, I realized this is a natural extension of identity theft from stolen credit cards and social security numbers. Today, the proliferation of Appraisal Management Companies have virtually eliminated the one on one relationships lenders had with their approved appraisers, in fact 10 years ago, a lender could tell when your signature was forged. Now its a non-issue, they have no idea what your signature looks like.
The first thing to do is remove your license numbers from your own web sites…