Bakersfield appraiser put on probation
| Thursday, Oct 08 2009 06:14 PM
Last Updated Thursday, Oct 08 2009 06:14 PM
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The state Office of Real Estate Appraisers has placed Bakersfield appraiser Michael B. Wood of All Kern Appraisals on two years probation and fined him $2,000, plus $2,000 enforcement costs, and ordered him to take 30 hours of basic education.
The discipline stems from work performed in 2006 and 2007 for Tower Lending, Chase Home Finance and McMillin Mortgage. Those "misleading and inaccurate" appraisal reports were "unsupported by factual data," the state said in a written disciplinary order.
At the time, Wood was an appraiser trainee under the supervision of Kirksey J. "Mark" Newton Jr., owner of San Joaquin Appraisals Inc. State regulators have a case open against Newton, as well.
Tower Lending was the finance arm of Crisp, Cole & Associates, a now defunct real estate firm whose leaders had their real estate licenses revoked last year.
Wood did not return multiple phone calls placed over several days seeking comment.
According to a stipulated settlement and disciplinary order with the state, Wood must maintain a log of all appraisals he performs and submit them to the state for review for the duration of his probation.
The state will select at least one report to closely scrutinize every six months to make sure Wood complies with legal and professional standards.
"If he violates the terms of the stipulated settlement, we're back to square one on (license) revocation," said Bob Clark, director of the state's Office of Real Estate Appraisers.
The voice mailbox of Wood's former supervisor, Newton, was full Thursday so Newton could not be reached for comment.
Donnie Flannery, a home mortgage consultant with McMillin Mortgage's Bakersfield office, said Wood's work for the company predated his hiring and he didn't know the man.
Flannery added that because of a new Home Valuation Code of Conduct that took effect earlier this year, third party intermediaries now hire appraisers and loan officers have no contact with them.
A spokesperson for Chase Home Finance could not be reached.
According to the state's 20-page official accusation, Wood was disciplined for numerous errors and omissions related to work on four Bakersfield properties. Some highlights:
* 9808 Fitzgerald Drive: $671,500 appraisal as of July 2006 was $71,550 above the June 2006 list price of $599,950, and was not supported by comparable sales or listing history.
* 10911 Vista Del Rancho Drive: $386,000 appraisal as of October 2006 was $47,000 above the list price and was not supported by comparable sales or listing history.
* 15417 Sequoia Grove Ave.: $695,000 appraisal as of Oct. 16, 2006 failed to consider list prices ranging from $649,990 in September 2005 to $574,950 in August 2006. The property was transferred by seller Huy Bui on Oct. 25, 2006 as a "gift" to a corporation owned by Crisp, who sold the property to one of his own agents. Bui retained a 1 percent interest in the property, but Wood incorrectly reported Bui as the sole owner.
* 2780 Gibson St.: $347,000 appraisal as of May 7, 2007 didn't analyze recent listing history or explain why his valuation was $18,000 below the $365,000 list price.
Wood was issued a real estate appraisal trainee license in May 2006 and was upgraded to a residential appraiser license in November 2007. His license expires May 4, 2010.
