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Editor’s Note: Here's how one appraiser fought his way off a Citibank "do not use" list.

Fighting Your Way Off a Blacklist
By David Brauner, Editor

After over two years and many tens of thousands of dollars in lost revenue, appraiser Bill Smith fought his way off Citibank’s infamous “do not use list.”  Here’s how he did it.

To begin with, Smith (not his real name), has a “can you top this” aspect of how he was blacklisted in the first place: it was not even his appraisal.  Smith was blacklisted over two years ago in connection with an appraisal he completed a “market conditions update” for.  Repeat: he did not do the appraisal.

Smith’s story is more typical in other details: a form letter arrives announcing the blacklisting without any opportunity to provide feedback or comment; work from one or more appraisal management companies (AMC) dries up, anger and frustration set in. 

Smith identified a contact at Citibank and submitted a rebuttal.  He says they have 30 days to respond and on about day 30 they did: he remained blacklisted with no further explanation- for the appraisal he didn’t do. 

Smith went higher up the chain at Citibank. This time, a change in status was granted: yes, his work would be accepted, as long as it was accompanied by a review.  Most AMCs, no matter how much they like you, don’t like you enough to be willing to order (and pay for) a review on each order. The spigot remained closed. The frustration deepened.

About two months ago, Smith simultaneously submitted an online complaint to the Office of the Comptroller of the Currency (OCC) (see link below) and his state Office of Real Estate Appraising (OREA-Calif.)- after reading a story in Working RE (See Suspension Merry-Go-Round, pg. 26).  The OCC takes complaints on banks directly from consumers, such as appraisers.  Smith says one of these two levers did the trick- a few weeks ago he received a letter from Citibank confirming his removal from the blacklist. 

Smith says the OREA regulates the AMCs that operate in his state but do not interact or communicate with banks. Smith confirmed that OREA sent an inquiry to the AMC that stopped sending him work (and who ordered the market conditions update in the first place).  So, Smith deduces that either the OREA inquiry nudged the AMC to ask Citibank to resolve the issue or, more likely, the OCC complaint got Citibank to move.

“I’m pretty sure it was the OCC complaint that did it,” says Smith.  “Reference to the OCC complaint was mentioned right in the letter from Citibank informing me I was removed from the 'do not use' list.”

Smith continues, “There has got to be some method for appraisers to present their side of the story. By the time we hear anything a decision is made and we have no chance or recourse to defend ourselves. It’s not right. But if my response is an indication, it looks like the Feds are taking complaints from appraisers seriously.”

Smith says it pays to be persistent, if you meet resistance dealing with federal agencies in an effort to fight blacklisting. He said he first contacted the agency over a year ago and was stonewalled.  “Like many government agencies, they didn't know what their own procedures are and sent me away saying it was another agency's job.  You really have to get to the right person. I persisted and someone finally told me about the Consumer Assistance Group which is where I filed the complaint that worked.”  (Here’s where to file a complaint: HelpWithMyBank.gov.  800-613-6743.)

Related Stories:
Do You Know Your Rights?
Home Appraisers Being Blacklisted by Banks, CBS-5

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***In Working RE's Webinar Series, Limit Liability, Maintain Independence, and Fight Influence, nationally renowned instructor and expert Richard Hagar, SRA will detail how appraisers can protect themselves and their independence in the face of AMC requests, questions, and threats of blacklisting aimed at influencing and distorting your report.  Learn to protect your independence as an appraiser with Hagar's Three Part Series.


About the Author
David Brauner is Editor of Working RE magazine and Senior Broker at OREP.org, a leading provider of E&O Insurance for appraisers, inspectors and other real estate professionals in 49 states. He has covered the appraisal profession for over 20 years. He can be contacted at dbrauner@orep.org or (888) 347-5273. Calif. Insurance Lic. #0C89873.