Consumer complaint received 2020-04-21
Company: JPMORGAN CHASE & CO.
State: MI
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
Chase Bank commissioned a low-ball appraisal in order to file a frivolous complaint against me ( XXXX XXXX XXXX ) with the state of Michigan 's XXXX XXXX XXXX XXXX  ( XXXX ), based on an appraisal I did on a home in XXXX, MI. Their XXXX intentionally used inferior and irrelevant comparable sales to justify their false claims against me, and that complaint immediately ruined my good name, reputation, XXXX XXXX  career and income level. I was cleared of any and all wrongdoing by XXXX, but have suffered the effects of this complaint ever since. 

Chase blacklisted me prior to filing the complaint, and kept me blacklisted for two years after I was cleared by XXXX. Even though they stated I was removed from their " XXXX XXXX List '' and was eligible to do XXXX for them again, I never received another XXXX order from them. This prevented me from doing XXXX for every client I had that did work with Chase, and prevented me from obtaining new clients. It's not good for business when the largest bank in the country bans you from doing XXXX for them, as every mortgage company that does work for Chase was then obligated to also ban me from doing XXXX. 

In MIchigan, properties are taxed based on each property 's State Equalized Value ( SEV ). Each property 's SEV, detemined by their local assessor annually, represents 50 % of the value of that property. For example, a house with a value of {$100000.00} has an SEV of {$50000.00}. 

At the time of my appraisal, the subject 's SEV was {$76000.00}, indicating a market value of {$150000.00}, as determined by the city of XXXX 's XXXX Department. The subject had been recently extensively updated, but even though it had a listing price and pending offer of {$150000.00}, I appraised the home for {$120000.00}, as property values were declining at the time ( approximately 20 % that year per area sales studies by the local assessor ), and my three similar sales justified my valuation. The subject ended up selling for the exact valuation in my appraisal. 

A year after the sale, the subject went into foreclosure, and Chase commissioned another appraisal by an XXXX in their XXXX, FL office. That appraiser appraised the same home for {$60000.00} as of the date of its sale, by using 3 irrelevant sales, including a bank-owned home, a Land Contract sale of a vinyl-sided 2-bedroom home ( the subject has 3 bedrooms ) which was 44 % smaller than the subject and did not feature a basement like the subject did, and the sale of a home which was 19.5 % smaller than the subject, offered no significant updates, and featured a sales date older than the three sales I used in my appraisal. 

XXXX defines market value as " the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Two of Chase 's three sales conflict with that definition based on being bank-owned and Land Contract sales. My three sales comparables were all conventional sales, matched the subject 's valuable features of identical bedroom count ( 3 ), brick exteriors, basements, and similar living area, offering square footage within 1 - 12 % of the subject 's. All three of my comparable sales sold within 5 months of my XXXX date. 

Their appraisal 's valuation is the only one I have ever seen which came in lower than a property 's SEV. They were aware that property values were dropping, yet they obviously and erroneously targeted the subject 's SEV as its market value, with their valuation coming in 22 % lower than its SEV, and 61 % lower than the market value it was being taxed at, as determined by the local assessor. For an appraiser to develop a valuation lower than a property 's SEV, I doubt their appraiser is licensed in the state of Michigan, and would like Chase to reveal their appraiser 's identity and license number so that their license can be verified. Chase refuses to provide me the name of their appraiser, only stating that he or she works out of their office in XXXX, FL.

Company response to consumer: Closed with explanation