Book 1 - Appraisal Institute of Canada

From the Counsellor’s DeskWorking incollaboration for changeUpon joining the Appraisal Instituteof Canada (AIC), all members pledgeto uphold the Code of ProfessionalConduct and Professional Code of Ethics 1 . In sodoing, they agree to comply with the provisionsof the Bylaws, Regulations and CUSPAP.Staying true to this ideal will translate into aprofessional reputation that serves you well.Good ethics are good for business. This shouldbe the focus at all times, especially when clientsdeliberately encourage you to hit their mark,thereby jeopardizing your professionalism andyour livelihood.Much has been and will likely continue tobe written on the root causes of the sub-primefinancial crisis in the US and the global impactthat it has spawned. While some will look at therisk modeling and the collateral valuation process2 to see if they worked as intended, i.e., didthe mathematical models and process functionproperly?; others will look to the conduct of theplayers in the financial services sector. Did theyact ethically and responsibly in the loan originationand underwriting process?Allegations of mortgage fraud litter the landscapein the US 3 . While little beyond anecdotalevidence appears in Canada, we routinely readand hear about the value and impact of mortgagefraud in Canada. Many are vaguely awareof the housing bust of the later 1980s and recallchanges that arose from that, but, essentially,with the passage of time it has faded frommemory and has been replaced with fresh scarsfrom the current crisis. As Hegel says, we learnfrom history that we learn nothing from history.The question that comes to mind out of thisis – can effective change occur without sanctionby securities regulators; criminal sanctionfor misconduct or sanction for professional“ Conduct reflectsindividual ethics andprofessionalism andthe AIC and all itsmembers benefit whenwe remind ourselvesof the obligationswe inherit when webecome members of thisprofession.”Robert PatchettLL.B, CD, AIC Counsellor,Professional Practicemisconduct? The question presumes of coursethat the processes worked, but that someoneacted unprofessionally.This highlights the importance of protectingyour reputation and reminding clients that, atall times, you comply with Generally AcceptedPrinciples of Valuation in completing any assignmentin accordance with the appraisal standardspublished by the AIC. In so doing, reportingundue influence 4 and working in concert withefforts of the AIC Board to advance the interestsof the membership and the profession can onlylead to confirming the vital role appraisers holdin the financial marketplace.By now, much will be known of the AMCTask Force Report and the leadership takenby the AIC Board in acting on those recommendations.It is important to recognize thatchange may be difficult and slow, and thatimplementing change takes time and energy.Nevertheless, when individual members workcollaboratively with peers and the AIC, they caneffect change that will be both positive andrewarding. Conduct reflects individual ethicsand professionalism and the AIC and all itsmembers benefit when we remind ourselvesof the obligations we inherit when we becomemembers of this profession.End notes1AIC Code of Conduct and Code of Ethics, http://www.aicanada.ca/cmsPage.aspx?id=2102Reengineering the Appraisal Process, Collateral RiskNetwork http://www.aicanada.ca/images/content/docs/Valution%20Evolution.pdf3Eleventh Periodic Mortgage Fraud Case Report To:Mortgage Bankers Association, http://www.marisolutions.com/pdfs/mba/mortgage-fraud-report-11th.pdf4Undue Appraiser Influence – Canadian Property Valuation,Page 32, http://www.aicanada.ca/images/content/file/CPV-2008-book-2.pdfclick here to return to table of contentsCanadian Property Valuation Volume 54 | book 1 | 2010 Évaluation Immobilière au Canada 27