"proposing" removal or "advising you have been removed" from the panel?
2. FHA Administrative Appraiser Roster Sanctions
A. Removal or Removal with Education
[FONT="]Deficiencies involving improper valuation, failure to report repairs, fraud, failure to comply with prior FHA actions and other serious omissions, including a history of prior actions or sanctions, may result in removal, with or without remedial education, from the FHA Appraiser Roster for a period of up to 12 months.
Removal with or without education may be appealed by the appraiser. The Department will notify the state licensing or certification agency in writing when an appraiser has received a final notice of removal from the FHA Appraiser Roster.
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B. Limited Denial of Participation (LDP)
A LDP prohibits the appraiser from performing appraisals used as collateral for FHA insured mortgages and is subject to appeal. Generally no longer than 12 months in length, LDPs are typically restricted to specific HUD programs (such as FHA) and may or may not be national in scope. For more information, review the LDP webpage at:
http://www.HUD.gov/offices/enforce/ecmemo.cfm
Debarment can remove the appraiser from the FHA Appraiser Roster for an indefinite period depending upon the level of seriousness of the appraiser’s conduct or non compliance with FHA performance standards and is subject to appeal.
3. Civil Sanctions
Pursuant to 24 CFR §28 and §30.36, appraisers may be liable for civil penalties and assessments for each violation. Under 24 CFR §28, the Department’s Office of General Counsel processes the complaint. Civil money penalties under 24 CFR §30.36 are imposed by the Department’s Assistant Secretary for Housing. Civil sanctions are subject to appeal.
4. Criminal Sanctions
If an appraiser’s non-compliant action is so egregious as to violate criminal law, HUD’s Office of General Counsel or Office of Inspector General will refer the case to the Attorney General at the U. S. Department of Justice. All criminal sanctions are subject to appeal.
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5. Appraiser Appeals
Regulations governing the removal of appraisers from the FHA Appraiser Roster and
appeal procedures can be found at 24 CFR §200.204.
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[FONT="]If you should have any questions concerning this Mortgagee Letter, call 1-800-CALLFHA (1-800-225-5342). [/FONT]
[DOC] Mortgagee Letter 2009-41:
TO: ALL APPROVED MORTGAGEES. ALL FHA ROSTER APPRAISERS. SUBJECT: Appraisal performance standards and sanctions ... Debarment can remove the appraiser from the FHA Appraiser ...
www.HUD.gov/offices/.../files/09-41ml.doc
