NC Appraisal board complaint

[CANative]

What choice does the OP have at this point other than to send NCAB the workfile? They've demanded it and so it is necessary.

 

[ctapraser]

If I am guessing correctly, a borrower has filed a complaint against an appraiser because the value was too low.

In order to validate the complaint, the borrower has sent in the OP's appraisal to the NCAB.

The borrower assumes that the low appraisal is the "wrong" or "bad" appraisal, because he just had it appraised and has since finished his basement, yet the value is lower.

The NCAB is not convinced the low appraisal is the "bad" appraisal and is taking a harder look at the original "good" appraisal.

The NCAB has hired more enforcement/investigative staff and will be taking a long and hard look at everything in your report and file, even the small stuff. For example, did you inspect the comparable sales? Are your cost figures supported?. Etc.

I would first look carefully over my entire file.

I would read my E&O policy. It may require that you immediately notify them of a formal complaint.

I would contact an attorney. North Carolina has an extremely qualified attorney that is also an appraiser, USPAP instructor, and former Director of the NCAB that specializes in defending complaints and suits against appraisers. His initial consultation will likely be at no cost. His representation will be expensive.

I would not take the chance at representing myself against a formal board complaint, even if I felt I had done nothing wrong. There is simply too much to lose: E&O rate hikes or loss of coverage, disclosure to current and potential clients of a disciplinary action, public record and Appraisal Bulletin posting of the case.

The best case scenario is that the case gets dismissed and a good attorney is probably the best bet to make that happen.

My bold,

This alone would not cause the board to open a "case" against the appraiser. They do not get involved if the owner thinks the "value" is to low/high (and that is the only reason for the complaint).


To the OP, you said you do not know what the board wants from you. I would respond to the board (within the 30 days) and tell them you are willing to give them what they want/need...but...you do not know/understand what they want/need from you.

 

[mellysmommy]

Ok. Thank you. That seems like the most logical next step. Its like its an open ended complaint with no accusation. I need to know what I'm being accused of before I can prepare a response.

My bold,

This alone would not cause the board to open a "case" against the appraiser. They do not get involved if the owner thinks the "value" is to low/high (and that is the only reason for the complaint).


To the OP, you said you do not know what the board wants from you. I would respond to the board (within the 30 days) and tell them you are willing to give them what they want/need...but...you do not know/understand what they want/need from you.

 

[CANative]

In California they don't tell you what the problem is. They just tell you to send your work file. Unless NCAB is really different than OREA I don't think you have any leverage to make demands.

 

[Mike Garrett RAA]

If my board were to state THEY THE BOARD has opened a complaint I would want to know what that complaint is BEFORE responding so that I can offer a response that is adequate. My attorney friend who consults with me also does that. In most cases requesting specific allegations from the board is a response within the mandatory time period. I would make a phone call and follow it up with a registered letter.

This sounds to me like there are specific allegations and they are just looking for more rope to hang the appraiser in the form of the work file, etc. We do have rights and one of those is to understand the charges made against us before we respond.

My response would be 1 a phone call to the person who signed the letter you received asking for specifics so that you can notify your E & O provider per their requirements. Ask for specific allegations IN WRITING. 2 Follow it up with a registered letter requesting the same thing. In that way you have responded within the time period indicated.

I've said all I am going to say. Each state does investigations differently. You might want to ask appraisers from your state who are more familiar with your state board. In years past, on this forum, there have been several threads concerning the actions of your state board. You might want to read those.

Best wishes,

Mike

 

[CANative]

I think the way it works is that they investigate and if there is something that needs a response they will offer that option to the licensee.

http://www.ncappraisalboard.org/disciplinary/complaints.htm

 

[redfish]

What does E&O insurance providers have to do with board complaints?

Nothing.

Call an attorney that deals on a regular basis with the board in defending appraisers. I wouldn't call my insurance company unless the potential for someone seeking damages is a possibility, just like I wouldn't call my auto insurance company if a I got a speeding ticket.

 

[Mr Rex]

What does E&O insurance providers have to do with board complaints?

Nothing. 100% Wrong

Call an attorney that deals on a regular basis with the board in defending appraisers. I wouldn't call my insurance company unless the potential for someone seeking damages is a possibility, just like I wouldn't call my auto insurance company if a I got a speeding ticket.

The E&O may pay for an attorney to represent you in front of the board. Many also require notification upon a board inquiry.

 

[Mike Kennedy]

The E&O may pay for an attorney to represent you in front of the board. Many also require notification upon a board inquiry.

...and failure to notify can result in immediate termination of an E&O Policy. Always read the "fine print".

 

[redfish]

I am not saying not to notify but as far as sitting around hoping that your E&O will help you out with a board compliant, I say keep dreaming unless damages could result from an E or O.