NC Appraisal board complaint

[mellysmommy]

I received the dreaded letter today notifying me that the appraisal board has opened up a complaint on one of my appraisals. It was done in 7/12. The borrower has filed a complaint against another appraiser who appraised his property 3 months later than mine after he had finsihed the basement and it came in 10k lower than mine. The original complaint was not filed against me. In the complaint or the letter from the board, I have not been accused of doing anything wrong. How should I respond to the board? Should I just send in my workfile and report or should I also include a letter? Its kind of hard to provide a response or a rebuttal to an appraisal when no one can identify the violation or error.

 

[Mr Rex]

Call and discuss with your E&O provider before you do anything else.

 

[Carnivore]

I had the same thing happen to me about 8 years ago.

Your screwed. The NCAB postion is that even if your cleared, but the other one is not yet cleared your case will remain open.

It sucks. You will have to suffer the consequenses of big government.

I was cleared, but the agonizing took its toll on me and it will on you.

Good Luck, you will need it.

 

[Tom Hundley]

I would also begin collect data related to possible seasonal changes in value in the local market. You complete your appraisal in July. In my market area, Northern Virginia, values are typically spiking at this time of the year. The second appraiser completed his or her appraisal in the fall. Does your market area experience a seasonal decline in values? If so, maybe the indicated “loss” of value reflected in the second appraisal only indicates the small percentage of decline in home prices many area’s experience between the summer and fall market.

 

[Lee Lansford]

...

In the complaint or the letter from the board, I have not been accused of doing anything wrong. How should I respond to the board? Should I just send in my workfile and report or should I also include a letter? Its kind of hard to provide a response or a rebuttal to an appraisal when no one can identify the violation or error.

You may want to consult with an attorney who is versed in license law.

You're asking how you are to respond; first, what is being demanded of you in the letter which you received? Don't bother to answer that question here as you may want to discuss this matter with an attorney.

 

[ctapraser]

I received the dreaded letter today notifying me that the appraisal board has opened up a complaint on one of my appraisals. It was done in 7/12. The borrower has filed a complaint against another appraiser who appraised his property 3 months later than mine after he had finsihed the basement and it came in 10k lower than mine. The original complaint was not filed against me. In the complaint or the letter from the board, I have not been accused of doing anything wrong. How should I respond to the board? Should I just send in my workfile and report or should I also include a letter? Its kind of hard to provide a response or a rebuttal to an appraisal when no one can identify the violation or error.

Sorry but you post is very confusing?

You say the board has opened a complaint on your appraisal...and then go on to say..the complaint was not filed against you nor have you been accused of anything???

If they have opened up a complaint against you, the first thing I would do is talk to my E&O provider. Good luck!!

 

[Camp1]

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.

 

[Mike Garrett RAA]

I'm also confused by your post. I would suggest you first determine if you have been charged with a violation. If not, then perhaps the board wants to see your appraisal and information on how you arrived at your value conclusion.

I can't give you any legal advice but from a practical point would suggest you NOT volunteer any information until you are clear on what is happening. If the state wants your appraisal and work file they need to make a specific request and should be required to tell you EXACTLY why.

As others have said, IF you have been formally charged then you are required by your E & O company to notify them. The E & O company can and usually will give you some legal advice. They may even recommend an attorney.

Personally, I would not hire an attorney on my own at this stage. I have been involved in a number of cases where an attorney was hired to defend an appraiser and I can tell you this becomes quite expensive. An attorney will want a retainer following the initial contact. The last case I know of that retainer was $5,000.

If you are confident you have not violated USPAP and your state licensing laws then you may not need an attorney. If your state cites various violations then you most likely will want representation.

Take a deep breath, make sure you understand what is happening, get your ducks in a row and be prepared for a bumpy ride for awhile.

 

[mellysmommy]

I'm also confused by your post. I would suggest you first determine if you have been charged with a violation. If not, then perhaps the board wants to see your appraisal and information on how you arrived at your value conclusion.

I can't give you any legal advice but from a practical point would suggest you NOT volunteer any information until you are clear on what is happening. If the state wants your appraisal and work file they need to make a specific request and should be required to tell you EXACTLY why.

As others have said, IF you have been formally charged then you are required by your E & O company to notify them. The E & O company can and usually will give you some legal advice. They may even recommend an attorney.

Personally, I would not hire an attorney on my own at this stage. I have been involved in a number of cases where an attorney was hired to defend an appraiser and I can tell you this becomes quite expensive. An attorney will want a retainer following the initial contact. The last case I know of that retainer was $5,000.

If you are confident you have not violated USPAP and your state licensing laws then you may not need an attorney. If your state cites various violations then you most likely will want representation.

Take a deep breath, make sure you understand what is happening, get your ducks in a row and be prepared for a bumpy ride for awhile.

Thank you for the info. The information I received was confusing to me as well. I received a copy of the original complaint against the other appraiser but not their appraisal. They also included a copy of my appraisal which I assume was provided by the homeowner. The homeowner or appraisal board do not allege any wrongdoing on my part. The letter from the board says after the investigation of a complaint against another appraiser, the board decided to open a complaint against me. It provides no other details other than to respond within 30 days to any allegations made (but no allegations were made). And at a minimum to provide my appraisal and complete workfile.

 

[Mike Garrett RAA]

OK, here is what I think, again...I can't give you legal advice.

The investigator read your report and found some areas of concern thus..."have opened a complaint against you". What I would do at this point is to contact the board and ask for specific charges. Do not volunteer anything. Do not discuss the report on the phone. Tell them you want the specific allegations IN WRITING before you prepare a response.

Once you have that you should contact your E & O provider. Follow their advice.