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NCAB meets MONDAY, Ocober 14, 2002 (9:00AM)

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Certified Residential Appraiser
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North Carolina
The October meeting of the NCAB will be on MONDAY, October 14, 2002.
(meetings are usually on Tuesday...this is a change)

This meeting will include the Public Hearing for proposed rule changes.

A hearing is scheduled at the request of Roberta Ouellette (NCAB attorney) concerning the request of board member Charles Hinnant to be recused from the panel of three that are to rule in the Tom Hildebrandt case.

You can get a copy of the agenda by calling, e-mailing or faxing the board office.

Every appraiser should attend one of these meetings when possible. The meetings are infomative, interesting and educational. It is also a chance to meet and learn more about the board members.

http://www.appraiserspetition.com/nc/
 

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North Carolina
Sorry, I did not go and will not be attending any more. I am so disgusted with the recent PROCESS of board appointments I just can not stand to go. Also we did get a new member appointed from my county and I feel like he should take over letting the local appraisers know what is going on.
I am due for rest and back to working on my old cars.
 

David C. Johnson

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<span style='color:darkblue'>Steve,

Tom Hildebrandt and I attended the full public hearing and the "reconsideration of licensing" hearing and the business meeting. Doug Winner and one of his appraisers were also there. Tom Taylor, MAI was there representing, and also monitoring for, the NC Chapter of the AI, I believe.

Dr. Rulison from the NCCC was there again also. Excellent.

Yep, missed Bob.

Tom, Doug and I all spoke against most of the proposed rule changes, and helped get one or two amended to be less onerous and subject to abuse. I think the one that concerned me the most was the proposed rule that would allow the Board to demand copies of an appraiser's work (i.e., his/her appraisal reports) in order to be approved for teaching USPAP in the State after being approved by the AQB. Whether by intent or not, it would have further restricted the number of instructors in the state as few appraiser would be willing to submit their work to this board even if they knew it was absolutely perfect and exemplary because few trust them, and have good reason not to trust them -- that was the obvious reason for everyone's objections, but was never specifically stated. There were plenty of other "nicer" reasons to cite. The rule was changed to read that this would only apply to new instructors, so it will not be used to target, say, Tom Hildebrandt, for instance. (Actually, I suspect that was the real reason, or the original intent for wanting this new rule because it makes little sense since everyone has already been approved by certification to be appraisers, and none at the Board are even qualified to instruct USPAP themselves, so, how would they judge "the fine points" of USPAP compliance?)

The respondent was a senior reviewer at BB&T (the highest level) who is also maybe a past appraisal instructor (I believe), but an appraisal & banking industry author for sure. He reviews appraisal reports on millions of dollars worth of real estate collateral every week, covering 11 states, and is accredited in the industry as having had a significant hand in making this bank one of most secure in the nation by established bank rating standards / criteria. He has won awards for this apparently. He has been based in South Carolina for the last few years, and is now moving back to NC. For some reason (probably lack of reciprocal licensing agreements over part of the time, I would guess), he had not had (or needed to have) an up-to-date NC licensee for some time -- to the point that to renew, he would have to take all the pre-licensing classes and sit for the exam again at the option of board members. This guy could write the classes and teach them in his sleep. He requested that he just be made to retake the test, but the board wanted him to redo kindergarten at a loss of thousands of dollars a day to the bank, so this is what will happen. One kind concession was forced through by Charles Hinnant though: since some of these classes are not even scheduled to be taught anywhere, he may take equivalent classes if he can find them (it sounds like they exist). Doug Winner, a AQB-approved USPAP instructor himself, attested to his character and experience, but to no avail.

Our rules state that the Board MAY require classes to be retaken at their discretion in such cases, but it would appear no one has ever explained to them what "discretion" means, so they are literalist with the rules at all times, unless inconvenient. But the guy screwed up: Had he simply been an MAI, he would have gotten a pass based on professional curtesy right from the start by our deputy director who would have approved his re-licensing without such a formal hearing -- we have seen this before, but board members likely forgot (that we had seen it before). It was pointed out by our prosecutor in closing arguments that he could quit his job tomorrow and be competitively appraising in the State tomorrow. I think that did it.

The guy, completely gray hair and sharp as a tack, is rightfully real pissed, but he took it well. It was a slap in the face to a man in the most powerful of positions for influence over them and the industry in this state. Not a particularly smart move in my book, but to be fair to the Board, others who have gotten exceptions for this "board option" were likely actively appraising in other states, rather than being reviewers. However, one of the reasons it was not such a smart move is that this guy is an expert on the future of appraisers -- where he has written and lectured in the past partly at the request of the AI. I asked him at break for a copy of his award-winning speech, but he does not own the rights to it any more, but will see if he can get it to me.

Unfortunately, our new members could not be sworn in as no judge could be found in time by the Board. Maybe true, but kinda convenient that this will keep them from going to Washington this week for the AQB meeting and the AARO meeting. We maintain much hope for these new members in the coming years, and have much reason to do so. I met Charles Hinnant for the first time in person. I was very impressed. He is also competely gray-haired and also very sharp, and has an unusual, most unimposing friendly demeanor.

On the upside, actually all our members are interesting, entertaining guys to speak with -- every one of them. Any of them would be a hoot to down a few beers with I bet. I have with one of them in the past, many times.

It's a crazy contradictory world sometimes.

dcj</span>
 

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David,

Sorry I missed the meeting. I am knee deep in work, just got my ‘64 Cutlass 4-speed out of the paint shop and am spending my few free moments putting it back together. Nothing in the world I would rather be doing...and yet so little time.

I had debated as to whether I should post anything at all about the recent NCAB appointments. Whatever I say will taken by some as sour grapes and yet I have known from the start that I would never be appointed myself. That is the very reason I have worked hard to get the process changed to what is should be.

I have never made any personal attacks on any board members or others by name and do not intend to start now. However I must mention some names to get the story straight.

Two board seats expired on 06/30/2002. The men holding those seats are allowed to stay on until new appointments (or reappointments are made). The LAST day of the legislative session (as is the usual custom) both of those gentlemen were reappointed. I speak of Bart Bryson (an appraiser) and Henry Faircloth (a non-appraiser public member). So far...I have no problem. These gentlemen certainly meet the requirement to serve on the board.

Now...on this last day of the legislative session, two NEW SEATS were added to the board. Now I have a beef.

A local appraiser, Davis Hoyle, Jr. was appointed to a new “appraiser seat”. He is a part time appraiser with about six year’s experience. What is my problem? He never filled out an application and never spoke to anyone about his desire or qualifications to be appointed. His father, Senator David Hoyle CALLED ME to offer some explanation of how this happened. I have known Senator Hoyle for nearly 35 years and in fact gave his son his first appraisal job and trained him as well.

Senator Hoyle told me that Dave was “out of the country” and n=knew nothing about the appointment and had never expressed any desire or interest in a board seat. Senator Hoyle also told me that he (Sen. Hoyle) knew nothing about his son’s appointment until shortly before it came on the floor and was voted on. He said he had never discussed an appointment with Rep. Jim Black who made the appointment. Believe it or not...that is what he said.

So we have a part-time appraiser appointed who is not interested in a board seat, has not filled out an application, has not been interviewed by anyone, has never attended a NCAB meeting, never attended a meeting of local appraisers, is not a member of The National Association of Realtors (or NCAR), is not a dues paying member of our local MLS, is not on the FHA/HUD approved appraiser list, has no teaching experience and has very limited knowledge of current appraisal issues. Isn't it amazing what a family name and being a registered Democrat will do for you. If this was the most qualified person available for a board seat, we are all in trouble.

I have just as much problem with the second appointment (a public, non-appraiser seat) which went to Stephanie Simpson. I do not know Ms. Simpson but am told she is a very bright, honest hardworking person. Why would I object? Because Ms. Simpson is a PAID LOBBYIST for the NC Association of Realtors! Her title is “Governmental Affairs Director” per the NCAR website. http://www.ncrealtors.com/contacts.html

I am told that she is an attorney and is a Republican. I am not sure, just have been told that. Senator Hoyle told me that a sitting NCAB member called him to complain about her appointment and to welcome son Dave to the NCAB.

Why would I object to her? Her PAYCHECK is issued by the NCAR. I would expect her loyalty would be toward them (real estate agents, members of the NCAR).... Not the public and certainly not appraisers. Sorry folks, but that just not seems right to me. She has a built-in bias and allegiance for her employer who simply does not care a whit about the public or appraisers.... Only what is best for its members. Surely someone else could better represent “the public interest” than a paid lobbyist could. A hired political gun. Do you think that just maybe her appointment was a payback to the NCAR for the BIG TIME contributions made to politicians who see things the way NCAR wants them seen? The NCAR PAC is one of the largest and most effective in the state. Is it just me or does this look a little funny.

Lastly, I am told FIRST HAND by some appraisers that they were called by NCAB members and asked if they would be interested in being on the board. In one case, the appraiser was asked if he was a Democrat. He said no, he was a registered Republican...and the called ended quickly. He was told that they were looking for Democrats only.

Folks, the system is broken. The process is stacked against many good potential board candidates. If Republicans are automatically disqualified, I would guess that about 60% or more of the appraisers in NC are ineligible for a board seat. I am less concerned about WHO is appointed than in HOW they are appointed. Are the most qualified, experienced and knowledgeable people being considered? I don’t think so. Get politics OUT of the picture. ALL board members should be chosen based on something other than political payback and semen samples.


I promise NEVER to gripe about WHO get appointed to this board, only about how and why. I hope the new board members will be excellent. I hope they will be honest, ethical and well prepared. I also hope that someday appraisers will stand together and put a stop to this political nonsense.
 
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