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State Regulatory Issue

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lionfish

Thread Starter
Junior Member
Joined
Feb 8, 2004
Professional Status
Certified General Appraiser
State
Washington
A homeowner files a complaint but leaves out information and provides information that is incorrect. Then the state reg authority opens a complaint file and asks me to respond to issues brought up by borrower (actually forwarded a copy of the borrower's/homeowner's letter with redactions). The state regulator did not request a copy of the appraisal or the work file. May I reveal all information I have regarding the appraisal and work file without the client's (lender's) consent and be in compliance with USPAP?
 

Randolph Kinney

Elite Member
Joined
Apr 7, 2005
Professional Status
Retired Appraiser
State
North Carolina
A homeowner files a complaint but leaves out information and provides information that is incorrect. Then the state reg authority opens a complaint file and asks me to respond to issues brought up by borrower (actually forwarded a copy of the borrower's/homeowner's letter with redactions). The state regulator did not request a copy of the appraisal or the work file. May I reveal all information I have regarding the appraisal and work file without the client's (lender's) consent and be in compliance with USPAP?
I would think so. USPAP allows for government over ride of the client confidentiality.
 

PropertyEconomics

Elite Member
Joined
Jun 19, 2007
Professional Status
Certified General Appraiser
State
New Mexico
A homeowner files a complaint but leaves out information and provides information that is incorrect. Then the state reg authority opens a complaint file and asks me to respond to issues brought up by borrower (actually forwarded a copy of the borrower's/homeowner's letter with redactions). The state regulator did not request a copy of the appraisal or the work file. May I reveal all information I have regarding the appraisal and work file without the client's (lender's) consent and be in compliance with USPAP?


I think it becomes you MUST reveal all information you have regarding the appraisal and the work file. Lenders consent is not required as it is a duly authorized governmental authority. USPAP provides for your disclosure to your state board.

I will further say you should do so in a very professional and thorough manner. This is your strongest chance to present the facts of the appraisal as you see them and as you completed the assignment. Its not a time to be cocky, arrogant or rude ... Being very professional, addressing the issues and not the homeowner or the client is important. Remove the personalities and talk about the appraisal report and address those issues which have been lodged agasint you. Use USPAP as your guide showing what you did right, if you made a mistake say so (others will disagree but I think its best to say if you made a mistake ... however you may want legal counsel to advise you in this instance) and again be as professional as possible in your answer to your board. I think they will appreciate your responding in this manner.
 
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David Wimpelberg

Moderator
Staff member
Moderator
Joined
Mar 30, 2005
Professional Status
Certified General Appraiser
State
New York
Allows for it after "due process of law," whatever that means.

I think that issue is open to interpretation:

state enforcement agencies and such third parties as may be authorized by due process of law;

Does "due process of law" apply only to those third parties, or does it apply to state enforcement agencies also?
 

3 Putt

Member
Joined
Aug 18, 2005
Professional Status
Certified General Appraiser
State
Ohio
I would get in touch with a legal eagle before sending anything to the state. Sometimes, even the most simple comments can be taken as an admission of guilt and cause them to proceed further. It's not cheap, but worth it in the long run!
 

Mike Kennedy

Elite Member
Joined
Sep 28, 2003
Professional Status
Certified Residential Appraiser
State
New York
A homeowner files a complaint but leaves out information and provides information that is incorrect. Then the state reg authority opens a complaint file and asks me to respond to issues brought up by borrower (actually forwarded a copy of the borrower's/homeowner's letter with redactions). The state regulator did not request a copy of the appraisal or the work file. May I reveal all information I have regarding the appraisal and work file without the client's (lender's) consent and be in compliance with USPAP?


contact your E&O Co. their attorney will advise you. Check your policy - if you FAIL to notify them - they CAN immediately cancel your insurance.
do NOT discuss this with ANYONE other than E&0 and/or your personal attorney (with admin law experience).
 

Randolph Kinney

Elite Member
Joined
Apr 7, 2005
Professional Status
Retired Appraiser
State
North Carolina
Allows for it after "due process of law," whatever that means.
It means to get your license, the state board required you to send to them exact copies of appraisal reports you did.

Now it means to keep your license. :peace:
 

Brad Ellis

Senior Member
Joined
Feb 7, 2006
Professional Status
Certified Residential Appraiser
State
California
lion,

It is not clear at all and it will depend upon your specific state law and I strongly suggest your read that law.

Some states have it written into the law that you must comply as soon as they make a request. Other states will specify other needed steps like a subpoena or a formal written request. It just depends.

Once you have received the requisite request in accordance with your state law you must comply and are formally provided that avenue via USPAP since these state agencies are noted to be peer review committees by the ASB.

Brad
 

USPAP Compliant

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
"Once you have received the requisite request in accordance with your state law you must comply.........."

Too bad most appraisal boards have decided they don't have to comply the FIRREA and the ASC .

Appraisers "MUST COMPLY" but not appraisal boards. 53 different boards trying to do it their way and failing to get it right after 15+ years. Pathetic.
 
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