The Appraiser is the Only One Policing the Industry
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Paid Late, Non C&R fees, Operating Without License AMC Violations
VaCAP has learned North Carolina has disciplined Appraisal Nation and Independent Settlement Services for non-payment within 30 days in accordance with North Carolina Law. See the details below.
How does this help appraisers in Virginia? The answer is simple, precedence! When the VREAB receives a complaint and determines a violation has occurred, there is guidance in disciplinary actions.
On the topic of AMC’s not complying, VaCAP has learned of several AMC’s operating in Virginia without proper licensure. And yes, all of them have been reported to DPOR!
We can not emphasize enough, the importance of filing a complaint against an AMC that you believe is not in compliance with the VREAB Regulations. This is the only way DPOR and the VREAB know about it, can investigate and discipline the AMC if found guilty. It is unfortunate, but the appraiser is the only one policing the industry.
A complaint can be filed for any violation of compliance, but here are the most common:
Non-customary and reasonable fees
Operating without a license
Not paying within 30 days
VaCAP understands you may not want to file a complaint in your name. We are here to help! We will now assist you in filing the complaint anonymously. Keep in mind, some complaints, such as non-payment of C&R fees will be extremely difficult to file anonymously. Reach out to us and let’s determine the best course of action together. We will keep your identity confidential.
Appraisal Nation, LLC NC1002 (Cary, North Carolina)
By consent, the Board voted to suspend Appraisal Nation’s AMC registration for a period of one month. The suspension is stayed until June 30, 2016. They are also ordered to pay a civil penalty of $10,000 by June 30, 62016. In addition they are ordered to, in the future, pay fees to an appraiser within 30 days of the date the appraisal is first transmitted by the appraiser to the Respondent as follows:
- If payment is made by electronic means, the funds for the fee shall be deposited into the appraiser’s account so that they are available to the appraiser on the 31st day following the date the appraisal is first transmitted to the company.
- If payment is made by check, the check shall be postmarked no later than the 30th day following the date the appraisal is first transmitted to the company.
On December 21, 2014, the Board received a complaint against Appraisal Nation alleging that they failed to pay appraisal fees for five invoices. Appraisal Nation admitted that these invoices were not paid on time. The Complainant has been paid in full for those invoices. Board staff requested and received a spreadsheet from the company for payment activity in 2014. Out of approximately 1,847 appraisal assignments, the company provided payment within the 30 day required payment period 708 times. The average payment time was 38 days. Board staff also requested and received a spreadsheet for activity for a few months in 2015. That information indicated that 42% of the invoices were paid after 30 days.
Information received later in 2015 indicated that assignments have been paid well within 30 days. The company has obtained a line of credit so that there will be no issues in the future with late payment. This was the first complaint against Appraisal Nation. All invoices to date have been paid in full.
Independent Settlement Services NC1086 (Pittsburgh, Pennsylvania)
By consent, the Board ordered Independent Settlement Services to pay a civil penalty of $5000 by December 1, 2015. In addition, the company must pay fees to an appraiser within 30 days of the date the appraisal is first transmitted by the appraiser to the company. If the company fails to comply, with Paragraph 2 above, they understand that they may be subject to a civil penalty of up to $25,000 for each violation. On March 16, 2015, the Board received a complaint against the company filed by an appraiser. The appraiser alleged that the company failed to pay her for an invoice that was submitted to them on December 23, 2014. The company had sent a check to the appraiser on January 19, 2015 which the appraiser did not receive. The appraiser sent an email to the company in February asking about the check, but she sent it to the wrong address so the company was unaware that she had not been paid. Upon receipt of this complaint, the appraiser was paid in full for this invoice. Board staff requested a spreadsheet of all appraisal orders processed by the company in North Carolina for calendar years 2014 and 2015. An examination of the 2014 records indicated that out of approximately 579 appraisal assignments, the company paid within 30 days only 75 times. Most of those were paid within 40 days. The 2015 records indicate that all appraisers were paid within 30 days. The company admits that there were vendors who were paid outside of the 30 day requirement in 2014. They understand that they were not in full compliance in meeting the 30 day time frame and they completely accept responsibility.