There’s no way around it: removing a real estate appraiser from your approved panel is a big deal. Unfortunately, while change is hard, sometimes change is necessary. If you’ve already tried to smooth out a rocky relationship with one of your appraisers, and it wasn’t effective, it might be time to move forward with appraiser removal. An appraiser might be removed for various reasons, and the list can be lengthy, but if you follow the right protocols, both you and the appraiser can move forward without burning any bridges. So, how do you properly remove your appraiser?
Top appraisal management companies like MountainSeed handle these types of issues every day. Though we can’t speak for every appraisal management company out there, we can certainly give you a glimpse into what the removal process looks like for us. When a bank decides to work with MountainSeed, they not only sign-on to our services, but they sign-on to our appraiser panel. We on-board the bank into our system, and during that process, the bank agrees that we are their agent. In a nutshell, we must follow the AMC law for each state for removal, but because we manage each bank’s appraiser panel for them, we take care of the removal process, too.
Our real estate appraiser removal process looks a little something like this:
1.First, we get a request from a bank to remove an appraiser from their panel.
2. Second, the bank completes a form that is modified to meet each state’s regulations regarding appraiser removal. This form is an essential part of the process because it breaks down the removal and asks the bank to be specific about why the request was made. There are certain reasons that an appraiser is or is not allowed to be removed. Regulations vary from state to state, but some common reasons a request is made are: poor or untimely communication responses, tardiness in appraisal turn-times, lack of a current real estate appraisal license, or disciplinary actions. In some cases, a bank simply has no use for appraisers at that particular time. For example, a panel has grown too large and will need to reduce its size, or loans are not being given in certain regions, so an appraiser panel is no longer needed.
3. Finally, MountainSeed has an appraiser panel manager who looks at the request and either approves or denies it. At that point, if it is decided that the request is valid and meets state regulations, we send the appraiser a notice informing them that they have been removed from the panel. Any particular state regulations, like timelines, are included in the notice, too, so everyone involved is knowledgeable.
When an appraiser is removed from a panel, the particular bank that made the request is notified that the appraiser has been removed. Appraisers are removed on a panel by panel basis, and other banks are not notified about the removal unless it has to do with license suspension or revocation. Since there are so many different reasons that an appraiser could be removed (including reasons unrelated to an appraiser’s actions), this is a win-win for everyone involved. The exception would be if an appraiser has had a disciplinary action. In these cases, MountainSeed gets notified via an email from Appraisal Subcommittee (ASC) daily. If an appraiser has had a disciplinary action that involves suspension or revocation of their license, then they are automatically notified that they’re being removed from all banks’ panels. Thankfully, an AMC manages this for you, so you don’t have to.
Not currently working with an AMC?
There are still a few steps that you can take to remove an appraiser. First, be sure to follow the December 2010 interagency appraisal guidelines for removal. It’s important to note that while there are many reasons an appraiser can be removed from your panel, there are also reasons an appraiser cannot be removed. If an appraiser is notorious for low appraisals, that is not a reason for removal. Instead, if you’re finding yourself regularly disputing disagreements in your appraisal reports, consider using our Appraisal Reassessment Resolution Form. It’s useful for providing further detail or explanation for the value conclusion, and correcting objective factual errors in the appraisal report. We also recommend always being upfront with your appraisers. While no one wants to hurt anyone’s feelings or bruise any egos, the more honest you can be, the more likely you are to avoid the removal process altogether down the road. Plus, by informing an appraiser of their faults, they can develop an understanding of where they are and what they can do to improve.
While removing an appraiser from your panel is a big deal, it doesn’t have to be a big headache. With the help of an AMC, you’re able to make the request then continue going about your daily tasks. If you’re ready to discuss how to onboard your bank, so you can get back to doing what you do best, let’s chat.