BOARD MEMBERS

Harold G. Brantley , Chair

– Appraiser Member

Sam E. Blackburn , Vice

- Chair

– Lender M ember

G. Herbert Pritchett

– Appraiser Member

Dorsey G. Hall

– Lender Member

Kathy J. Mayfield

– Consumer Member

Steven L. Beshear

Governor

C

STAFF

Larry Disne y

– Executive Director

Angie Thomas

– Staff Assistant

Ravon Radmard

– Executive Secretary

135 W. IRVINE STREET, SUITE 301

RICHMOND, KENTUCKY 40475

PHONE: (859) 623

- 1658 FAX: (859) 623

- 2598

www.kreab.ky.gov November 13, 2012

Ms. Lori Schuster

The Appraisal Subcommittee

1401 H Street NW

Suite 760

Washington DC 20005

RE: Docket Number AS12

- 16

Dear Ms. Schuster:

On behalf of the Kentucky Real Estate Appraisers Board and staff, it is my pleasure to submit the

following comments concerning the proposed amendments to the P olicy Statements.

Policy Statement 7 :

Item B. Enforcement Process, sub

- item 1 includes the comment that “ absent special documented

circumstances, final administrative decisions regarding complaints must occur within one year (12

months) of the complaint filing date.”

The above requirement is not considered reasonable, given the make

- up of state regulatory processing

procedures and given the fact that some states have unusually large ca seloads compared to other states

. Also, the time period is dependent upon many factors, e.g., number of credentialed appraisers, number

of suspicious activity reports, etc.

Frankly, the state appraiser regulatory agencies have few options available to pr ocess complaint cases

within a defined time period, including but not limited to the following:

1. Agency controlled Mediation H earings that can result in an agreed settlement, in absence of a

regulatory hearing.KREAB Comment

Proposed Policy Statement Revisions

November 13, 2012

Page 2 of 2

135 W. IRVINE STREET, SUITE 301

RICHMOND, KENTUCKY 40475

PHONE: (859) 623

- 1658 FAX: (859) 623

- 2598

www.kreab.ky.gov 2. The agency h aving control of the hearing pr ocess without any specific time allowances for

delay.

3. The agency has the funding and resources that will permit investigations to be completed

within no longer than 3 months, regardless of the number of complaint allegations pending.

Therefore, if for whatever reason the total time for a complaint allegation being lodged until settlement

remains at twelve (12) months, the re should be a segregation of that t ime which can be managed under

the direct control of the agency versus the judicial process, i.e.

, only the investigation and agency

controlled mediation process.

The minute the case is scheduled for an administrative hearing or mediation outside the regulatory

agency control, the time for completion is totally dependent upon the judicial schedule, a nd outside the

control of a regulatory agency. Thus, it is not fair or reasonable to cite the regulatory agency for a

deficiency in these matters. State appraiser regulatory agencies cannot and should not be cited for the

calendars of which the court sys tem, including the regulatory hearing process, is managed.

This one issue is no doubt cause for the preponderance of state appraiser regulatory agencies being

noted as out of compliance with the effective enforcement requirements. Continuing to permit th is

unfair practice does no good for the profession or in building of public trust in the process.

The board and staff of the Kentucky Real Estate Appraisers Board strongly encourage an amendment

to the proposed language in the Timely Enforcement section o f the proposed revision to Policy

Statement 7.

We thank you for this opportunity to comment.

Sincerely,

Larry Disney

Executive Director

Cc: File