Single Family Mortgage Insurance; Appraiser Roster Placement and Removal Procedures

Part VI

Department of Housing and Urban Development

_______________________________________________________________________

24 CFR Part 200

Single Family Mortgage Insurance; Appraiser Roster Placement and

Removal Procedures; Proposed Rule

Rules

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Part 200

[Docket No. FR-4429-P-01]

RIN 2502-AH29

Single Family Mortgage Insurance; Appraiser Roster Placement and

Removal Procedures

AGENCY: Office of the Assistant Secretary for Housing-Federal Housing

Commissioner, HUD.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would implement one aspect of HUD's

Homebuyer Protection Plan, which was launched on June 1, 1998. The

Homebuyer Protection Plan consists, in part, of a number of reforms to

the appraisal process for the purchase of single family properties

financed with mortgages insured by the Federal Housing Administration

(FHA) and certain manufactured homes under the FHA Title I program.

This proposed rule would establish an independent removal procedure for

HUD's Appraiser Roster. The Appraiser Roster lists appraisers who are

eligible to perform FHA single family appraisals. This proposed rule

would also codify the current placement procedure for the Appraiser

Roster.

DATES: Comments Due Date: August 2, 1999.

ADDRESSES: Submit your comments about this proposed rule to the Office

of the General Counsel, Rules Docket Clerk, Room 10276, U.S. Department

of Housing and Urban Development, 451 Seventh Street, SW, Washington,

DC 20410-0500. Your comments should refer to the above docket number

and title. We do not accept facsimile (FAX) comments. A copy of each

comment submitted will be available for public inspection and copying

during regular business hours (7:30 a.m. to 5:30 p.m.) at the above

address.

cket Clerk, Room 10276, U.S. Department

of Housing and Urban Development, 451 Seventh Street, SW, Washington,

DC 20410-0500. Your comments should refer to the above docket number

and title. We do not accept facsimile (FAX) comments. A copy of each

comment submitted will be available for public inspection and copying

during regular business hours (7:30 a.m. to 5:30 p.m.) at the above

address.

FOR FURTHER INFORMATION CONTACT: Vance T. Morris, Director, Home

Mortgage Insurance Division, Office of Insured Single Family Housing,

Room 9266, U.S. Department of Housing and Urban Development, 451

Seventh Street, SW, Washington, DC 20410-8000; telephone (202) 708-2700

(this is not a toll-free number). Hearing or speech-impaired

individuals may access this number via TTY by calling the toll-free

Federal Information Relay Service at (800) 877-8339.

SUPPLEMENTARY INFORMATION:

I. Background

a. HUD's Homebuyer Protection Plan

HUD launched the Homebuyer Protection Plan (the Plan) on June 1,

1998. Among other innovations, the Plan reforms the appraisal process

for the purchase of single family properties financed with mortgages

insured by the Federal Housing Administration (FHA) and certain

manufactured homes under the FHA Title I program. One aspect of the

appraisal process that is undergoing reform is HUD's Appraiser Roster.

The Appraiser Roster lists appraisers who are eligible to perform FHA

single family appraisals. Lenders must select an appraiser from this

list for property appraisals involving the FHA single family mortgage

insurance program. HUD maintains the Appraiser Roster because the

success of the single family mortgage insurance program and HUD's

ability to protect its financial interests begin with selecting

qualified and knowledgeable appraisers.1

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er from this

list for property appraisals involving the FHA single family mortgage

insurance program. HUD maintains the Appraiser Roster because the

success of the single family mortgage insurance program and HUD's

ability to protect its financial interests begin with selecting

qualified and knowledgeable appraisers.1

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\1\ In the future, HUD plans that the Appraiser Roster will be

administered by HUD's Real Estate Assessment Center.

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b. Appraiser Roster Reforms

The Appraiser Roster reforms that would be implemented by the

Homebuyer Protection Plan protect homebuyers by ensuring accurate and

complete appraisals of homes purchased through the FHA single family

insurance program. An accurate and complete appraisal protects

homebuyers by informing them, before they complete the purchase of a

home, about any extensive repairs that may be needed to make the home

habitable. It is important to note, however, that while HUD is

committed to protecting homebuyers, the purpose of an FHA property

appraisal is to determine the maximum insurable mortgage and to protect

the FHA insurance funds. Consequently, the inclusion of an appraiser on

the Appraiser Roster does not create or imply a warranty or endorsement

to the prospective homebuyer or to any other organization or individual

by HUD of the listed appraiser nor does it represent a warranty of the

appraisal performed by the listed appraiser. The inclusion of an

appraiser on the Appraiser Roster means only that a listed appraiser

has met the qualifications and conditions, prescribed by the Secretary,

for placement on the Appraiser Roster.

c. Placement Procedure

ve homebuyer or to any other organization or individual

by HUD of the listed appraiser nor does it represent a warranty of the

appraisal performed by the listed appraiser. The inclusion of an

appraiser on the Appraiser Roster means only that a listed appraiser

has met the qualifications and conditions, prescribed by the Secretary,

for placement on the Appraiser Roster.

c. Placement Procedure

This proposed rule would codify in regulations the requirements for

placement on the Appraiser Roster. These requirements are currently in

place. This rule would merely codify existing practice. To be eligible

for placement on the Appraiser Roster, an appraiser must be state-

certified or state-licensed and must not be listed on either the

General Services Administration's Suspension and Debarment List, HUD's

Limited Denial of Participation List, or HUD's Credit Alert Interactive

Voice Response System. In addition, the appraiser must also pass a HUD

test on FHA appraisal methods and reporting.

To apply for placement on the Appraiser Roster, the appraiser must

submit an application to HUD. To verify that the appraiser is eligible

to perform HUD/FHA appraisals, HUD performs a detailed review of the

appraiser's professional qualifications and checks for any negative

information. If HUD's review of an appraiser's application demonstrates

that the appraiser is qualified to be listed on the Roster, the

appraiser is placed on the Roster. Appraisers that are listed on the

Appraiser Roster are responsible for obtaining and complying with the

HUD Appraiser Handbook (4150.2) (and any updates to the handbook) and

all other instructions and standards issued by HUD.

d. Removal Procedure

eview of an appraiser's application demonstrates

that the appraiser is qualified to be listed on the Roster, the

appraiser is placed on the Roster. Appraisers that are listed on the

Appraiser Roster are responsible for obtaining and complying with the

HUD Appraiser Handbook (4150.2) (and any updates to the handbook) and

all other instructions and standards issued by HUD.

d. Removal Procedure

An appraiser who is eligible to perform HUD/FHA appraisals is hired

by the lender and, therefore, has a contractual responsibility to that

lender. However, the appraiser also provides services for HUD programs

and, therefore, the appraiser also has an obligation to perform

appraisal services that meet HUD's standards and requirements. This

dual responsibility of the appraiser is recognized in HUD's review and

reporting requirements. The lender and appraiser must meet their

respective obligations as prescribed by HUD. Failure to comply with

appraiser obligations merits removal from the Appraiser Roster.

This proposed rule would establish an independent procedure by

which an appraiser listed on HUD's Appraiser Roster may be removed from

the Roster. HUD is proposing this independent removal procedure, in

addition to HUD's existing debarment, suspension, and limited denial of

participation remedies, in order to better safeguard the FHA insurance

funds and to better protect homebuyers. The removal procedure would

provide a less lengthy process that would be specifically targeted

towards the Appraiser Roster and would fully protect appraisers' due

process rights.

dependent removal procedure, in

addition to HUD's existing debarment, suspension, and limited denial of

participation remedies, in order to better safeguard the FHA insurance

funds and to better protect homebuyers. The removal procedure would

provide a less lengthy process that would be specifically targeted

towards the Appraiser Roster and would fully protect appraisers' due

process rights.

It should be noted that HUD had previously issued regulations that

governed appraiser removal from the Roster at 24 CFR 267.8(d)(3). These

regulations were revised during HUD's regulation streamlining in 1996.

HUD had intended to retain a less formal procedure for removal from the

Roster, but the procedure was not issued during the streamlining. This

proposed rule would reinstate this less formal procedure. The procedure

included in this proposed rule, however, would provide greater

protection for appraisers than the procedure previously located at 24

CFR 267.8(d)(3).

This proposed rule would amend HUD's regulations at 24 CFR part 200

(entitled ``Introduction to FHA Programs'') to add a new subpart G

(entitled ``Appraiser Roster; Placement and Removal Procedures'')

covering the placement and removal of appraisers from the Roster.

Subpart G (which would consist entirely of new Sec. 200.200, entitled

``Appraiser Roster; placement and removal procedures'') would allow HUD

to remove an appraiser from the Roster at any time for cause. Cause

would include, but would not be limited to:

would the procedure set forth in Sec. 200.200(d)(2) (entitled

``Procedure for removal'') be available to appraisers in debarment,

suspension, or limited denial of participation actions. Furthermore,

the proposed rule would require the automatic removal from the

Appraiser Roster of an appraiser, if the appraiser has been issued a

final debarment, suspension, or limited denial of participation. Under

these circumstances, the procedure set forth in Sec. 200.200(d)(2)

would not be applicable.

Except in the above case, the removal procedure proposed by this

rule would require HUD to give an appraiser written notice of a

proposed decision to remove the appraiser from the Roster. This notice

would include the reasons for the removal and the duration of the

removal. The appraiser would then be given 20 days from the date of the

removal notice to submit a written response. During this period, the

appraiser would also have the right to request a conference. Requests

for a conference would have to be in writing and submitted along with a

written response.

Within 30 days of receiving a written response, or if the appraiser

requests a conference, within 30 days of the completion of the

conference, a HUD official, designated by the Secretary, would review

the appraiser's appeal and send the appraiser a final decision either

affirming, modifying, or cancelling the removal from the Appraiser

Roster. The HUD official designated by the Secretary to review the

appraiser's appeal would not be someone involved in HUD's initial

removal decision nor would it be someone who reports to a person

involved in that initial decision.

If the appraiser does not submit a written response within 20 days,

the removal would become effective 20 days after the date of HUD's

initial removal notice. If the appraiser submits a written response,

and the removal decision is affirmed or modified, the removal would

become effective on the date of HUD's notice affirming or modifying its

initial removal decision

in that initial decision.

If the appraiser does not submit a written response within 20 days,

the removal would become effective 20 days after the date of HUD's

initial removal notice. If the appraiser submits a written response,

and the removal decision is affirmed or modified, the removal would

become effective on the date of HUD's notice affirming or modifying its

initial removal decision.

The proposed addition of Sec. 200.200 would not prohibit HUD from

debarring, suspending, issuing a limited denial of participation,

seeking a false claims action, taking such other action against an

appraiser as provided for in 24 CFR part 24 (entitled ``Government

Debarment and Suspension and Governmentwide Requirements for Drug-Free

Workplace (Grants)''), or from seeking any other remedy against an

appraiser available to HUD by statute or otherwise. In some cases,

where there is evidence that an appraiser is deficient in FHA appraisal

requirements, HUD may require an appraiser to undergo professional

training and retake the HUD test on FHA appraisal methods and

reporting.

With respect to removing an appraiser from the Appraiser Roster, or

taking other appropriate enforcement action against an appraiser, HUD

is cognizant that section 222 of the Small Business Regulatory

Enforcement Fairness Act of 1996 (Public Law 104-121, 110 Stat.

847)(''SBREFA'') requires the Small Business and Agriculture Regulatory

Enforcement Ombudsman to ``work with each agency with regulatory

authority over small businesses to ensure that small business concerns

that receive or are subject to an audit, on-site inspection, compliance

assistance effort or other enforcement related communication or contact

by agency personnel are provided with a means to comment on the

enforcement activity conducted by this personnel.'' To implement this

statutory provision, the Small Business Administration has requested

that agencies include the following language on agency publications and

notices that are provided to small businesses

assistance effort or other enforcement related communication or contact

by agency personnel are provided with a means to comment on the

enforcement activity conducted by this personnel.'' To implement this

statutory provision, the Small Business Administration has requested

that agencies include the following language on agency publications and

notices that are provided to small businesses concerns at the time the

enforcement action is undertaken. The language is as follows:

Your Comments Are Important

The Small Business and Agriculture Regulatory Enforcement

Ombudsman and 10 Regional Fairness Boards were established to

receive comments from small businesses about federal agency

enforcement actions. The Ombudsman will annually evaluate the

enforcement activities and rate each agency's responsiveness to

small business. If you wish to comment on the enforcement actions of

[insert agency name], call 1-888-REG-FAIR (1-888-734-3247).

As HUD stated in its notice describing HUD's actions on the

implementation of SBREFA, which was published on May 21, 1998 (63 FR

28214), HUD intends to work with the Small Business Administration to

provide small entities with information on the Fairness Boards and

National Ombudsman program, at the time enforcement actions are taken,

to ensure that small entities have the full means to comment on the

enforcement activity conducted by HUD.

II. Justification for 30-Day Public Comment Period

In accordance with HUD's regulations concerning rulemaking at 24

CFR part 10 (entitled ``Rulemaking: Policy and Procedures''), it is

HUD's policy that the public comment period for notices of proposed

rulemaking should be 60 days. In the case of this proposed rule,

have the full means to comment on the

enforcement activity conducted by HUD.

II. Justification for 30-Day Public Comment Period

In accordance with HUD's regulations concerning rulemaking at 24

CFR part 10 (entitled ``Rulemaking: Policy and Procedures''), it is

HUD's policy that the public comment period for notices of proposed

rulemaking should be 60 days. In the case of this proposed rule,

however, we have determined that there is good cause to reduce the

public comment period to 30 days.

This proposed rule would implement part of the Homebuyer Protection

Plan, which was launched on June 1, 1998. This Plan reforms FHA's

single family home appraisal process and will benefit 800,000 families

who obtain FHA-insured mortgage financing each year. One goal of the

Plan is to provide these families with the best protection against bad

appraisals ever available in the public or private sector.

In light of this important goal, HUD has previously made the public

and members of affected industries, including appraisers, aware of the

reforms outlined in the Homebuyer Protection Plan. For example, we

provided, through HUD Press Release No. 98-206, a thorough overview of

the Homebuyer Protection Plan on June 1, 1998. We also met routinely

with industry representatives to discuss the details of the Plan and to

seek comment and opinion regarding the Plan. While these meetings were

held for discussion purposes only, and were not held to reach agreement

on HUD policy, they served to make a significant number of affected

parties aware of the changes HUD is proposing.

Finally, HUD has made a handbook available that describes the Plan

in detail. This handbook has been widely available through the HUD Web

Page (http://www.hud.gov/reac/reasfappr.html). Through these means, HUD

has alerted appraisers of the changes that would be brought about by

the Homebuyer Protection Plan, including the processes by which

appraisers may be removed from HUD's Appraiser Roster

inally, HUD has made a handbook available that describes the Plan

in detail. This handbook has been widely available through the HUD Web

Page (http://www.hud.gov/reac/reasfappr.html). Through these means, HUD

has alerted appraisers of the changes that would be brought about by

the Homebuyer Protection Plan, including the processes by which

appraisers may be removed from HUD's Appraiser Roster.

Given the broad exposure of the reforms contained in the Homebuyer

Protection Plan, and considering the importance of the Plan's efficient

implementation, HUD has determined that a 30-day comment period for

this proposed rule should provide sufficient notice and opportunity for

interested parties to comment.

III. Findings and Certifications

Paperwork Reduction Act Statement

The information collection requirements contained in this rule have

been submitted to the Office of Management and Budget (OMB) under the

Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)) and are pending OMB

approval. The information collection requirements were previously

published for comment in a separate notice in the Federal Register on

May 26, 1999 (64 FR 28502). An agency may not conduct or sponsor, and a

person is not required to respond to, a collection of information

unless the collection displays a valid control number.

Environmental Impact

This proposed rule would establish placement and removal procedures

for HUD's Appraiser Roster. Accordingly, under 24 CFR 50.19(c)(1), this

proposed rule is categorically excluded from environmental review under

the National Environmental Policy Act of 1969 (Pub. L. 91-190, 83 Stat.

852, codified as amended at 42 U.S.C. 4321-4347).

Regulatory Flexibility Act

ol number.

Environmental Impact

This proposed rule would establish placement and removal procedures

for HUD's Appraiser Roster. Accordingly, under 24 CFR 50.19(c)(1), this

proposed rule is categorically excluded from environmental review under

the National Environmental Policy Act of 1969 (Pub. L. 91-190, 83 Stat.

852, codified as amended at 42 U.S.C. 4321-4347).

Regulatory Flexibility Act

The Secretary has reviewed this proposed rule before publication,

and by approving it certifies, in accordance with the Regulatory

Flexibility Act (5 U.S.C. 605(b)), that this proposed rule would not

have a significant economic impact on a substantial number of small

entities. The proposed rule would establish the procedure by which an

appraiser, who has violated FHA single family mortgage insurance

program requirements, may be removed from HUD's Appraiser Roster.

Accordingly, to the extent that this proposed rule would impact small

entities it will be as a result of actions taken by small entities

themselves--that is, violation of single family program regulations and

requirements.

Generally, HUD expects that the number of removal proceedings

initiated under this proposed rule would be relatively low. For

example, in fiscal year 1998, of the over 30,000 appraisers listed on

the Appraiser Roster, HUD initiated enforcement proceedings against

only 36 appraisers (most of these enforcement proceedings were Limited

Denial of Participation proceedings).

Further, the proposed rule would provide several procedural

safeguards designed to minimize any potential impact on small entities.

For example, the rule grants appraisers, selected for removal from the

Appraiser Roster, with the opportunity to provide a written response

and to request a conference regarding a proposed removal. The rule also

specifies that the official designated by HUD to review an appeal may

not be the same HUD official involved in the initial removal decision

ize any potential impact on small entities.

For example, the rule grants appraisers, selected for removal from the

Appraiser Roster, with the opportunity to provide a written response

and to request a conference regarding a proposed removal. The rule also

specifies that the official designated by HUD to review an appeal may

not be the same HUD official involved in the initial removal decision.

While HUD has determined that this rule would not have a

significant economic impact on a substantial number of small entities,

HUD welcomes any comments regarding alternatives to this rule that

would meet HUD's objectives, as described in this preamble, and would

be less burdensome to small entities.

Unfunded Mandates Reform Act

Title II of the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-

4, 109 Stat. 48, 64, codified at 2 U.S.C. 1531-1538) (UMRA) requires

Federal agencies to assess the effects of their regulatory actions on

State, local, and tribal governments and on the private sector. This

proposed rule does not impose, within the meaning of the UMRA, any

Federal mandates on any State, local, or tribal governments or on the

private sector.

Federalism Impact

The General Counsel, as the Designated Official under section 6(a)

of Executive Order 12612 (entitled ``Federalism''), has determined that

the policies contained in this rule will not have substantial direct

effects on States or their political subdivisions, on the relationship

between the Federal Government and the States, or on the distribution

of power and responsibilities among the various levels of government.

List of Subjects in 24 CFR Part 200

n 6(a)

of Executive Order 12612 (entitled ``Federalism''), has determined that

the policies contained in this rule will not have substantial direct

effects on States or their political subdivisions, on the relationship

between the Federal Government and the States, or on the distribution

of power and responsibilities among the various levels of government.

List of Subjects in 24 CFR Part 200

Administrative practice and procedure, Claims, Equal employment

opportunity, Fair housing, Home improvement, Housing standards,

Incorporation by reference, Lead poisoning, Loan programs--housing and

community development, Minimum property standards, Mortgage insurance,

Organization and functions (Government agencies), Penalties, Reporting

and recordkeeping requirements, Social security, Unemployment

compensation, Wages.

For the reasons stated in the preamble, HUD proposes to amend 24

part 200 as follows:

PART 200--INTRODUCTION TO FHA PROGRAMS

1. The authority citation for part 200 continues to read as

follows:

Authority: 12 U.S.C. 1701-1715z-18; 42 U.S.C. 3535(d).

2. Add subpart G, consisting of Sec. 200.200, to read as follows:

Subpart G--Appraiser Roster; Placement and Removal Procedures

Sec.

200.200 Appraiser Roster; placement and removal procedures.

Subpart G--Appraiser Roster; Placement and Removal Procedures

Sec. 200.200 Appraiser Roster; placement and removal procedures.

(a) Appraiser Roster. HUD maintains a roster of appraisers, and a

mortgagee must select an appraiser from this list for the appraisal of

properties involving the FHA single family mortgage insurance program.

200.200 Appraiser Roster; placement and removal procedures.

Subpart G--Appraiser Roster; Placement and Removal Procedures

Sec. 200.200 Appraiser Roster; placement and removal procedures.

(a) Appraiser Roster. HUD maintains a roster of appraisers, and a

mortgagee must select an appraiser from this list for the appraisal of

properties involving the FHA single family mortgage insurance program.

(b) Disclaimer. Since an appraisal is performed to determine the

maximum insurable mortgage and to protect the FHA insurance funds, the

inclusion of an appraiser on the Appraiser Roster does not create or

imply a warranty or endorsement to a prospective homebuyer or to any

other organization or individual by HUD of the listed appraiser nor

does it represent a warranty of any appraisal performed by the listed

appraiser. The inclusion of an appraiser on the Appraiser Roster means

only that a listed appraiser has met the qualifications and conditions,

prescribed by the Secretary, for inclusion on the Appraiser Roster.

(c) Placement on the Appraiser Roster--(1) Application. To apply

for placement on the Appraiser Roster, you must submit an application

to HUD.

(2) Eligibility. To be eligible for placement on the Appraiser

Roster you must be a state-licensed or state-certified appraiser, pass

a HUD test on FHA appraisal methods and reporting, and you must not be

listed on:

(i) The General Services Administration's Suspension and Debarment

List;

(ii) HUD's Limited Denial of Participation List; or

(iii) HUD's Credit Alert Interactive Voice Response System.

gibility. To be eligible for placement on the Appraiser

Roster you must be a state-licensed or state-certified appraiser, pass

a HUD test on FHA appraisal methods and reporting, and you must not be

listed on:

(i) The General Services Administration's Suspension and Debarment

List;

(ii) HUD's Limited Denial of Participation List; or

(iii) HUD's Credit Alert Interactive Voice Response System.

(d) Removal from the Appraiser Roster. HUD officials, as designated

by the Secretary, may at any time remove a listed appraiser from the

Appraiser Roster for cause under the provisions of this section. The

provisions of this section apply only to removal actions taken under

this section. These provisions do not apply to removal actions taken

under any section in 24 CFR part 24 nor to any other remedy against an

appraiser available to HUD by statute or otherwise.

(1) Cause for removal. Cause for removal under the provisions of

this section include, but are not limited to:

(i) Significant deficiencies in appraisals;

(ii) Failure to maintain standing as a state-certified or state-

licensed appraiser;

(iii) Prosecution for committing, attempting to commit, or

conspiring to commit fraud, misrepresentation, or any other offense

that may reflect on the appraiser's character or integrity;

(iv) Failure to perform appraisal functions in accordance with

instructions and standards issued by HUD;

(v) Failure to comply with any agreement made between the appraiser

and HUD or with any certification made by the appraiser;

(vi) Being issued a final debarment, suspension, or limited denial

of participation;

(vii) Failure to maintain eligibility requirements for placement on

the Appraiser Roster as set forth under this section or any other

instructions or standards issued by HUD; or

(viii) Failure to comply with HUD-imposed education sanctions

within the specified period for complying with such education

sanctions.

Being issued a final debarment, suspension, or limited denial

of participation;

(vii) Failure to maintain eligibility requirements for placement on

the Appraiser Roster as set forth under this section or any other

instructions or standards issued by HUD; or

(viii) Failure to comply with HUD-imposed education sanctions

within the specified period for complying with such education

sanctions.

(2) Procedure for removal. If you are a listed appraiser and HUD

decides to remove you for cause from the Appraiser Roster under the

provisions of this section, the following procedure applies to you

unless you have been issued a final debarment, suspension, or limited

denial of participation:

(i) You will be given written notice of your proposed removal. The

notice will include the reasons for your proposed removal and the

duration of your proposed removal.

(ii) You will have 20 days from the date of your notice of proposed

removal to submit a written response appealing the proposed removal and

to request a conference. A request for a conference must be in writing

and must be submitted along with a written response.

(iii) Within 30 days of receiving your written response, or if you

have requested a conference, within 30 days after the completion of

your conference, a HUD official, designated by the Secretary, will

review your appeal and will send you a final decision either affirming,

modifying, or canceling your removal from the Appraiser Roster. HUD may

extend this time upon giving you notice. The HUD official designated by

the Secretary to review your appeal will not be someone involved in

HUD's initial removal decision nor will it be someone who reports to a

person involved in that initial decision.

eview your appeal and will send you a final decision either affirming,

modifying, or canceling your removal from the Appraiser Roster. HUD may

extend this time upon giving you notice. The HUD official designated by

the Secretary to review your appeal will not be someone involved in

HUD's initial removal decision nor will it be someone who reports to a

person involved in that initial decision.

(iv) If you do not submit a written response, your removal will be

effective 20 days after the date of HUD's initial removal notice. If

you submit a written response, and the removal decision is affirmed or

modified, your removal or modification will be effective on the date of

HUD's notice affirming or modifying the initial removal decision.

(3) Automatic removal for issuance of final debarment, suspension,

or limited denial of participation. If you are a listed appraiser and

you have been issued either a final debarment, suspension, or limited

denial of participation, you will be automatically removed from the

Appraiser Roster. The provisions of this section do not apply to you,

and you may not appeal the removal action under the provisions of this

section.

(e) Compliance with HUD-issued instructions and standards. All

appraisers listed on the Appraiser Roster are responsible for obtaining

and complying with the HUD Appraiser Handbook (4150.2) (and any updates

to the handbook) and all other instructions and standards issued by

HUD. The handbook can be obtained through the HUD Web Page (http://

www.hud.gov/reac/reasfappr.html).

(f) Education sanctions. Where there is evidence that an appraiser

is deficient in FHA appraisal requirements, HUD may require an

appraiser to undergo professional training and retake the HUD test on

FHA appraisal methods and reporting.

(g) Re-application. Appraisers removed from the Roster must re-

apply to HUD in accordance with instructions provided by HUD.

ww.hud.gov/reac/reasfappr.html).

(f) Education sanctions. Where there is evidence that an appraiser

is deficient in FHA appraisal requirements, HUD may require an

appraiser to undergo professional training and retake the HUD test on

FHA appraisal methods and reporting.

(g) Re-application. Appraisers removed from the Roster must re-

apply to HUD in accordance with instructions provided by HUD.

(h) Other action. Nothing in this section prohibits HUD from taking

such other action, against an appraiser, as provided under 24 CFR part

24, or from seeking any other remedy against an appraiser available to

HUD by statute or otherwise.

Dated: June 10, 1999.

William C. Apgar,

Assistant Secretary for Housing-Federal Housing Commissioner.

[FR Doc. 99-16846 Filed 7-1-99; 8:45 am]

BILLING CODE 4210-27-P