Hi All,

My bank wants to remove an appraiser from the approved appraiser list. Are there any regulatory requirements that I must follow to do this or can I just remove the appraiser? Also part of the bank's process is to send a letter to the appraiser stating that he/she is no longer an approved appraiser with the bank. Does anyone have a sample letter?
Thanks

We wouldn't send a letter. We'd just stop using them. There are no regulatory concerns that I know of that prohibit you from just removing them from your list.

One other thing - if the removal is for "cause", the bank might consider sending an appropriate complaint to the state licensing board.

Exactly!

I also think it is important to document some place as well as why they are being dropped (timing issues, professionalism, appraisal quality), whether in a minutes of an appropriate committee or Board minutes. This helps to document for your examiners why referral to your state licensing board may or may not be in order.

We send a letter when dropping an appraiser rather than just not use them again and hope they get the hint. It is just a professional courtesy, even if the reasoning is not always pleasant.