Section 4.11. Procedure for suspension of builders, authorized lenders and appraisers.

  Upon determination by the department that adequate cause exists for the suspension of a builder, authorized lender or appraiser from participation in the housing loan programs, the department shall do all of the following:

(1)   Notice of suspension. Notice of suspension signed by the secretary shall be sent by the department to the affected party by certified mail, return receipt requested. The notice of suspension shall outline the reasons for the act of suspension and the effective date of suspension and inform the affected party that the party may file a written request with the department for a hearing.

(2)   Notice of hearing. If a written request for a hearing filed with the department by the affected party meets the requirements of s. 227.42 (1) (a) to (d) , Stats., and if the request is not denied by the department under s. 227.42 (2) , Stats., the hearing granted by the department shall be treated as a "class 3 proceeding" as defined in s. 227.01 (3) (c) , Stats., and written notice complying with s. 227.44 (2) , Stats., shall be sent to the affected party by certified mail, return receipt requested, at least 10 days prior to the date of hearing.

(3)   Conduct of hearing. The hearing shall be held before a hearing examiner designated by the secretary. The hearing examiner has the powers enumerated under s. 227.46 , Stats. Every party to the hearing shall be afforded adequate opportunity to present evidence and to rebut evidence presented or offer countervailing evidence. A stenographic, electronic or other record shall be made of the hearing. The record shall be transcribed by the department, and free copies of the written transcript may be provided to any party in interest upon request.

(4)   Final decisions. Under s. 227.46 (3) , Stats. the department may, by order, direct that the hearing examiner's decision be the final decision of the department. Alternatively, the decision of a majority of officials of the department appointed by the secretary shall be final. Whether the hearing examiner's decision, or the decision of the officials appointed by the secretary is final, the decision shall be based solely on the evidence presented at the hearing and on matters officially noticed. The decision shall be based on the standard of substantial evidence. It shall be in writing and contain findings of fact and conclusions of law. The findings of fact shall treat each material issue of fact. The final decision shall be served by personal delivery or mailing to each party to the hearing or to the party's attorney of record.

(5)   Petition for rehearing. Any party who deems itself aggrieved by a final decision may within 20 days after entry of the order set forth in such final decision, file with the department a written petition for rehearing specifying in detail the grounds for the relief sought and supporting authorities. The department may also order a rehearing on its own motion within 20 days after a final order. The filing of a petition for rehearing shall not delay or suspend the effective date of the final order. The final order shall continue in effect unless the petition for rehearing is granted or until the order is superseded, modified, or set aside as provided by law.

(6)   Disposition of petition. A rehearing will be granted only on the basis of some material error of law, some material error of fact or discovery of new evidence sufficient to reverse or modify the final order which could not have been previously discovered by due diligence. The department may enter an order with reference to the petition for rehearing without a hearing, and shall take final action on the petition within 20 days after it is filed.

(7)   Appeal to board.

(a) Upon the denial of a petition for rehearing by the department, an affected party may appeal to the board of veterans affairs within 20 days. The board of veterans affairs shall hear and act upon the appeal within 60 days after submission. If the affected party which is aggrieved by the final decision of the department does not appeal to the board of veterans affairs, the party is deemed to have exhausted all administrative remedies.

(b) If the affected party which is aggrieved by the final decision in the department exercises the option to appeal to the board of veterans affairs and the appeal is denied by the board of veterans affairs, the affected party is deemed to have exhausted all administrative remedies.

(c) In all cases in which the affected party who is aggrieved by the final decision of the department exercises the option to appeal to the board of veterans affairs and the appeal is granted by the board of veterans affairs, the board of veterans affairs shall make the final decision. This decision may affirm, reverse, change, modify or suspend the proposed final decision of the department.

History: Cr. Register, May, 2000, No. 533 , eff. 6-1-00.