Grievance Procedure
This procedure manual is created pursuant to Article XIII – Section
8 of the bylaws of the Florida Association of Mortgage Brokers. Section
1:
Article IV – Section 3B of the Florida Association of Mortgage Brokers
bylaws is set forth herein.
B. Revocation of Membership – Any member may be reprimanded,
fined, suspended or expelled by the Board of Directors for failure to
conform to an award in arbitration, or for violation of these By-Laws
or the Code of Ethics or any other conduct which discredits the Association
or the mortgage profession, after enforcement as provided for in Article
XVII.
This action may be taken for any of the following reasons:
(a) A member is convicted, adjudged or otherwise recorded as guilty by
any court of competent jurisdiction of a felony or a crime involving moral
turpitude.
(b) Breach of or failure to abide by the code of Ethics of the Florida
Association of Mortgage Brokers.
(c) Breach of or failure to abide by the Constitution and Bylaws or Rules
and Regulations of the Florida Association of Mortgage Brokers.
(d) Failure or refusal of a Respondent to answer a complaint. Failure
or refusal of a Complainant to sign a statement releasing the Association
and individual members from any and all actions, claims, debts, dues or
demands, of every kind and nature whatsoever, or failure or refusal of
Complainant to attend and testify as witness before the Arbitrator or
mediator or the Ethics & Grievance Committee,, after having had reasonable
notice so to attend and testify.
(e) Giving of any false information at a hearing before the arbitrator
or mediator, Ethics and Grievance Committee or the Executive Committee.
(f) Breach of or failure to abide by the terms of any agreement, written
or otherwise, in any business transaction regulated by Chapter 494, Florida
Statues.
(g) Any act or conduct which, in the opinion of the Ethics and Grievance
Committee is detrimental to the best interest of the Association or contrary
to its objectives as set forth in these Bylaws. Section
2. Jurisdiction. The Florida Association of Mortgage Brokers and
its appointed arbitrator or arbitrator shall have the power and the authority
to hear and determine all matters regarding unethical conduct and enforcement
of the Code of Ethics or the Bylaws, or the Rules and Regulations of the
Association, false or malicious injury to the professional reputation
of a member, and other conduct which publicly discredits the Association
or the mortgage brokerage profession. Section
3. Complaints. It is the duty of each and every member to report
in writing to the state Ethics and Grievance Committee any conduct that
such member knows of his or her own knowledge to have occurred, which
may subject any member to disciplinary action under the terms of Section
1 hereof. This shall be deemed a privileged communication and shall not
subject any member making such a complaint to any liability. If a member
makes a complaint about another member. orally to any other member, the
Ethics and Grievance Committee, upon learning thereof, may require the
member to submit the complaint in writing.
Each formal complaint must be filed in writing with the Ethics and Grievance
Committee. The complaint shall contain a sufficiently detailed factual
basis for the claim to adequately apprise the Ethics and Grievance Committee
and the Respondent of the essential facts comprising the claim for relief,
whether it be an ethics or arbitration complaint. The Chairman of the
Ethics and Grievance Committee shall forward by certified mail, return
receipt requested a copy of the Complaint together with the request for
the Respondent’s Answer to the complaint, to the last known business
address of the Respondent as registered with the Association. (See Section
4, for procedure). Section 4. Procedure.
All complaints must be filed with the Chairman of the State Ethics
and Grievance Committee. The procedure for filing shall be as follows:
- The initial complaint shall be forwarded to the State Chairman of
the Ethics and Grievance Committee.
- The Chairman, within fifteen (15) days of receipt thereof, shall
assign the complaint to an active State Past President hereafter referred
to as “Investigator”.
- A copy of the complaint together with a copy of the Association’s
Code of Ethics, Rules and Regulations shall be sent by certified mail,
return receipt requested, by the Investigator to the person complained
against hereafter call the Respondent, within thirty (30) days after
receipt of the complaint.
- The Respondent shall have twenty (20) days from the date of receipt
of the complaint to answer the Complaint. Said Answer shall be forwarded
to the Investigator.. The Respondent shall set forth specific facts
admitting or denying the allegations contained in the Complaint. Failure
to respond may result in a default judgment or disciplinary action against
the Respondent.
- After reviewing the Complaint, the Investigator shall contact both
parties to determine the sufficiency of the complaint allegations, and
to request additional written information if necessary.
- Once the investigation is complete, the investigator shall report
the results of the investigation to the Ethics and Grievance committee
for determination of probable cause.
- Should probable cause be determined the complainant will be notified.
In order to cover a portion of the cost of arbitration, at least 20
days prior to the scheduled arbitration date, each party is required
to post in escrow $1,500.00 with the Ethics and Grievance Committee.
Said funds shall be placed directly in an interest bearing account.
If the complainant fails to deposit the escrow payment, the complaint
shall be dismissed. If the respondent fails to deposit the escrow payment,
their membership in the Florida Association of Mortgage Brokers will
be automatically revoked, and they shall not be eligible to reapply
for membership or reinstatement for a period of 5 years. If both parties
fail to deposit the escrow payment, the complaint shall be dismissed.
The cost of arbitration shall be borne by the losing party. However,
the FAMB shall be responsible for payment of up to one-third of the
cost of the arbitration or $750.00, whichever is less.
- Upon receipt of the $1500.00 and agreement to proceed with arbitration,
the matter will be assigned to an independent arbitrator or mediator
selected by the Ethics and Grievance Committee to determine whether
a violation of the Bylaws or Code of Ethics has occurred. . The choice
of the arbitrator will be at the discretion of the Ethics and Grievance
Committee...
- The Chairman will notify the Ethics and Grievance Committee, the
Respondent and the Complainant of a date for the arbitration or mediation
hearing. The independent arbitrator or mediator’s decision on
the complaint will be final, except as provided in item 11 herein..
- If the arbitrator or mediator determines that such a violation has
occurred, they shall recommend to the committee disciplinary action,
as authorized under Section 1 herein.
- The findings of the arbitrator or mediator shall be adopted by the
Committee unless the Ethics and Grievance Committee determines that
a lesser penalty is appropriate.
- If probable cause is not determined by the Investigator, the Chairman
shall notify both parties that insufficient validity and substance was
found in the Complaint and that the Complaint has been dismissed by
the Ethics and Grievance Committee.
- Any Complainant, following the filing of a Complaint, and before
an arbitration or mediation is held, may withdraw such a complaint with
the consent of the Chairman of the Ethics and Grievance Committee.
- If a party to an arbitration or mediation intends to be represented
by legal counsel, he/she shall notify the Chairman of the committee
and the other party or parties in writing, delivered at least twenty
(20) days prior to the date set for the, hearing. If a party is represented
at the hearing by legal counsel, the cost of legal representation will
be paid by said party. No transcription or recordation of the proceedings
at such hearing need be made except at the request of the member or
Committee in which case the cost thereof shall be borne by the party
or parties requesting it.
- The parties to arbitration may settle the issue between them by agreement
at any time. If settlement occurs, the Chairman of the Ethics and Grievance
Committee shall be notified in writing by both parties that the settlement
has been accomplished and shall terminate all further proceedings.
Section 5. Arbitration or Mediation.
The arbitrator or mediator selected shall conform to the rules
and regulations published by the American Arbitration Association; Association
of Attorney-Mediators or like organization as approved by the Ethics
and Grievance Committee. The arbitrator or mediator will explain the
various dispute resolution techniques and assist the parties in choosing
one that meets their needs. Once the arbitrator or mediator has the
parties’ agreement to submit a dispute to alternative resolution,
it will administer the case under the applicable rules or procedures.
The date for the arbitration or mediation hearing may be continued for
the convenience of the parties, but not more than one such continuance
may be granted.
Section 6. Action by the Board.
The findings of the arbitrator or mediator shall be adopted by the Committee
unless the Ethics and Grievance Committee determines that a lesser penalty
is appropriate
Section 7. Arbitration or Mediation Record.
The Chairman of the Ethics and Grievance Committee shall maintain a separate
file for each arbitration and ethics proceeding which shall contain all
papers and documents received and prepared during the course of the proceedings.
Files of these proceedings may be sealed during the course of the proceeding
and thereafter, by order of the Chairman of the Committee upon good cause
shown and subject to inspection only upon approval of the Chairman or
the President of the Association.
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