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FTC Seeks Public Comment on Proposed Consent Decree in Louisiana Real Estate Board Case

Jun 23, 2021

On June 22, The Federal Trade Commission (FTC) released a proposed Consent Decree regarding its case again the Louisiana Real Estate Appraisers Board (LAREB). The case revolved around LAREB’s ability to regulate what would be considered “customary and reasonable” fees paid to appraisers as a result of laws enacted under the Dodd-Frank Act, particularly as it relates to the fees paid by appraisal management companies (AMCs).

In the proposed Consent Decree, LAREB agrees to:

  • Withdraw LAREB Rule 31101, which governed how it would regulate for “customary and reasonable” fees;
  • Prohibits enforcement of Rule 31101 or any other similar rule;
  • Prohibits “raising, fixing, maintaining, or stabilizing compensation levels for appraisal services; requiring or encouraging an AMC to pay any specific fee or range of fees for appraisal services; or requiring or encouraging appraisers to request any specific fee or range of fees for appraisal services”;
  • Prohibits discrimination against any AMC based on the fees they pay, including the opening of any audits or investigations or holding enforcement proceedings based on the fees an AMC has paid for appraisal services;

There are other administrative terms to the Consent Decree, which will expire 20 years from its effective date.

The FTC seeks public comment on the terms of the Consent Decree by July 22; the full proposal can be read and comments filed through the regulations.gov website.