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ASA Provides Comments on Proposed Consent Agreement in Louisiana Real Estate Board Case

Jul 26, 2021

On July 22nd, ASA and MBREA submitted formal comments to the Federal Trade Commission (FTC) in response to the agency’s proposed consent agreement regarding its case against the Louisiana Real Estate Appraisers Board (LREAB). The consent agreement concerns Section 1472(i) of the Dodd Frank Act, which addresses “customary and reasonable” appraisal fees.

ASA and MBREA question the underlying basis for which the consent agreement was crafted. Specifically, the FTC is asked to clarify it was the absence of active state supervision of the activities of the LREAB and its market participants and not the substance of Section 1472(i) of Dodd Frank that serves as the basis of the agreement. While this agreement impacts LREAB and all state appraisal boards, it also carries precedential weight that could override Congress’s intent that appraisers be paid in a customary and reasonable manner based on traditional ordering methods.

To read the comments filed by ASA, click ASA FTC Comment RE LREAB. To read the proposed consent decree, click here.