Louisiana Is Getting Ready To Settle With The Ftc Whether The La. Board Likes It Or Not

[timd354]

As I previously predicted, the FTC board complaint against the La. Real Estate Appraisers Board (LREAB) is never going to make it to the hearing and is very likely going to be settled soon if it has not been already settled (although any potential settlement has not been made public at this point).

On Tuesday, July 11th, the governor of Louisiana signed an executive order mandating that the LREAB cannot file an administrative complaint against an AMC regarding C&R nor finalize a settlement with an AMC without first obtaining submitting the complaint or proposed settlement to the Louisiana Division of Administrative Law (DAL) for the DAL's approval, rejection or modification. Further, the executive order requires the LREAB to submit any proposed regulation related to AMC compliance with C&R to the Louisiana Commissioner of Regulation for the Commissioner's approval, rejection or modification.

It looks like the governor of Louisiana does not want to pay the legal bills required to defend the rogue LREAB in a case that they were almost certain to lose and he reeled them in by taking away their authority to discipline AMC's for C&R or adopt any new C&R regulations without the approval of the the DAL or the La. Commissioner of Regulation. It is notable that the executive order specifically cites the US Supreme Court's decision in the N.C. State Bd. of Dental Exam'rs v. FTC case and potential federal antitrust law challenges to state board actions as reasons for the executive order.

The executive order can be viewed here:
http://gov.louisiana.gov/assets/ExecutiveOrders/JBE-17-16.pdf

 

[EddieB]

A victory for the failed AMC model.

 

[Evincere]

As I previously predicted, the FTC board complaint against the La. Real Estate Appraisers Board (LREAB) is never going to make it to the hearing and is very likely going to be settled soon if it has not been already settled (although any potential settlement has not been made public at this point).

On Tuesday, July 11th, the governor of Louisiana signed an executive order mandating that the LREAB cannot file an administrative complaint against an AMC regarding C&R nor finalize a settlement with an AMC without first obtaining submitting the complaint or proposed settlement to Editthe Louisiana Division of Administrative Law (DAL) for the DAL's approval, rejection or modification. Further, the executive order requires the LREAB to submit any proposed regulation related to AMC compliance with C&R to the Louisiana Commissioner of Regulation for the Commissioner's approval, rejection or modification.

It looks like the governor of Louisiana does not want to pay the legal bills required to defend the rogue LREAB in a case that they were almost certain to lose and he reeled them in by taking away their authority to discipline AMC's for C&R or adopt any new C&R regulations without the approval of the the DAL or the La. Commissioner of Regulation. It is notable that the executive order specifically cites the US Supreme Court's decision in the N.C. State Bd. of Dental Exam'rs v. FTC case and potential federal antitrust law challenges to state board actions as reasons for the executive order.

The executive order can be viewed here:
http://gov.louisiana.gov/assets/ExecutiveOrders/JBE-17-16.pdf

Joan T beat you too announcing the big news yesterday with regard to the so called rogue LA board whose authority regarding C&R was taken away, or as you put it, "reeled in" re AMC complaints - with a thread entitled Big News From La

BTW. I don't think there are any real working men/women boots on the ground Appraisers anywhere referring to the LA board as a rogue board because of their actions on behalf of their states Appraisers.

And Regardless of the outcome or whether the FTC was justified or not or whether the Governor wanted to pay the legal bills, few real appraisers anywhere would refer the LA board as being rogue for taking action and refusing to march goose step.

The exception to the above paragraph would be the likes of REEVA and NAC members, the lofty execs (and their attorneys) ensconced behind their low fee AMC cubicles

 

[timd354]

A victory for the failed AMC model.

It is a victory for the rule of law.

Whether or not you hate AMC's and believe that they are your your enemy it is not a good thing for society or the public when government regulators act in an illegal manner, even when they are putting the screws to your enemies. Always remember that you could be the next one in the cross-hairs of a government regulator.

There is no reason that La. cannot enforce the C&R provisions of Dodd-Frank in a legal manner without violating federal anti-trust laws. Now that the La. governor has imposed an oversight regime on the board, maybe the next enforcement action they take against an AMC regarding C&R will actually stand up to legal scrutiny and accomplish something regarding AMC fees.

 

[Meandering]

As I previously predicted, the FTC board complaint against the La. Real Estate Appraisers Board (LREAB) is never going to make it to the hearing and is very likely going to be settled soon if it has not been already settled (although any potential settlement has not been made public at this point).

On Tuesday, July 11th, the governor of Louisiana signed an executive order mandating that the LREAB cannot file an administrative complaint against an AMC regarding C&R nor finalize a settlement with an AMC without first obtaining submitting the complaint or proposed settlement to the Louisiana Division of Administrative Law (DAL) for the DAL's approval, rejection or modification. Further, the executive order requires the LREAB to submit any proposed regulation related to AMC compliance with C&R to the Louisiana Commissioner of Regulation for the Commissioner's approval, rejection or modification.

It looks like the governor of Louisiana does not want to pay the legal bills required to defend the rogue LREAB in a case that they were almost certain to lose and he reeled them in by taking away their authority to discipline AMC's for C&R or adopt any new C&R regulations without the approval of the the DAL or the La. Commissioner of Regulation. It is notable that the executive order specifically cites the US Supreme Court's decision in the N.C. State Bd. of Dental Exam'rs v. FTC case and potential federal antitrust law challenges to state board actions as reasons for the executive order.

The executive order can be viewed here:
http://gov.louisiana.gov/assets/ExecutiveOrders/JBE-17-16.pdf

Oh,
but doesn't it look like,
if the DAL approves the actions of the board, the board's actions then carry much more weight, than an "administrative complaint"?

Looks like a stronger, bigger stick with DAL approval than if the board just decides on it's own.

It looks like a better idea to have the attorneys go over the board's actions, that way there is less slithering away when the board is correct in its administrative duties.


.

 

[LANoble]

This is really nothing new......at least from my perspective. Since the dental case, having an oversight of licensing boards was an adjustment that needed to be made.

It could be even more effective but time will have to pass to see. Too bad the attention was given the matter 10 years ago when it was needed the most because C&R died the day Dodd Frank was born.

 

[gregb]

FTC warns North Carolina-

https://www.housingwire.com/article...ppraisal-fee-rules-could-violate-federal-laws

 

[gregb]

What is the "federal six-factor method?"

http://www.jdsupra.com/legalnews/ftc-weighs-in-on-state-lawmaking-on-28494/

 

[jay trotta]

Interesting, is the fact that "Income" is being controlled by those who Do Not Appraise for a Living, nor are they required to be competent and experienced within their Geographical area under the Rules & Laws to which one is to abide by.

How do you entice a College Graduate with a Debt to feel they should Enter this Business Atmosphere ?? (insert skull & cross bones here) it appears to be an Environmental Hazard area
How would you entice anyone to enter this field as it stands ?

Perhaps those Trainee entry level requirements, need to be revised to an even lower level now; Lets see it's gone from a 4 year College Degree, to a 2 year Degree, to maybe just some classes and perhaps now to what ?? Etch a Sketch & Dozens of #2 Pencils, so no one will see the mistakes ? and for those computer savvy folk, its the Delete Key.

Very interesting indeed.

 

[TRESinc]

FTC warns North Carolina-

https://www.housingwire.com/article...ppraisal-fee-rules-could-violate-federal-laws

interesting....

Additionally, one piece of the North Carolina legislation’s language could lead to appraisers being paid the full amount that buyers are charged for the appraisal, rather than AMCs taking a portion for their services.

“The bill also expands this definition to include ‘recent rates paid by the consumer.’ We question whether it is appropriate for appraisers to receive the full rate that the consumer pays,” the FTC said.

“Typically, the consumer pays for additional services beyond the appraisal (e.g., other services provided by the AMC), the costs of which might be recovered by the lender as a lump-sum fee for the loan,” the FTC continues. “Thus, this provision also might have the effect of inflating the prices paid by AMCs for appraisal services, above the levels that would otherwise exist in a competitive market.”