TC NewJersey
Junior Member
- Joined
- Dec 7, 2005
- Professional Status
- Certified Residential Appraiser
- State
- New Jersey
A new bill has been introduced to address racial discrimination in real estate appraisals in NJ.
The topic in and of itself is one we all should of course care about. No one wants to see anything but fair and impartial valuations and professional appraisal practice. I am personally 100% for initiatives to ensure no one is discriminated against. However having the right idea in your heart does not always translate to good legislation. The text of the bill can be found here: https://www.njleg.state.nj.us/2018/Bills/A9999/5185_I1.HTM
Much of it relates to punitive sanctions against appraisers found guilty of racial discrimination, however this portion is especially concerning:
2.a. Prior to the initiation of a residential property appraisal, a holder of a license or certification under P.L.1991, c.68 (C.45:14F-1 et seq.) or registration under P.L.2017, c.72 (C.45:14F-27 et al.)shall provide a property seller with a document, in a form and manner prescribed by the board,informing the property seller of the opportunity to report, through the Division of Consumer Affairs’ website or telephone number, any suspicion of a discriminatory appraisal by the holder of a license, certification or registration on the basis of aproperty buyer or seller’s race, creed, color, or national origin.
There's an awful lot of issues with this...
In my opinion, this is a shoot first aim later sort of legislation. Shouldn't we want some sort of impartial study done on the problem before implementing any sort of legislative remedy? Do we even really understand the scope and extent of the problem if there is one in our state? Appraisers suffer enough already from baseless frivolous complaints filed by the general public. Basically what this law is doing is encouraging the filing of complaints against appraisers by individuals with an interest in the transaction who most times define a good appraisal as a high value whether or not it is appropriate or supportable. The law does nothing as well to provide funding or resources to the state board to investigate claims of racial discrimination. As is our board is terribly overworked and underfunded. Also why is the seller the judge of racial discrimination?
The legislature should be focused on:
1) funding a study of the issue conducted by a impartial 3rd party with no interest in the matter and based on the scientific method
2) encouraging education and assistance to appraiser licensees on the matter
3) focusing on promoting the interests of appraisers and the appraiser profession; we should want the profession strong, well educated and free from fee pressure from bad actor AMCs who direct important valuation work to the least expensive appraiser rather than the true market expert. Such activity undermines the public perception of our industry and encourages shoddy work that leads to the perception of bias or unprofessionalism
We should not be passing legislation which incents frivolous complaints of racism. What we ought to do in my opinion is study the issue in a professional manner and seek input from the various stakeholders in the space, not shoot from the hip to pass something like this.
You can find your representative here:
https://www.njleg.state.nj.us/members/legsearch.asp
Use the link on the left side "Find your legislator"
Please write them - no one wants racial discrimination in valuations but this bill is poorly written and needs to be fixed.
The topic in and of itself is one we all should of course care about. No one wants to see anything but fair and impartial valuations and professional appraisal practice. I am personally 100% for initiatives to ensure no one is discriminated against. However having the right idea in your heart does not always translate to good legislation. The text of the bill can be found here: https://www.njleg.state.nj.us/2018/Bills/A9999/5185_I1.HTM
Much of it relates to punitive sanctions against appraisers found guilty of racial discrimination, however this portion is especially concerning:
2.a. Prior to the initiation of a residential property appraisal, a holder of a license or certification under P.L.1991, c.68 (C.45:14F-1 et seq.) or registration under P.L.2017, c.72 (C.45:14F-27 et al.)shall provide a property seller with a document, in a form and manner prescribed by the board,informing the property seller of the opportunity to report, through the Division of Consumer Affairs’ website or telephone number, any suspicion of a discriminatory appraisal by the holder of a license, certification or registration on the basis of aproperty buyer or seller’s race, creed, color, or national origin.
There's an awful lot of issues with this...
In my opinion, this is a shoot first aim later sort of legislation. Shouldn't we want some sort of impartial study done on the problem before implementing any sort of legislative remedy? Do we even really understand the scope and extent of the problem if there is one in our state? Appraisers suffer enough already from baseless frivolous complaints filed by the general public. Basically what this law is doing is encouraging the filing of complaints against appraisers by individuals with an interest in the transaction who most times define a good appraisal as a high value whether or not it is appropriate or supportable. The law does nothing as well to provide funding or resources to the state board to investigate claims of racial discrimination. As is our board is terribly overworked and underfunded. Also why is the seller the judge of racial discrimination?
The legislature should be focused on:
1) funding a study of the issue conducted by a impartial 3rd party with no interest in the matter and based on the scientific method
2) encouraging education and assistance to appraiser licensees on the matter
3) focusing on promoting the interests of appraisers and the appraiser profession; we should want the profession strong, well educated and free from fee pressure from bad actor AMCs who direct important valuation work to the least expensive appraiser rather than the true market expert. Such activity undermines the public perception of our industry and encourages shoddy work that leads to the perception of bias or unprofessionalism
We should not be passing legislation which incents frivolous complaints of racism. What we ought to do in my opinion is study the issue in a professional manner and seek input from the various stakeholders in the space, not shoot from the hip to pass something like this.
You can find your representative here:
https://www.njleg.state.nj.us/members/legsearch.asp
Use the link on the left side "Find your legislator"
Please write them - no one wants racial discrimination in valuations but this bill is poorly written and needs to be fixed.
