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Bill

S 3927

Establishes penalties for appraisers who engage in discriminatory real estate appraisals and requires certain information to be provided to present and prospective owners or occupants of real estate.

2024-2025 Regular Session Introduced by Renee Burgess and 4 co-sponsors

Bill penalizes real estate appraisers for discriminatory valuations and mandates disclosure of appraisal information to property owners to combat racial disparities in home equity.

Referred to Senate Budget and Appropriations Committee
#crimes #housing
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Bill Summary · S 3927

Legislative bill overview

S 3927 establishes penalties for real estate appraisers who engage in discriminatory appraisal practices and requires appraisers to provide specific information to property owners and prospective buyers. The bill aims to address racial and ethnic discrimination in property valuations, which has documented effects on wealth accumulation and homeownership equity across demographic groups.

Why is this important

Discriminatory appraisals—where properties in minority neighborhoods or owned by minorities are undervalued compared to comparable properties—directly reduce home equity, affect mortgage qualification amounts, and perpetuate racial wealth gaps. This bill creates enforcement mechanisms and transparency requirements to combat a practice that studies show occurs at measurable rates in the U.S. housing market.

Potential points of contention

  • Definition and enforcement challenges: Determining what constitutes discriminatory intent versus legitimate valuation differences may be legally complex and could create litigation risks for appraisers
  • Compliance costs: Requiring additional information disclosures and documentation could increase appraisal costs, potentially passed to consumers or lenders
  • Scope of penalties: The bill's penalty structure (not detailed in provided text) will determine whether it's a meaningful deterrent or largely symbolic

Compiled from official sources — confirm details with the bill’s official record.

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