Bill
S 3927
Prohibits New Jersey licensed appraisers and appraisal firms from basing appraisals on protected characteristics, with strict enforcement, restitution, penalties, and private civil
Status: Introduced 12/09/2024; reported out of Senate Commerce Committee with amendments 12/12/2024; referred to Budget & Appropriations; referred to Civil Service and Pensions 01/30/2025.
Primary sponsor: Sen. Zellnor Myrie. Cosponsors: Gustavo Rivera, Luis R. Sepúlveda, Robert Jackson, Brad Hoylman‑Sigal, Julia Salazar, Brian Kavanagh, Jessica Ramos, Leroy Comrie, John Liu. Companion: A5163 / A3671.
Purpose
- Prohibit New Jersey‑licensed real estate appraisers and appraisal management companies from considering protected characteristics (race, color, religion, sex, sexual orientation, gender identity, age, marital status, disability, familial status, national origin, and other bases prohibited by law) when preparing appraisals.
- Create enforcement mechanisms, penalties, and reporting/notice requirements to address discriminatory appraisals.
Key provisions
- Prohibition: Appraisers may not consider specified protected characteristics of prospective or present owners/occupants, or of occupants of neighboring properties. Violations also constitute violations of the Law Against Discrimination.
- Void appraisal & restitution: Any discriminatory appraisal is declared void. The State Real Estate Appraiser Board must order restitution of the cost of the discriminatory appraisal.
- Progressive discipline by the Board:
- 1st violation: restitution and required attendance at an anti‑bias seminar approved by the board.
- 2nd violation: suspension of the credential, restitution, and required anti‑bias seminar; credential may be restored after ≥30 days if restitution and seminar completion are demonstrated.
- 3rd violation: after notice and hearing, revocation of the credential and restitution.
- Civil monetary penalties (collected under the Penalty Enforcement Law): up to $10,000 (first violation); up to $25,000 (second violation within 5 years); up to $50,000 (third violation).
- Private right of action: A complainant may initiate a suit in Superior Court under the Law Against Discrimination, in addition to Board action.
- Notice to consumers: Within 3 days of receiving a mortgage loan application, licensed mortgage brokers or mortgage salespersons (and certain brokers under earlier versions) must provide applicants a free document (board‑prescribed form) informing them how to report suspected discriminatory appraisals to the Division on Civil Rights (website/phone).
- Demographic reporting: When the Division on Civil Rights receives a report of alleged appraisal discrimination it must solicit voluntary demographic information (including complainant identity), compile provided data, and report aggregated demographic information to the Governor and Legislature by July 1, 2026.
Fiscal and administrative impact
- Office of Legislative Services estimates indeterminate annual State expenditure increases for:
- Division of Consumer Affairs (investigation/enforcement of appraisers),
- Division on Civil Rights (investigations, data collection, reporting),
- Judiciary (potential increase in Superior Court suits).
- Indeterminate annual revenue increase from collected civil penalties.
- OLS notes there were 2,713 appraiser licenses in FY2023 (illustrative workload context).
Affected parties
- Licensed appraisers, appraisal management companies, and holders of appraisal credentials in New Jersey.
- Mortgage applicants and residential real estate buyers/sellers who must receive notice of reporting options.
- State agencies: State Real Estate Appraiser Board (Division of Consumer Affairs), Division on Civil Rights (Dept. of Law & Public Safety), and the Judiciary.
Committee amendments (Dec. 12, 2024)
- Explicitly permit private suits under the Law Against Discrimination.
- Clarify that mortgage salespersons perform the notice distribution to mortgage applicants and that the notice requirement applies to all residential mortgage applications.
- Technical clarifications.
Related measures
- Companion/related Assembly bills: A5163, A3671. Prior‑session bills: S7527, S268, S2401.
Compiled from official sources — confirm details with the bill’s official record.
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