FTC Office and Bureau Directors Comment on State Legislative Proposal Affecting Compensation for North Carolina Real Estate Appraisers

In response to a request from North Carolina Assistant Attorney General Roberta A. Ouellette, the directors of the Federal Trade Commission’s Office of Policy Planning, Bureau of Competition and Bureau of Economics have issued a comment on the competitive impact of proposed legislation affecting compensation for real estate appraisers in North Carolina.

The proposal, NC House Bill 829, would prescribe a single method for determining customary and reasonable appraisal fees paid to real estate appraisers by appraisal management companies (AMCs), which would preclude the negotiation of market-based rates. It would also direct the North Carolina Appraisal Board to adopt rules necessary to enforce the new law.

The comment states that the proposed method for determining customary and reasonable fees for appraisal services “is not mandated by – and, in fact, may be inconsistent with – federal law.” The comment also expresses concern that HB-829 “may have the effect of displacing competition for the setting of appraisal fees and ultimately harming consumers in the form of higher prices.”

The comment urges the North Carolina General Assembly to consider whether the proposed bill will “promote competition and benefit consumers. We are concerned that, if HB-829 were enacted, real estate appraisal fees in North Carolina might not be based on competitively-set market rates, and that AMCs – and, ultimately, consumers – might face higher prices for real estate appraisal services.”

The letter was signed by the Acting Director of the FTC’s Office of Policy Planning, Tara Isa Koslov, as well as Acting Bureau of Competition Director Abbott Lipsky and Bureau of Economics Director Ginger Jin. The letter expresses the views of the Directors of the Office of Policy Planning, Bureau of Competition, and Bureau of Economics. It does not necessarily represent the views of the Commission or of any individual Commissioner. The Commission did not review the letter and did not vote to authorize the submission of the comments.

The Federal Trade Commission develops policy initiatives on issues that affect competition, consumers, and the U.S. economy. Like the FTC on Facebook, follow us on Twitter, read our blogs, and subscribe to press releases for the latest FTC news and resources.

IR Press

Recent Posts

OCC Announces Enforcement Actions for November 2024

WASHINGTON—The Office of the Comptroller of the Currency (OCC) today released enforcement actions taken against…

12 hours ago

Treasury Sanctions Gazprombank and Takes Additional Steps to Curtail Russia’s Use of the International Financial System

Treasury imposes sanctions on dozens of Russian banks, securities registrars, and finance officials; OFAC issues…

1 day ago

Acting Comptroller Testifies on State of the Federal Banking System

WASHINGTON—Acting Comptroller Michael J. Hsu today testified on the state of the federal banking system…

2 days ago

Remarks by Assistant Secretary for International Finance Brent Neiman on the U.S. Cross-Border Payments Agenda

As Prepared for Delivery Thank you very much for the opportunity to be here today, and…

3 days ago

Remarks by Assistant Secretary for Investment Security Paul Rosen at the Third Annual CFIUS Conference

As Prepared for Delivery Good afternoon.  I’d like to start by thanking our panelists today for…

3 days ago