In this issue:

• Appraisal Trends Webinar (April 17): Experts discuss survey findings and registry changes.
• Legislative & Policy Updates: Advocacy event (May 14-15) + GREEN Appraisals Act reintroduced.
• Real Estate Insights: Tax rulings, market shifts, and global property trends.

Court Dismisses Discrimination Claims Against Appraiser in High-Profile Case

A federal judge has dismissed all claims against an appraiser and their firm in a lawsuit alleging discrimination in a home valuation. The court found that the plaintiffs failed to establish a viable legal claim against the appraiser, ruling that their allegations did not sufficiently demonstrate wrongdoing under applicable laws.

The case centered on a disputed appraisal that plaintiffs claimed was racially biased. However, the judge determined that the appraiser’s valuation process did not support a claim of discrimination. With this ruling, the appraiser and their firm are no longer part of the lawsuit.

While claims against the appraiser were dismissed, the court allowed certain claims against a bank to proceed, focusing on the bank’s lending policies and loan approval decisions. These claims will be evaluated further as the case moves forward. Specifically, the plaintiffs claim the bank applied different loan-to-value (LTV) ratios based on race and national origin, offering more favorable terms to white borrowers. They also allege the bank refused to finalize a loan application with better terms due to discriminatory policies. Additionally, the plaintiffs argue the bank maintained a policy preventing borrowers from appealing appraisals they believed to be discriminatory. The bank contends that loan denials were based on credit history rather than discrimination, the court determined that the plaintiffs presented enough evidence for these claims to proceed.

Negligent Hiring, Training, and Supervision

The court also allowed claims against the bank regarding negligent hiring, training, and supervision of employees. Plaintiffs argue that bank employees failed to properly evaluate loan applications, process appraisal appeals and oversee contracted appraisers. The court found that these allegations were specific enough to warrant further examination.

Implications for Appraisers

This case—Carlos Turner, et al. v. Henley Appraisals, LLC, et al. (Case No. 3:23-cv-371) in the U.S. District Court for the Southern District of Ohio Western Division—highlights the importance of clear appeal mechanisms for borrowers who suspect discrimination and raises questions about lender oversight of the appraisal process. Appraisers should stay informed on evolving legal standards and lender policies to ensure compliance and fairness in their work.

Crexi Intelligence for Appraisers

Crexi Intelligence is the most innovative research and analytics software designed for the CRE industry. Join an exclusive webinar for Appraisal Institute members to explore the full benefits of an Intelligence subscription including:

• 84M+ nationwide properties with transaction history, including 46M+ broker-reported and county-verified sales comps
• Leasing data, history, and trends across key markets
• Private loan data with maturity dates and info on properties in pre-foreclosure from county and third party partnerships
• Dynamic, nationwide market reports
• Data on every parcel in the nation, including transaction history and owner information
• Demographic data including population, income, traffic counts, and more

The State of Appraisal: Key Trends & Industry Insights

April 17, 12 PM ET

Join us for an exclusive webinar featuring JoEllen Alberts of The Appraisal Foundation and Chase Pursley of JobsInAppraisal.com as they uncover the latest trends shaping the appraisal profession. Alberts will share key findings from The Appraisal Foundation’s most recent survey of appraisers, while Pursley will present research on changes in the Appraisal Subcommittee National Registry. Don’t miss this opportunity to gain valuable insights and stay ahead in the evolving appraisal landscape!

Speakers:
JoEllen Alberts, Project Manager, The Appraisal Foundation
Chase Pursley, CEO, JobsInAppraisal.com

Legislative Day – Your Voice, Your Impact

Now Free! Preregistration Closes on May 1

Attend the Appraisal Institute’s first annual Legislative Day to express your voice before your elected representatives in Congress. Legislative Day is your opportunity to help shape the future of the appraisal profession by engaging in grassroots advocacy on Capitol Hill. Legislative Day will culminate in a dynamic day and a half of policy education, grassroots advocacy and unparalleled networking opportunities with appraisal policy officials and industry stakeholders. The conference begins May 14 at 3:30 PM ET and concludes May 15 with a reception at 5 PM ET. There is no charge to attend this important event. However, preregistration will close at 5 PM ET on May 1.

New Rule Eases Compliance Burden for Small Businesses and Real Estate Investors

On March 21, 2025, the Financial Crimes Enforcement Network (FinCEN) issued an interim final rule that significantly reduces the compliance burden for small businesses, including real estate investors, under the Corporate Transparency Act (CTA). The rule eliminates the requirement for U.S.-based entities and individuals to file beneficial ownership information reports, shifting the focus of reporting obligations to foreign companies operating in the United States.

This change comes as a relief to many small business owners and real estate professionals who would have faced complex and potentially costly reporting requirements under the original CTA framework. Previously, the law required most businesses—except those meeting a $5 million revenue and 20 full-time employees threshold—to disclose detailed information about their beneficial owners. Now, only entities formed under foreign law and registered to do business in the United States must comply with the reporting mandate.

Key Changes Under the Interim Final Rule

• Exemption for U.S.-Based Companies: Domestic corporations, limited liability companies (LLCs), and similar entities no longer need to file beneficial ownership reports.
• New Definition of Reporting Companies: The rule narrows the definition of “reporting company” to include only entities formed under the law of a foreign country and registered to do business in the United States.
• Relief for U.S. Beneficial Owners: Even for foreign companies still subject to the CTA, U.S. individuals who are beneficial owners will not be required to disclose their ownership information.
• New Filing Deadline for Foreign Entities: Foreign reporting companies must now submit their beneficial ownership reports by April 25, 2025.

What This Means for Real Estate Appraisers

While this change provides much-needed relief, it has also raised concerns about potential loopholes. Some financial crime experts warn that the new rule could allow foreign actors to bypass disclosure requirements by structuring entities under U.S. laws, potentially enabling illicit financial activity through shell companies. FinCEN has opened a public comment period until May 27, 2025, to gather feedback on these changes and will consider adjustments before issuing a final rule later this year.

Looking Ahead

For appraisers, this regulatory shift underscores the evolving landscape of financial transparency laws and their impact on real estate. While the CTA’s original intent was to combat money laundering and financial crimes, this exemption ensures that small business owners—including independent appraisers—are not unduly burdened.

Real estate professionals should stay informed about future developments as FinCEN finalizes its regulations. In the meantime, those who previously expected to comply with the CTA’s reporting requirements can now focus on their core business operations without additional compliance worries.

Energy Efficiency Legislation Reintroduced

U.S. Congressman Sean Casten (D-IL-06) and Senator Michael Bennet (D-CO) reintroduced the Getting Renewable and Energy Efficient Neighborhoods (GREEN) Appraisals Act, legislation to encourage energy-efficient and clean energy features to be considered as part of the residential home buying process. The GREEN Appraisals Act aims to standardize the value of energy-efficient features across the housing market, encourages sustainable building practices, and supports green jobs in the housing industry. The legislation has been endorsed by the Appraisal Institute, the American Society of Appraisers, RESNET, Pearl Certification, and the Building Performance Association.

Click through the links to major real estate industry stories.

Major Property Tax Ruling: Texas Court Reinforces Exclusion of Intangible Assets from Ad Valorem Valuation, KE Andrews News & Insights
A Texas court ruled that intangible assets like production tax credits and power purchase agreements cannot be included in property tax valuations. In Rocksprings v. Val Verde County, the court determined these financial instruments are exempt from ad valorem taxes under Texas law, potentially affecting renewable energy taxation nationwide.

Minneapolis's Total Property Value Falls for Second Consecutive Year, The Minneapolis Star-Tribune
Minneapolis property values dropped 1% overall, with commercial properties declining significantly (downtown down 9.5%, offices down 22%) while residential values rose 2.6%. This shifts more tax burden to homeowners, who now shoulder over 53% of the city's tax capacity—up 6 percentage points since 2020. With a 6.8% levy increase for 2025, homeowners face increasing pressure from both shifting burden and higher levies.

Why Aren’t Homeowners Moving as Much as They Used To?, New York Times
Americans are staying in homes nearly twice as long compared to 2005 (11.8 years vs. 6.5 years), despite a pandemic-related dip from the 13.4-year peak. California has the longest tenures, with Los Angeles topping at 19.4 years. Proposition 13’s property tax limitations incentivize Californians to stay put, while nationally, favorable existing mortgage rates and aging baby boomers contribute to longer homeownership periods.

What $1 Million Can Buy in Prime Real Estate Around the World, Visual Capitalist
Monaco's luxury real estate is the world's most expensive, with $1 million buying just 205 square feet—roughly a parking spot. Hong Kong follows at 237 square feet, while New York offers 366 square feet for the same price. Over the past decade, buying power has plummeted in Dubai (-59%) and Miami (-54%), while London has seen a 43% increase due to currency fluctuations and market corrections.

The Rally in Spain’s Real Estate Market Gathers Pace, CaixaBank Research
Spain's real estate market accelerated in 2024 with sales up 10% (642,000 homes). Strong demand driven by falling interest rates, population growth, and foreign buyers (14.6% of purchases) faces insufficient supply despite 16.7% growth in construction permits. This mismatch pushed prices up 10.4% year-on-year, with the trend expected to continue through 2025.

Appraisal Institute Chapter Offers Unique Friday-Saturday Courses

This is the foundation of your career in real estate appraisal—Basic Appraisal Principles and Basic Appraisal Procedures—available now in a unique classroom format with an easy-to-attend schedule to accommodate busy schedules! Both classes are held Friday-Saturday over two-week periods. Don’t miss this unique opportunity to start your appraisal career or learn the fundamentals of real estate appraisal!

Basic Appraisal Principles – Classroom
April 11-19, 2025
Braintree, MA
Massachusetts Rhode Island and Maine Chapter
Class: 28 hours, Exam: 2 Hours
Steven G. Elliott, SRA

Basic Appraisal Principles – Classroom
June 6-14, 2025
Braintree, MA
Massachusetts Rhode Island and Maine Chapter
Class: 28 hours, Exam: 2 Hours
Joseph V. Comperchio, MAI, SRA

LDAC Registration Slots Available

A few spots remain available for the 2025 Leadership Development and Advisory Council meeting on May 14-16 in Washington, DC. LDAC fosters creative thought from talented real estate appraisal professionals, generating future leaders of the Appraisal Institute. LDAC has served as a source of leadership and as an inspiration for new programming ideas for the Appraisal Institute since 1969. Through a series of roundtable discussions, LDAC provides a forum where ideas and opinions on targeted topics of concern to the appraisal profession are exchanged.

Until next week,
Team Appraisal Institute