Appraisal Bias Allegations Moving Forward Under Fair Housing Act
In this issue:
- Pre-Register for Valuation Bias and Fair Housing Seminar
- Bipartisan Appraiser Licensing Bill Reintroduced in House of Representatives
- Still Need 7-Hour USPAP Update Course? AI Chapters Have You Covered
- AI Award Deadline Extended to December
Coming Soon - Valuation Bias and Fair Housing Course
The Appraisal Institute is pleased to announce an upcoming online course, Valuation Bias and Fair Housing Laws and Regulations. This timely program will provide appraisers with essential training on civil rights protections, valuation bias, and fair housing laws—all designed to help you strengthen your practice and better serve your clients.
What You’ll Learn:
- Understanding valuation bias and its impact on appraisal practice
- Federal fair housing laws and regulations for appraisers
- The civil rights complaint process in detail
- Best practices for report writing to ensure compliance
- Landmark Supreme Court cases and real-world examples shaping today’s rules
Format and Timing:
This seminar has been submitted for state certification approvals. It is expected to be offered in a 7-hour format, with an optional 8-hour version that includes a 1-hour exam. Both versions cover the same core content, with the exam providing additional assessment.
Why Pre-Register?
Be among the first to secure your spot when registration officially opens. By pre-registering, you’ll receive priority notification and early access as soon as the seminar is available.
Insights
Appraiser Licensing Portal Legislation Reintroduced in U.S. House
A new push to modernize the real property appraiser licensing process is underway. The Portal for Appraiser Licensing Act (H.R. 5520) has been officially reintroduced in the U.S. House of Representatives, led by Rep. Barry Loudermilk (R-GA) with bipartisan cosponsors Reps. David Kustoff (R-TN), Daniel Meuser (R-PA), Scott Fitzgerald (R-WI), Brittney Pettersen (D-CO), Joe Neguse (D-CO), and Susie Lee (D-NV).
The legislation would authorize the Appraisal Subcommittee (ASC) to create and manage a centralized online portal for appraiser credentialing across all 55 state and territorial licensing jurisdictions. The goal is to streamline the administrative process for obtaining, renewing, and managing appraisal licenses—especially for professionals working in multiple states.
Key provisions include:
- A unified application system for initial licensure, renewals, and reciprocity;
- Real-time license status updates for appraisers and regulators;
- Improved data sharing among state agencies to reduce duplication and delays;
- Stakeholder input built into the platform’s development, ensuring usability and effectiveness.
Why It Matters
This legislation addresses the patchwork of state-by-state licensing procedures, which is a long-standing challenge in the appraisal profession. By simplifying and digitizing the process, the bill would reduce friction for appraisers and enhance regulatory efficiency.
We commend Reps. Loudermilk, Kustoff, Meuser, Fitzgerald, Pettersen, Neguse, and Lee for their leadership and are closely monitoring the bill’s progress. The Appraisal Institute will continue to advocate for modernization measures that support appraisers’ ability to serve clients across state lines without undue administrative burdens.
Stay tuned for updates as this important legislation advances—and thank you for being part of our mission to strengthen and elevate the valuation profession.
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Appraiser Liability Trends: Litigation Risks for Commercial and Residential Appraisers
The Appraisal Institute is proud to present this webinar in partnership with Liability Insurance Administrators (LIA) - the only Errors & Omissions program endorsed by the Appraisal Institute since 1991, and the largest program in the U.S. dedicated to appraisal professionals. In addition to E&O, AI members now also have access to LIA’s endorsed General Liability and Cyber Liability Insurance products, offering comprehensive protection for today’s evolving risks.
Presenter: Steven Bauer, Attorney, Gaglione, Dolan & Kaplan
During this session, experienced outside counsel will spotlight the latest litigation trends and liability risks impacting both residential and commercial appraisers. Attendees will walk away with practical strategies for risk management, a stronger understanding of how claims arise, and best practices for mitigating exposure in a shifting legal landscape.
Key Litigation Issues to Be Covered
- Overvaluation and Undervaluation Claims
Why appraisers are frequently drawn into disputes when market performance, foreclosures, or resales differ from their opinions of value. - Bias and Fair Housing Allegations
The rising wave of appraisal bias claims, federal scrutiny, and how appraisers can protect themselves through sound practice and documentation. - Engagement Letter and Scope-of-Work Disputes
How unclear assignment terms create litigation risk — and steps to ensure clarity and defensibility. - Third-Party Liability
Expanding exposure from borrowers, buyers, and others outside the client relationship, and strategies to limit liability. - Regulatory and Disciplinary Proceedings
The interplay between board complaints, federal investigations, and civil claims. - Risk Management Best Practices
Practical steps appraisers can take to reduce exposure — including maintaining independence, careful recordkeeping, and leveraging liability insurance.
Advocacy Updates
DOI’s New Appraisal Authority Under the AACE Act Raises State-Level Questions
The Department of the Interior (DOI) has begun implementing provisions of the Accelerating Appraisals and Conservation Efforts (AACE) Act, which expands the Department’s authority to procure appraisal services. The law authorizes DOI to contract directly with any certified general appraiser in the United States, but only after first attempting to locate an appraiser in the state where the assignment occurs. This new authority is intended to streamline the Department’s ability to obtain timely appraisals from qualified and cost competitive appraisers, though state-level discussions are beginning to reveal uncertainties in how the law will function in practice.
The AACE Act establishes a two-step process. First, DOI must try to locate and contract with an in-state certified general appraiser. If that search does not produce a qualified professional able to complete the work in a timely and cost-effective manner, DOI is explicitly empowered to contract with any certified general appraiser nationwide. The law balances the qualifications of appraisers across the country with a stated preference for local practitioners while granting DOI flexibility when local options are not viable.
That balance came into focus during a September 22 meeting of the North Dakota Real Estate Appraiser Qualifications and Ethics Board. The Board reviewed an inquiry from an out-of-state appraiser engaged by DOI to perform work in North Dakota. The appraiser asked whether a reciprocal credential or temporary practice permit was required. After discussion, the Board informally concluded that it was up to the appraiser and DOI to determine whether the assignment fell within the scope of the AACE Act exemption, meaning that a state-issued credential might not be necessary. The Board’s position reflects recognition of DOI’s federal authority but leaves appraisers with the responsibility to ensure compliance with the Act’s requirements.
This situation highlights an important intersection between federal and state roles. On one hand, the Act clearly empowers DOI to turn to out-of-state appraisers when local resources are unavailable. On the other hand, appraisers themselves need clarity about whether they must obtain state-issued credentials or may rely solely on DOI’s contracting authority. The North Dakota discussion underscores that this issue is still evolving and could vary by jurisdiction.
The AACE Act provides a framework for more efficient federal appraisal procurement, but the state-level deliberations demonstrate that its implementation will raise practical questions for appraisers in the field. The Appraisal Institute will continue to monitor these developments and advocate for consistent recognition of DOI’s authority so that certified general appraisers can support DOI’s appraisal needs without encountering unnecessary regulatory barriers.
Tax Court Rejects Quarry-Based Easement Valuations
In Jackson Stone South, LLC & Jackson Stone North, LLC v. Commissioner, T.C. Memo. 2025-96 (Sept. 23, 2025), the U.S. Tax Court disallowed charitable contribution deductions tied to conservation easements over more than 500 acres in Jones County, Georgia. The taxpayers’ appraisals relied on a hypothetical quarry highest and best use (HBU) and discounted cash flow models, but the court found those assumptions speculative given zoning and permitting hurdles as well as weak market support. By contrast, the court emphasized the importance of local market evidence, credible entitlement analysis, and thorough documentation.
For appraisers, the decision is a reminder that easement valuations—and indeed any appraisal—must be anchored in realistic HBUs supported by entitlement probability and market demand. Unsupported adjustments, overreliance on DCF, or insufficient baseline documentation can quickly erode credibility. The ruling also sustained accuracy penalties, underscoring the court’s expectation that appraisers present transparent, defensible analyses grounded in real-world data.
Real Estate Horizons
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Your Community
AI Award Nominations – Deadline Extended to December 1, 2025
Know an exceptional leader? Beginning in 2026, our national awards will once again be presented at the Appraisal Institute Annual Conference. These honors are among the highest recognitions in our organization and presenting them during our largest gathering reflects their true significance. To align with this return to a time-honored approach, the nomination deadline for our annual awards has been extended to December 1, 2025. This extension ensures ample time for thoughtful nominations and allows us to celebrate our honorees at the Annual Conference in April 2026.
Please nominate an AI colleague today for one of our highest honors.
Until Next week
Team Appraisal Institute
