HF 4003

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to real estate appraisers; prohibiting actions to improperly influence the
integrity of a real estate appraisal; prescribing a criminal penalty; proposing
coding for new law in Minnesota Statutes, chapter 82B.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [82B.25] APPRAISAL INDEPENDENCE.
new text end

new text begin Subdivision 1. new text end

new text begin Interference with independent appraisal prohibited. new text end

new text begin No person
with an interest in a real estate transaction or the financing of any loan secured by
real estate involving an appraisal assignment shall improperly influence or attempt
to improperly influence the development, reporting, result, or review of a real estate
appraisal. This includes mortgage lenders, mortgage brokers or originators, appraisal
management companies, real estate brokers and salespersons, buyers, sellers, clients,
appraisers, and other individuals associated with the transaction. Prohibited acts include
blacklisting, boycotting, intimidation, coercion, extortion or bribery, and any other means
that impairs or may impair the independent judgment of the appraiser, including but not
limited to the withholding or threatened withholding of payment for an appraisal fee, or
the conditioning of the payment of any appraisal fee upon the opinion, conclusion, or
valuation to be reached, or a request that the appraiser report a predetermined opinion,
conclusion, or valuation, or the desired valuation of any person, or withholding or
threatening to withhold future work in order to obtain a desired value on a current or
proposed appraisal assignment. It is also a violation for a borrower to choose an appraiser
or to influence the lender in the choice of the appraiser, with the intent of improperly
influencing an appraiser to reach a specified or minimum value.
new text end

new text begin Subd. 2. new text end

new text begin Penalties. new text end

new text begin (a) Violation of this section permits the commissioner to assess
fines, suspend or revoke the license, or assess other penalties suitable to the professional
license of the person influencing the appraiser.
new text end

new text begin (b) A person who violates this section is guilty of a felony, punishable by a fine or
imprisonment.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2008.
new text end