Black Homeowners Face Discrimination in Appraisals

[Renee Healion]

Okay, Appraisal Institute, ball's in your court. Time to stand up for the impartial, the objective, the independent, regardless of their color, and despite their status as living beings.

 

[Carnivore]

So Called Systemic Racism is not built into our profession. Quite the Contrary we have gone to great lengths to insure we don't have any Bias. For that matter we have built into our reports some things to prevent others from being biased. I.E We blotch out any pictures in the home; We try not to have any exterior pictures of People. If we do have people in the Pix we cover them up.

Recently we had a discussion here about Identifying Rooms in our sketch. Specifically using the term Master Bedroom, Master Bath... You can bet I am not going to use those Labels. Some how they will conflate that with the perceived systemic problem.

Something else I listened to on the so called news was the accusation that we appraisers are only selecting comparable from inside a specific neighborhood with predominate residents being a minority. We all know why we select comparable the way we do and it has nothing to do with race.

I do not see anyway to fix what were being accused of since the offense is not an offense.

Then you take the example of the Black Women Trainee who said she could not find a sponsor. I can only say she is experiencing a problem that all Trainees experience regardless of race or gender. Maybe she needs to Re-locate! Even that has problems because your limited to the State that issued your Trainee License. Even if we had national Licensing would only partly solve the problem. Why? Compensations levels don't make it profitable to move across country.

So AI is collaborating with the TAF. Question: Why does AI need to Collaborate with anyone. They can solicit new potential member candidates VIA Scholarship targeted to the minority community.

The Junior/Community Colleges in all the States offer Complete licensed Trade Courses; Plumbing, Electrician Real Estate Brokerage etc. Often times these Trade and Associate Degree Programs are Free for Disadvantaged(poor), Minorities, women. Why not add Appraiser Licensing. I know of one Professional License the Community Colleges in my area absolutely embrace. CNA's Certified Nursing Assistants. It works very well and Minorities have jumped all over it! Why?

1. We need CNA's because they help lower Cost of Healthcare and their is a need for their Skill Set. In other words they have a Job Waiting for them to fill.
2. Based on Income no matter your Race, this is offered for Free by the Community Colleges. This includes all your Text Books, Equipment and Uniforms.
3. During this Training they actually work(for Free) in the local Hospitals. I think they call it Clinical Time. Something like that.

So we can fixed part of our problems at the State Level. We just need to send a Clear Message to the TAF to stop monkeying with the ED Requirements.

So here is my Suggestion. OK Big Boy Banks its all on you. So you have a need for Evaluators internally. Why don't you big boys step up and Help Minorities into those positions??? Sounds Good Right! WRONG! They are doing there best to get Internal Valuations(non-licensed Peeps) out-sourced.

Well I am done Ranting.... Its a waste of Time because I have no power!

 

[djd09]

$18,900
5 bd
2,786 Square Feet
Price cut: $7K (8/12)15992 Neladale Rd, East Cleveland, OH 44112

15992 Neladale Rd, East Cleveland, OH 44112 | Zillow

15992 Neladale Rd, East Cleveland OH, is a Multiple Occupancy home that contains 2786 sq ft and was built in 1925.It contains 5 bedrooms and 2 bathrooms.This home last sold for $60,000 in July 2022. The Zestimate for this Multiple Occupancy is $106,000, which has increased by $660 in the last...

www.zillow.com

look in the mirror.

 

[Joe Flacco]

$18,900
5 bd
2,786 Square Feet
Price cut: $7K (8/12)15992 Neladale Rd, East Cleveland, OH 44112

15992 Neladale Rd, East Cleveland, OH 44112 | Zillow

15992 Neladale Rd, East Cleveland OH, is a Multiple Occupancy home that contains 2786 sq ft and was built in 1925.It contains 5 bedrooms and 2 bathrooms.This home last sold for $60,000 in July 2022. The Zestimate for this Multiple Occupancy is $106,000, which has increased by $660 in the last...

www.zillow.com

look in the mirror.

 

[gregb]

Zillow Map

 

[DTB]

I don't see the color of the seller, but I do immediately see the burglar bars on the windows and hardware cloth on the front door. My comps would come from VERY nearby.

 

[Renee Healion]

So Called Systemic Racism is not built into our profession. Quite the Contrary we have gone to great lengths to insure we don't have any Bias. For that matter we have built into our reports some things to prevent others from being biased. I.E We blotch out any pictures in the home; We try not to have any exterior pictures of People. If we do have people in the Pix we cover them up.
/QUOTE]

We are entrusted tasked with removing these things from showing in report photos to insulate underwriters from just these sorts of accusations. Interesting comments on ed in your post.

If you do lending work, as most appraisers do, watch how the inevitable valued partners' legal department's official emails will read. To us, about us. Some text to swear you don't do what you already cannot do.

Assessors, Zillow has been riding on your work for years. You're next.

 

[Joe Flacco]

They are not replacing appraisals with AVMs. That is not even close to being a viable option. That fear is overblown. What we need to do is make our reports more credible and understandable for the average person.

 

[djd09]

CoreLogic, Black Knight, 'acceptable' AVM Providers
Mon 17 Aug, 2020 - 11:53 AM ET

https://www.fitchratings.com/research/structured-finance/corelogic-black-knight-acceptable-avm-providers-17-08-2020

 

[George Hatch]

Problem identification comes first. We need to quantify the actual extent of racially biased appraisals. We cannot respond to such allegations without evidence, whether that response entails remediation of substandard performance or the denial that it's occurring with any regularity.

I want to know if the ASB can assemble a list of licensees who have had such complaints levied against them and what the resolution of those complaints looks like. HUD and the GSE's, too.

IMO, an appraiser who dorks appraisals because of a personal bias is committing an ethical violation that is so egregious that if a pattern of such abuses can be demonstrated then they should - at the least - have their license stripped from them on the expedited basis.

I've said this many times over the years: as appraisers what we really sell is not signed appraisal reports with a number on the bottom line. Our primary stock in trade - the only aspect of what we do that makes our work marketable - are our assertions of professional impartiality and objectivity. We assert that we do not advocate for or against anyone's interests. If our users don't trust in our impartiality then we become just another value opinion to them that may or may not be reasonable.