RIP AQB and ASC, to be replaced with "Federal Valuation Agency"

[djd09]

Racial Bias In Home Appraisals​

National studies found that appraisers regularly overlook higher-value comps and instead choose comps based on neighborhood racial demographics, prohibited by state and federal law.


Don is a member of the Illinois REALTORS Discriminatory Appraisal Task Force, which aims to end discriminatory home appraisals.

The 22-member task force is made up of Illinois REALTORS members, lenders, and appraisers from across the state. Lutalo McGee is the task force chair, “It is very important that we get to the bottom line and eradicate these remaining vestiges of systemic injustices from the real estate appraisal and home loan process as soon as possible.”

Racial Bias In Home Appraisals - The Chicago Reporter

The Chicago Reporter is committed to producing stories that identify marginalized communities’ challenges and opportunities. In recent months, the racial bias in home appraisals has dominated the conversation in Chicago, the state, and across the country. In Part 1 of 2 of Racial Bias In Home...

www.chicagoreporter.com

appraisers are secretly meeting and deciding all the sales prices

 

[George Hatch]

The all-cash and low LTV buyers are doing the same thing; paying differently for different locations. It's a conspiracy.

 

[djd09]

yeah sure your gse buddy will start talking about black helicopters soon

 

[TerryRohrer]

Coming from the only appraiser in the room

From his linkedin bio, I'd guess it has been 20+ years since he completed an appraisal. Not sure I would characterize him as an appraiser at this point.

 

[shrubberyvaluation]

From his linkedin bio, I'd guess it has been 20+ years since he completed an appraisal. Not sure I would characterize him as an appraiser at this point.

Probably the closest to it in the room. David Bunton, president at TAF basically was just saying all allegations are concerning and need to be looked into, he didn't really add anything other than the racial composition of TAF.

 

[Sadie]

"There is a lot of discretion in how appraisers make their adjustments, how they choose comparable sales, and how they ultimately reconcile to the final value conclusion. We need to find ways to remove as much of that discretion as possible." - James Park, Executive Director of ASC

Coming from the only appraiser in the room, this floored me. Is Mr. Park's contention that the Federal government should regulate comparable selection criteria, adjustments, and the final reconciliation process? Shouldn't the goal be to give appraisers more information to make better-informed decisions rather than eliminate their ability to logic and reason through appraisal problems? Haven't we learned that user efforts to control these factors have unintended consequences that make appraisals less credible?

Look at his linkedin page to see what is behind his motivation. He is not a real estate appraiser, he is property (not real estate) appraiser and as such has no idea how real estate appraisals work.

 

[Salty]

Maybe the gubment will provide us with adjustment sheets. I would like that because I could just be a form filler and don't really have to hurt my brain thinking. I wonder what the adjustment for location would be? Would the fireplace adjustment still be $2,500 like it was on the old adjustment sheets?

I feel like all of this nonsense is occurring because a certain percentage of residential appraisers do not how to properly appraise anything other than cookie cutter and of the ones that do, some of them simply do not properly explain their methodology with enough detail and back-up in the report. They slap numbers on a grid, write some generic paragraphs in an addendum and done.

My experience tells me that a fireplace adjustment if $2,500. Uhhh OK, but the guy over there- his experience says its $5,000. I say show data..

 

[DWiley]

He is not a real estate appraiser, he is property (not real estate) appraiser and as such has no idea how real estate appraisals work.

You might want to research that a little more He has an active CG

 

[shrubberyvaluation]

Maybe the gubment will provide us with adjustment sheets. I would like that because I could just be a form filler and don't really have to hurt my brain thinking. I wonder what the adjustment for location would be? Would the fireplace adjustment still be $2,500 like it was on the old adjustment sheets?

I feel like all of this nonsense is occurring because a certain percentage of residential appraisers do not how to properly appraise anything other than cookie cutter and of the ones that do, some of them simply do not properly explain their methodology with enough detail and back-up in the report. They slap numbers on a grid, write some generic paragraphs in an addendum and done.

My experience tells me that a fireplace adjustment if $2,500. Uhhh OK, but the guy over there- his experience says its $5,000. I say show data..

I'd love to see their water view adjustments. What their adjustments are based on differing water front properties. I don't think this nonsense is because of that. It seems more likely people can find someone to inflate some value that is no where realistic to the market and the other appraiser gets burned for not also hitting the target. While I'm all for more transparency, I don't think that is the issue here when they complain about you not extended your search to neighborhoods with higher home prices, because racism.

 

[goumcanes]

While you read, you can listen.

And never forget the IVPI....Independent Valuation Protection Institute...dead upon announcement but announced nevertheless! Thx Mr. Cuomo!

Independent Valuation Protection Institute​ ​

The Independent Valuation Protection Institute is being created pursuant to the Home Valuation Code of Conduct. The Home Valuation Code of Conduct is a product of negotiations between the New York Attorney General, the Federal Housing Finance Agency, Fannie Mae and Freddie Mac. Its goal is to improve accuracy and independence in the real estate appraisal process and to provide additional protections for homebuyers, mortgage investors and the United States housing market. The Independent Valuation Protection Institute is intended to implement the Home Valuation Code of Conduct. Basic information about the Independent Valuation Protection Institute​ The Independent Valuation Protection Institute is to be established to maintain the integrity of HVCC by monitoring and studying federal and state laws and regulations as well as market practices and standards. The Independent Valuation Protection Institute is to be headed by a Board of Directors. The Board is to consist of experts in the fields of real estate finance, loan origination, law enforcement, compliance review and real estate valuation and appraisal. Members of the Board may not have financial connection to Fannie Mae or Freddie Mac. The Independent Valuation Protection Institute is to be funded primarily by Fannie Mae and Freddie Mac for a period of not less than five years. Appraisers will be able to contact the Independent Valuation Protection Institute if they feel pressured, threatened or bribed into situations that compromise their independent valuation(s) and compliance with HVCC. The Independent Valuation Protection Institute will mediate incoming complaints and concerns to the appropriate federal and state regulators and in some cases, may even forward complaints to federal law enforcement agencies when warranted. A hotline number and email address is to be established and provided for consumers to contact if they believe the appraisal process has been tainted or if they have been affected by appraisal fraud. The New York Attorney General’s Office and the Office of Federal Housing and Enterprise Oversight (OFHEO) will approve membership of the Board members and the Independent Valuation Protection Institute may be affiliated with existing academic, professional and/or industry organizations. As the Independent Valuation Protection Institute begins its work, we will have more information available here.​