Freddie Mac vs Appraiser Bias

[Bobby Bucks]

Be honest with yourselves: would you REALLY have preferred that either the AMC or Freddie had hired someone who had never operated a fee shop and who wasn't as technically competent with - and personally committed to - our appraisal standards as DW? Enough to come into a hostile forum like this and engage directly with his critics? Nobody else in the upper mgt of the GSEs has ever come here before.
Even USPAP itself would look different if not for DWs past service on the ASB and more recent interactions with them, and that "different" would not have worked to the benefit of appraisers. IMO you guys are barking up the wrong tree.

Well said. We should all be grateful that DW participates in this forum.

 

[Zoe]

Well said. We should all be grateful that DW participates in this forum.

I don't question his integrity. He is victim in some ways. I have empathy for some people. DW is one.

If I was betting man, I would bet DW would love to still be practicing independently.

 

[Zoe]

I am still not sure if GSE's have records on things like race. I can see where that might create problems. I don't think they have it. I am absolutely sure HUD has it. I am absolutely sure the the govt insured lender giving disclosures has it.

 

[DWiley]

If I was betting man, I would bet DW would love to still be practicing independently.

Actually, what I would really love is making what TG alleged I make

 

[residentialguy]

Dodged the question.

What difference does a question make? What he is saying is true. Him sending out an appraisal as an appraiser has no bearing on the reality.
Maybe you should just stick to the old standby of "it's Trump's fault"... or maybe Putin.

 

[Zoe]

Actually, what I would really love is making what TG alleged I make

Your good in my book. You need to use your mind more. Remember where you came from. I am big fan. I know you have seen the debacle. You are a victim. I have no doubt. FHMLC benefited. I hope you did also.

It's hard to go through TN without knowing somebody who knows somebody.

 

[DWiley]

How many times do I have to type this out for you to understand? It is not the clients, it is the software, same client, different software and the trainee signature passes.

Yeah, I get it. But, it is not the actual report creation software; it is the review set in the software package. If you can use another software and submit a report to that client, then I would contact ACI and inquire if there is an error in the review module. If there is an error, I think they would appreciate you bringing that to their attention.

 

[Elliott]

Why doesn't Freddie address the 'other' influences from the lending side identified in the AEI study which have a stronger affect on value? Instead they choose the perceived variable of "bias" ignoring other stronger influences?

"If the differences found by Freddie Mac are in fact, as our research indicates, largely due to factors such as differing rates of FHA financing and SES in the grouped census tracts, then addressing wealth inequities through the use of easier lending criteria and accommodative monetary policy create a systemic barrier to sustainable homeownership and wealth creation by subjecting protected class households to risky lending, unsustainable price boosts, speculation in land, and home price volatility as other AEI Housing Center research has shown.[3] These polices are a violation of the FHFA’s (and HUD’s and the CFPB’s) obligation to Affirmatively Further the Goal of Fair Housing. Thus, instead of Freddie Mac’s correlation being the result of systemic appraiser racism, it may well have been the result of government policies and actions which have a disparate impact on protected classes. We respectfully submit the following comments in an effort to highlight the above deficiencies and report on our research into other explanatory factors. We believe that our research could be quickly confirmed. We trust that this critique will help inform Freddie Mac, FHFA, policy makers and the public on this important topic.[4] "

https://www.aei.org/wp-content/uploads/2022/01/Freddie-Mac-note-on-Racial-and-Ethnic-Valuations-Gap-Housing-Center-Critique-Jan-2022-final.pdf?x91208

AEI Housing Center Critique of Freddie Mac’s Note on “Racial and Ethnic Valuation Gaps in Home Purchase Appraisals”

The AEI Housing Center finds that contrary to recent analysis by The markup/Associated Press, HMDA data on purchase loans do not show evidence of systemic discrimination by the mortgage lending industry when accounting for risk-adjusted loans.

www.aei.org

 

[TerryRohrer]

Why doesn't Freddie address the 'other' influences from the lending side identified in the AEI study which have a stronger affect on value? Instead they choose the perceived variable of "bias" ignoring other stronger influences?

"If the differences found by Freddie Mac are in fact, as our research indicates, largely due to factors such as differing rates of FHA financing and SES in the grouped census tracts, then addressing wealth inequities through the use of easier lending criteria and accommodative monetary policy create a systemic barrier to sustainable homeownership and wealth creation by subjecting protected class households to risky lending, unsustainable price boosts, speculation in land, and home price volatility as other AEI Housing Center research has shown.[3] These polices are a violation of the FHFA’s (and HUD’s and the CFPB’s) obligation to Affirmatively Further the Goal of Fair Housing. Thus, instead of Freddie Mac’s correlation being the result of systemic appraiser racism, it may well have been the result of government policies and actions which have a disparate impact on protected classes. We respectfully submit the following comments in an effort to highlight the above deficiencies and report on our research into other explanatory factors. We believe that our research could be quickly confirmed. We trust that this critique will help inform Freddie Mac, FHFA, policy makers and the public on this important topic.[4] "

https://www.aei.org/wp-content/uploads/2022/01/Freddie-Mac-note-on-Racial-and-Ethnic-Valuations-Gap-Housing-Center-Critique-Jan-2022-final.pdf?x91208

AEI Housing Center Critique of Freddie Mac’s Note on “Racial and Ethnic Valuation Gaps in Home Purchase Appraisals”

The AEI Housing Center finds that contrary to recent analysis by The markup/Associated Press, HMDA data on purchase loans do not show evidence of systemic discrimination by the mortgage lending industry when accounting for risk-adjusted loans.

www.aei.org

A question we have been asking since September of 2021, but I think Maxine Waters got the ammunition she desired/demanded/required with the first Research Note, and expect that will be the final word.

 

[Sadie]

Why doesn't Freddie address the 'other' influences from the lending side identified in the AEI study which have a stronger affect on value? Instead they choose the perceived variable of "bias" ignoring other stronger influences?

"If the differences found by Freddie Mac are in fact, as our research indicates, largely due to factors such as differing rates of FHA financing and SES in the grouped census tracts, then addressing wealth inequities through the use of easier lending criteria and accommodative monetary policy create a systemic barrier to sustainable homeownership and wealth creation by subjecting protected class households to risky lending, unsustainable price boosts, speculation in land, and home price volatility as other AEI Housing Center research has shown.[3] These polices are a violation of the FHFA’s (and HUD’s and the CFPB’s) obligation to Affirmatively Further the Goal of Fair Housing. Thus, instead of Freddie Mac’s correlation being the result of systemic appraiser racism, it may well have been the result of government policies and actions which have a disparate impact on protected classes. We respectfully submit the following comments in an effort to highlight the above deficiencies and report on our research into other explanatory factors. We believe that our research could be quickly confirmed. We trust that this critique will help inform Freddie Mac, FHFA, policy makers and the public on this important topic.[4] "

https://www.aei.org/wp-content/uploads/2022/01/Freddie-Mac-note-on-Racial-and-Ethnic-Valuations-Gap-Housing-Center-Critique-Jan-2022-final.pdf?x91208

AEI Housing Center Critique of Freddie Mac’s Note on “Racial and Ethnic Valuation Gaps in Home Purchase Appraisals”

The AEI Housing Center finds that contrary to recent analysis by The markup/Associated Press, HMDA data on purchase loans do not show evidence of systemic discrimination by the mortgage lending industry when accounting for risk-adjusted loans.

www.aei.org

When the first Freddie bias study came out, there were lots of caveats and alternative reasons for the results other than bias. But it was buried at the end of the article and video. So not too many people saw or heard them. Thank you for sharing that link.