Well, they are arguing that red lining from a century ago is resulting in appraiser bias today.
And maybe that is a valid discussion. But I think the discussion should focus on ideas rather than words.
For anyone interested in more historical context, you can
read Chapter 7 "Influence of Social and Racial Factors" from
The Valuation of Real Estate by Fredrick M Babcock (First Ed., 1932). There are some interesting observations by Babcock about neighborhood development cycles through a social and racial lens. Here's a teaser:
I do not know if Babcock was a racist. I don't think he was advocating for segregation (above), but just making 1930s-esque observations. But by today's standards, many of which came out of the Fair Housing Act, most of these observations would be prohibited in today's appraisal practice.
And so, maybe eliminating the use of certain words like "homogeneous" might just be viewed as a continuation of this process/progress. Time will tell. Even though I approach these issues from the left, I think progressive attempts to engineer or restrict language fail when they don't confront the "offensive" or discriminatory nature of the ideas/concepts behind the words. The Fair Housing Act confronted discriminatory policies. It would be better if the financial industry took an honest look at the appraisal methods rather than just doing the politically expedient thing of banning language as an expediency to avoid lender risk.
I'm not promoting any of these ideas, but I think a debate could be had on whether or not, based on
user direction:
-The appraiser should discuss or consider the negative impacts of neighboring disparate uses on residential property values, which create a lack of conformity, including religious uses.
-The appraiser should adjust for obsolescence caused by a highway that was deliberately placed through a redlined neighborhood.
-The appraiser should adjust for seller concessions up to a certain percentage. (This could close the appraisal gap.)
-First-time buyers should be allowed a second appraisal if the first one comes in below their expectations. (This too could close the appraisal gap.) And
-Reparations for our black citizens should be offered in the form of favorable financing terms.
Attacking market-based valuations, without nuance, seems like a poor use of political capital. Howell is engaging on the topic in a useful manner, I just think she goes too far when other more realistic and achievable steps can be taken. On the other end are those who immediately lie down to the "appraisal bias" narrative out of fear without engaging in a serious discussion, which can hurt both appraisers and also those impacted by discrimination.
