Appraisal Bias

[J Grant]

Calling all white appraisers racist is exactly the same as calling all Black People Lazy. Neither one of the statements is true. It's meant to cause a visceral reaction.
It puts all Appraisers on the defense and keeps them out of the conversation.

Someone monitoring(lurking) this forum will take what I said above and twist it by misquoting. Journalist are some of the worst quoting out of context.

I will address what you just said.

Nobody is calling white appraisers racist. The charge was that some appraisals were impacted by possible racial bias. We sound like ignorant fools who deserve the charge when we use the wrong words because accusing someone of being racist, and claiming a professional product might be impacted in some cases by racial bias are not one and the same.

The observation by the task force that appraisal is 97% white and that contributed to the bias is off target imo , but at the same time, the ignorant statements that continue, unabated from some on this board is not a good look either.

 

[Carnivore]

 

[Tiffany Gibbons]

I will address what you just said.

Nobody is calling white appraisers racist. The charge was that some appraisals were impacted by possible racial bias. We sound like ignorant fools who deserve the charge when we use the wrong words because accusing someone of being racist, and claiming a professional product might be impacted in some cases by racial bias are not one and the same.

The observation by the task force that appraisal is 97% white and that contributed to the bias is off target imo , but at the same time, the ignorant statements that continue, unabated from some on this board is not a good look either.

The BLS statistics include "assessors" and appraisers. The task force does not realize that most county assessors are elected officials, and their employees are not typically licensed. Most local counties require only a high school diploma for deputy assessors or field appraisers and there is nepotism and lots of politics. They also are including general appraisers which are majority white males in that statistics, many of whom do not do residential appraisals to get to that percentage.

 

[djd09]

the only bias is the appraisers and their clients...if it is on the media it is a lie now go whitewash

 

[djd09]

I will address what you just said.

Nobody is calling white appraisers racist. The charge was that some appraisals were impacted by possible racial bias. We sound like ignorant fools who deserve the charge when we use the wrong words because accusing someone of being racist, and claiming a professional product might be impacted in some cases by racial bias are not one and the same.

The observation by the task force that appraisal is 97% white and that contributed to the bias is off target imo , but at the same time, the ignorant statements that continue, unabated from some on this board is not a good look either.

blaming others for your own confusions...and 97% of the scientists agree...their propaganda is slow boring and repetitive

 

[glenn walker]

I will address what you just said.

Nobody is calling white appraisers racist. The charge was that some appraisals were impacted by possible racial bias. We sound like ignorant fools who deserve the charge when we use the wrong words because accusing someone of being racist, and claiming a professional product might be impacted in some cases by racial bias are not one and the same.

The observation by the task force that appraisal is 97% white and that contributed to the bias is off target imo , but at the same time, the ignorant statements that continue, unabated from some on this board is not a good look either.

J.G. Grant is either blind or refuses to believe what is being said from the top down about the 97%. She now says they dont say White Appraisers but who is the 97% they use over and over in their attacks on the Profession - White . Below again is Biden administration and VP Harris and no the Task Force is not mostly about PAREA that a small part.

Fueled by growing evidence of discrimination against Black homeowners, the Biden administration announced a series of reforms to combat racism in the home appraisal process, requiring banks to ensure their algorithms are not racially biased, making information about the race and ethnicity of homeowners receiving appraisals public and calling on states to reduce barriers to join the mostly white appraisal profession.

“Home appraisals are meant to be fair and objective estimates of the market value of a property. However, far too often, they are not,” Vice President Kamala Harris said Thursday on a press call. “Black homeowners are more likely to have their homes undervalued than other homeowners. And homeowners in majority Black and majority Latino neighborhoods are almost twice as likely to be undervalued.” The appraisal industry is one of the nation’s least diverse professions. The vast majority of home appraisers are white, according to the Bureau of Labor Statistics

 

[glenn walker]

Note: I dont expect most to admit they are part of the 97% with a target on their backs as they may lose their livelihood by a task force lurker who will take them down. The amazing part is how they are still electing the same people who are going to destroy them.

 

[glenn walker]

No Diversity: 96.5% Of U.S. Appraisers Are White​

by Jonathan Miller The housing industry we know today was built on a foundation of racism by the federal government

So I looked at U.S. labor force data from the U.S. Bureau of Labor Statistics [BLS], which ranked the top 400 occupations by sex, race, and Hispanic or Latino ethnicity. I’ve been an appraiser for 35 years and it’s been very clear that there is nominal diversity in my profession. For users of the industry’s services who have constantly complained about “appraisal shortages” (translated: a shortage of appraisers willing to work for 50% to 75% below the market rate) – here is your opportunity for action to expand our ranks.

The appraisal industry is aging out because it is hard to bring in youth. It is one of the only professions that require new entrants to have a mentor for their first two years and often without making a living, financially. One of the key reasons for this is because most financial institutions won’t accept a “trainee” until they are licensed or certified with two years of experience. A “trainee” is a derogatory term applied to an appraiser that is not licensed yet. While the GSEs like Fannie and Freddie are fine with “trainees” signing reports prior to their two-year experience threshold, most banks are not. Existing appraisers are all for the difficult entry because supply and demand are in their favor. Few other professions have this two-year mentorship period before an entrant can make a living.

Accountants don’t require a two year mentorship program before they can make a living. Free market conditions should let those with more experience make more money, but not zero.
As a result, entry into the appraiser profession via a mentor system essentially requires appraisers to have relatives that will hire and train them. Given the beginnings of the housing industry as explained next, you can see the problem with this approach.

 

[glenn walker]

Automated Home Appraisals May Be Regulated to Prevent Bias: Kiplinger Economic Forecasts ( my note : A woke AVM )​

The federal government is proposing regulations for appraisal models to ensure accuracy and nondiscrimination for homeowners.
Federal regulators want to tweak rules for automated home appraisals. Under a Biden administration proposal, agencies would require firms that use automated valuation models to adopt best practices and procedures to ensure accuracy, fairness and compliance with nondiscrimination laws. Proponents say the new rules could prevent bias in home appraisals, with algorithms serving as a check on human appraisers or replacing them.


Unlike a regular home appraisal, where a person looks at a property and assesses its value based on comparisons to other recent home sales, automated valuations rely on formulas to do the job. Regulators say rules for these models are needed because they can still reflect the biases of the people who initially developed them. The proposal is part of a wider push to address the problem.

 

[J Grant]

We can only know what we know.

I think this task force has taken a lot on and will find itself floundering soon. It is one thing for them to do studies and make certain conclusions and recommendations. Now they have to see results. How are they going to recruit minorities into appraisal ? What person of any race or gender in their right mind would go into res appraisal now? A dead end field being decimated by low fees and under threat from Waivers ? Okay, assume they might find some minority takers for the PAREA scholarships. Then what? They finally graduate and maybe get some low rung AMC staff appraiser job? Then what? As if that would change anything...and how long would they last, it is not a glamour field or a well paid field or a reward for its own sake field...what is in it for them?

Then this task force wants to review AVM's for racial bias in data. Good look with that, considering the huge volume of AVM's being done from a myriad of sources. Then they want to watch for it in appraisals. How are they going to do that? Imo they will respond to a handful of lawsuits a year and keep making studies about data with no solution in sight, because what they hope to happen goes against all sound valuation methods whether appraisal or AVM

My prediction is they wont' be able to do much of their lofty goals, because AVM;s are not a formula divorced from the SCA , they use an SCA and the same data appraisals use. I suspect PAVE will try to find minority applicants for the PAREA scholarships and naively believe PAREA will somehow increase the minority rolls of appraisers/. IF it increases minority participation, then well done. If not, they can keep studying the "problem". And lenders and investors do not want to be on the hook for over valued properties, so a solution will not be tweaking an AVM to see it happen.

Idk what will happen, but the task force will soon find our first hand that property valuation wither by appraisal or AVM is not as simple as it looks , and being involved in it is always some kind of quicksand depending on the market cycle one is in.