Congress woman calling you racist again, another nail after 3.6.

[ucbruin]

Bull chit. Generational wealth only helps those in the upper range of income. Someone with an income of $80k is not benefiting from generational wealth. How much "wealth" will you be leaving your kids

Maybe a different term than "wealth" should be used....
I believe most people with common sense understand what the term "generational wealth" means in this conversation....

 

[Terrel L. Shields]

Generational wealth surely helps White Non-Hispanics in many aspects of their lives.

Oh? I was born in a 2-room house that did not have running water, electricity, nor plumbing, not even a kitchen sink. We heated with a wood stove and cooked over one. My father was a disabled vet who had experienced an experimental surgery on his back. He gave $10 an acre for the farm and the seller carried the note. What generational wealth did he have?

 

[George Hatch]

In most of the pricing tiers people are shopping for rentals and home purchases by payment. It is their employment and income that determine how much payment they can afford.

Meanwhile, gentrification is the other complaint the activists have. Gentrification is a direct result of pricing increases that occur via remodeling and redevelopment trends.

 

[Fernando]

I was watching last night 60 Minutes and it had the headline segment in how the White folks in Appalachian town in West Virginia is so poor that their water is undrinkable and comes out dirty.
Average income is like $30,000. That's below poverty.
Didn't know horrid conditions still exists in America. The town use to be thriving with coal mining jobs but now has few jobs. Broken promises from politicians in fixing their problems.
Most have moved out which is good for their health sake. I appreciate CA more knowing we don't have such dire problems.

 

[George Hatch]

You need to get out of your bubble.

There are some communities in California that have been having problems with water quality and water availability for years. Air pollution in the central valley and some parts of Southern Calif have been a problem for many years.

 

[Fernando]

You need to get out of your bubble.

There are some communities in California that have been having problems with water quality and water availability for years. Air pollution in the central valley and some parts of Southern Calif have been a problem for many years.

Nothing as bad as West Virginia. It's like living in a third world country there with no drinkable water and can't take showers. I can't imagine people still living like that over there.

 

[Sandra Koutsopoulos]

Meanwhile, gentrification is the other complaint the activists have. Gentrification is a direct result of pricing increases that occur via remodeling and redevelopment trends.

Speaking of gentrification, and thinking about 'biased valuations'... Hmmm... So if a pre-gentrification property sells for less in that neighborhood based on prior sales comps, and owners say their properties are under-valued due to bias, when the yuppies move in, creating higher demand and higher prices, that's also something to complain about?

I still say we value properties based on recent comps; let the chips fall where they may, and doing 'creative valuations' to try to appease a particular audience is fallacious.

 

[George Hatch]

I actually do not care if the politicians want to use appraisals to advance their political agendas. If the govt wants appraisals based on different types of values then that's fine. I only care that the govt not demand that appraisers lie about what type of value they're working with. If it's some form of "mortgage value" or "reparations value" or "men ain't sht value" that's 100% fine by me. All I want is for them to openly acknowledge the question they're requiring appraisers to answer. If they want to use some other definition of value that uses different assumptions then just put it in writing. Because if they're allowed to ask it then we're allowed to answer it, and indeed are at fault if we're not answering the question as asked.

I don't think there's any reason for appraisers to get emotionally torqued over it if Congress decides to use some contrived or creative definition of value other than MV. Just don't require us to do one thing (MV) and say another (Restorative Value). Don't make us lie.

 

[shrubberyvaluation]

In most of the pricing tiers people are shopping for rentals and home purchases by payment. It is their employment and income that determine how much payment they can afford.

Meanwhile, gentrification is the other complaint the activists have. Gentrification is a direct result of pricing increases that occur via remodeling and redevelopment trends.

I would also note with gentrified areas that have had a majority of minority residents when you see white people living in the area its typically in one of the renovated or new houses. So if you are comparing the value of homes owned by whites to homes owned by minorities (many which many be old and in need of repair or the bare minimum is done) of course the white owned homes will be worth more, and of course its not because of the color of the skin of the occupant.

 

[J Grant]

Oh? I was born in a 2-room house that did not have running water, electricity, nor plumbing, not even a kitchen sink. We heated with a wood stove and cooked over one. My father was a disabled vet who had experienced an experimental surgery on his back. He gave $10 an acre for the farm and the seller carried the note. What generational wealth did he have?

Did you buy the farm you own now, or was it inherited?
As far as what generational wealth your father had, he had the trust and approval of the seller to carry a note for the land, which might not have been extended had your father been a minority. He might not have even had the $10 an acre to put down.

But the topic is not generational wealth. The topic is the problem the charge of bias against appraisers has created. And I lay a lot of the blame on that on the GSE's who exploited it have another weapon against appraisers and justify the PDR collection hybrid that they had developed anyway.
This all came about from a handful of lawsuits where none of the appraisers who did the first "low" appraisal was found to have a faulty value. One appraiser fought back, all the cases were dismissed but the owners got a settlement from the bank to avoid bad PR. All the GSE's had to do was explain how market value opinions work and that even in non minority owned homes or areas, some houses or subdivisions will appraise for less than others.

The GSE's did internal studies, and all they could come up with was a narrow percentage point more of homes that appraised for below the sale price in certain census areas. The biased assumption was levied, without control studies done of other census areas for income levels or heavy FHA investing.

This congresswoman and the handful who falsely accuse racism led to lower values are either ignorant about valutions, or they are opportunists, or both. But nobody from the appraisal organizations or the stakeholders educated or stood up to them, so appraisers were left out to dry as the targets.

Maybe it will come back to bite the GSE's if their own AVMs, algorithms, or PDR decisions face bias charges. Lower prices of the comps, which lead to lower values for certain homes, will also result in a lower value in an AVM or other product. And the photo scanning used to determine Q and C ratings, which affect loan decisions, will face the same problem.