A Black couple ‘erased themselves’ from their home to see if the appraised value would go up. It did - by nearly $500,000

[jay trotta]

As I've said in the past, we are dealing with the sins of prior housing segregation. They're gonna nail individual appraisers to the ****ing cross over this stuff. Meanwhile, the bankers, GSEs, and Feds - the ones actually responsible - will be like, "It was appraisers all along!"

View attachment 57115

You can't make this stuff up, but if you look deep enough the History tells the truth about redlining all over the place;

 

[sputnam]

None of these accusatory 'experiments' ever account for the fact that it's a different appraiser the second time. As anyone who has spent time around appraisers knows, if you put 10 appraisers in a room, you will get 12 opinions.

 

[TerryRohrer]

Where are the GSEs at in these lawsuits?

Fomenting these lawsuits, would be my take. When they issued a press release, based on a preliminary compilation of data with only rudimentary analysis completed, and a conclusion that they don't know the cause of the "appraisal gap," with the clear message that: "This is a persistent problem that disproportionately impacts hundreds of thousands of Black and Latino applicants,” said Michael Bradley, senior vice president of modeling, econometrics, data science and analytics in Freddie Mac's Single-Family division. “Our research marks the beginning of a comprehensive effort to better understand the key drivers contributing to the appraisal gap. Our goal is to develop solutions to this persistent problem," they intended this result. They have now fulfilled the political promises of their handlers.

 

[J Grant]

Are the same few lawsuits being re cycled here on the board ?

It makes it sound like there are more lawsuits than there are - we are discussing one that has already been posted a number of times, correct?

 

[jay trotta]

And then there is this; from another thread;
Back in California, the new statute, which bears the fingerprints of the state’s powerful Realtors lobby, coddles sellers for what appear to be practical reasons.

In the Golden State, sales commissions on both sides of the transaction are typically paid from the seller’s proceeds at closing; hence, both the buyer’s broker and the seller’s broker need the sale to close to get paid. They don’t want heretical value opinions blowing up their commissions, even if the buyer benefits as a result.

The new fraud-enabling statute clearly places a sword of Democles over appraisers’ heads. The only acceptable outcome, should the appraiser not wish to draw special attention from the state’s licensing bureau, is one in which all properties appraise at or above their contract price. “Low” property opinions have somehow become the bête noir of self-styled appraisal reformers, but appraisal fraud historically occurs with inflated “high” appraisals. The new law also fast-tracks real estate brokers to become licensed appraisers.

The California law also hides behind a specious social-justice argument. It names protected classes, but the umbrella of protected classes is so broad that it includes literally everyone in the state.

 

[Carnivore]

"Strategies for Investigating Discriminatory Residential Appraisals."

"It is the hope that we will begin to narrow the wealth gap in our society and stem the tide of the persistent and systemic undervaluation or misvaluation of homes within our societies' black and brown communities."
--------------------------

Right above in that statement is classic deflection. The Social Policies of the past are a failure and we will first begin to fix it by Killing the messenger. You Appraisers stop telling us about the results of our policies.

I want to know why we have Black and Brown Communities? Is it household income? Is it Cultural? Is it the Government Public Housing Programs? My point is that I and YOU have virtually no say in formulation of Government Housing Policy or Programs. I and you have no say in Infrastructure Improvements. We have one Vote that's it. I can call my City Council Rep and complain. That Reps power is limited to one vote. Oh, the Rep can pontificate till the cows come home and it won't make a difference.

So above in Bold Systemic Undervaluation. Assuming the Appraiser is using comparable with the most Similar Economic Characteristics(especially site value) then the results will be almost the same no matter who the appraiser is. That brings us to the next accusation of Misvaluation. This one may have some merit. Misvaluation is defined: noun The act or an instance of valuing falsely or wrongly. I think the latter is more likely. That's an issue of competence. OR is it an issue of Laziness and incompetence combined.

FTR I never have liked the process where any appraiser can be a Supervisor for a Trainee. Really! So every licensed appraiser has the Teaching Skills of a Trained Educator. Imagine if we used that in hiring school teachers. Just because a person has graduated from College with any BA or BS degree qualifies them as a Teacher/Educator? We know that's not true!

Dumb teaching Dumber! "According To The Map, We've Only Gone 4 Inches!"

 

[Non Sequitur]

The people pushing this agenda have something to sell, it’s a simple as that. Just like the buzzard pushing the narrative of criminal and pervert appraisers running around unchecked, she had a product to sell.

 

[Bobby Bucks]

The people pushing this agenda have something to sell, it’s a simple as that. Just like the buzzard pushing the narrative of criminal and pervert appraisers running around unchecked, she had a product to sell.

Very true, I'd forgotten about that one. The entire industry was guilty until they could prove their innocence, of course innocence could be purchased with a paid membership at "BeerClocks".

 

[TerryRohrer]

"Strategies for Investigating Discriminatory Residential Appraisals."

So above in Bold Systemic Undervaluation. Assuming the Appraiser is using comparable with the most Similar Economic Characteristics(especially site value) then the results will be almost the same no matter who the appraiser is. That brings us to the next accusation of Misvaluation. This one may have some merit. Misvaluation is defined: noun The act or an instance of valuing falsely or wrongly. I think the latter is more likely. That's an issue of competence. OR is it an issue of Laziness and incompetence combined.

FTR I never have liked the process where any appraiser can be a Supervisor for a Trainee. Really! So every licensed appraiser has the Teaching Skills of a Trained Educator. Imagine if we used that in hiring school teachers. Just because a person has graduated from College with any BA or BS degree qualifies them as a Teacher/Educator? We know that's not true!

Dumb teaching Dumber! "According To The Map, We've Only Gone 4 Inches!"

The fact is, no one has yet established that appraisers have done anything inappropriately. I will be the first to say that lack of enforcement of current appraisal regulations, primarily where incompetence is rampant, is a major problem. But what no one pushing the racist appraiser narrative (bolstered by Freddie Mac's lying press release about a persistent problem they have identified) is looking into is whether or not appraisers are protecting those folks they are accused of mistreating. In my world, lenders and realtors will do anything to make a buck. They have no qualms about closing a loan for 25% over the market value of the property (no matter who they have to lie to, or what lies they need to tell)...they take a percentage of the deal! Who is looking into whether or not realtors and lenders are "advising" minorities to make above-market offers which the realtors and lenders can then profit from? Maybe appraisers, accurately opining market values (while guilty of creating a dreaded "appraisal gap"), are actually operating in the best interests of those folks.

The problem is just like completing an appraisal where you determine the value you are going to conclude, and then set about writing a report in support of that precluded notion. This current debate started with the erroneous notion that appraisers are undervaluing the homes of minorities. Now, they are busy writing the narrative, based on "analysis" to show there is merit in that unsupported, precluded position.

 

[Zoe]

HUD has more data than anybody to reconcile because I don't think GSE's have access to HMDA data. Somebody correct me if they do. That will balloon into individual lenders and agents.....etc with the way technology is flowing. Race is not available to many people in the home mortgage or commercial mortgage business. Then things like interest rates and closing costs, etc will come into picture.

HUD collects demographic data. Idk on commercial mortgage business, but look for that to occur soon.