Allegations of Appraiser racism

[mike32716]

Bill targets discrimination in home and commercial appraisals​

A new congressional bill seeks to root out racial discrimination in the residential and commercial real estate appraisal industry.


The measure, sponsored by Reps. Emanuel Cleaver II and Ritchie Torres, would create an interagency task force to study factors that lead to disparities in property valuations and lay out specific steps to combat them. The task force would examine federal collateral underwriting standards and guidance, as well as barriers to entry that disproportionately prevent minorities from becoming appraisers.

“Appraisal discrimination is hard to detect and it’s hard to solve,” Torres, a Democrat who represents the South Bronx, said in an interview. He said that rather than simply enacting sweeping legislation, the task force approach would allow civil rights activists, industry professionals and other stakeholders to think deeply about how to address bias in property valuations.

Last month, more than 30 members of Congress, including Cleaver and Sens. Amy Klobuchar, Elizabeth Warren, Bernie Sanders and Cory Booker, signed a letter calling on the Federal Financial Institutions Examination Council, which regulates appraisals, to work with the industry to “reduce the racial appraisal gap and to address the long-term undervaluation of neighborhoods of color.”


“Years of discriminatory policies — such as segregation, limited access to federally backed mortgages, and restrictive neighborhood covenants — have created significant barriers to homeownership for families of color,” the letter states. “These structural factors continue to exist today.”

Bill targets discrimination in home and commercial appraisals

A new bill, sponsored by U.S. Reps. Emanuel Cleaver II and Ritchie Torres, seeks to root out racial discrimination in the residential and commercial real estate appraisal industry.

therealdeal.com

what is so political

Having worked on legislation in DC (in the 80's) I can assure all that this is just a political Kabuki dance. When a politician wants to look like he is taking action he assigns it to a study task force. Assigning it to multiple agencies guarantees that nothing of any significance will be done. It will take years of study, hearings, and analysis. It would also require that several agencies who have petabytes of mortgage loan data (and are constantly crunching said data looking for fair housing issues) have been sleeping on the job. None have, and none will admit it. Task forces are the black hole from which legislative issues never return.

 

[OSU Beavers]

Several major national banks are bending over backwards for their Hispanic clients and have been offering me HUGE rush fees to get their reports in before the end of the month. The only other times that I have been offered such large fees were with doctors houses that were also complex and at the upper end of our markets value.

 

[Stantheman]

HUD covers ALL fair housing issues. Not just FHA. No one is "safe" just doing conventional mortgage appraisals.

You're correct, but with all the stipulations in FHA nowadays I think this is where they'll start.

 

[mike32716]

You're correct, but with all the stipulations in FHA nowadays I think this is where they'll start.

They might. But with the emphasis on FHA being to protect the buyer I would think that an appraiser could make a good argument for a lower value.

 

[Carnivore]

They might. But with the emphasis on FHA being to protect the buyer I would think that an appraiser could make a good argument for a lower value.

I don't agree with your statement. Simply, it is not our job to be Social Warriors or Protectors of the Disadvantaged. That is the mandate FHA, FMHA, USDA, VA, State Bond Money, etc. They are Government Advocates to put people in a home.

Imagine a Credit Reporting Agency massaging the Credit Score because they are social justice warriors. Raising the Mean Average for a Minority and lower the mean average for a White Privileged Household.

Blah Blah I think you see my point. Unless maybe I don't have a point. I am not trying to lecture you, just trying to clarify our Role. We must be impartial.

 

[djd09]

REVAA appreciates the opportunity to review the November 2018 report by the Metropolitan Program at Brookings. The information has been shared with our members, and we continue to review and assess the conclusions contained in that report. AMCs do employ many controls to ensure that appraisers and AMCs do not engage in any discriminatory behavior.

https://www.govinfo.gov/content/pkg/CHRG-116hhrg39495/pdf/CHRG-116hhrg39495.pdf

members only

 

[djd09]

AMCs do employ many controls to ensure that appraisers and AMCs do not engage in any discriminatory behavior.

not more quoting, eh? so what are these controls? rov, due dates, low fees

 

[Mejappz]

AMCs do employ many controls to ensure that appraisers and AMCs do not engage in any discriminatory behavior.

Wouldn't it be great if we can see how diverse all these AMC are? I would guess less than 1% of their employees would classify as minorities. Maybe the appraisal gatekeepers can inform us.

 

[djd09]

Wouldn't it be great if we can see how diverse all these AMC are? I would guess less than 1% of their employees would classify as minorities. Maybe the appraisal gatekeepers can inform us.

View attachment 53579

lets just randomly pick one and check out their staff executives. how about proteck to start

 

[Dublin ohio]

lets just randomly pick one and check out their staff executives. how about proteck to start

Who cares how diverse AMCs are. They have nothing to do with the accusations of racism against appraisers. They have no idea about who the borrower is and for the most part. They have no idea who the appraiser is. Except a name on their roster. Just like the fee argument. The AMC made me do it.