AO 40...The Use of Coded Words

[djd09]

Pretext and Use of Code Words

An appraiser violates USPAP’s prohibition on pretext when the appraiser refers to
something other than a protected characteristic to conceal use of or reliance upon a
protected characteristic.43 The use of code words in an appraisal report can indicate
that an appraiser has engaged in disparate treatment, and pretextually referred to a
non-protected characteristic as a way to conceal the appraiser’s use of or reliance upon
a protected characteristic.

Examples of phrases that can constitute code word evidence of disparate treatment
include, but are not limited to, “ghetto,” “crime” or “crime-ridden,” “inner city,” and
“blight”; references to “shared values” or “undesirables”; concerns about “personal
safety due to ‘new people’”; or statements that an area is lacking “pride of ownership.”44
References to public assistance income and Section 8 vouchers can also have a coded
meaning.45 Whether a code word indicates discrimination depends on the context in
which it is used.

ShareFile

appraisalfoundation.sharefile.com

word crimes...

 

[Surf Cat]

Added words, crossed out words, added definitions, crossed out definitions....

Flip flop fish...

 

[Carnivore]

Nothing unusual above with possibly one possible omission. We also have discussed in depth Denial of Service.

What we have not talked about much is the possibility of hitting the bullseye to avoid a complaint.

I don't see that happening much because we all know the constant barrage of multiple ROV's. Those are common.

What we have though and possibly is occurring is "Noble Cause Corruption" Took me awhile to connect the Dot's. I recall this from Brookings

Recent Brookings analysis from Senior Fellow Andre M. Perry and Nonresident Senior Fellow Jonathan Rothwell found that appraisal transactions in majority-Black neighborhoods are 1.9 times more likely to be appraised under the contract price than homes in majority-white neighborhoods.

Noble Cause Corruption that would not have taken place. AKA Hit the BullsEye no natter what.

Defined Noble cause corruption is a type of corruption that occurs when someone uses unethical or illegal methods to achieve a desired goal. It's a mindset or subculture that encourages the belief that the ends justify the means.

 

[djd09]

 

[djd09]

Reducing Valuation Bias by Addressing Appraiser and Property Valuation Commentary​

Published: 12/14/2021

What We Observed
From millions of appraisals submitted annually, a keyword search resulted in thousands of potential race-related flags. Individual review finds many instances of keywords to be false positives, but the following are examples of references when the appraiser has clearly included race or other protected class references in the appraisal.
The racial and ethnic composition of the neighborhood should never be a factor that influences the value of a family's home. Our observation of appraisals suggests that racial and ethnic compositions of a neighborhood are still sometimes included in commentary, clearly indicating the writer thought it was important to establishing value.
Examples of racial and ethnic references we found in appraisals include:

• The percentages of racial and ethnic makeup of the area.
  • e.g., "The racial makeup of the city was 86.28% white, 12.46% Black or African-American, 0.52% Native American, 0.22% Asian, and 0.52% from two or more races. 0.56% of the population were Hispanic or Latino of any race."
• Foreign birthplaces of residents noted as part of the neighborhood descriptions.
  • e.g., "The county was 94.85% white, 0.19% Black or African-American, 0.83% Native American, 0.74% Asian, 0.07% Pacific Islander, 1.36% from other races, and 1.96% from two or more races. 3.73% of the population were Hispanic or Latino of any race. 19.4% were of German, 13.2% English, 11.4% Irish and 9.1% American ancestry."
• The languages spoken in an area.
  • e.g., "The most common language spoken is English. Other important languages spoken here include Italian and Spanish."
• Amenities specifically geared to a race, ethnic, or religious group.
  • e.g., a "commercial strip featuring storefronts supplying Jewish Households."
• Rising house prices were because of gentrification.
• A town was described as having a "Black race population above state average."
• Noting that "Koreatown is considered 'highly diverse' ethnically," listing the percentages of residents from various races and nationalities and describing that the number of foreign-born persons was “considered high compared to the city as a whole."
• The ethnic groups that have immigrated to a neighborhood over the course of many years and noted it was "one spicy neighborhood."
• A reference to a neighborhood being originally "White-Only," before becoming a "White-Flight Red-Zone" to explain why the neighborhood is mostly "Working-Class Black" now.
• A neighborhood described as "predominately Hispanic" and that the residents have "assimilated their culture heritage" into the neighborhood.
• A neighborhood populated by African Americans characterized as leaving an "overcrowded" area for "greater housing opportunity" in the neighborhood.
• Noting that "there is more Asian influence of late" buying the market.
• Noting the area's first Asian mayor.
• Noting an area's "decline in population, which transitioned from being predominately Eastern European to having a substantial amount of Black and Hispanic people."
• Describing that the subject property was in a "racially integrated neighborhood" but "the community has no large institutional anchor" comparable to other racially integrated neighborhoods noted in the city.
• An area that was "originally founded as a whites-only city or sundown town" but had become "fairly diverse" with a "diverse school system."
• An area that was "'not especially-diverse' ethnically, with a high percentage of white people."

Correction: On February 22, 2022, FHFA revised this blog post to remove an example incorrectly identified as coming from an appraisal. The example came from a non-appraisal property evaluation reviewed by FHFA.

Reducing Valuation Bias by Addressing Appraiser and Property Valuation Commentary | FHFA

Reducing Valuation Bias by Addressing Appraiser and Property Valuation Commentary

www.fhfa.gov

fhfa has no problem labeling the demographics of appraisers...or analyzing neighborhoods based on race

 

[djd09]

Colorado's exclusive 'cowboy ski town' of Steamboat Springs descends into chaos - as locals are priced out of multi-million dollar real estate market - and even city doctors can't afford to buy​

The small mountain town, about a three-hour drive from Denver, cannot find a head of human resources for the city because the offered $167,000 salary will no longer put anyone in a position to buy a house in the area. The self-described cowboy ski town has been known primarily as an area where aspiring winter Olympians come to train among the salt of the earth locals who are by-and-large middle-income professionals. That reputation stood in semi-stark comparison to other, more glamorous ski towns like Vail, Aspen, Jackson Hole, and Sun Valley.

The rich will push everyone else in to a single neighborhood, where they can be more easily controlled.

 

[Tom D]

we use coded values. i need to start using my reparation and/or social justice adjustment. anybody take that class yet. more justice for some, but not for all.

 

[Carnivore]

So this caught nt eye:

orrection: On February 22, 2022, FHFA revised this blog post to remove an example incorrectly identified as coming from an appraisal. The example came from a non-appraisal property evaluation reviewed by FHFA.

So what do they mean coming from non-appraisal evaluation?

Also, if there are indeed appraisers using items list above, I am stunned! It begs the question: Who taught them this as trainees?

Back when I was still stupidly doing review work , I never saw any comments used in that list. What I did see a lot of was reports almost devoid of any narration.

 

[Dublin ohio]

Also, if there are indeed appraisers using items list above, I am stunned! It begs the question: Who taught them this as trainees?

Code words? Those are outright blatant

 

[Mejappz]

What we have not talked about much is the possibility of hitting the bullseye to avoid a complaint.

Hitting the number would remove the allegation of bias, but these areas are more prone to defaults. I mean, look how Fannie and Freddie ransacked most of these minority neighborhoods during the last crash. And when they default, you will be accused of violating USPAP by your state board, so it’s a catch-22.