Appraisal Bias

[ucbruin]

Move to areas where rural appraisal assignments are plentiful....

 

[TerryRohrer]

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[George Hatch]

TAF has no way to defend against the allegation except on the same basis as the allegations are being made. The politicians are agreeing with the allegation that there is a huge problem. TAF and the appraisal orgs can't just say "no" to these demands. They have to "do something" even if that something amounts to nothing other than saluting the flag.

Just because nobody can support a "mostly false" denial of the allegations and are compelled to submit to the politics shouldn't be interpreted as proof that anyone or everyone at these institutions actually believes the problem to be widespread. My PFA guess is there is no consensus in either direction.

 

[shrubberyvaluation]

TAF has no way to defend against the allegation except on the same basis as the allegations are being made. The politicians are agreeing with the allegation that there is a huge problem. TAF and the appraisal orgs can't just say "no" to these demands. They have to "do something" even if that something amounts to nothing other than saluting the flag.

Just because nobody can support a "mostly false" denial of the allegations and are compelled to submit to the politics shouldn't be interpreted as proof that anyone or everyone at these institutions actually believes the problem to be widespread. My PFA guess is there is no consensus in either direction.

As I have said in the past, the biggest bias is probably just doing what the client wants instead of being objective because it puts food on the table. There is no lender client (that I know of) that wants us to "low ball" minorities and there is no financial incentive to do so...just the opposite.

 

[George Hatch]

I have no idea what the numbers are; nobody does. But what I do know is that saying 30% of the appraisers are mistreating people means something completely different than saying 3% of appraisers are mistreating people. Both numbers are unacceptable and justify remediation, but the solutions for a 3% problem can be more narrowly targeted and applied than the solutions for a 30% problem. IMO

 

[shrubberyvaluation]

I have no idea what the numbers are; nobody does. But what I do know is that saying 30% of the appraisers are mistreating people means something completely different than saying 3% of appraisers are mistreating people. Both numbers are unacceptable and justify remediation, but the solutions for a 3% problem can be more narrowly targeted and applied than the solutions for a 30% problem. IMO

The thing is they are conflating a lot of things. They are lumping in the fact that sometimes in zip codes with a larger population of minorities home prices are lower, which is not proof of appraiser bias, but that is being lumped in and HUD is brining in sociologists to tell us that it is our bias that is taking location into account in appraising.

In the Marin City case we have an area, Marin City, that does have a majority white residents. The plaintiffs complained that nearby areas outside of Marin City not being used was biased because they have a larger white population. The Biden DOJ and HUD have supported this prosecution in many ways both formally and informally. I think these entities obfuscate the real issue for a reason. People don't tend to obfuscate the issue when they have a good case, they obfuscate when they have a weak case to confuse.

You will notice the homeowners in the Marin case when they are interviewed never speak of specifics (oh they appraised it for $1,000,000 but next door sold for $1,500,000). If I thought I was wronged by someone because of my race and was doing interviews I think I would at least want to do my own research, even if not an expert, I think I would want some knowledge of specifics to make it clear to people listening to me, unless of course I'm being dishonest and trying to obfuscate.

 

[ucbruin]

"People don't tend to obfuscate the issue when they have a good case, they obfuscate when they have a weak case to confuse."

May I use this in the Trump threads....

 

[Fernando]

I tell people frequently it is always best to be the smallest house. Principle of progression. The larger and more expensive houses right around you will pull the value of your house up. Never really good to be largest and most expensive house compared to houses right around you. Rural vs suburban and urban can make a difference. You can get away with being the biggest and most expensive in some cases.

Unfortunately I have among largest home in town.

 

[djd09]

there are reasons why they do not puppet maxine waters as the face of appraisal bias anymore



because she sure does love that white man

 

[CindyR]

what fun - the subject today is on Black Hill Road