Black Homeowners Face Discrimination in Appraisals

[VALU8]

They are not replacing appraisals with AVMs. That is not even close to being a viable option. That fear is overblown. What we need to do is make our reports more credible and understandable for the average person.

I like the idea and I'm on board but every time opportunity knocks there's a request for something to be added to the ever-being-added-onto templates/checklist of things to be filled out. Insomuch that I find our reports are describing the neighborhood in (right now) literally 3 places in the report, for example. Then 40 pages turns into 41. Anything omitted and it could be fodder for "this isn't thorough."

 

[VALU8]

A cobbler makes shoes or goes hungry. A cooper makes barrels or goes hungry. Legislators all need something to get into office, that they can point their finger at and say "Hey look I'm doing things." Whether or not adding (or abolishing) more law and regulation to any aspect of life actually IMPROVES things is debatable and I'm sure has mixed results in different areas... Without claiming one is better than another, an interesting thought, calling something "progressive" in the very word itself is loaded with the implication that it is improving the thing is is changing from.


Interesting Read: https://www.marketwatch.com/story/j...o-help-black-and-latinx-homeowners-2020-02-25

Let me draw attention to:

"
The proposals set forth in Biden’s housing plan would be achieved through a mix of legislation and executive actions, the campaign said. However, analysts have previously expressed skepticism over the likelihood of housing reform legislations clearing Congress due to partisan gridlock.

"

Has anyone heard exactly what legislation and executive actions they are thinking about?

 

[Carnivore]

"Over the past week or so, Presidential Candidate Joe Biden publicly called for more regulation and oversight over appraisers to combat racial bias. "

Above from the link you pasted. He did not call appraisers racists.

Maybe your right. He did not come straight out and call all Appraisers racist. He did use a Broad Brush painting of the Appraisal Profession He was just pandering to that portion of his base. He was affirming what at least some Black people are using as an excuse for their own failures. Black people don't have a monopoly on using deflection. People in general do that all the time. Biden reinforced that thinking people use as an excuse or reason for the failures they have had.

It would be very hard to find someone that accepts full responsibility where they are in life.

https://www.commercialappeal.com/st...g-americans-broad-brush-dangerous/5334651002/

 

[Bobby Bucks]

The organization that published the "story" being discussed (NYT) is the same one that not long ago employed the most famous reporter of that time. Jayson Blair https://en.wikipedia.org/wiki/Jayson_Blair

 

[Carnivore]

That article based its findings on the "Brookings". OK That's a Liberal Think Tank. They do have street Cred. I would like to read it so I can see how this Journalist Article came to his Conclusions.

My first thoughts is that is that most people buy a home that fits their needs in the best neighborhood their income will allow.

So this is not about Appraisal Bias!!! This is about Income, Narrow it down further this is about Incomes of Minorities. I have many neighborhoods that have a high percentage of Black People along with White People and Hispanics. The Price Point is between $325-$475 I threw out the High and Low Outliers. See without real details what I have just said is the Black People are doing pretty darn good! What I just said, itself is misleading.

It is Income Disparity that is the issue. Lots of Factors effect Income. None of which did Appraisers have anything to do with.

This is why a recent Survey found that 50-60% of the Public do not trust Journalist!

 

[KHS445]

A true journalist working for an honest and informative paper would have requested copies of both reports and submitted them to a properly trained and licensed third party to perform a review. Then the journalist would have contacted both appraisers and shared the results of the review with them and asked for their thoughts. But if that had happened there may not have been story/headline to fit the desired narrative.

 

[Tim Hicks (Texas)]

Gotta admit, somebody was not off the mark when they started the fake news movement. I sure miss the days of Walter Cronkite reading the news without political bias. I just read a CNN article today blasting the social media article claim that the CDC states only 9,200 of the deaths were COVID only deaths. While the social media article was rather ridiculous, the CDC does state the total number of deaths that are COVID related and not necessarily the cause of death. Then the final sentence of the CNN article stated there were 182,000 deaths from COVID, when it should have stated "COVID related." So slam one for manipulating and making false then make your own false statement? Anyway, one appraisal makes an entire industry racial biased? Shouldn't there be a larger sample size? Honestly, I focus so much on comparable sales data it never occurs to me the race of the owner, seller or buyer. If you are using the most similar sales from the immediate market area, then the demographic might be racial, but then again I really don't know the race of the occupants of most comparable sales I utilize.

 

[Renee Healion]

Oh look something shiny. Let's just fall into partisan tropes.

Appraisers were sleeping while this case was made using Zillow as "support" and it rode genuine social outrage right into an ad for...Zillow. And a shameless letter from its exec. Funny how that happened.

Sometimes things are as simple as they look. At every step of the way, the charges in whatever form were never examined critically. It is late, but it is not too late.

 

[Meandering]

Shouldn't there be a larger sample size?

And isn't that one of the joys of COVID?

Headlines all over the place say people are moving out of the cities to the burbs.

in 10 seconds, can you name the neighborhoods where no one is buying, hence values have dropped,
and let's not even consider what it all will look like when the foreclosures start rolling in.

Who gets hurt worse, is not an appraisal issue, unless, you are writing an article for the "news" that needs to sway public opinion.

Ghee, any companies out there that will benefit by discrediting their competition?

And that opportunity to discredit appraisers is going to come in a giant wave.



How the CARES Act failed to protect tenants from eviction

As many as 40 million Americans could lose their homes

“A law without a penalty isn’t a law,” Kwartler added. “It’s a guideline.”

 

[ZZGAMAZZ]

Did anyone read the story in the New York Times by Debra Kamin? In a nutshell, according to this article, the house appraised for $330,000. The Homeowner and the mortgage company were not happy with the result and ordered another appraisal. However, the real estate agent removed any and all items in the house that could indicate who owned the house. Wah lah, the house now appraised at $465,000. This scenario was presented to a US House subcommittee. No other material facts were given in the article. Can you believe this sh**.

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Think that's bad? The California Association of Realtors re-printed the article carte blanche in its August newsletter. I personally complained to CAR, as a realtor/appraiser, although of course the appraisal community doesn't have a representative voice. TERRIBLE. TERRIBLE. TERRIBLE.