Black Homeowners Face Discrimination in Appraisals

[Meandering]

Pay attention in some of your neighborhoods.

Blackstone gets back into the single-family rental game
September 1, 2020,
Blackstone Group, which blazed a trail for Wall Street in 2012 when it formed Invitation Homes and became the largest owner of single-family rental homes in America, has returned to a familiar watering...



FHFA halts program expanding GSEs' role in rental market ...
August 21, 2018
https://www.americanbanker.com/news/fhfa-halts-program-expanding-gses-role-in-rental-market
The Community Home Lenders Association also expressed concern about the pilot programs in a March 2017 letter to the FHFA responding to reports that Fannie Mae was providing $1 billion in financing to the Blackstone Group unit Invitation Homes. The association questioned the transaction's mission, risk, lack of transparency and impact on


The profile and current headline news.

Blackstone Inc - Company Profile and News

Company profile page for Blackstone Inc including stock price, company news, press releases, executives, board members, and contact information

www.bloomberg.com

And they are not the only ones.



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[NachoPerito]

I am a big fan of NYT, but this article did not do a good job of looking hard at the 'cause' of the two different values. Too many direct quotes influencing the reader.

 

[djd09]

A hybrid maybe?

have you seen the 25 dollar hybrid.


XI. Transactions That Require Evaluations


The Agencies' appraisal regulations permit an institution to obtain an appropriate evaluation of real property collateral in lieu of an appraisal for transactions that qualify for certain exemptions. These exemptions include a transaction that:

Has a transaction value equal to or less than the appraisal threshold of $250,000.

Although the Agencies' appraisal regulations allow an institution to use an evaluation for certain transactions, an institution should establish policies and procedures for determining when to obtain an appraisal for such transactions. For example, an institution should consider obtaining an appraisal as an institution's portfolio involvirisk increases or for higher risk real estate-related financial transactions, such as those involving:

Borrowers with high risk characteristics.

https://www.FDIC.gov/regulations/laws/rules/5000-4800.html

funny , there is no mention of racism from FDIC approved evaluators.

 

[djd09]

What is an appraisal waiver?

An appraisal waiver gives some potential home buyers the option to decline having their property appraised. Not all homes are eligible to waive the appraisal, but it can help save both time and money.

Although it’s called an appraisal waiver, it’s really waiving the traditional method of appraising a home and depends on automated underwriting findings. Instead of someone coming out to walk through the property, the lender will use automated information based on data such as recent home sales in your neighborhood, to get the appraised value.


Ryan Dibble, chief operating officer of Flyhomes, said at minimum, borrowers must prove they have an excellent credit score and documentation that proves their assets. Properties must also meet specific loan-to-value (LTV) ratios and meet other loan requirements to qualify.

Because it is inconsistent and random as to which buyers and what properties receive appraisal waivers, some housing and mortgage experts said it feels like a black box.

“Some buyers get appraisal waivers on one property, but a similar buyer or property will not. When our clients get an appraisal waiver it feels like winning the lottery, but it only happens 10 to 20 percent of the time,” said Dibble, who advises borrowers to work with a qualified mortgage lender who can help them navigate the process.

What is an appraisal waiver?

Find out if your home is eligible to waive the appraisal process.

www.foxbusiness.com

"our" competition should not be left off the hook.

 

[George Hatch]

Not directed at you, just ruminating on the sentiments posted.


So, was the first appraisal a COVID approved exterior inspection only???

Gheeze, wouldn't that be in the time frame of lockdowns?? That'd be the end of the photo claims.

Or perhaps, the first appraisal was even earlier in the year.

A hybrid maybe?

Because we all know that those "inspectors" are not licensed and don't have to take fair housing law classes,

oh, but they don't send appraisers photos with people in them either...........do they?

But that's okay, those things were "credible" because the "client" said so.

We have no way of knowing anything about the "lower" appraisal. But the questions you're raising are among the possibilities.

 

[Renee Healion]

It is right in the article. In the beginning. COVID reference makes it this year. June. First guy, in person.

By Debra Kamin Published Aug. 25, 2020 Updated Aug. 27, 2020
Abena and Alex Horton wanted to take advantage of low home-refinance rates brought on by the coronavirus crisis. So in June, they took the first step in that process, welcoming a home appraiser into their four-bedroom, four-bath ranch-style house in Jacksonville, Fla. The Hortons live just minutes from the Ortega River, in a predominantly white neighborhood of 1950s homes that tend to sell for $350,000 to $550,000. They had expected their home to appraise for around $450,000, but the appraiser felt differently, assigning a value of $330,000. Ms. Horton, who is Black, immediately suspected discrimination. The couple’s bank agreed that the value was off and ordered a second appraisal.

Okay, who "welcomes" an appraiser. It's like the plumber--you let him in.

 

[ZZGAMAZZ]

have you seen the 25 dollar hybrid.


XI. Transactions That Require Evaluations


The Agencies' appraisal regulations permit an institution to obtain an appropriate evaluation of real property collateral in lieu of an appraisal for transactions that qualify for certain exemptions. These exemptions include a transaction that:

Has a transaction value equal to or less than the appraisal threshold of $250,000.

Although the Agencies' appraisal regulations allow an institution to use an evaluation for certain transactions, an institution should establish policies and procedures for determining when to obtain an appraisal for such transactions. For example, an institution should consider obtaining an appraisal as an institution's portfolio involvirisk increases or for higher risk real estate-related financial transactions, such as those involving:

Borrowers with high risk characteristics.

FDIC and Interagency Statements | FDIC.gov

FDIC and Interagency Statements

www.FDIC.gov

funny , there is no mention of racism from FDIC approved evaluators.

-----------------
Posts like this with reference to formal regs are really appreciated!

 

[Digger88]

It shouldn't matter what race but I can't remember the last time I appraised a house with a Black borrower. It's must have been at least 10 years.

holy crap ive never thought about it but i havent appraised a black persons house in quite a long time either! im gonna have to think about this shocking revelation.

 

[Meandering]

It is right in the article. In the beginning. COVID reference makes it this year. June. First guy, in person.

By Debra Kamin Published Aug. 25, 2020 Updated Aug. 27, 2020
Abena and Alex Horton wanted to take advantage of low home-refinance rates brought on by the coronavirus crisis. So in June, they took the first step in that process, welcoming a home appraiser into their four-bedroom, four-bath ranch-style house in Jacksonville, Fla. The Hortons live just minutes from the Ortega River, in a predominantly white neighborhood of 1950s homes that tend to sell for $350,000 to $550,000. They had expected their home to appraise for around $450,000, but the appraiser felt differently, assigning a value of $330,000. Ms. Horton, who is Black, immediately suspected discrimination. The couple’s bank agreed that the value was off and ordered a second appraisal.

Okay, who "welcomes" an appraiser. It's like the plumber--you let him in.

And what has changed since June?

The stock price of U-Haul before today?

U-Haul Holding Company (UHAL) Stock Price, News, Quote & History - Yahoo Finance

Find the latest U-Haul Holding Company (UHAL) stock quote, history, news and other vital information to help you with your stock trading and investing.

finance.yahoo.com

4th of July covid spike?

Florida opening up from it's covid lockdown?

New Yorkers finding out their schools would not open, or maybe would open, or could open for one or two days a week, but all the homeless were moved into the upscale hotels in Manhattan?

And how does a homeowner know the difference between an "evaluator" and an "appraiser" when they are being charged for an "appraisal"?

Naw,
it'a not "the market"
that is "open and competitive"

It's the pictures on the wall




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[Meandering]

Mortgage rates
6/25/2020

MSN

Mortgage rates
8/20/2020

Current Mortgage Rates for August 20, 2020

Here's a snapshot of today's mortgage rates. Are you ready to apply?

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Ghee I didn't know people pay more for houses when mortgage rates drop.

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