Fannie Mae Census Block Grid' Adjustment Raises Redlining Concerns

[Mejappz]

FNMA Census Block Grid Adjustment Raises Redlining Concerns

FNMA's Census Block Grid adjustment, which modifies values based on median home values within specific census blocks, is akin to redlining.

appraisersblogs.com

 

[Surf Cat]

It's akin to redlining only for appraisers. For everyone else, it's just the difference in median sales prices between different locations driven by the market participants.

 

[Elliott]

Those who drew up 'census tracts' are the real racists. They were drawn up by politicians for political purposes (Buttigieg--Pothole Pete--acknowledged as much when he declared roads are racist). Appraisers have always been 'neighborhood/market' oriented and we alone choose the neighborhood boundary. Most recently, the politicians have forced appraiser's data into census tracts to get the 'result' they wanted. It was never our intended purpose so the results of bias are bogus.

 

[Terrel L. Shields]

Those who drew up 'census tracts' are the real racists.

Our census tract maps have not changed in 30 years. The demographic, however, has changed radically. Therefore, the use of the census tract for anything is problematic. I don't put them in my reports anymore because they are meaningless...and I don't have to report to FNMA, Freddy, etc.

 

[Elliott]

Our census tract maps have not changed in 30 years. The demographic, however, has changed radically. Therefore, the use of the census tract for anything is problematic. I don't put them in my reports anymore because they are meaningless...and I don't have to report to FNMA, Freddy, etc.

I've always put the county's census tract....seemed to be good enough for lenders and GSEs.

 

[Fernando]

Whenever I have difficulty in determining boundaries of a neighborhood for subject, I use the census tract's boundaries.
Never had a problem with the reviewer.

 

[djd09]

dei adjustment....no wonder they won't let the public look at the borg...they are the real racists

 

[djd09]

i bet they never waived one appraisal in east cleveland...eh, danny?

 

[Tiffany Gibbons]

Our census tract maps have not changed in 30 years. The demographic, however, has changed radically. Therefore, the use of the census tract for anything is problematic. I don't put them in my reports anymore because they are meaningless...and I don't have to report to FNMA, Freddy, etc.

My flood map program fills that in, I never even look at census tracts. They'll have to go after FEMA, I guess. I'd have to look up what census tract my house is in, lol.

 

[Terrel L. Shields]

Taking the USPAP course and they discuss census tracts as potential issues when discussing anything like crime stats in them, etc. And again, in my home county, they are completely meaningless. The agrarian mix of farms and small residential tracts has been replaced by suburban sprawl. Bentonville, home of Walmart Hdq. has more than quadrupled during my appraisal career. Homes costing over $300,000 were rare and now are the norm plus. Dairy farms are simply gone. Poultry farms have moved north, east, south of west. A few cows here and there but 'greenfield' subdivisions are the norm. The population itself is a mix of races, religions, and ethnicities as Walmart attracts a huge contingent of foreign vendors with a presence here in addition to drawing foreign employees to Bentonville for training.