• Welcome to AppraisersForum.com, the premier online community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Freddie Mac vs Appraiser Bias

Status
Not open for further replies.
Trust me that HUD has HMDA data based on race, but imo it is based on like census tracts or some geo area that is not the subject property. I can say that with confidence because I work the largest geo county in TN and in a high density or even semi-density area, there is no area that is not mixed racial. I can go from highest income areas to lowest income areas. It doesn't matter. The areas are mixed racially. Same way with rural. I work many rural areas.
 
Last edited:
I appreciate Danny Wiley posting on the forum. He sometimes has to toe the company line, but he is a good dude. That doesn't mean I can't razz him for the fun of it.
 
Why doesn't Freddie, or AF, or AI, or ASC, or FHFA, or PAVE respond to the study and conclusion by AEI?

"How Common is Appraiser Racial Bias?
An Analysis Using Big Data to Determine Whether It Is Common or Uncommon that an Appraiser’s Knowledge of an Applicant’s Race Results in Valuation Bias

Authors: Edward Pinto & Tobias Peter
...........

"Our statistical analysis looked for evidence of either intentional racial bias, as cited in
media reports, or unintentional.
Our conclusions are (i) media allegations of appraiser racial bias on refinance loans is
uncommon and not systemic and (ii) a claim of unintentional bias on refinance loans, if
the basis of a disparate impact claim, was also found to be uncommon and not systemic."

www.aei.org

How Common is Appraiser Racial Bias?

We analyzed big data whether it is common or uncommon that an appraiser’s knowledge of an applicant’s race results in valuation bias.
www.aei.org www.aei.org
 
But, be ready to be accused of overvaluation of homes involving minority purchases now that the market is cooling. Someone interested in fair and honest housing markets should look into why minority homeownership rates tend to accelerate immediately prior to housing market collapses. It may not be appraisers who are the culprits in all this, since appraisers don't market houses and mortgages to anyone. Maybe all those "helping hands" are actually victimizing those they claim so often and so vociferously to be championing.

 

NCRC Files HUD Complaints Against Appraisers Who Discriminated Against Black Homeowners​


In one of the complaints, NCRC and a Black homeowner detailed how an appraiser made the homeowner wait 11 weeks for a report, ignored followup communication and offered no explanation for why the report took so long. The same appraiser a few weeks later timely delivered a report to a white homeowner and even sent the homeowner a courtesy email in advance with an expected timeline for delivery.


The appraiser showed differential treatment and a lack of professionalism at a time when interest rates were highly volatile – meaning that the appraiser’s discriminatory conduct could have cost the Black client a chance at an affordable mortgage.


In the second complaint, NCRC and a second Black homeowner alleged that an appraiser undervalued a home presented by the homeowner, then overvalued a separate house presented by a White homeowner. The appraiser valued the first home at $310,000 when it was shown by the Black partner in the interracial couple who own it, while three other appraisers valued the same home at $350,000 or more. This appraiser then appraised a home shown by a White homeowner, and valued it $43,000 higher than any other appraiser did in the tests conducted by NCRC. The appraiser’s pattern of bias in valuing homes in Baltimore warranted an enforcement action by NCRC and the homeowner who was the victim of discrimination.


The full report from NCRC’s investigation, which is the first of its kind to be published can be viewed online at https://ncrc.org/faulty-foundations...exposes-racial-bias-undermining-black-wealth/

https://tntribune.com/ncrc-files-HU...s-who-discriminated-against-black-homeowners/

just repent :rof:
:rof: :rof:
 

Racial and Ethnic Valuation Gaps In Home Purchase Appraisals​


1. Is there an appraisal gap in minority neighborhoods?​


Appraisers' opinions of value are more likely to fall below the contract price in Black and Latino census tracts, and the extent of the gap increases as the percentage of Black or Latino people in the tract increases.

www.freddiemac.com

Economic and Housing Research

Find all of Freddie Mac's original research and analysis on housing trends, the economy and the mortgage market here.
www.freddiemac.com www.freddiemac.com

yeah thanks freddie :rof:
:rof: :rof:
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at AppraiserSites.com
Back
Top