Freddie Mac vs Appraiser Bias

[djd09]

Freddie Mac Finds ‘Pervasive’ Bias in Home Appraisal Industry (Correct)​

A study from the Federal Home Loan Mortgage Corporation, known as Freddie Mac, adds to a growing body of research that finds racism in the appraisal industry is undervaluing the homes of Black and Latino Americans compared to white-owned homes.

In an analysis of more than 12 million housing appraisals, Freddie Mac researchers found that “appraisal gaps seem pervasive” in lowering home value determinations in Black and Latino neighborhoods.

Other recent studies have shown that homes in Black neighborhoods are appraised at lower values than similar homes in white neighborhoods by as much as 23% on average, and that that appraisal gap is wider now than it was in the 1980s. These disparities have helped widen the wealth gap between Black and Latino families and white ones.

Freddie Mac Finds ‘Pervasive’ Bias in Home Appraisal Industry (Correct)

A study from the Federal Home Loan Mortgage Corporation, known as Freddie Mac, adds to a growing body of research that finds racism in the appraisal industry is undervaluing the homes of Black and Latino Americans compared to white-owned homes.

news.bloomberglaw.com

yeah thanks freddie

 

[Zoe]

Dwiley better be quiet on this. He don't want to get fired.

It's crap to me. They can fire me if they want.

Okay. What is geographical area they cover? A census tract? LOL. A zip code? LOL.. A city or other jurisdiction? LOL

I still don't understand how a GSE even has data that only HUD collects.

Have you ever had a GSE ask you for any data on a prohibited discriminatory basis?

 

[Zoe]

One more comment that I am certain of. Some races like to live together in their own little geo areas. Within many geo areas, people don't care if their next door neighbor is a different race. They don't care on any other prohibited discriminatory basis.

It doesn't matter on an appraisal.

 

[Dublin ohio]

One more comment that I am certain of. Some races like to live together in their own little geo areas.

The above might appear in their next study as evidence of appraiser bias

 

[Fernando]

Freddie Mac Finds ‘Pervasive’ Bias in Home Appraisal Industry (Correct)​

A study from the Federal Home Loan Mortgage Corporation, known as Freddie Mac, adds to a growing body of research that finds racism in the appraisal industry is undervaluing the homes of Black and Latino Americans compared to white-owned homes.

In an analysis of more than 12 million housing appraisals, Freddie Mac researchers found that “appraisal gaps seem pervasive” in lowering home value determinations in Black and Latino neighborhoods.

Other recent studies have shown that homes in Black neighborhoods are appraised at lower values than similar homes in white neighborhoods by as much as 23% on average, and that that appraisal gap is wider now than it was in the 1980s. These disparities have helped widen the wealth gap between Black and Latino families and white ones.

Freddie Mac Finds ‘Pervasive’ Bias in Home Appraisal Industry (Correct)

A study from the Federal Home Loan Mortgage Corporation, known as Freddie Mac, adds to a growing body of research that finds racism in the appraisal industry is undervaluing the homes of Black and Latino Americans compared to white-owned homes.

news.bloomberglaw.com

yeah thanks freddie

How do they consider "similar homes" in the two neighborhoods. Style? Size? Income level? I need to know how they came to their criteria like what percentage considered as Black neighborhood.
Around here I never came upon a Black neighborhood similar to White neighborhood.

 

[Zoe]

The above might appear in their next study as evidence of appraiser bias

That would good ground basis from appraisal standpoint if it was in small competing geo area. I don't even know how a GSE has data that only HUD collects on any discriminatory basis.

 

[Dublin ohio]

I don't even know how a GSE has data that only HUD collects on any discriminatory basis.

What is so hard to comprehend. They based their analysis on census tract. Which is on every appraisal they collect. Census tract data is publicly available. Including racial makeup of census tract.

 

[djd09]

Scope of Work: Appraisals and Inspections​

This course was written and produced by The Appraisal Foundation and is being presented through a partnership with McKissock.

One of the most common errors made by appraisers in both residential and non-residential appraisal assignments is the failure to use a scope of work that is sufficient for the production of credible assignment results. This course will examine the concept of scope of work (and the related topic of property inspection) and will address some of the most common scope of work deficiencies that are encountered in appraisals.

Scope of Work: Appraisals and Inspections | McKissock Learning

This course was written and produced by The Appraisal Foundation and is being presented through a partnership with McKissock.One of the most common errors made by appraisers in both residential and non-residential appraisal assignments is the failure to use a scope of work that is sufficient for...

www.mckissock.com

but but but the inspection is not critical i cant stop laughing

 

[Zoe]

What is so hard to comprehend. They based their analysis on census tract. Which is on every appraisal they collect. Census tract data is publicly available. Including racial makeup of census tract.

Okay, welll that's stupid in the MSA I work.

 

[Zoe]

Dwiley is not stupid. He knows better. However, he is an employee. That fact carries connotations.