RIP AQB and ASC, to be replaced with "Federal Valuation Agency"

[CGinMN]

we appraisers are capable of doing a lot of things that we haven't previously been asked to do. Not because we can't but because nobody asked before.

The point is they going to stop asking all together. If you demand an appraiser aligns their comp selection criteria to that of an AVM, prepare for the eventuality when they just go straight to the AVM.

 

[Elliott]

The big Freddie study is based on "tracts" not "appraiser defined neighborhoods." I work in a county that doesn't have census tracts to the 0.XX. Take Marin City, which isn't a 0.xx census tract,

Census Tract 1290, Marin County, California Demographics and Housing 2020 Decennial Census

Analyzing a decade of change

data.sj-r.com

It is described by Wiki:

Marin City is an unincorporated community and census-designated place in Marin County, California, United States. It is located 1.5 miles northwest of downtown Sausalito, 8 miles south-southeast of San Rafael, and about 5 miles north of San Francisco from the Golden Gate Bridge, at an elevation of 23 feet. Marin City was developed for housing starting in 1942, to accommodate wartime shipyard workers and other migrants to California. Among those were African Americans from the South in the Great Migration, which continued until 1970. After the war, the area became predominantly African-American, as white residents were able to move freely to private housing elsewhere in Marin County. Since the 1980s, additional development has changed the makeup of the population while providing more local jobs. In 2018, Marin City's socioeconomic and racial makeup contrasts with the mostly wealthy and White population in Marin County overall. Wikipedia

Is Wiki a source of discrimination?

I doubt an appraiser today would be permitted to to include the narrative in bold. Based on Marin City's census tract it is considered a "diverse" neighborhood, with an index of 82, it has slightly more white than black:

* The USA TODAY diversity index shows on a scale of 0 to 100 how likely it is two people from an area would have a different race or ethnicity. A score of 0 would mean everyone had the same race and ethnicity; a score of 100 would mean everyone in an area had a distinctly different combination of race and ethnicity. Nearly everywhere is some place in the middle. The index was invented in 1991 by Phil Meyer of the University of North Carolina and Shawn McIntosh, who was then with USA TODAY. This score differs from the Census Bureau's version of the diversity index because of differences in how the bureau's formula counts race and Hispanic origin.

But its census tract is different than the other communities in Marin County:

Census Tract 1322, Marin County, California Demographics and Housing 2020 Decennial Census

Analyzing a decade of change

data.sj-r.com

The FHFA study is based on:

"What We Observed
From millions of appraisals submitted annually, a keyword search resulted in thousands of potential race-related flags. Individual review finds many instances of keywords to be false positives, but the following are examples of references when the appraiser has clearly included race or other protected class references in the appraisal."


I still can't see how the leap can be made that appraisers as a class have a racial based bias.

 

[Mejappz]

I still can't see how the leap can be made that appraisers as a class have a racial based bias.

There is none. Those that continue to imply this are trying to cover up for their own failures.

 

[shrubberyvaluation]

The big Freddie study is based on "tracts" not "appraiser defined neighborhoods." I work in a county that doesn't have census tracts to the 0.XX. Take Marin City, which isn't a 0.xx census tract,

Census Tract 1290, Marin County, California Demographics and Housing 2020 Decennial Census

Analyzing a decade of change

data.sj-r.com

It is described by Wiki:

Marin City is an unincorporated community and census-designated place in Marin County, California, United States. It is located 1.5 miles northwest of downtown Sausalito, 8 miles south-southeast of San Rafael, and about 5 miles north of San Francisco from the Golden Gate Bridge, at an elevation of 23 feet. Marin City was developed for housing starting in 1942, to accommodate wartime shipyard workers and other migrants to California. Among those were African Americans from the South in the Great Migration, which continued until 1970. After the war, the area became predominantly African-American, as white residents were able to move freely to private housing elsewhere in Marin County. Since the 1980s, additional development has changed the makeup of the population while providing more local jobs. In 2018, Marin City's socioeconomic and racial makeup contrasts with the mostly wealthy and White population in Marin County overall. Wikipedia

Is Wiki a source of discrimination?

I doubt an appraiser today would be permitted to to include the narrative in bold. Based on Marin City's census tract it is considered a "diverse" neighborhood, with an index of 82, it has slightly more white than black:

* The USA TODAY diversity index shows on a scale of 0 to 100 how likely it is two people from an area would have a different race or ethnicity. A score of 0 would mean everyone had the same race and ethnicity; a score of 100 would mean everyone in an area had a distinctly different combination of race and ethnicity. Nearly everywhere is some place in the middle. The index was invented in 1991 by Phil Meyer of the University of North Carolina and Shawn McIntosh, who was then with USA TODAY. This score differs from the Census Bureau's version of the diversity index because of differences in how the bureau's formula counts race and Hispanic origin.

But its census tract is different than the other communities in Marin County:

Census Tract 1322, Marin County, California Demographics and Housing 2020 Decennial Census

Analyzing a decade of change

data.sj-r.com

The FHFA study is based on:

"What We Observed
From millions of appraisals submitted annually, a keyword search resulted in thousands of potential race-related flags. Individual review finds many instances of keywords to be false positives, but the following are examples of references when the appraiser has clearly included race or other protected class references in the appraisal."


I still can't see how the leap can be made that appraisers as a class have a racial based bias.

And some of the "racist" statements they found were things such as they just elected their first Asian mayor. Its not necessary, but its no clear sign of racism. Its not like they put something like this neighborhood is going downhill and hasn't been helped by electing their first Asian mayor.

 

[RCA]

The complaint from the most popular case in Marin City seems to be based on claiming the appraiser is not using other market areas because of their demographics. Do you think federal regulators should tell you that you have to use comps from Mill Valley or something?

I do appraisals in the area. For rare property types like triplexes, I have no problem taking comps from numerous areas surrounding. However, my regression always includes the locational attributes of latitude and longitude - and may also include "city" - and will make adjustments for city. So, it makes the following possible location adjustments:

1. Latitude
2. Longitude
3. Latitude-Longitude (if a 2 degree model is being created).
4. City

In fact, sometimes it make more sense to use some other locational attributes.

So, what you gain by picking up comps from more expensive areas, you loose.

So, it is not likely you will gain from using comps from other areas, unless your subject property happens to be more similar in non-locational attributes to the houses in the other area rather than houses in the local area.

Given that the subject in this case is a home built on poles that I have seen only in the subject area, it is not likely it would have benefitted by using more comps from more expensive areas. Not at all.

 

[George Hatch]

1290 (Marin City, inland of the highway)

Census profile: Census Tract 1290, Marin, CA

Census data for Census Tract 1290, Marin, CA (pop. 2,918), including age, race, sex, income, poverty, marital status, education and more.

censusreporter.org

1302.03 (north end of the city of Sausalito, bay side of the highway)

Census profile: Census Tract 1302.03, Marin, CA

Census data for Census Tract 1302.03, Marin, CA (pop. 2,104), including age, race, sex, income, poverty, marital status, education and more.

censusreporter.org

1282 (Includes unincorporated County area north of Marin City and the southern portions of the city of Mill Valley)

Census profile: Census Tract 1282, Marin, CA

Census data for Census Tract 1282, Marin, CA (pop. 5,335), including age, race, sex, income, poverty, marital status, education and more.

censusreporter.org

 

[Elliott]

"Judge Tosses California Law Mandating Diversity on Boards​

Law requires public companies in the state to have at least one board member from underrepresented groups​

WSJ: 4/4/22
A judge struck down a California law that requires public companies based in the state to have at least one board director from underrepresented groups, a setback to efforts to mandate board diversity.

Judge Terry Green of the Superior Court of California in Los Angeles County granted a summary judgment in favor of a lawsuit challenging the law as unconstitutional, according to a decision issued Friday.

The law, enacted in 2020, required the boards of publicly traded companies based in the state to have at least one racially, ethnically or otherwise diverse director by 2021.

A lawsuit backed by Judicial Watch, a conservative foundation, said the law violated the equal protection clause of the state’s constitution."

........

Though there are many courts and appeals to come, but it might put a dent in PAVE's aspirations.

 

[Deleted member 126639]

The last time the Government stuck their nose in lending programs they ended up losing billions through the HARP program, but they don't remember how easily the fraudster figured out how to game the system.

Residential lending has effectively been "run" by the government since the FHA was created during the depression. Home ownership is and never has been financially feasible for the vast majority without government intervention.

The government unfortunately is part of the global economy, and the global community requires higher treasury yields. This is in part due to formal adoption of IVSC rules, which precludes the decentralized nature of USPAP, which the international community is demanding, and distraction as there is a crisis level shortage of housing.

 

[Deleted member 126639]

"Judge Tosses California Law Mandating Diversity on Boards​

Law requires public companies in the state to have at least one board member from underrepresented groups​

WSJ: 4/4/22
A judge struck down a California law that requires public companies based in the state to have at least one board director from underrepresented groups, a setback to efforts to mandate board diversity.

Judge Terry Green of the Superior Court of California in Los Angeles County granted a summary judgment in favor of a lawsuit challenging the law as unconstitutional, according to a decision issued Friday.

The law, enacted in 2020, required the boards of publicly traded companies based in the state to have at least one racially, ethnically or otherwise diverse director by 2021.

A lawsuit backed by Judicial Watch, a conservative foundation, said the law violated the equal protection clause of the state’s constitution."

........

Though there are many courts and appeals to come, but it might put a dent in PAVE's aspirations.

Every other first world country requires workers to elect a board member. Here too is the use of identity politics to divide the proletariat.