Wells Fargo Appraisal Discrimination Case

[Non Sequitur]

The Most Significant Appraisal Discrimination Case Doesn’t Name an Appraiser as a Defendant – Valuation Legal Resources

Another great article by Mr. Christensen.

"Key allegation pertaining to appraisals:

Wells Fargo knowingly incorporates, without adjustment, appraisals that have been shaped by years of race-based valuation standards or appraisals affected by race-based criteria. Homes in majority Black neighborhoods are worth an average of 23% less than homes in neighborhoods with “very few or no Black residents” and of similar home quality. (Citing Dr. Andre Perry’s research at Brookings “The Devaluation of Assets in Black Neighborhoods.”)."

"An early takeaway for all lenders, appraisers and management companies is to appreciate a need to complete fair housing training. It’s important to fully understand and be able to apply fair housing laws, and, moreover, it just plain helps persuade regulators and courts that you’re doing things right. The issue of fair housing training has come up in every appraisal discrimination investigation that I’ve handled."

 

[Tawfik Ahdab]

“An early takeaway for all lenders, appraisers and management companies is to appreciate a need to complete fair housing training.”

My takeaway on the regulators’ and critics’ takeaway is to appreciate their need to even rudimentarily complete appraisal training before laying blame on our profession.

 

[Dublin ohio]

“An early takeaway for all lenders, appraisers and management companies is to appreciate a need to complete fair housing training.”

My takeaway on the regulators’ and critics’ takeaway is to appreciate their need to even rudimentarily complete appraisal training before laying blame on our profession.

They know exactly what they are doing. They are singling out the only factor that they can use to achieve their goals. Location.

 

[Elliott]

"Diversity, equity and inclusion training is a $3.5 billion industry and now, a former diversity trainer is blowing the whistle. Erec Smith says, “if you’re making all that money off of racism, the last thing you want is for racism to go away. You’re going to perpetuate it. You’re going to see it where it isn’t.” "

https://twitter.com/x/status/1696360739450106090

I'm shocked. Next they'll tell me the billions spent on the 'homeless' is a racket and a profit center. Appraisers don't discriminate, lenders discriminate.

 

[Fernando]

I don't do appraisals for Wells Fargo. Don't know why. Maybe in the past they paid low appraisal fees or they have staff appraisers and I stop dealing with them..
If low fee appraisers then this is the result we're seeing.

 

[Dublin ohio]

I don't do appraisals for Wells Fargo. Don't know why. Maybe in the past they paid low appraisal fees or they have staff appraisers and I stop dealing with them..
If low fee appraisers then this is the result we're seeing.

You really have no idea what this is saying do you.

Wells Fargo knowingly incorporates, without adjustment, appraisals that have been shaped by years of race-based valuation standards or appraisals affected by race-based criteria. Homes in majority Black neighborhoods are worth an average of 23% less than homes in neighborhoods with “very few or no Black residents” and of similar home quality. (Citing Dr. Andre Perry’s research at Brookings “The Devaluation of Assets in Black Neighborhoods.”)."

 

[Fernando]

I don't know how Wells does their appraisals. Do they use low fee appraisers who do what they want?
I do know Wells gives special treatment to high income customers and they stopped offering HELOCs years ago.
Thus, they seem to be very conservative in who and what they lend.

 

[sputnam]

I don't know if it's still true but, Wells Fargo appraisals were mostly done by RELS which was owned by Wells Fargo and Core Logic.

This is getting out of hand, imo. Unless you can eat it, few things have intrinsic value. The value of a dwelling is no more, and no less, that what a Buyer will give and a Seller will accept. Appraisers do not determine that. They research the market, analyze data, and form an opinion about what number a Buyer and Seller would be likely to arrive at. Some neighborhoods sell higher than other neighborhoods. That is simply a fact. Neither Wells Fargo nor the appraiser controls the perceptions of participants in the market. If a Lender is preferentially making loans on the basis of race, then they need to be smacked down. If an appraiser if purposely appraising lower values on the basis of race, they need to be smacked down.

 

[ucbruin]

I don't know if it's still true but, Wells Fargo appraisals were mostly done by RELS which was owned by Wells Fargo and Core Logic.

This is getting out of hand, imo. Unless you can eat it, few things have intrinsic value.

I love this sentiment....
Of course because I think very similar....

The value of a dwelling is no more, and no less, that what a Buyer will give and a Seller will accept. Appraisers do not determine that.

This is the sticky part....
Agents/LOs/buyers/sellers say the same thing....

They research the market, analyze data, and form an opinion about what number a Buyer and Seller would be likely to arrive at. Some neighborhoods sell higher than other neighborhoods. That is simply a fact. Neither Wells Fargo nor the appraiser controls the perceptions of participants in the market. If a Lender is preferentially making loans on the basis of race, then they need to be smacked down. If an appraiser if purposely appraising lower values on the basis of race, they need to be smacked down.

Good....

 

[djd09]

"Diversity, equity and inclusion training is a $3.5 billion industry and now, a former diversity trainer is blowing the whistle. Erec Smith says, “if you’re making all that money off of racism, the last thing you want is for racism to go away. You’re going to perpetuate it. You’re going to see it where it isn’t.” "

https://twitter.com/x/status/1696360739450106090

I'm shocked. Next they'll tell me the billions spent on the 'homeless' is a racket and a profit center. Appraisers don't discriminate, lenders discriminate.

buy the book take the class...snake oil salesmen