Special Briefing on Appraiser Racial Bias

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Special Briefing on Appraiser Racial BiasWe encourage everyone to sign up for the “Special Briefing on Appraiser Racial Bias”. American Enterprise Institute (AEI) analyzed actual data to see if there was any racial bias in appraisals and published their findings in a study titled “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“

AEI Special Briefing on the Presence of Appraiser Racial Bias:

Join AEI’s Housing Center director Ed Pinto and director of research Tobias Peter for a special briefing on the presence of appraiser racial bias. The call will report on our use of big data to evaluate whether media allegations are correct that appraiser bias on home loans is common.

To RSVP click here. You will receive a confirmation email with further information for the call. Please RSVP by 4 pm ET on Monday, January 18, to receive call-in information for the briefing on Tuesday, January 19. The briefing will use a webinar format, and it will be on the record similar to previous briefings.

Description: Special Briefing on the Presence of Appraiser Racial Bias

Time: 11:00–11:45 AM Wednesday, January 19, 2021

AEI’s Housing Center provides research, commentary, and new tools for measuring risk in housing and mortgage markets. The recent financial crisis, and the resulting devastation for millions of families, largely stemmed from a failure to understand the build-up of risk in these markets.

Mr. Pinto is a resident fellow at AEI and a former executive vice president and chief credit officer for Fannie Mae. Mr. Peter is director of research at the AEI Housing Center where he focuses on mortgage risk and housing risk.

If you experience any difficulties registering or if you RSVP and do not receive a follow-up email by 10 AM ET the morning of the call, please contact Michael.Howard@aei.org.

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6 Responses

  1. Avatar Josephj says:

    This is complete nonsense (nonsense is a very polite word). And even the few bad apples don’t want to jeopardize their relationship with their client (or lose their license) by low-balling an appraisal because they are racists.

    FYI – AEI believes that you should drive a mile away to another neighborhood if the house in that neighborhood is most similar to the subject property.

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  2. Avatar Thomas Markoski says:

    Racial Bias in Real Estate has and is generated by the producers: The Lender and Real Estate Brokers/Sales ecosystem. Redlining, systemic racism, cognitive bias both past and current. This is the documented historical evidence. You simply can not accuse anyone else let alone the Appraiser.

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    • Instead of claiming “It is the documented historical evidence” how about showing s that evidence? I’ve been in the business as either an agent or an appraiser since 1971.

      In 1971 despite the ‘new’ equal housing laws, there WAS redlining and ‘coding’ in mls and steering. Along with blockbusting. That had largely disappeared by 1972 or 1973. Even orally undocumented redlining and steering had disappeared. In 1984 when I got back in the business I never saw a hint of it. In fact, Eastin Act Disclosure and compliance with ALL laws was the norm rather than an exception.

      Even lenders PMI companies and large corporate brokerages bent over backward to help people avoid foreclosures and resettlement when loss of a home was unavoidable. Now perhaps predatory lending was still a factor in the original loans that resulted in the later forclosure. My father * I worked with one couple that was illiterate (literally). We even got a large ‘National Brokerage” firm to agree to a 1/4th normal commission back when NO ONE moved from 6%.

      In (approximately) 2010 I heard from a trusted party that a decision to not lend in an area based on its zip code was made by a private lender for a commercial loan. As far as I know the owners were not a minority…I never met them. The area (Compton) is associated with minorities by many.

      As long as lenders require CENSUS tract data be reported, there is no effective way to police lender-side discrimination. Census tract demographics supplied by the United States Census Bureau provides them with all the ammunition they need to practice discriminatory policies if they are so inclined.

      It has nothing to do with the appraisers OR the agents involved. The agents only want to earn a commission. They have zero motivation to discriminate. Sellers have zero motive too. They are moving away. Appraisers only report the census tract number because LENDER POLICIES & FNMA Forms require that we report census tract numbers.

      Supposed they need them to monitor Fair Housing laws! It’s Catch-22. The system they rely on to measure discrimination is also the ONLY source of known racial data uploaded to a lender from an appraiser that MAY result in discrimination on the lending side.

      FNMA ALSO relies on census tract data to operate their collateral Underwriter risk program. Theirs & other commercial risk rating software DOES include demographic information according to a number of software advertisements for risk rating software. HOW that data is rated or scored is undisclosed.

      IF there is any form of ‘systemic’ racism then this is where it would occur in the otherwise closely regulated and monitored American banking system.

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  3. Scott Taylor on Facebook Scott Taylor on Facebook says:

    Can someone give me an example of appraisal racial bias?

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  4. Larvey Harry on Facebook Larvey Harry on Facebook says:

    You had me at “media allegations.”

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  5. Brian Kirkpatrick on Facebook Brian Kirkpatrick on Facebook says:

    Appraisal racism=economic racism. I wish people would shut up about our profession being the issue.

    3

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Special Briefing on Appraiser Racial Bias

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