Appraisal Bias Mantra is Largely False Reporting
Folks, about the only entity examining in depth the details behind all the allegations about appraisers being inherently biased is the American Enterprise Institute (AEI) Housing Center. They are proving that most of the allegations are mostly a dump truck load of bovine substance.
Click here for their latest expose.
Report: Just How Commonplace Is Appraisal Bias? – theMReport.com
Within this report are these statements from AEI:
“When comparing appraisals for people of color to those for non-Hispanic white people within the same geographies, a new study by the American Enterprise Institute’s (AEI) Housing Center finds that there are no or hardly any differences.”
“The study suggests that commonalities in people’s experiences in buying a home (e.g., first-time home buyer status) or local market conditions (e.g., the presence of a market frenzy or seller concessions) are far more important than differences in people’s race or ethnicity when it comes to determining who receives an under-valuation and who does not.”
AEI is debunking all the comments about Census Tracts and Race used against appraisers that have been so prevalent the past few years.
I’ve written multiple times during that time period about the attackers, including Freddie Mac, who have relied mostly on personal demographic Census Track data in slamming appraisers up against the mortgage lending wall.
What these attackers have been doing is comparing the appraised subject property characteristics to other pinpointed properties where the RACE of occupants is found using the Census data, and then.
This situation is very ugly. It is precipitated by identity politics surrounding race promulgated by one individual, with the underlings falling all over themselves to please the master, and promote and perpetuate the ugliness.
A once respectful profession is being nearly obliterated by this ugly situation. Appraisers caught up in mortgage lending assignments might be wise to examine their long term viability in this line of work.