All This Will Do is CREATE BIAS!
Does bias exist? Of course. Does it exist in appraising? Rarely, if ever.
Not one of the publicly aired cases has shown any verifiable facts or data to prove their claims. Bias in appraising is rare and far less than in nearly all other vocations. Why? Because appraisers are and have been, for decades, already held to ‘no bias’ standards that far exceed nearly all other jobs and career positions. It is built-in to USPAP, our certifications, and ethics, that we remain the unbiased link in the process.
When an appraiser uses the best available comparable properties, comparables have no ethnicity; they are brick-and-mortar. All this new witch hunt will do is set yet another excuse to attack the appraiser and to make way to be bullied into hitting a higher value or threatened they will be nailed with ‘bias.’
What is the purpose of Dodd-Frank? What is the purpose of AIR/Appraiser Independence regulations? Why create AMC/Appraisal Management Companies to create that protective layer and avoid pressure to make an appraiser ‘hit value’ if just to set appraisers up for attack from anyone who wants to force a higher value? All this will do is CREATE BIAS.
How does one stay unbiased if they repeatedly get sued or raked over the coals every time they do an honest, true appraisal that does not meet the expectation of untrained members of the general public who do not understand how appraisals work? Our job is not to appraise what anyone THINKS a home is worth, or get beat up on the playground and have gum put in our hair. An appraisal is typically 25-45 pages of us PROVING our opinion of value; backed with data. What anyone might THINK/estimate a home is worth, can be something quite different. Hats off to jumping on the bandwagon and further destroying the one link in the home buying process that actually protects the lenders and protects buyers from making a potentially horrible financial decision that could put them underwater in their loan for the next 10-20 years.