ASC Blaming Appraisers

Dave Towne

ASC Blaming Appraisers For Low Home Values in Communities of Color. The Appraisal Subcommittee, because they were directed to do so, has produced a report, which frankly and explicitly lays the blame for low market values of homes in ‘communities of color’ directly at the feet of independent appraisers involved with mortgage lending.

You will start seeing accusatory slanted media reports about this report. ABC news already has distributed it. A TV station in San Francisco has aired a story already.

Yes, the report casually mentions actual facts that GOVERNMENT policies and procedures promulgated segregated and extraordinarily unfair housing issues in the US, from the 1930’s into the early 1960’s. The GSE’s, FHA, VA wrote the documents appraisers followed. Banks and other lenders went along with those policies. It was part of the culture at the time. Was it wrong? Yes. Just like the slave trade many COUNTRIES encouraged. Which ended, thankfully.

Unfortunately, appraisal associations had to be sued in the early 1970’s to finally eradicate discriminatory advice they continued to promote until then. That appears to be one justification for the piling on this report does.

The report basically says “you appraisers shouldn’t have done what you were told to do”, “you caused the low values”, and now we’re coming after you, the independent appraisers and the agencies who write policies, to fix what ‘the GOVERNMENT’ originally caused.

The report also implies that ‘you’ are responsible because so few ‘people of color’ are appraisers. (If parity to equalize racial composition is such a huge concern, why no outcry about National Football League teams which are dominated by ‘people of color’?)

Appraisers need to take a few minutes and peruse this delightful document. If you read nothing else, read pages 1-12, and the Conclusion below.

There are some other interesting passages buried in the bowels. One that caught my eye is a suggestion that using the ‘Sales Comparison Approach’ is “not fair” to ‘communities of color’, unless the appraiser leaves the immediate neighborhood to seek out higher priced homes elsewhere to artificially increase the appraised value of the subject.

This is the conclusion in the report:

G. Conclusion

An appraiser has the unique power to determine the value of a home, which for most Americans, is their single most important financial asset and holds the key to wealth, stability, and opportunity for their family and generations to come.

In addition, home values affect the tax base, school funding, and community investments. Moreover, time and again, our nation’s economy and financial markets have been significantly impacted by home valuations, with communities of color often bearing the brunt of failings in the mortgage market and the home appraisal process.

Given the importance of homeownership to American families, particularly families of color, governmental and private organizations have called for reforms and a comprehensive examination of the structure and governance of the appraisal industry.

In response to these calls for reform, we have assembled the research and recommendations in this report. We urge federal and state governmental entities, The Appraisal Foundation, the GSEs, lenders, appraisers, researchers, and civil rights and consumer advocates to work together to address the concerns raised in the report, including:

  • Questions About the Governance of the Appraisal Industry
  • Gaps in Fair Housing Requirements and Training
  • Barriers to Entry to the Appraisal Profession
  • Compliance and Enforcement

We hope that this report will encourage conversations among key stakeholders in the appraisal and housing industries to seek workable, sustainable solutions that benefit the whole of the housing market, including borrowers of color.

This ‘train’ of accusations started down the track about four years ago, because appraisers are easy targets. It’s been building steam ever since. The ride toward ‘reforms’ is not going to be very scenic or pleasant for appraisers for at least three more years. Appraisers will need to keep very close tabs on the waybill of items being hauled your way.

Even though this report is extraordinarily discouraging, I will say again: if you are a biased appraiser in any way, in how you conduct yourself or in how you analyze data and report values, then you need to excise yourself from appraisal work. On the other hand, if you are doing your work appropriately and professionally according to current policies and procedures, continue being careful and diligent. And hold your head high.
 

Image credit flickr - anokarina
Dave Towne

Dave Towne

AGA, MNAA, Accredited Green Appraiser - Licensed in WA State since 2003. Dave Towne on e-AppraisersDirectory.com

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46 Responses

  1. Very Interesting. Thank you.

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  2. Avatar Dan says:

    I believe I will solve this problem by turning down assignments in neighborhoods where this problem exists.

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  3. Avatar Jesse L says:

    So according to the report, no appraiser was an author, and it does not reflect the ASC’s position.

    “The following individuals authored this report:
    Maureen Yap Senior Counsel, NFHA
    Morgan Williams General Counsel, NFHA
    Lisa Rice President and CEO, NFHA
    Scott Chang Senior Counsel, NFHA
    Peter Christensen Principal, Christensen Law Firm
    Stephen M. Dane Founder and Owner, Dane Law, LLC

    The views and opinions expressed in the report are those of the authors and do not reflect the official policy or position of the Appraisal Subcommittee or the agencies represented on its Board.”

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    • Avatar Jesse says:

      This is a train wreck of a document. While there are a few good suggestions (added education, more clear statements, additional openness), essentially, they want the banks (who authored the actual racist laws in this country, and who are still discriminating) to take over majority stake in TAF, and to then reduce the bar to entry to something closer to a real estate agent. The implied changes are frightening to say the least and a brick on the gas peddle towards mortgage fraud.

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  4. Avatar J. Bock says:

    Under G. Conclusion

    “An appraiser has the unique power to determine the value of a home.” This is a bold-faced lie! Appraisers report the market values based on closed and pending sales in the neighborhood. Appraisers do NOT create or “make up” or pull out of thin air, a value for any property. Shouldn’t the ASC understand the difference? Yes, they should! If not, they should all resign! So glad I’m now retired!.

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    • Baggins Baggins says:

      That was my very first conclusion just from reading this blogs article. Let’s help these jokers out with some language correction. “The appraisers have a rather benign and non descript position, analyzing and measuring value which the other parties, the buyers and sellers themselves, have set the value measurement points for their respective market places.”

      The second conclusion is more telling; “home values affect the tax base, school funding, and community investments”. Oh I see. Because posterity thrives and we’re all more prosperous under a heavier rather than a lighter tax burden. Here we go again with bureaucrats telling us the only sensible conclusion to come to is that we need to rely on government and need more and larger government to have a cohesive community. Yeah because higher pricing and higher taxes is really helpful for people starting out on the path to home ownership. As these people simultaneously do nothing about one of the most massive corporate purchasing sweeps in residential housing history, having bought entire blocks and percentages of housing, as companies like Blackrock and others would seek to turn the USA into a nation of renters and not home owners. True independent appraisers stand in their way. We know who pulls these bureaucrats strings.

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  5. Avatar Seneca says:

    So what. Let them have their grandstanding moment. What can they do? Tell us to apply a 10% increase in value of certain neighborhoods. Whatever. Just be ethical every moment of every day.

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  6. Avatar ShenValley Appraiser says:

    “One that caught my eye is a suggestion that using the ‘Sales Comparison Approach’ is “not fair” to ‘communities of color’, unless the appraiser leaves the immediate neighborhood to seek out higher priced homes elsewhere to artificially increase the appraised value of the subject.”

    So, following their logic in this statement, the Authors and Committee members, who most likely live in subdivisions/areas where each home is a different custom design, want us to go to the 1970s FHA tract housing subdivisions to get “comps” for their “custom” homes when we appraise them? How fast do you think they would file a complaint with State Appraisal Boards ?

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    • Avatar Mary says:

      Amen! If they want us chose whatver comps we want, it can work both ways. They have no clue! We do not determine values people. Buyers do! And we will not go outside the subject neighborhood unless there are NO sales inside.

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    • Avatar PJTMC says:

      REALTORS UNITE, you are next for underpricing a property when taking a listing. Find the highest sale prices you can find to support your listing and spend thousands and years marketing the property that never sells then get sued by your customer. Sounds kinda stupid doesn’t it?

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  7. Avatar Mary says:

    G. Conclusion – Wrong right off the bat with the first sentence below.

    “An appraiser has the unique power to determine the value of a home, which for most Americans, is their single most important financial asset and holds the key to wealth, stability, and opportunity for their family and generations to come.” IT IS CLEAR THESE PEOPLE HAVE NO CLUE WHAT WE DO. SURPRISE PEOPLE, WE DO NOT DETERMINE VALUES…..BUYERS DO! ASK THEM AND THEIR REALTORS WHY THEY ARE PAYING LESS IN A GIVEN AREA, FIX THOSE PROBLEMS AND WE WILL SEE VALUES RISE. They seem to think we are all SO powerful. Now if they want us to go outside the neighborhood to bump values, then what is to stop us from undervaluing High priced homes. If Appraisers are given the power to select ANY comps they want regardless of how comparable they actually are, all Hell will break loose and we have just undermined the entire the appraisal process. We are not that powerful but they sure think we are and they are gunning for us every step of the way.

    They want us to name the Borrower as an intended user in addition to the Client/Lender. Everything they are addressing makes it much easier for someone to SUE us for no good reason when their appraisal comes in lower than they think it should. Well we are not going to accept that kind of liablity unless we are paid way more than we are! Even then, it is not worth this attack on our profession and we have no support other than ourselves! Getting E & O coverage will be impossible with this kind of potential liability.

    They want new Appraisers to be able to get into the profession much faster and easier; take some education, pass an exam and BOOM they are a CERTIFIED Appraiser! Not licensed, go right to Certification. They want the proces easier so we have a more diverse Appraisal Roster. If I was Black or Latino, I would be offended that they seem to think we need it to be easier for us to enter the profession. If most of this stuff that they are proposing comes to fruition, most everyone will retire to another profession as it is not worth it. Let the diversity begin, they won’t want this kind of liablity either! Diversity BTW in no way guarantees higher values in undervalued areas. That statement right there is biased thinking. They just need to use AVM’s and be done with this whole thing. We have no motive or vested interest in being biased or worse racist. AS noted in article if there are those out there and I am sure as in any profession there are bad actors, then get out so you don’t continue to ruin it for the rest of us.

    Not once did they say they completed a thorough examination of Both appraisal reports in each instance that they outlined. Why is it automatically assumed that the higher appraisal is the CORRECT one? Insanity! Remember when they said Appraisers were responsible for the Crash in the market in 2008-2009 because we “did what lenders wanted” and over valued properties? They blamed us for that and now they say we have been undervaluing certain properties all along. Overvaluation is just as detrimental to the housing industry as undervaluation. Where is the Appraiser representation because the Appraisal Institute sure has thrown us under the BUS. Thanks for letting me rant. I am done with this!

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    • Baggins Baggins says:

      Don’t get stressed, you’d just be playing their game. You do have a good handle on this, great perspective. You can see bureaucrats and special interests coming a mile away. Toss out a bunch of slander and accusation, get everyone heated, get a movement going, then expand government to solve the problem, expand taxation, profit at other peoples expense. It’s all a narrative and they know ahead of time their points are untenable and not workable. Their solution will be automation because that’s what allows more control over other peoples money and helps circumvent legitimate checks and balances systems. This has nothing to do with race and everything to do with expanded pilfering of the tax payers under a proposed color coded system. Now that there is more money in the hands of the minority base, the bureaucrats what a larger piece of it. Increased pricing is like increased regulations, it limits entry of competing forces. These people can’t manage their own budgets and have ran trillions into the red in an unprecedented quantitive easing cash printing blitz and unlimited special interests cash give away. The idea they could artificially impose parity pricing on real property markets and actually help anyone is laughable.

      It is important to recognize that bureaucrats never actually want free markets. They live and die by tax imposition. This is why we have to reiterate the most important principals of liberty if we want to provide effective resistance. The governments job is to protect liberty. The measure of our prosperity lies with the free peoples. If we allow for continued expansion of government the results are inevitable, they will create two new problems for every issue they supposedly solve. We are past the tipping point where through a long series of redundant taxation points and accelerating de valuing of our currency, well more than half of our income flows to government. It’s so complex people can’t see it but it’s there, we all pay about half of everything we work for to government systems. If considering imbalance and unfair dealings, look no further than the sheer size of government itself.

      https://mailchi.mp/64efe602ac48/december-trainee-update-13701482
      The hopeful new appraisers should be aware whom their competition is. The current appraisers should be aware too. I like the guy willing to work for free for several years, that’s what I had to do. Easier entry will erode the value of the appraisal service because when the license is easier to attain, more people will attain it, and those people will be more compliant and flexible, easier to push around, replace, pull their strings too. The new appraisers will get sued at a record pace themselves if they depart from the basics of valuation principals and try to ‘create value’ in locations where the existing market forces indicate a lower value indicator is present.

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  8. Avatar CJK says:

    In 3 years and 7 months (or at least 2 years) I will be done with all of this nonsense. I feel sorry for the new people who are just starting out. Now FNMA wants us to do desktop reports with a sketch that includes the interior walls. “Minds are like parachutes… they only function when open!” – Thomas Dewar

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  9. Avatar CJK says:

    “Remember when they said Appraisers were responsible for the Crash in the market in 2008-2009 because we “did what lenders wanted” and over valued properties? They blamed us for that and now they say we have been undervaluing certain properties all along.”

    It is funny how that conveniently works for them.

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  10. Avatar Eric Kennedy says:

    Appraisers give a description of the current market. If the woke Fed wants to force lenders to loan higher than market then give them that option and let THEM make the decision to take the risk. I would also suggest they provide these “infected” markets be allowed to have loans at below prime rates with a cap at $200K or less. Opportunity Zones are already in place from Trump HUD so give them the tools and see what happens, hope it works…. STOP blaming Appraisers for DOING THEIR JOBS!!!

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    • Baggins Baggins says:

      Wait a second, hold the door. The federal reserve is a private consortium of for profit banks whom work for their own interest, while maintaining a chartered position reliant on the notion they are reliable stewards of the publics money supply. Quantitative easing is the process of expanding the fiat money supply to supposedly create economic growth and stability, a departure from Article 1 Section X. The feds target has been a year over year 2% monetary de valuation for decades and of late they’ve lost control and the number is much higher. QE is necessary to fund new government programs and incentives because the government does not produce, it only borrows and directs. QE is taxation, taxation of the existing money supply via currency devaluation, it effects all of us, hitting the poorest the hardest. Doling out even more special favors and discounted cost of money to special groups won’t solve anything, it will only make the problem worse, because that’s what accelerates issues of economic imbalance. Opportunity zones can go either way, it depends if the approach is subsidization by tax dollars (bad) or incentivization of private industry without any government spending via taxation relief and red tape relief (good). These people could incentivize private industry to complete urban renewal projects nationwide with simple tax and regulatory relief, instead they choose to try and rewrite centuries old valuation principals and pick ‘value’ out of thin air to dole out to one group of citizens but not the other. But then again, what’s new, that’s how we got here in the first place. Our tax dollars, hard at work.

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  11. Avatar Raymond says:

    Interesting quote: “The appraisal industry seems to have escaped the type of regulation and scrutiny faced by other participants in the mortgage market. Our analysis finds that the appraisal industry has operated in a relatively closed, self-regulated framework.” BY Senior Mortgage Reporter Georgia Kromrei commissioned by the Appraisal Subcommittee. Pretty amazing when, we all know that all the mortgage lending players (non appraisers) have been totally dictating to appraisers on how to prepared their reports and how much fees they deserve. Its been pretty much a professional slavery situation for decades.

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    • Avatar Seneca says:

      Exactly. While Realtors get away with very little oversight or accusations. Why? NAR spent $18 million in lobbying. Appraisers? $0

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      • Avatar PJTMC says:

        Ferget bout it….appraisers are the most disorganized inept group when it comes to supporting the profession and that is exactly why we get beat up all the time. After 3 decades I get the fact, we are hanging on by the skin of our teeth and only have ourselves to blame.

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    • Baggins Baggins says:

      Great insight Raymond. They presume the fault could lie with appraisers, given the excess regulatory framework elsewhere. That comes with an assumption that the existing regulation is effective in the first place. Trust the government, nothing to see here, move along. Just one problem; The appraisal specific regulation is already integrated into every body of regulatory framework related to lending. If she’d actually read the tens and tens of thousands of pages of lending regulations she’s referring to like many appraisers have, she would know that. Because the appraiser does not do much, other than measure existing market value forces, our regulatory needs are necessarily limited to the appraisers limited scope of work duties, which is measuring value and proving that was unbiased value analysis with a long chain of underwriting guidelines and complex form filling cross references and checkpoints, with redundant human and technical review after report submission to boot. The statement is worded so cleverly and deceptively by Georgia Kromrei, I was compelled to google this individual.

      https://kromreig.github.io/
      Wow, she specializes in hit pieces and pro socialist writing. Not surprising. From rural texas and grew up in Mexico city, now in the big city. Sorry babe, if you want to go up against the entire appraisal industry you are clearly out of your league. We’re not struggling tenets or political pundits and your liberal causes carry no weight here, even if trying to appeal to liberal appraisers. Punt away with slanderous nonsense and deceptive statements or just plainly poor research, it won’t make a difference. Valuation principal is fixed, it is not fluid or flexible. Price is not the same thing as value. Someone send this lady a copy of the FNMA selling guide, firrea, reg z from dodd frank, the hud handbook, state regs, and a few of those several hundred page long mortgage underwriting funding guideline books, and a copy of the USPAP appraiser ethics book. Who wouldn’t have gray hair by the time they are done reading all that. She clearly does not have a clue what she’s talking about and is just reaching, spinning how she is told to spin. I picked that up from her, having suffered through reading several of this ladies other real estate related articles today, lost time in my life which I will never get back and found no value in. An appraisers license is the most difficult real estate industry license to both acquire and maintain. If we were all out of a job tomorrow we’d have no problem claiming Sr positions anywhere else real estate related tomorrow, scoot people like her right out. See ya. An illusion, a deception, see right through.

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  12. Matt McCormick on Facebook Matt McCormick on Facebook says:

    You don’t have to dig real deep to figure out where this is coming from: https://nationalfairhousing.org/

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    • Avatar Seneca says:

      A Brookings Institute driven organization.

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    • Avatar Eric Kennedy says:

      You are spot on – this started with a meeting in DC 2-3 years ago wtih Brookings claiming that comps should be pulled from superior neighborhoods. Another Fed idea that will do nothing but damage the people they propose to be trying to help by making already unaffordable housing even more unaffordable. Democratic Party = Unintended Consequences… or just plain stoopid

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      • Baggins Baggins says:

        The helicopter theory; That if a home was lifted up with a helicopter and placed elsewhere, the exact same home would be worth more elsewhere… Not surprisingly, a politician came up with that gem. A problem that obviously needs rectified. This is the socialist mindset, equality at all costs and elimination of free market principals. They intend to use the power of your tax dollars to force the change.

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  13. Heidi Ford on Facebook Heidi Ford on Facebook says:

    We don’t control the market, we analyze the market. And if you haven’t taken the 2022-2023 USPAP, you are about to be lectured about how you are a racist. The people selling AVM software are playing this for all it is worth.

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  14. Avatar PJTMC says:

    This is very disheartening. I have been appraising for over 36 years and find this offensive to me personally. Never, ever, ever in my time as an appraiser has the thought of bias entered my mind (consciously or unconsciously) or my professional work. Quite frankly I don’t care the color of anyone’s skin, ethnicity or the neighborhood I am working in. This seems more of the “defund” the police mentality than an “unbiased” opinion. Some things will never change, and the appraiser has always been the target of all groups for decades. There are bad players in every profession; politics, law, accounting, medical etc. etc. but, after all these years, the appraiser seems to be the one blamed for all the troubles in the mortgage industry. It is unfortunate and I believe appraisers worth their “salt” will continue to do their job in a professional and ethical manner despite the naysayers.

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  15. Avatar Raymond says:

    Look, these proposal and/or ideas is what the appraisal industry gets, when non-appraiser groups are in control and think they know more than appraisers about the appraisal process. I repeat, again,…..appraisers have loss all control of their own profession. Pretty amazing, that our very clients are telling us how to practice our profession. Do patients tell their heart surgeons how to perform heart surgery???.

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  16. Avatar Pat Turner says:

    This is so totally false and wrong on so many levels it actually turns my stomach!

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    • Avatar Eric Kennedy says:

      You were at this meeting Mr. Pat Turner- tell people about it who have forgotten or were not paying attention. – this started with a meeting in DC 2-3 years ago wtih Brookings claiming that comps should be pulled from superior neighborhoods. Another Fed idea that will do nothing but damage the people they propose to be trying to help by making already unaffordable housing even more unaffordable. Democratic Party = Unintended Consequences… or just plain stoopid

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      • Avatar Pat Turner says:

        Eric,

        That meeting was at best a setup to begin with. All this gentleman quoted was Zillow, Zillow, Zillow. Now I’m sure that made Zillow feel really good/bad.

        After the meeting I went up to this guy who was black (which makes no never mind) and asked him did he know what Zillow was or did. The answer was a surface scratch. It was apparent he knew nothing about HOW their algorithms are derived. Try census tracts on for size. Did he check that before he testified. Lol

        One other thing that chaps my ass is this lack of diversity also being “Racist “!

        I’ve done this too long and seen way too much. A story if you will allow…

        About 10 years ago my son screwed around and came to work for me. About 5 years. He met this girl, fell in love, and married her. He was moving to Charlotte because of her dream job. During the run up to the marriage… I asked him if he wanted me to get him a couple of interviews with appraiser friends of mine.

        He looked me dead in the eye and said “Dad, I don’t want to be an appraiser. I’m sick of being wrong all the time”

        He went into commercial real estate… and like all parents I am soooo proud of how much more successful he is.

        Oh, but is that racist? With the advent of the AMC monopoly, I will bet the greatest majority of us would not be interested in the least in becoming an appraiser. The financial incentive has been removed from being willing to train and be trained.

        Where’s the real racism?

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  17. Avatar PJTMC says:

    First and foremost, “location, location, location” is the mantra of Realtor’s and has been for years. That is a pure and simple, unadulterated “fact”. If the appraiser is being blamed for undervaluing properties based on location, then shouldn’t the Realtors be held equally accountable for the listing prices of the varying market areas they work in (could have something to do with their PAC, ya think?). That is the absurdity of this assault on appraisers; but I suppose, in their minds, the end justifies the means. It appears there is an all-out assault on the appraisal profession at the moment from varying agencies. Now the ASC is making unsubstantiated and inflammatory claims the appraiser is responsible for everything wrong with the Mortgage Industry. It seems, once again, USPAP is irrelevant to individuals who do not work in this industry. It is easy to be an “arm-chair quarterback” when you have a “woke” agenda. “Fly in the face of” best describes this assault on the appraiser and, visa vee, USPAP (laws we are licensed to abide by). Sad to say, USPAP and the hard-working people who oversee our industry are also being assaulted by this very ASC report and treated as irrelevant just to meet their predetermined agenda. “Hmmm, so let’s have the appraiser do unethical things so they can produce perceived ethical appraisals that meet our agenda and then file a law suit when the property gets foreclosed for over-valuation”; yeah, that’s the ticket. This can happen in any market and any value range. So why have appraisers or, for that matter, regulations? I think this is the best interpretation to the ASC report. Let’s be honest, the appraisal industry is not a perfect process and has never claimed to be. Admittedly there is room for improvement however intimidation is not the answer. I don’t think this new ANSI mandate by FNMA is coincidence and seems to be in lock-step with the ASC report. The “ethical” appraiser is the last stronghold in protecting the American consumer from mortgage fraud, abuse and collapse of the economy (or have we forgotten the mortgage crash after the implementation of “B” & “C” paper by Wall Street and unscrupulous secondary market lenders?). Sad to say, this report is not surprising given the environment we now live in. I just hope the powers to be can see through this thinned veiled attempt to “defund” and eliminate anything and everything that stands in their way. I certainly hope that the Appraisal Foundation, National Association of Realtors, Appraisal Institute, Smaller Banks, State Attorney’s and any other relevant legal and mortgage industry participant can see none of what is going on is in the best interest of their business and certainly not the consumer. They all need to step up and get to the bottom of what is taking place if they want to be relevant in the future. This isn’t just about appraisers, it about the very fabric of the mortgage industry as a whole and stability of our economy. Today, the appraiser, tomorrow….?

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    • Baggins Baggins says:

      Get to the bottom of it? The Creature from Jekyl Island is over a hundred years old. There is no powers that be whom has our cause in mind. They’re on the other side. It is one of the great disappointments and realizations of being an independent licensed appraiser. You are among the last remaining effective checks and balances systems which have not yet been dismantled by the principals of power.

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  18. Avatar ShenValley Appraiser says:

    Appraisers were previously the only licensed party in a refinance. Mortgage Loan officers now have registered License numbers – tomorrow may come sooner than they think…..

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  19. Avatar Realist says:

    Easy Fix. Do away with independent appraisals for mortgage purposes altogether. Have the lenders/secondary market use computer generated values only; and then they can apply a fairness factor or whatever they want to for their politically correct motivations. To heck with market based values. One question regarding an inconsistency. If appraisers are forced to go outside of a neighborhood for comps, why does it have to be only neighborhoods with higher values/prices. Appraisers need to insert their backbones or increasingly become puppets of the ever growing oppressive machine. Woops sorry, to late – we are sadly beyond the point of no return.

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  20. Avatar FR says:

    Well, if the gubberment wants us to introduce a bias in favor of minorities to increase values, they’re going to have to train us because it was never a part of my training 22+ years ago. We’re going to need a 7 hour CE class on “How to Prove and Support Your Race Based Adjustments”. I sure don’t know how to do it without violating USPAP, UAD, Fannie and Freddie Guidelines, FHFA, VA, and HUD’s Fair Housing Act. We’ll also have to get all the lenders, underwriters, and review appraisers to sign off on it and NAR will have to put some special fields in the MLS that identify the ethnicity of the property owner and neighborhood.

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    • Baggins Baggins says:

      That’s a really interesting take on it FR. The practical application of this is simply not workable. These people do not understand free market principals nor do they care to.

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  21. Avatar Mel Edwards says:

    They cant make their minds up and are talking out both sides of their mouth. Page 26- “The overvaluation of appraisals has a deleterious impact on consumers and communities because it is often tied to abusive and excessive fees and equity stripping. It serves to lock borrowers in unfair and often unsustainable loans, prohibits the ability of consumers to refinance into safer and more affordable products, limits people’s ability to sell their homes, and often leads to other predatory practices.”

    Correct me if I am wrong here. But if I pull sales from, their words not mine, the “white” neighborhood to increase the value in the “black” neighborhood wouldn’t we be over valuing the property?? And doing the very stuff they are complaining about like unsustainable loans, prohibits the ability of consumers to refinance into safer and more affordable products, limits people’s ability to sell their homes??? Help me understand!

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    • Baggins Baggins says:

      My home has shot up in value substantially over several years. We pay more in taxes. We have lost mobility. We can no longer switch to another home without taking substantial risk. Mega corporations are attracted to this area for investment housing now that prices are up. Average rent prices doubled and tripled. There are more rentals and fewer single family mortgage opportunities as time goes by, as investors always want another investment home, so we compete with them too. We’re outpaced by the market in general as everything from cost of services to insurance and tax and housing products, even used cars increases rise alongside rising housing price. Community standards have changed dramatically. Progressive policies have taken hold. There is a substantial increase in homelessness. There has been a substantial increase in crime. There has been a substantial increase in illegal migration because we are also a sanctuary state. Young people are often unable to move away from their parents. Carving out investment opportunities is exponentially more difficult. Saving money in the bank carries less weight. What a second. What does this have to do with race because higher housing pricing really sucks! These idiots should be punting for lower housing pricing instead. You know, like when we’re not dealing with artificial restrictions which drive pricing upward? Like when there is prosperity and plenty and the cost of goods comes down instead of increasing.

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  22. Avatar JCB says:

    What would happen if all appraisers went on vacation for one month and shut down the mortgage lending industry? Then maybe the powers to be would listen to the voice of the appraisers. Appraisers could express their concerns and demand appropriate changes to the appraisal profession. It certainly would be a major story that would go viral on the internet as well as every news outlet in the country.

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  23. The authors ignorance about the appraisal profession is disheartening. The data used in this report was compiled by someone who had a preconceived objective and backed into the final conclusion. In short, I give it no merit.

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  24. Avatar Mary says:

    Dave can you send this post with all the comments to the AUTHORS of this document. They need to see how Appraisers, the ones who have boots on the ground every day feel about this insanity. And Oh yeah, send this off to The Appraisal Institute. They need to do more to support us as they too have thrown us under the Bus on this issue!

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  25. Avatar MEE says:

    One of the aurthors of this report looks like a lawyer for the AMCs. https://www.valuationlegal.com/services/

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ASC Blaming Appraisers

by Dave Towne time to read: 3 min
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