Biden’s Remark on Home Values Sparks Backlash
President Biden’s recent comment about the discrepancy in home values between Black and white families has sparked backlash on social media, with many accusing him of being a “divider”. During a campaign speech at Charleston Church in South Carolina, Biden stated that homes owned by Black families are often valued at less than those owned by white families, even if they are built by the same builder.
“Today, a home owned by a Black family on one side of a highway, built by the same builder on the other side of the highway & a white guy living in it, the white guy’s home is valued more than the black guy’s.” he said.
Biden’s comment has also received criticism for its potential impact on the appraisal industry. He suggests that appraisers are intentionally undervaluing homes owned by Black families, which is not only false but also harmful to the profession. This type of rhetoric makes it difficult for appraisers to do their job effectively. It is unfair to paint all appraisers as racially biased when they are simply following industry standards and regulations.
Many social media users have pointed out the absurdity of Biden’s comment, with some joking about the existence of a tool on Zillow that indicates the race of a homeowner.
“Yes I’m sure on the appraisal form used by lenders, there’s a big box that says CHECK THIS IF OWNER IS BLACK. Yeah. That’s totally how it works.” wrote one user.”
Others have accused Biden of making “everything about race”, implying that he is only using this issue for political gain. In reality, the valuation of homes is a complex process that takes into account various factors such as location, size, and condition. To reduce it to a simple matter of race is inaccurate.
“Wow, just Wow. My black Neighbor house next to me is valued more, because it’s a little bit bigger. Value here in South Carolina goes by square footage and not what color the owner is.” wrote another user.
“I’ve never had anybody appraise my house and include my skin color as part of the appraisal.” wrote one user while another said “appraisers only look at location and sq ft etc. they have no idea who’s living in the house”.
The reaction to Biden’s comment highlights the larger issue of making everything about race. While it is important to acknowledge and address racial inequalities, it is also important to recognize that not every issue is solely about race. Making sweeping statements about home values based on the race of the owner only serves to further divide communities and perpetuate harmful stereotypes. It is important for leaders to choose their words carefully and not contribute to the already tense racial climate in our country.
BIDEN: "Today, a home owned by a black family on one side of a highway, built by the same builder on the other side of the highway, and a white guy living in it, the white guy's home is valued more than the black guy's!"
"That's how you build generational wealth!" pic.twitter.com/XpPS89jvgg
— Townhall.com (@townhallcom) January 8, 2024
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What an ignorant superficial article. It is not about being black, it is about neighborhood redlining in the financial services industry and someone mistakenly attributing it to race. How many times does bias have to be seen taking place before we own it?
Yes but what you don’t want to admit because you’re too partisan, is that Biden and his administration are blaming us appraisers and not the financial services industry. How many times does Biden have to blame us in his speeches for you to realize he is not mistakenly attributing it to race. This is done purposely in an effort to keep favor with his base.
A hack political statement, the financial services industry has blamed appraisers for their shortcomings ever since the 2008 crash. Maybe you weren’t an appraiser back then. Truly naive and out of step with the past.
I have, longer than you probably, since ’86. No need to get personal. We’re just having a conversation.
True that we’ve been blamed long before Biden’s megaphone but he’s pushing this false narrative over and over again. There never have been as many negative news stories, documentaries, TV series, lawsuits and complaints filed against appraisers for undervaluing blacks and browns homes because of bias/racism than during Biden’s administration. And that’s a fact!
We all know the major problem for our country and our business right now is, but most people in this room don’t want to be political. I will, Biden is the absolute worst President in American history. Because of his naïve and stupid policies this country has gone to sh**t. Sorry for profanity, however everybody feels the same, except for the idiots who voted for him.
***This comment was edited by AppraisersBlogs Team for compliance with TOU and our commenting guidelines.***
john, I can’t find your info in the appraiser registry. Are you an appraiser?
Your comment is not helpful. The racial tone perpetuates a hateful narrative.
It’s happening again, lol. Please do not feed the trolls. John, you can’t be serious. That is one of the most juvenile statements ever posted on this blog.
Are you not entertained? If this keeps up I’m going to start posting meme’s again.
Please let us know what is juvenile. I’ve lived it, see it today. Truth has to be told. Do not like Biden et others hurting appraisal profession.
Mr Baggins,
You like to dominate every Post. You have already made seven lengthy comments on the brand new post. The “real estate” on Appraiser Blogs should be for intelligent, informed comment … not your personal rants on everything in the world. Please find another venue for your rants.
Fred, long comments are allowed on our blog. Occasionally, we turn long comments into articles that we believe may be interesting as a standalone article.
Being more engaged and receptive to hashing out the details and minutia is acceptable and not against our TOU.
Please skip Baggins comments if not interested.
It’s all good, Fred is right anyways, I’m over doing it. Sorry. Perhaps you could bring in some new feature like everything longer than a paragraph requires a click to read more type of function, and only then the full comment expands? Then for people just scrolling for quick reads they won’t be as annoyed by excessively long posts, and if people wanted to read more for longer posts, that could be a click away. Like expand all or collapse all feature maybe? I recall seeing that on youtube when I read comments there, helps the comments flow more comprehensively on the page. Everyone gets a fixed amount of that page space, but can post more if they want. I’ll try to tone it down. But first, check this out.
https://appraisersblogs.com/appraisers-destroying-goliaths-messaging/#comment-39669
Were you guys aware the FHFA shared what appears to be the entire CU appraisal data repository with HUD and the Department of Justice? Help me understand this one.
O.k., Fred. I just sent in a three post edit request to the admin to tone some of that down. Hope that helps. I like the blogs. I type fast and speed read too. But I understand that’s not for everyone. Have a good one.
It’s pretty simple. Kinda like flipping through the TV or radio. If you don’t like it, don’t read it….just move on.
I for one appreciate a well thought-out and relevant take that’s well supported, just like an appraisal. As long as nobody violates the TOU, you should be able to say what you like.
The world shouldn’t have to cowtow to everyone’s butt-hurt feelings and delicate sensibilities. Maybe that’s how we got here in the first place.
John’s post should be reported and removed. This is racist, destructive, and degrading to an entire community.
Dave, you said; ‘How many times does bias have to be seen taking place before we own it?’.
Alex, what is exactly 17 instances out of 25.6 million appraisals reviewed? / Yes! You are correct! Winning!
I actually did a deep dive research into that very topic today. See the post below. They found nothing other than a minuscule handful of appraisers whom confused the purpose of their jobs and ‘appraisal data reporting’. FHFA actually listed the 17 whole entire single sentence line offenses they found from scraping the entire CU database. I posted their report link on that below just today. All that most of them did was regurgitate facts which anywhere outside of appraisal is just seen as normal everyday benign statistical data repeating. It’s time to face the facts about this nonsensical fictitious appraisers are racist argument; there is nothing to own up to.
Search ‘AEI report’ in the above search bar to read those several years old articles on that matter specifically if you would like further information on the matter. The appraisers are racist accusation, in turn, actually proved that appraisers provided the most resolute protection from debt traps and predatory sales agents whom focus on minority groups.
If you want to talk bias, we can talk about excess taxation without representation and a counterfeit currency system where the Federal Reserve constantly devalues our currency with a target yearly depreciation rate of 2%, which clearly has gotten away from them of late. If people want to know where ‘generational wealth’ went to, look no further than the fed and runaway oversized government.
Will someone please answer the questions; What exactly is wrong with low prices? Is it racist to pay more? Is it racist to pay less? Which is it and why? If you want to talk ignorance, lets please start with pervasive financial ignorance in this country as the unsuspecting Americans march headlong into a series of never ending debt traps and corporate exploitation with no representation in sight, and an endless procession of ever rising taxes. Post this one again, I suppose.
https://appraisersblogs.com/appraisers-destroying-goliaths-messaging/#comment-39669
So tired of the lefts social agenda unfairly affecting my previous profession and the country my kids have to live in. Vote Right!
So True!!!
One thing I do know is that I was receiving appraisal orders on a consistent basis from a specific AMC, they asked for a photo to be placed on my profile and since then I barely receive orders. I was literally one of their top appraisers because they show a ranking on the profile, and then I was pushed down in ranking because I was no longer getting orders. I am a person of color. The politics everyone is playing will destroy our country–it is sad, and we are losing our industry as appraisers simply because a system was set up for certain people to thrive and others to fail.
If we talk about the Biden statement, what if it is simply a case of those homes on the other side of the highway selling for less because of the condition of the homes that are comparable in a close radius? If it is discrimination, the issue should be addressed, but there are many factors at play when appraising a home. Why aren’t they brining up Payday Loan companies and how predatory they are and the placement of those locations? Those companies destroy ‘generational wealth’ daily! Why are they still allowing AMC’s, which inflate the appraisal fee outside of the reasonable fee for their profits, and are forcing good appraisers out of business? Why aren’t they looking into how a realtor selects an offer and forcing a completely blind process so it is fair and unbiased? Why did they remove the requirement for Certified Appraisers to be college graduates? We want top tier professionals and all understand that the appraiser is directly tied to the financial market, thus a college degree should be mandatory as a professional requirement.
The appraiser is literally the only unbiased entity in these transactions– we are not the enemy– we uphold public trust by ensuring full disclosure of each layer developed throughout the appraisal process, and our fees are not based on their home value.
The question I haven’t seen asked yet is, what is an appraiser gaining from under valuing a home?
Answer: Nothing.
You know what we need; A “Problem Solver” loan, lol. Totally not biased or insanely obvious predatory lending solicitations. All this talk about correcting systemic problems in the lending model are just hot air. Bread for the masses to appease the activists and in turn set up new systems to fleece consumers at epic never even seen before levels of success and profit, bonus with increased taxes for everyone across the board. Equity!
“I was receiving appraisal orders on a consistent basis from a specific AMC, ” I have identified the primary problem with your operational model. lol. They sold it, you bought it. I keep warning appraisers, you have no independence when working under the thumb of the appraisal management industry. Just having them require a profile photo, that’s a violation of so many fair employment rules, omg, you could take them to court over that if you wanted. Inquiring minds want to know which amc that was, so we can chime in with our own stories. Not in agreement with college degree requirement, we really don’t need all that math to be great appraisers, on the job training is sufficient via the apprentice model. If appraisers want to be better at their jobs, they don’t need quantum computing or mass statistical analysis degrees, unless that’s in building sciences, environmental sciences, etc. Most college grads would be amazed at McKissock’s stale routine of recycling class content over and over again with a slight name change variance, there is no actual progression, every class is 101 and that is all you get. Besides, highly qualified alumni would be less likely to want to play the good old boys club with The Appraisal Foundation and fund Buntons lavish truffle eating jetsetting lifestyle with repeated captive audience book purchase demands at inflated prices, as they’d have had enough of that grinding through the liberal college experience. Colleges have even bigger problems than the appraisal industry, the apprentice model is sufficient and in many peoples opinions, superior. Unlike my pals whom some are still this day drowning in student loan debt, I skipped that, got to work, and educated myself instead. Paying for education in the technical age where information is freely available online within seconds, will hopefully be recognized as the antiquated model it is, preferably sooner than later. Great post, thanks, stick around.
The AMC was Amrock.
We will have to agree to disagree on professions that require a college degree. There are a lot of professions that technically don’t need that as a requirement, but it does increase the quality of the representation and respect for the profession. Thus, it should’ve remained a requirement and should be placed again as a requirement. The profession has seen increased lawsuits after decreasing all requirements, which should be a clear indicator that lowering standards was never the answer.
That’s pretty sound logic. I’m sort of the real world example why that was not necessary. I worked almost four years for damned near free and was well equipped on day one of licensing. That’s not always the case for everyone though. Then again, maybe we’d be in a different place now if that requirement held up. How about requiring a degree to be part of the AI or get additional accreditation, to be a manager of an appraisal panel, or operate an appraisal management company? We’ll have to negotiate a little here.
If Biden, his administration, or Marsha Fudge said the sun came up today, I’d have to go outside and check.
Just another empty statement vilifying appraisers for things we don’t and didn’t do.
If you can’t see past this blatant vote pandering and long game fiscal agenda, I don’t know what to tell you.
He is merely saying that to gain the approval of black voters; it’s all about the voters…if it was any other year I would say the man is an idi*t, but it’s an election year, he well knows what he is trying to accomplish. I’ve been an appraiser for only 18 years but I don’t care who owns a house, black, white, asian, indian, american indian, maybe a dog owns it, I really don’t give a rip…it’s worth what it’s worth. His statement will further the push to get rid of an actual person doing the appraisal and go to AI, I think we’ve got only a very few short years before lending appraisals on non-complex properties are a thing of the past.
You are correct about Biden.
Can you imagine being so financially ignorant that you would cheer for the opportunity to pay higher mortgage payments and higher taxes? All this government talk about bringing peoples home values upward, instead of downward, will not end well. Representing nothing more than a debt trap which entire populace groups apparently can’t wait to fall into, facilitated by PAVE and other federal group personnel. For several years nobody has been able to answer this simple question; What exactly is wrong with lower prices? Apparently the answer is that citizens are not paying enough taxes to satisfy the governments ever growing need for more taxes.
About 2 years before the crash of ‘08, I ran across a company out of DC called “Metro Grapevine” and “Metro Dream Homes.” It was a Ponzi scheme marketed by a black to blacks only. It was by invitation only. They promised if you bought your home through their program, they’d pay it off in seven years and you never had to make a payment.
The requirement was to buy a home of your choice, offer $50,000 to $150,000 more than it’s list price with the caveat that at least the amount you offered over list plus $25,000+ would be paid to Metro Dream Homes at closing. Viola, just like that, you’d own the home in 7 years without ever making one mortgage payment.
The guy leading this show was vitriolic in accusing whites keeping the blacks down and this was to help the black man. (I watched many of his speeches in churches. It was vitriol).
I tried turning them into the FBI twice. They said they didn’t have the manpower for it until it reached a higher dollar theft. So it continued, despite warnings on the few social media sights that was around at the time, until there was not enough money coming in to float the top.
What were the results? Most had foreclosures. They bought a house worth much less than they paid for it and never planned or budgeted to make a mortgage payment in the first place.
I could go on. This was a soapbox for me back then and no one cared much.
It’s just one example of valuing real estate higher just for the black community, by sucking them in to think they have been disparaged in the past, was detrimental.
Side note- After it fell only one couple took me up on my offer to review their appraisal for free. They provided me everything- contract, appraisal, loan docs. It was fraud through and through. The young couple were so sweet and desperate. It turned out after the lawsuit, Wells Fargo paid their lawyer fees, wiped their credit clean (as if it never happened), and because Wells drug their feet got added an added $25,000 paid to them in damages.
https://archives.fbi.gov/archives/baltimore/press-releases/2012/owner-and-founder-of-metro-dream-homes-sentenced-to-150-years-in-prison-in-78-million-mortgage-fraud-scheme\
Amazing. Great reference. Great read. Thank you.
‘Third party companies’. What could ever go wrong?
Comments like Mr Biden’s would lead a casual reader/listener to believe that racial bias is rampant in the appraisal industry, which is just another enormous lie from a politician. After all, it’s an election year… shocker
John,
It was your boy Trump who granted all the waivers for no need for appraisals and killed the Dodd Frank legislation. The hateful words from your mouth epitimize the cult crowd who have always been lingering with their white supremacy. The south will NOT rise again John! Who is this John guy – anyone know him?
Do you really believe in the notion that if someone voted for the other guy, they deserve the slanderous accusation they’re instantly now white supremacists? Do you actually believe the things your saying or perhaps have you been recently programmed towards a predisposition to talk that way?
Propaganda does terrible things to the mind. Be careful what you wish for because in turn, now you must own up to every fault of the person you voted for too, and every accusation of fault, no matter if that’s true or not. The party is the party and you’re either with the party, or against the party. Are you sure that’s where you want to be?
You’re on the other side, insulated from those concerns, immune to the propaganda which plagues us over here. Because state propaganda only goes one direction and is not a universal problem?
Stereotypes… You simply can’t believe they are true. So why repeat the propaganda in the first place? If you’re going to call every republican a white supremacist, at least do it with a side more style and panache. You are talking about real people and their entire lives.
For my good friend Baggins. This is not about who you vote for, this is about hateful speech and acceptance of violence with belief in one autocrat. Baggins, you’ve got some years of experience. In Germany in the 30’s 1/3 approved, 1/3 did not and 1/3 stayed quiet – the NAZI’s were born. That is fact. Your Reagan party deteriorated – accept lies, intimidation and the suspension of the rule of law. I’m with the 1/3 who will never accept the 1/3 that will suspend the constitution. Let’s see what the 1/3 on the fence will do. I am encouraged they will do the right thing.
“Your Reagan party deteriorated – accept lies, intimidation and the suspension of the rule of law.”
Um….no. Total emotional nonsense.
Please show your work and cite credible sources for this unstable opinion.
Do you really believe in the notion that if someone voted for the other guy, they deserve the slanderous accusation they’re instantly now white supremacists? Do you actually believe the things your saying or perhaps have you been recently programmed towards a predisposition to talk that way?
Propaganda does terrible things to the mind. Be careful what you wish for because in turn, now you must own up to every fault of the person you voted for too, and every accusation of fault, no matter if that’s true or not. The party is the party and you’re either with the party, or against the party. Are you sure that’s where you want to be?
You’re on the other side, insulated from those concerns, immune to the propaganda which plagues us over here. Because state propaganda only goes one direction and is not a universal problem?
Stereotypes… You simply can’t believe they are true. So why repeat the propaganda in the first place? If you’re going to call every republican a white supremacist, at least do it with a side more style and panache. You are talking about real people and their entire lives.
I think President Biden raises an interesting question. So, I took a quick look at BrightMLS map of house sales in Washington DC, sold in the last 180 days. In any block or two there can be a million dollar difference, I looked at photos of the houses and those staged get more, and empty get less when they look in similar condition. Now when you look as sales on the east of the Anicostia River, say north of east Capital Street, versus west of the Anicostia, those to the west, closer to the Capital, sell for hundreds more than those to the east of the river. I did not see any pictures of anyone, and I do not frequent that area. I will not venture an opinion of why there is a difference. I do not appraise in DC but Mr. Biden lives there. When I looked a bit further east, north of New York Avenue to Route 50, it was apparent that west of the DC line sales in DC were 100 to 200 thousand higher than in Maryland just across the State boundary. Is this a failure of appraisers who are pushing down prices? or is the value a failure of society that everyone cannot afford a million dollar home? For our President to state that a house on one side of a highway sells for more than a house on the other side of the highway demonstrates that he has no idea about city growth patterns, jobs, access to schools. Its not about the appraisers. I did once have a Dorchester County, MD Realtor complain that if we appraisers would just increase the values of the houses they would make more money. It seems that the system has learned this and that is the purpose of Mr. President’s remarks, how to keep him in office and make the system more money. As for Trump granting waivers, well, we know why he would want to get rid of appraisers, but Biden has not slowed the process.
Would the rule of law excuse a President from assassinating his opponent?
It’s well know that Prez Biden was at one point a puertorrican jewish truck driver after which he also delved into residential appraisals
This is a long but interesting read about AVM’s. Brookings a Liberal Think Tank is the Author. In it you will find out that Certain Entities think AVM’s are Biased! Also you will find out that when you opine MV as the contract Price you are biased. The more you read it gets somewhat Laughable. It is clear our Critics are agenda Driven.
https://www.brookings.edu/wp-content/uploads/2023/10/BR-AVM_report_Finalx2.pdf
Joe Biden either misheard or is paraphrasing HUD leader Marcia Fudge’s comment about her identical house being worth less than the one across the street just because she’s black. The statement is false besides nonsensical. I calculated value of Fudge’s house and one across the street in a newer luxury private development so I know it’s false. Fudge is Joe Biden’s Cabinet member and main source of information for all things housing. She is feeding him false information to promote her own agenda and job retention.
AEI has clearly proved with research and facts from government records that home values are not related to race but income. People with more income have more money and buy more expensive homes in more expensive areas. There is a small weak correlation between race and income which is only evidenced in the mid income range. The race income disparity is mainly caused by a few white multi billionaires at the top. Most of their wealth is in stocks, bonds, investments and not homes.
Joe Biden said something very similar Juneteenth 2021 while again campaigning for the black vote. “…an aggressive effort to combat racial discrimination in housing. Finally address the cruel fact home owned to this day by a black American family is usually appraised at a low rate for a similar home owned by a white family in a similar area.” He based that on Andre Perry’s debunked fake paper. I replied to this false statement here https://mary–cummins.blogspot.com/2021/06/false-statement-by-president-joe-biden.html
If I were you I worry more about Lyle Radke and FANNIE’s bogus automated value/appraisal review system. That’s going to damage you a lot more than no longer being able to use the term “Master Bedroom”.
Actually Dave, FHFA is now in charge of basically everything. Fannie and Freddie are merely doing what they are told by everyone’s new boss, the FHFA. And per their papers, there is now an ‘under valuation’ recognition tool being developed as well.
Shift your research to the FHFA material here forward.
Appraisers may not be able to talk about race but FHFA can’t help themselves. They’ve even developed a tool to tie the race of the borrower back to the appraisal. Read for yourself, it’s true.
https://web.archive.org/web/20231215145209/https://www.fhfa.gov/DataTools/Documents/UAD-Data-Files/UAD_PUF_v1_0_Data_Documentation.pdf
7c. Borrower Demographic Data Fields
A UAD appraisal record does not include demographic information about borrowers because the current version of the URAR does not have a field to collect it. However, to allow users to create key appraisal estimates for different borrower types, FHFA merged borrower demographic information from mortgage loan data to the UAD appraisal records in the UAD Appraisal-Level PUF. The demographic data field included is:
Field Definition
race_ethnicity Data field describing the race and ethnicity of the borrower(s)
All the state complaints backlogging state agencies now, is just from their initial 2013 to 2021 CU data review. Sounds like they’ll fine tune the program, finalize the undervaluation tool, then go for round two, and include all the more recent appraisals for auto review as well. Re review everything, and review the newer appraisals as well.
https://web.archive.org/web/20231215145209/https://www.fhfa.gov/DataTools/Documents/UAD-Data-Files/UAD_PUF_v1_0_Data_Documentation.pdf
The LLPM (loan level price matrix) which would have penalized borrowers with good credit wasn’t even the half of it. Look what else they’ve now included. Unless you’re one of these favored groups receiving special treatment and subsidy, you will experience more challenges in approval, loan remodification, and a great many other aspects of lending, compared to the next guy. Not surprisingly, after all that analysis from all those white collar collegiate types in their working groups, nobody seems to have examined the relationships to predatory corporations and disproportionate rental REIT owned ratios among populace groups. Because one would not want to actually correct the problem of corporate entities making it impossible for people to buy houses in certain locations they’ve targeted for increased real property investments to hold as rentals. Nor did they examine the proportional relationships to predatory lending or affinity scams. They look at every proportional relationship imaginable, except for the ones that actually matter. They seemed to have reached forgone conclusions prior to even forming research parameters; Racism was the problem and they are determined to scrape out data to prove it.