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.

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

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.

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 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.

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.

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?

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.

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.

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.

“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.

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.

John’s post should be reported and removed. This is racist, destructive, and degrading to an entire community.