Disparate Treatment and Impact in USPAP
USPAP has introduced the terms DISPARATE TREATMENT AND IMPACT in its 5th exposure draft.
Disparate treatment and impact are bad for appraisers because they can damage the reputation of the profession, lead to legal and regulatory action, and negatively impact the success and viability of individual appraisers and their businesses.
Disparate treatment occurs when an appraiser treats individuals or groups differently based on their race, ethnicity, gender, religion, or other protected characteristics. This type of discrimination is illegal and can result in legal and regulatory action, as well as damage to the appraiser’s reputation and business.
Disparate impact occurs when a policy or practice has a disproportionate effect on individuals or groups based on their protected characteristics, even if there is no intention to discriminate. This type of discrimination is also illegal and can result in legal and regulatory action, as well as damage to the appraiser’s reputation and business.
In addition to the legal and reputational risks, discriminatory practices can also harm the appraiser’s business by reducing their client base, limiting their ability to work with certain lenders or clients, and decreasing their credibility and trustworthiness in the industry. It can also lead to a lack of diversity and inclusion in the profession, which can limit opportunities for growth and innovation.
In short, it is important for appraisers to be aware of and avoid disparate treatment and impact in their work.
Unfortunately, racism and bias can exist in any profession, just as they can exist in any aspect of society. I’m not sure why every appraiser has a bullseye on them now.