HUD Dismisses Claims Alleging Racism
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- HUD Dismisses Claims Alleging Racism - December 2, 2021
…white America (government) keeps trying to ‘fix’ Black People who are not broken in the first place!
We’ve all heard of redlining. No one doubts it existed and MAY still exist, among private lenders. It’s hard to accept major national banking corps would risk it but it IS possible.
Having said that, there is ZERO percentage or benefit for any appraiser to engage in it. None. Another appraiser in Los Angeles, who is a great researcher, posted addresses of the properties involved in half a dozen complaints alleging racism by appraisers and so-called ‘white washing’ of the houses producing subsequent higher values.
There ARE reasons, a later, higher appraisal can result. In some cases, it was attributable to normal market increases over the six months from a first appraisal to a second. In other instances, the “shortage” of $165,000 was on a $1.385 million to $1.45 million property done on an exterior basis with the property owner picking and choosing which interior pictures to send to the appraisers.
The variance in values from low to high is within the NORMAL variance between any two appraisers doing the same high-end property on an exterior basis appraisal, not to mention THAT particular example cited by Julian Glover’s news station was actually located in Canada. IF racism was a factor then it was Canadian racism, not American racism.
My position with the American Guild of Appraisers puts me in a position to review and research racism complaints against our members. To date, two have been received.
One is well-publicized and I can’t comment much beyond saying it was dismissed by HUD because there was zero evidence to support the racism claim.
The other was BY an Asian against another Asian (appraiser). Same result. Complete dismissal by HUD. THINK about that last one for a minute. An Asian appraiser is so biased against other Asians that he appraises low for other Asians out of that imaginary bias?
IF there is a residual impact or systemic racism in lending then look to the lenders themselves. Every single appraisal is required by current regulatory laws and rules to include the census tract number in it.
The ostensible purpose is to enable the feds to monitor loans made in minority communities. What may have had a valid purpose to start though, is the ONLY part of a report that gives underwriter information on the racial composition of a neighborhood.
No other part of an appraisal can so easily lead a malevolent person to find the racial mix of an area.
In 36+ years of appraising, I have seen homeowners engage in racism against minority appraisers. I’ve never seen the opposite.
Let’s apply logic. Is it likely, that if a person hates another race so badly, they’ll risk their entire career and license just to cut a refinance value by a few thousand dollars so the loan gets killed?
Apply the same logic to a sale. If that same hatred (and downright ignorance) is so strong, then why wouldn’t they just let the individual pay more than the property is worth. What would they care?
The truth is that it takes far more work to conclude (and rebut) a value below a contract price than it does one that is at or above contract. We know upfront we have to do extra work to defend our conclusions. We do so when necessary based on value. WHY would we add to our own workload just to hate on another race?
The Head of the Urban League, Mr. Mark Morial, has himself admitted they don’t think systemic racism involves individual rogue appraisers killing values. Rather he ties his perceptions of systemic racism to past (pre-civil rights act and fair housing act) events that did in fact exist prior to 1968 and potentially even a few years after.
For what it’s worth, I have read part of Dr. Perry’s book. It’s interesting in terms of his background (seriously interesting), but he is (1) a racist himself, and (2) contradictory. He rightly claims white America (government) keeps trying to ‘fix’ Black People who are not broken in the first place! He says Black People are just fine. We need to stop measuring their success, value, or culture in the context of comparative white culture. I absolutely agree with him to that point.
But after saying there is nothing broken, and Black Culture and people are just fine, WHY then does he insist that some new form of assistance is still needed to fix a race that isn’t broken in the first place?
Self-serving entities in leadership positions among the Black American Population have conflated the need for investment and access to credit and development with other issues which sidetrack from real issues, as they are intended to do.
So, while forcing appraisers to deal with a chimera of wrongly labeled racism, these same ‘leaders’ (white and black) are able to continue to syphon off federal funds for their own purposes while deliberately ignoring steps that might actually benefit constituent communities.
Find and read a copy of the 1934 FHA Guidelines for appraisers and lenders. Now THOSE were clearly and undeniably racist and written based on ignorance. I don’t know how long they lasted before being rewritten, except that by 1968 they themselves constituted ILLEGAL considerations if they were still being used. I didn’t start appraising until 1986. Those guidelines were long gone by then.
In over 50 years of affirmative action wherein many African Americans did in fact bootstrap themselves into better financial and educational circumstances, IF there are any systemically abused Black Americans today it is the result of having their confidence in themselves stolen by socialist / Marxist teachers, like Lou Ayres and others who prey upon capitalism as a concept while enriching themselves off it by sowing discontent along the way.
Well written article supported by facts and logical reason. Unfortunately, it does not fit the current narrative and will fall on deaf ears.
Nice job Mike Ford. Thank you for all you do.
A voice of reason… thanks Mike for this article.
Proud of you my man!’
My points exactly.
Thanks for doing such a great job.
Thanks Mike for a well-written article. You are a true appraiser-advocate. Too bad the “powers-that-be” will not either read your article nor consider it when making decisions regarding a perception of discrimination moving forward.
Great read, Mike! Thank you for all that you do for us!
Great article and on point. Aren’t census tracts a form of racism,?….and we did not create them. Start with a look at that and follow the trail.
Geat points and well written, Mike.
“One is well-publicized and I can’t comment much beyond saying it was dismissed by HUD because there was zero evidence to support the racism claim.”
Which one? and why can’t you?
As I said. Cannot comment on it. I gave my word. Appraiser involved now has opportunity for THEIR turn “at bat.”
Mike, well written as always. You are the best.
Thank you Mike – great follow through on that one. Strike 3
Well done Mike Ford.
Well written article with great facts and support – thanks Mike!
Well written and informative.
Racism is akin to real estate markets. First, it’s ultimately about money. Secondly in the current environment there is a great demand for it…but supply is very, very limited. Those who profit from it unfortunately have instilled fear in the powers that be, which results in many “leaders” and organizations racing to virtue signal that they “support the cause”….lest they have sunlight shone upon them. They simply desire to keep their lucrative jobs and organizational funding from coming under a microscope and being the target of “woke” wrath, hoping any attention is thus diverted elsewhere. Like real estate…big money, high demand, low supply.
Great article my friend. You really shed light on the bigger issues that are factual. Keep up the good work!
“WOKE” IS A MUCH REPEATED RIGHT WING HATE WORD. WOKE MEANS HAVING ETHICS & MORALS. TOO BAD THE “SO CALLED” CONSERVATIVES ARE IGNORANT & CLUELESS.
“Of all the violations of the woke penal code, cultural appropriation might be the dumbest of all. ” Bill Maher
as long as it is NOT cultural misappropriation.
“Wokeness operates as if there had been no civil rights movement, and that white Americans hadn’t been an integral part of it. It operates as if 60 years of affirmative action never happened, and that an ever-growing percentage of Black Americans don’t belong to the middle and upper class (and that they are, incidentally, concentrated in the American South). It operates as if we didn’t twice elect a Black president and recently bury a Black general as an American icon.
It operates as if, in city after city, American police forces aren’t led by Black police chiefs and staffed by officers of diverse backgrounds. It operates as if white supremacy is still being systemically enforced, while ignoring the fact that a previously marginalized ethnic minority, namely Asian Americans, enjoys higher income levels than white Americans.
Above all, Wokeness pretends that incidents such as George Floyd’s murder, which are national scandals, are actually national norms. They aren’t, despite current injustices. Most Americans, I suspect, not only sense the falseness of the allegation. They are, increasingly, insulted by it.
The insult turns to injury when it comes to the solutions Wokeness prescribes, and in the way that it prescribes them. This doesn’t just mean efforts like “abolish the police” that are so baldly destructive that voters quickly sense their danger. It’s in subtler prescriptions, too.
A typical example: The American Medical Association recently published its “Guide to Language, Narrative and Concepts,” which includes such recommendations as replacing the term “disadvantaged” with “historically and intentionally excluded,” “social problem” with “social injustice,” “vulnerable” with “oppressed,” and “blacklist” and “blackmail” with words that don’t suggest an association between the word “black” and “suspicion or disapproval.”
This isn’t silly. It’s Orwellian. It’s a blunt attempt to turn everyday speech into a perpetual, politicized and nearly unconscious indictment of “the system.” Anyone who has spent time analyzing how the totalitarian regimes of the 20th century operated will note the similarities.
They’ll also note that the main thing separating those regimes from today’s Wokified institutions is the element of government coercion. Yes, there can be immense pressure to conform in places like Yale Law School, where no microaggression is too small not to invite the wrath of censorious administrators. Ultimately, though, Americans are still free to reject the Woke ethos, even if they sometimes have to leave their institutions as a result.
This is why Wokeness will fail. For every attempt to cancel certain writers, others will publish them. For every diktat to fix language by replacing some words with others, people will merely find more subversive ways to say the same thing. For every effort to turn high schools and universities into Wokeness factories, there will be efforts to start afresh. Because technology, capital and good ideas move faster than ideology, those efforts will succeed more quickly than their skeptics imagine.
In the long run, Americans have always gotten behind protest movements that make the country more open, more decent, less divided. What today is called Woke does none of those things. It has no future in the home of the free.”
Being WOKE is being in a state of being aware, especially of social problems such as racism and inequality…especially of pertinent issues associated with society or the community.
Being politically correct or woke is having ETHICS and MORALS.
That’s what it used to mean. Not anymore. Not since the radical left turned it into a cult. Everyone I know has left the cult of wokeness. The only ones left are deluded!
Mike Ford Great article! This recent issue is driven 100% by cancel culture movement and little-to-no evidence based data. It is sad how it has become much easier to point fingers than to be accountable.
Thank you for the kind thoughts. If you agree with the content, then please help spread the word.
Share in your other FB groups, or Twitter or any other media you believe is appropriate.
We need to start pushing back against the false information.
This narrative of appraiser racial bias that the media has advanced has to be confronted and the best resource we have is a measured and reasoned response such as this. Thanks, Mike.
Amen Mike. I kept nodding yes, yes. Points I had not even thought of but make perfect sense. Like the one about if we hate a race that much why not let them pay more! These people who want to push this racist narrative don’t even take time to think it logically through. Appraisers are the LAST people to suspect of racism. Try looking not only at the lenders, but Realtors driving buyers in one direction or the other and finally, the BUYERS/Market. They are the ones making the buying decisions. So why are they paying less in certain areas? Ask them that question. Appraisers report they make no judgements as to why buyers do what they do! I hope your article gets TRACTION! Thanks!
Thank you Mary,
Agree with all.
What many don’t realize is that both the Perry study and the Freddie Mac “study” (& I use the term loosely) start with a false metric.
They have predicated on a starting assumption that the appropriate ‘measure’ of high or low ‘values’ starts with an assumption that any difference between asking PRICE or contract price and the appraised value represents a ‘low’ valuation. You and I both know how false that assumption is.
I’m not sure it’s really indicative of anything. Perhaps people of Color are less willing to negotiate contract prices up front? On the farthest end of the spectrum is Latino or Hispanics. Apparently the gap between CP/AV on their transactions is as much greater (lower values) than the gap between black and white.
The study ignores Asians completely. Apparently, Asians don’t buy real estate in Freddie Macs world. OR they produce an undesired result which shows the entire study is really garbage.
Anyway, all we can do is to keep trying. I don’t believe in the pander & placate without dissent approach that AI is following.
This article was decent until the final paragraph of blaming some b.s. Marxist /Socialist nonsense.
Too bad the author decided to finalize his some what educated opinion with ignorance.
It is interesting when someone supports Marxists Ideologies – they oppose truth and order and are easily identified.
Who supports Marxist ideologies? I am just pointing out the ignorance of fake conservative right wing fascists.
You obviously don’t know the root of fascism & what makes someone a fascist.
Practically everyone knows that Karl Marx is the ideological father of communism & socialism, & that Adam Smith is the father of capitalism & economic liberalism.
But do you know who the mind behind fascism is?
The philosopher behind fascism was also an avowed socialist. Giovanni Gentile, a neo-Hegelian philosopher, was the intellectual author of the “doctrine of fascism,” which he wrote in conjunction with Benito Mussolini. Gentile’s sources of inspiration were thinkers such as Hegel, Nietzsche, and also Karl Marx.
Gentile believed that all private action should be oriented to serve society. He was against individualism, for him there was no distinction between private & public interest. In his economic postulates, he defended compulsory state corporatism, wanting to impose an autarkic state (basically the same recipe that Hitler would use years later).
So you see, someone who criticizes Marxism & socialism, i.e. the author of this article, is not a fascist. From far it!
The author blames socialism/Marxism. Do you know how to read?
Try to pay attention.
I’m sorry you’re not getting it. I would explain it to you, but I don’t have the time or the crayons.
I do get it.
Problem is you don’t.
But I enjoyed your little history lesson.
Which is a false equivalence. But nice try.
Marx’s version of collectivization was the ideological root of communism, though how it was to be achieved is where the shared concept diverged. “Socialism and Marxism” were both usurped by communism. Just as racial issues today are being usurped by political AND economic opportunists.
Well said as always. Happy, healthy, safe and prosperous new year.
Henry the Marxist/socialist ‘nonsense’ as you call it, comes from information derived from both current events and the media. It also comes from some of the biggest claimants of racism’s own online contribution/donation links which lead directly to an organization called Actblue.org.
Don’t forget that despite being a registered Republican, that I am also a union organizer (the two, contrary to commonly held beliefs are not mutually exclusive of each other). My point is that I regularly receive requests for ‘political action’ from many affiliates and peripherally supporting organizations. Some are moderates and some are pretty far left. They often use the traditional rhetoric of the left. Organizationally, we don’t receive a lot of requests from the ‘right’, though I personally do.
We respect the diversity of thought as much as we do cultural or racial diversity among appraisers. We aren’t big fans of elitists.
After screening, those concerns that pertain to appraisers are considered without regard to party affiliations or political philosophies when and IF I seek Guild support for the underlying issue. Alleged systemic racism by appraisers is/was such an issue.
So were (are) “reasonable & customary fees”.
Some of these whom I support generally (as authorized by the Board on behalf of the Guild or collectively through senior management) …though not specifically on all issues, do in fact have socialist and or Marxists leanings and philosophies, or support those that do. I don’t bandy the ‘socialist’ or Marxist descriptions about recklessly, or without having investigated the background of those being so labeled. Nor do I label Marxists automatically as communists though the two have some intellectual overlap. (The divergence is mainly in HOW their shared objective is achieved and administered).
People have a right to believe in whatever philosophies they choose…so long as they aren’t harming others. My best friend of over 35 years is an avowed socialist (in the textbook sense). He’s a good person. I only take issue with those that are dishonest about it in their efforts to impose it on me. My maternal grandfather was a card-carrying American Socialist Party member most of his life. He was also a patriotic veteran of WWII. He’d be ashamed of & dispute what passes for ‘socialism’ today. He was a philosophical purist. NOT a communist, though his philosophical beliefs shared 1 of the 3 basic tenets associated with it.
Look up the sponsors or main members of an organization called “Americans for Financial Reform.” You’ll find more than 70 “Who’s who” organizations dating back to the original civil rights movement in America. SOME others are clearly socialist organaizations. ActBlue (who collects for BLM) comes right out and admits they support socialist democrats. Some of these groups historically worked purely for the betterment of oppressed individuals. Others used “the oppressed” to further other political agendas by inflaming emotional concerns.
Because we are a guild within a Union, we try to be as supportive as we can be to our brother & sister union members (including many of their more non-partisan issues) without attempting to impose our individual political beliefs on others. Our membership is comprised of registered Democrats; registered Republicans, true Independents, Libertarians, and a variety of others. We try to balance our guild needs with the causes of those from whom WE also derive support. Where we perceive clearly defined specific articulable injustice; or efforts to find win-win solutions then we seriously consider offering our support.
That does not mean that we agree or even like all affiliated organizations. We don’t buy into all their beliefs any more than they buy into the FACT that most, if not all appraisers are racially unbiased in the performance of their jobs. We do however attempt to educate them, without pandering. It’s a bit of a balancing act. As any endeavor to find win-win solutions necessarily is.
“Elites” are the very people who founded this country & wrote the Constitution.
But your long reply is a typical deflection defending your article of nonsense.
Great article. Thank you Mike!
Yes, excellent. Between this article and Maureens, some of the best content delivered on this site. And your rebuttal is so well written, would make it’s own headline article on other web sites quite easily. Learned a lot, thank you.
Some people have come to accept and embrace principals that blaming others and silencing them based on a myriad of factors may be acceptable. To parse and interpret every issue based on race and politics, a failure to embrace the principals of freedom and equality this country was built upon. So frequently the position turns to advocating for a redistribution of federal monies to favor their causes. The arguments keeps pointing back to basic principals of taxation without representation. We’d all be better off if the government just got out of the business of lending and insurance.
I am happy to see appraisers pushing back on the racist narrative using facts and logic. We need to continue to educate the public about the appraisal process and continue to promote quality continuing education for members of our profession.
hey Mike, been reading your good works for a long time.
not retired, having some best years now. i always wanted to be a member of the AGA.
i am now, the old dogs gotta help each other.
Thank you for the kind words, and we’d love to have you at AGA. If interested contact email@example.com
The more members willing to support us the more we are able to accomplish.
FWIW NONE of the executive Board Members draw a salary. We did not, & still do not want others to think we are only in this for personal gain. Nor do we want members thinking their dues go to supporting luxury lifestyles of the Guild leadership. The amount that we send upline to our parent unions ($72/year) covers accounting and administration costs at their end.
You can also call Jan at the number listed on the website if you’d prefer to join by phone.
Hope to hear from you soon.
The author is referencing complaints that he personally knows of where”HUD” is involved. He did not reference the many complaints and lawsuits that do not involve HUD. The fact that people are trying to use his comment to cover the entire industry just proves that they don’t want to believe the hurdles and obstacles non-white people face in the home ownership process. The devaluation of real estate is still an issue the only question is how big of an issue. And to say no one would risk their livelihood or reputation because of race is just ignorant. We see it happen almost every day across all industries. People are killed over racism on a regular basis. To think that the Appraisal industry is void of racism is blindly ignorant.
“He did not reference the many complaints and lawsuits that do not involve HUD”…. Which ones? You call out the author only personally knows. List yours. No one ever said the appraisal industry is void of racism. People are people. But being accused of systemic racism when 70% of appraisers work alone is next to impossible. Heck we’ve been trying for over 30 years to form an organization to represent us appraiser and still can’t. So when do we have time to implement a system or structure to be racist as a group?
1st, I never used the term systematic I said there is racism but the question was how much. 2nd, if you cannot see there are valid claims and lawsuits out there you just don’t want to see them. Its not hard to find cases where people received wildly differing valuations in a short period of time. 3rd I never said the author was wrong just that he used a very specifc sample pool and people used his comments to cover the entire industry which is inaccurate. My while point is that people responding to this post have completely dismissed what some people have faced and are trying to say every appraiser is under attack which is by far not the case. There has been valid claims of race based valuations that have gained national attention. Just like there are people who were not happy and falsely claimed it was racism. The people that are guilty of both should be held accountable. But of you want examples try the couple in Marin CA that had an appraisal of 1.4 million in 2019 . In 2020 when property values were skyrocketing the appraisal was 995k. 1 month later a new appraisal was around 1.5 million. The only difference was the couple taking down pictures and artwork and having a white person there for the appraisal. Or the couple in Jacksonville FL that received a 100k increase in their appraisal after removing pictures and having the white husband meet the appraiser alone. There is the woman in Indiana that received appraisals from 110k to 125k but when she removed pictures and book and had her white friend greet the appraiser tje appraisal went to 259k. These are not small amounts for the homeowners. Or you could check the research by the Brookings Instruction that shows homes in black neighborhoods are under valued by over 20% even after considering factors as schools, crime and other metrics. How happy would you be if you had to erase yourself from your own home to get a fair appraisal? To act like it doesn’t happen allows the issue to continue. I can admit that in some cases the claim of racism is false or even worse a lie. But what I’ve read on this post and comments shows that many of the people refuse to admit that it exists and is happening to people in 2022.
What lunacy comment are you making? Unless we are god we cannot be perfect. To blame it on racism even when this appraiser was found innocent shows you’re the racist. Maybe people with your point of view in our profession need to either remove themselves or focus on BLM. People are tired of this bullSH$# that this agenda is doing. People like you put a bad name on our profession.
Boy, Tim, you are drinking the cool aide with gusto. We (appraisers) have not seen any of the appraisal reports in question; therefore, we do not know if the appraisers are racially biased or lack competency. Further, without seeing any of the appraisals, we cannot determine which report is valid, incompetent, or racially biased (if any are).
“The only difference was (photo related)”. One presumes a different appraiser was involved as well. The logical fallacy of the apology culture is on display. Laws for illegal activity are already on the books. Holding people accountable does not need to shift away from a rigidly applied rule of law principal to some subjective emotional consideration. One might also dare to consider possibly inconvenient points like competency, appropriate research boundary, experience level, scope of work, how the perceived inevitable bias applied by borrowers may have altered their own behavioral and vendor acquisition patterns… That fish bowl is just not as entertaining as clickbait. Want to take a bite out of crime? Follow the money.
Tim, you mention the Brookings study as if it is credible. I think it’s safe to assume that you are not an appraiser. Here is a good article for you to start with “Racial Bias Claims Without Proof or Logic”
As a matter of fact his studies were based on Zillow
And as all appraisers know, the ‘A’ in Zillow stands for accuracy.
Here is an investigation into the case in Marin. There was no racism or bias. Plaintiffs incorrectly believe that using sales of like properties in the same area is racism. It’s not. Appraisers must use the most similar comps in the same area. https://mary–cummins.blogspot.com/2021/02/alleged-discrimination-home-appraisal.html
Here is an investigation into the case in Jacksonville. Similar issues. https://mary–cummins.blogspot.com/2020/08/black-homeowner-claims-discrimination.html
Andre Perry’s paper posted at Brookings is not peer reviewed or published research. This article shows the major statistical flaws in his “analysis” besides the fact that he used robot appraisals from failure Zillow. https://mary–cummins.blogspot.com/2021/06/false-statement-by-president-joe-biden.html
Don’t just believe every media article title you read. Do some research like I did. Yes, racism and bias exist. That doesn’t mean every appraisal someone doesn’t like is the result of discrimination or bias.
In response to your use of Mary Cummings as your source of defense her logic is flawed. In the Marin case she states that for if there was racism in one appraisal it means there has to be racism in every appraisal which patently stupid. Even if every homeowner in Marin was black it does not mean every appraiser was racist. She also shoes bias by her statements in the Jacksonville case by trying to belittle the homeowners with her comments about she make a lot of money in her new career by talking about what she encountered on media outlets. Again, my point has been proven. Not 1 person said every appraiser is racist but you are all saying every person that says they faced racism in the appraisal process is a liar. We all know that is not true.
I forgot to mention that the woman in Indiana to her claim to HUD and there is an active clai. With them. So i just gave you 1 case to dispute the author directly. But to address the systemic comments. If homes in black neighborhoods are devalued by 20% that erases over 100 billion dollars of wealth from homeowners. Just the fact that a person work alone does not prevent their feelings or hatred for people to go into their work. To even imply that is silly. A racist person is more likely to use their position to hinder those they don’t like if they think nobody will see what they did. Hence all the crazy stuff on the internet. And as far as saying people dont have time to be a racist is dismissive at best. Racists will always have time to be racists. They don’t just turn it off. I’ll ask you this question. How much racism are you comfortable with other being on the receiving end of? Because to deny or act like it doesn’t happen is in effect condoning the practice.
We’re all exposed to racism on a daily basis. False accusations being just one example of that. Color coded policies keep the issue alive.
What exactly is wrong with lower prices? In times of plenty things cost less not more. The notion that we need to drive up housing prices and in turn levy higher taxes in order to help people achieve the American dream is not a logical position. Price is not the same as value.
Want to know the secret of ‘the Jones’es’? You know, the rich couple up the street in this same neighborhood whom has all the nice things and lives so carefree? They have half the mortgage payment amount compared to most people.
Please DO tell us about the Indiana case Tim. I’ve spoken with the appraiser (actually there are three involved, but I spoke to one). Highly credible explanations. I can’t say more.
Great piece Mike, bravo. Further, these unsupported attacks and the predetermined conclusions regarding the appraisal profession are despicable and insidious on several levels:
1) Eventually a hard working appraiser trying to do his/her job will undeservedly receive punishment or loss of career
2) Behavior in the field will change as some appraisers will resort to poor tactics such as refusing assignments in certain areas, conduct inspections on pins & needles, or purposely overvalue certain properties to avoid scrutiny, etc.,
3) freedom of speech & thought will be (is already) compromised in America as some will fear reprisal if they speak out boldly against the accusation (obviously not you Mike, bravo) this is America…those are American values and finally perhaps worst of all
4) some good, level headed, hard working appraisers will come believe the nonsense.
When those who falsely accuse the Innocent (Most Appraisers) and those who are falsifying the truth, the truth eventually is found. The truth always stands, but some still refuse to see the truth. Isn’t God merciful and just as He says He is?! He truly is. Merciful and Truth.
The truth is not as clean and simple as you want to make it seem. The liars are not always the accusers just like the liars are not always the accused. How about this truth. If there are only a few complaints of racism that would mean there are only a few instances of someone making false accusations. So tell me why there is such an uproar about this topic? You can’t minimize one without minimizing the other.
Setups mean nothing. One aspect of the real estate appraisal industry is that it’s difficult to drum up public opinion regarding this profession. Unlike the propaganda mechanisms supposedly predictable effects, most people whom would be asked to form an opinion about appraisers already have one, having previously used valuation services. That perception is largely positive. On account of the appraiser often being the only human being people actually communicate with in person prior to closing. Minimize away at your convenience, price will never equal value. Some of these comments would be better received at an antique trade show blog, promoting such disregard for commonly understood valuation principals. Value in use is not a color coded consideration.
That one is easy Mr. Tim. The uproar is because it is a HOT topic about white against black and how racism is presumed rampant in the Appraisal World even to the point that we are trained how to perpetuate bias. REALLY? USPAP trains us NOT to apply bias or you stand to lose your license, period! Black owners put white people in their homes and all of a sudden values are higher. Yeah, likely because they used comps in higher priced neighborhoods rather than the subject neighborhood which is prohibited and provides an incorrect value of the property. Likely because they had no clue about the area in which they appraised. OR get this, likely because that lower valuation was indeed the correct one. But oh we don’t want to accept that answer. How can a lower value be the right one? It has to be bias. That kind of news makes headlines and people jump on that bandwagon without doing their research.
Kind of like if it Bleeds it LEADS!
Here is the hard truth one has to ask of Buyers and their Realtors..WHY are buyers paying less in certain neighborhoods over others? FIX those issues and values will rise. The current argument is this: Way back in time Black borrwers and homeowners had depressed values due to redlining and other tactics by lenders and we as Appraisers are continuing that bias by actually picking sales inside the same neighborhood as the Subject, which was the case in Marin County. Unless all the powers that be want to change the very foundation of how valuation is done, then we will as Appraisers use sales inside the same neighborhood as the Subject. WHY would we do that? Has nothing to do with bias, it has everything to do with reporting what the market (BUYERS) are doing. They are actually suggesting that we go into other neighborhoods to BUMP values for black neighborhoods, or forget about the sales comparison approach and use cost approach or maybe even income approach to value OR worse yet, due to the decades of suppression of values, make some kind of bias adjustment upward for prior bad acts of LENDERS, not Appraisers. Sorry, Mr. Tim but this is insanity and USPAP again does not allow any type of bias to enter into the appraisal process. So again unless the powers that be say hey you cannot use sales that are THE most representative of the Subject property, you must use other sales to bump values (which lenders will not allow due to risk factors), this talk of Appraisal bias is just that…Talk because it leads in the media.
Those making this news need an education on how appraisal valuation actually works. If you give the Appraiser the power to select higher priced homes to bump values, what is to stop them from selecting lower priced homes to suppress values elsewhere in white or other neighborhoods. Bias works both ways here people. You don’t want Appraisers to have that kind of power to select any comps they want and fabricate values. If that happens you have lost complete public trust in the TRUE value of their properties. Everyone in the process stands to gain financially EXCEPT the Appraiser (other than their measly fee for the report) We get paid regardless if a loan closes. Again you need to ask Buyers why they are paying less and fix those issues. They dictate values, Appraisers report facts and analzye, period! Buyers lead the way to getting black neighborhoods out of decades of low values so focus on the heart of the problems here not the end product. Thank you!
People keep reponding with things like no one would risk their license over racial bias, there are laws to prevents this kind of thing or we are trained to remove any bias in the process. You all know not one of those things prevents a person from doing wrong. If that was the case no one would ever lose their license for any reason. And no one has ever lost their license right??? Let’s just boil this down to the basics. Because only one thing can be true. Which is more likely to be true? Every claim of racial bias in the appraisal process is false and therefore every person making the claim is wrong or a liar or there are some valid claims of racial bias in the appraisal process?
Let’s boil it ALL the way down to basics Tim. I absolutely agree with you when you state “Every claim of racial bias is wrong or a liar…” Definitely, the more probable likelihood BASED SOLELY ON THE PUBLICIZED CASES TO DATE.
Mike well written as always.
Not for nothing but does anyone remember when we couldn’t go beyond one mile of the subject for our comps, had to stay in the immediate neighborhood. Is this now bias?
I remember the lenders having that as a policy. I could never find a FNMA or FreddieMac one-mile limitation that I can recall. Either way, valid point.
Also in Georgia appraisers are required under state regulations to attempt to find comparables within the same subdivision, and only if they cannot are they permitted to go further out…with an explanation.
I waited to see the shoe drop about all this. Thank you for sharing this info. Everything seems to be used a a tool that divides. Unfortunately, this has done damage to the Profession as well as deepening the divide between people. Keep on keeping on Sir!