Biden Claims on Racial Bias in Appraisals
Over the past week or so, Presidential Candidate Joe Biden publicly called for more regulation and oversight over appraisers to combat racial bias. He specifically cited the Brookings Institute Study ”The Devaluation of Assets in Black Neighborhoods, The Case of Residential Property”. If you are unfamiliar with this study, in a nutshell, the findings accuse appraisers of undervaluing properties in black neighborhoods. The study is an easy read and can be found here. We will warn you, much of the data used in the study carries very little weight as Census Bureau (self-reported data) and information from Zillow were used.
We all know licensed professional appraisers cannot be biased and that no appraiser “values” a property. We are bound by strict regulation under State Law, USPAP, Dodd Frank and Appraisal Independence requirements outlined in the Truth in Lending. Appraisers report the market; we do not create the market. A clear lack of knowledge on what appraisers actually do by those involved with the Brookings Institute Study is evident! It is this type of misinformation why the appraisal profession is in its current state.
Two professional appraisal organizations have responded to Candidate Biden and his campaign via letters outlining our already over regulated profession. Jefferson Sherman, the 2020 Appraisal Institute President and Craig Morley, President of the National Association of Appraisers have both written to Candidate Biden and his staff. Please share these letters and/or write you own and post on social media, send it to your database, etc.
VaCAP has always advocated to teach others what appraisers do and our importance. Lending work has been free flowing lately and most of us are extremely busy with the recent rate drop. Please take the time to talk to others on why the professional appraiser is needed and how we are the gatekeepers of the financial and real estate markets. If we appraisers do not speak up and correct the misinformation, who will? Remember the last fix to a problem that did not exist resulted in appraisal management companies and loss of our clients and income.
Do we really need another fix to a problem that does not exist?
- We the People… - April 9, 2023
- Federal Valuation Agency Impact on Appraisers & the Public - July 22, 2022
- Is Georgia Going Rogue? - June 13, 2022
Joe Biden confuses his wife for his sister in victory speech after solid Super Tuesday performance ….. he’s senile has some sort of dementia.
His thought process is all over the place. Nothing he yells out means much.
Just a ploy for votes…
More stupid lies and deception from the democrats and their black community! Sad and pathetic! This is what happens when you use race to divide our country! Have a blessed day!
Thankfully he has no chance of winning.
Pure POLITICALLY MOTIVATED BS AHEAD OF SOUTH CAROLINA PRIMARY
Collateral Underwriter TAKES NO PRISONERS inside credit challenged/minority neighborhoods and it’s STILL OUR FAULT.
Appraisers have been punching bags for politicians for TOO LONG.
Every time I appraise an African American or Hispanic property I always ask them what value they need to make loan work. I make sure I come in at that value every time so nobody can call me racist for black lining neighborhoods. No worth the chance of being call a racist if the value doesn’t come in at expectation. Lol
Mr Mcgoo doesn’t know what state he’s in, what day it is or who his wife is. He sure as poop has no clue about appraiser world!
That’s funny, my MLS system doesn’t seem to have a color of skin column for me to sort and move one minority to the top or the bottom of the page while I’m looking for a market value.
Also, considering I never like to speak to the borrower on a purchase assignment, just when exactly am I doing that phone interview where I ask them about the color of their skin.
Most importantly Joe, in my state of California where the Hispanic and or Latino population is 15,540,142, the Black or African American population is 2,179,078, and the white population is 14,495,479, by protecting minorities, just who are you speaking about. Don’t forget about the Asians who number 5,741,886.
Considering the white population in CA is outnumbered +/- 6 to 4, this is a crazy statement.
Seek the truth.
The trump train has told so many lies it is now impossible to speak any truth to any trump supporter because they live in a bubble of fox news and trumpspeak. The story about racial bias in the NY Times was discredited; it was a set up story. I wrote the so called journalist and told her about the objectivity we maintain as a group and later it came out that it was a fabricated story by a politically active person who wanted to discredit democrats. This group is split, just like the country, some are heavily influenced by their incorrect beliefs that trump is right about everything, and democrats are wrong, stupid, or too old. Remember that we are professionals and politics does not factor into our valuation opinions. When groups like this pander to trump and his lock-step republican liars, of course you will lose membership. I can’t join and give money to an organization that does this! It is obvious to me what is being said on this blog is very little truth and a whole lot of junk opinions. I only come on here as a voice or reason, and to raise the bar of the thinking of fellow appraisers. When are we going to get it that we cannot justify political opinions affecting our work! I am appraising properties that were destroyed by fire, 100%, and I just went on one commercial property’s facebook page and got a lot of photos of the property that will help me reconstruct what I am appraising, and estimate the cost of replacement. I saw many things showing this market was very supportive of trump, but I will not allow this to affect my work! I don’t care who it is, I am the one responsible for this appraisal, and I don’t wish any harm, and will not bias my opinion about the value of their property because of their political beliefs. I just wish people in this group could see that is the correct attitude and we certify in each appraisal we have done our work without bias with respect to the parties, so remember that, and YOU stop being biased about democrats, or I will make sure you get more of my scoldings. I am not sure many trump supporters can take that because they are basically full of grievances about immigrants and it is those types that need to get out of this field. If you can’t take the heat, get out of the oven! Remember, your grievances are more about AMCs keeping our incomes down when they add nothing to the quality or process of appraising, they are just sucking our fees right into their corporate, greedy hands. Time for a review of this blog, and it’s objectivity; I realize there is very little of that going on here. I like Jonathan Miller’s articles, and some of the appraiser bloggers, but most of the rest of it makes me roll my eyes.
Realrose, I gotta tell you, you live in a bubble of denial and believe anything no matter how bizarre as long as it appeals to your beliefs. However, you are entitled to your opinion but I’m glad you are not running this blog. If you were, you’d probably censor anyone and all comments/posts not aligning with your beliefs. Thankful for the moderators who let you speak freely here, even though you are in a habit of attacking not only appraisers who think differently than you but this blog and its moderators.
Don’t forget about the Iranians on the West side who own everything else – the golden triangle of Brentwood, Beverly Hills and Santa Monica. Who the hell is Joe Biden kidding. IN 1200/sq ft. santa monica we still have rent control and we can’t do a thing about it as landlords. We also now have a 10 yr. rent deferment pay-back law which means residential income is going to have a fire sale.
You won’t EVER hear about all the folks that were able to delay their foreclosure auctions for over a DECADE, live for FREE, collect RENT then eventually sell the house for a gargantuan profit all at the expense of the US taxpayer.
Not a politically correct topic of discussion.
You are 100% correct. I completed a few appraisals where the borrower was trying to leave the premise and give the keys back to the bank. They were told not to leave. One occupant told me she had lived in the home over 3 years and had not paid a single utility payment the entire time. If I did the same my utilities would be shut off within weeks of no payment. It is a very sad world we live in where minorities are constantly told by the media and the government that they are victims yet I have never seen/witnessed a single act of racism in my entire life. Racism is like a unicorn or big foot. We all hear about it yet it must be magical and can only be seen by the media and politicians? When ever I see situations where these politicians or media try to imply we are racist I utilize that opportunity to allow my children to witness this as they need to be fully aware of what BS looks like and how to identify it! Stay blessed everyone!
I knew of one such. At various times over a 7 year period the property ranged in value from $2 million-plus to a high of $3 million (pre-collapse). Owner had not made a (full) payment on 1st, 2nd or 3rd TD in that time.
He kept filing varied forms of Bankruptcy. Personal Chpt 13; then business chpt 11, then 7 while retaining possession. Obviously a lot of back and forth trust to personal to corporate transfers via quit claims. Should not have affected the priority of the liens, but it did, under the fed BK rules at the time. Technical issues re vesting. A lot of the mechanics are still unknown to me. Note it was 7 years. He did it a second round as well. The judge was ready to throw case out as being an abuse of the system.
Then the judge died. Merry go round started all over again. Last time I checked public records out of curiosity he still owned the property. Ultimately I think there was relief from the 2nd and 3rd (dismissed entirely) and the 1st was part of a cram down as to loan balance AND interest rate (4% pre broad market rate drops).
It happens though it is exceptionally rare for it to go to this extent. In 34+ years I never heard of a case quite like that one.
Biden is a senile idiot
that’s it exactly…the ole fool doesn’t realize we dealt with this decades ago.
Congratulations are in order for Mr. Joe Biden for rallying from behind two days ahead if Super Thursday in his bid for the Senate. As far as value of properties in predominantly Black neighborhoods – of which I’ve done a good share- the values are the values. It is what it is. They are what they are. Appraiser’s don’t make them up.
He’s a lying dog faced pony soldier.
Bryan Cooper Bob King
It’s obvious he’s an senile idiot who is just pandering for votes … Everybody is a victim! Identity politics at its worst.
This is an extremely serious topic we appraisers need to take serious. In today’s political correct society, being call a racist is worse than being anything else including a fraudulent appraiser. I have only appraised a handful of minority owned homes in my rural county I cover. The few I have done, I treat the same as any other property I’ve appraised. I could care less of what skin color the occupant of the property is. I’m sure 99 percent of appraiser are also like this. We appraiser’s need to be careful in this environment. Being called a racist will kill your reputation and business and something we need to be aware of.
Fascists, constantly growing government for a purpose other than protecting individual liberties. Nobody wants to live in high crime neighborhoods if they have the option to live somewhere else. That’s why people leave and the prices tank as a result of societal replacements. As population demographics rapidly shift, how long do you think these narratives can really hold up?
The reason these narratives are rehashed, is to distract from the failing monetary system. If we could just blame race, perhaps the money would stop being fiat, backed by nothing?
Biden 2020 “I’m going to raise your taxes, substantially!”
Let’s all agree to not vote for Biden ! Trump 2020!
I am a black appraiser Been in the field 20 years I have a home in a black community and have appraised homes in mine and other black communitys Whatever comparables that are in the data system are what help determine value It is not even possible to do what is being suggested without breaking uspap rules
Joe Biden is 100% correct. In fact Abena Horton, a Black attorney in an interracial relationship, had her house undervalued in a majority white neighborhood and yet when she removed pictures of herself and her son and replaced them with oil paintings, her home was valued at $40,000 higher only a few weeks later. During the appraisal, she was not home and her white husband met with the appraiser. People need to stop denying that there is a problem. I am glad that Joe Biden is addressing the issues rather than denying them and playing to people’s prejudices like Trump and many others are doing.
So that’s the only possibility, racism? Was it the same appraiser who did the second appraisal? No, it wasn’t. What was the worth of the house? In high valued properties $40k is chump change. Could it have been just a difference in the opinion of the appraisers pictures or no pictures? Was there a new sale that had not been there before and influenced the second appraisal? Stop seeing racism lurking around every corner and jumping to conclusions without further considerations or proof. Yes, the Democrats are counting on such shallowness and the victimhood outlook of some people.
I agree with you John. Everything is getting so crazy anymore with claims of racism.
I’m just waiting for the term master bedroom and master bath to be outlawed by all the craizies out there…..
Didn’t you hear that time, science, nature, hard work, rationality, languages, competition, family structure, evolution, religion, politeness, planning for future, in short everything is a sign of whiteness and therefore racist? And yes the act of appraising real estate is racist and should be abolished. We should take homeowner’s word when they tell us how much their properties are worth.
Apparently dining out is also racist!
Jasmine, in case you missed it the first time and just skimmed over this article instead of reading it, Biden is proposing a national standard that is ALREADY IN PLACE!
“To counteract this racial bias, Biden will establish a national standard for housing appraisals that ensures appraisers have adequate training and a full appreciation for neighborhoods and do not hold implicit biases because of a lack of community understanding. An objective national standard for appraisals will also make it harder for financial institutions to put pressure on appraisers to their benefit.”
“Licensed and Certified appraisers are already bound by the Uniform Standards of Professional Appraisal Practice (USPAP) promulgated by The Appraisal Foundation and there is no need for any additional national standards for appraisals or appraisers. We take exception to the statement that home values in any neighborhood are the result of racial bias among appraisers and the Conduct Section of the Ethics Rule of USPAP clearly states:
An appraiser must perform assignments with impartiality, objectivity, and independence, and without accommodation of personal interests.
•must not perform an assignment with bias;
•must not use or rely on unsupported conclusions relating to characteristics such as race, color, religion, national origin, gender, marital status, familial status, age, receipt of public assistance income, handicap, or an unsupported conclusion that homogeneity of such characteristics is necessary to maximize value”
This story has so many holes in it, starting with the fact that the reasoning behind an appraisal are pictures on the wall and not the value is a HUGE CLAIM to prove. If this is a lawyer making this argument, she would give back her JD to the on-line diploma mill in Latvia she graduated from. Baseless, pandering, rebating, speculative, immaterial, out of court statement seen as hearsay , no direct evidence and borderline defamatory statements made by an activist tool with BLM marching orders and a SOROS check to boot. Give it up – no one is listening. Kobe Bryant’s house here in SoCal was sold for 30% above asking cause he’s dead and because of who he was. He was black and his wife Mexican. First it’s color disparity. Then its economic disparity. I’m sure if a same sex, interracial couple with trans kids were on the wall, the house would have multiple offers on it over asking and they’d be an auction. It was a sting operation at best to make a moot point she can’t prove and a court will not hear. Have a nice day – this should meet your quota of repeating tired tropes for the day.
When I last saw my two half brothers in Texas I asked their Mom if they were in fact “Arab-Jews” as family history suggested for decades. Her answer (and that of my brother Claude) was “Yes. Born in Casablanca; Technically Magrebes or something to that effect. It dates back centuries where Morocco readily welcomed Jews without persecution. Just for a fun twist, they all learned to speak fluent Spanish there (look up Malia) which was very nearby.
In any event, they are both Arab & Jew. Now the thing I don’t know is whether or not they are also black? Does North African count? I forgot to ask. It was never part of the family discussion of their side of the family’s history and it just never seemed that important. We just love each other. Perhaps Jasmine can give me an answer?
I’ll hold off on follow up religious questions concerning my Korean-American sister for now. Asking whether shes Catholic or Buddhist would just confuse the current issue even more. Again, I just never asked. It’s bad enough she’s a liberal. Like all our brothers.
PS I think my natural father’s approach to ending racism worked. A little unconventional perhaps.