Racial Bias in Appraisals Survey
Fannie Mae wants to hear from you about racial bias in appraisals. The survey closes on October 3, 2021.
News media reports alleging racial bias in home appraisals have turned a spotlight on the appraisal process in the mortgage industry. We at Fannie Mae take allegations of appraisal bias seriously, and as one of the largest consumers of residential appraisals in the United States, we want to make sure we are doing all we can to identify and help prevent it. Many of the conversations on this topic have excluded appraisers. To help us address appraisal bias from all perspectives, we need your input. Click here to answer this anonymous survey about racial bias in appraisals. You may share the link with others. The survey closes on October 3, 2021.
Survey questions:
- What role do you play in the mortgage industry?
- Field appraiser
- Review appraiser
- Lender staff
- Appraisal Management Company (AMC) staff
- Other
- Do you accept assignments from AMCS or lenders?
- AMC’s only
- Lenders only
- Both
- None of the above
- How would you rate the appraisal industry when it comes to handling instances of actual or perceived racial bias?
- Poor
- Fair
- Good
- Very Good
- Excellent
- I do not think there is any racial bias in appraisals
- Please rate how often you have witnessed actual or perceived racial bias in appraisals for the following scenarios:
Never Rarely Sometimes Often Always In appraisals I reviewed In appraisals of my own home I have not, but people I work have - Have you personally been accused of racial bias in an appraisal?
- Yes
- No
- Please rate your level of agreement of the following statements decreasing incidents of actual or perceived racial bias:
Strongly disagree Somewhat disagree Neither agree or disagree Somewhat agree Strongly agree Increasing diversity of appraisers Using objective (factual) language versus subjective (personal belief) language in appraisal reports Guidance from Fannie Mae on how to write appraisal reports Having more discrete data fields in the appraisal report versus freeform text commentaries - How often do you examine language in your appraisal reports to reduce subjective language?
- I examine every appraisal report
- In reports only which I suspect are more likely to have subjective language
- Never, I do not examine my appraisal reports to reduce subjective language
- Don’t know/Not applicable
- What can appraisers do to decrease racial bias in appraisals and incidents that increase reputational risk for the profession?
- What can Fannie Mae do to decrease racial bias in appraisals?
Click here to answer this anonymous survey. You may share the link with others. The survey closes on October 3, 2021.
- Outrage Over Connect by ValueLink’s New Monthly “Junk Fee” - November 27, 2024
- ARCC Discussion Exposes GSEs Agenda to Reduce Appraisal “Friction” - November 22, 2024
- FHFA’s Appraisal Waivers Expansion - October 29, 2024
Considering the last taste in your mouth is “What can Fannie Mae do to decrease racial bias in appraisals”, appraisers are guilty until proven innocent. Hey Fannie Mae, how about telling us how many appraisals go through your portal everyday, compared to “have your day in court” racial convictions there are. Something tells me the results would go against your narrative.
Seek the truth
The survey is faulty. Why ask the two last questions when I answered “I do not think there is any racial bias in appraisals” and I have NEVER witnessed actual or perceived racial bias in appraisals?
What exactly is wrong with lower prices? Wrote an essay in the tiny comment box, those apparently do not have a character limit. Imagine a functioning free market, where people had to actually do their jobs and be productive. This survey brought to you by the federal government and it only cost like thousands of man hours and millions of tax dollars.
Fannie Mae should educate the public on the appraisal process and not give in to the false narrative of appraisal bias. Too many reviews of the appraisal for there to be any bias and not discovered. Maybe Fannie Mae should step forward and challenge the news media on their reporting of unsubstantiated claims of bias. How about a media campaign of their own explaining the appraisal process and definitions in the professions.
If their mission is to find a problem, it will be found, whether it exists or not.
http://www.freddiemac.com/research/insight/20210920_home_appraisals.page
“To follow up on several stories of potential purchase appraisal bias in various news outlets, Freddie Mac kicked off a study of whether minorities are more likely to receive an appraisal value that is lower than the contract price during purchase transactions.”
Did Freddie determine how and if the appraiser ever knew the race of the borrower? The only people who know that, are the lenders agent or brokers. Seems illogical to blame appraisers of racism when we don’t know or meet the borrowers and have no idea of their race.
An alternative position is that the system of independent checks and balances is actually working as it’s supposed to, and these data disparities are representative of the larger marketplace systems and actions of market participants, not of any specific wrong doing on part of the appraisers. Just because that data may be present proves nothing. Appraisers read the market, they do not set the market. Of course there will be different market trends between diverse populace groups. Our tax dollars, hard at work.