Racial Bias Narrative to Remove Appraisers

Unfortunately, Professional Appraisers have no organized voice and I don’t see that we ever will. There is no one to defend us. And that has been used against us for years.

After all that Appraisers have been through over the last 15 years, the racial bias narrative and the allegations of racial discrimination in the appraisal profession will be what is utilized to remove us from the lending equation, just as the GSE’s and especially AMCs have wanted for YEARS now. We have never been more than a hindrance that is in the way of their predatory lending practices.

Removing us will finally put the FOX completely in charge of the HEN HOUSE.

While we can certainly improve our Profession and our Appraisal Process, what’s being proposed will not accomplish what they are “saying” they want.

As Appraisers, WE have failed miserably in educating the public about the appraisal process and exactly what we do. They are not aware that WE are the only party in a lending transaction that is TRAINED to be neutral, unbiased, and not an advocate for ANY party.

Basically…WE are in place to keep everyone else honest.

For those that sincerely believe that the Appraiser is the one that is your “enemy”…be careful what you wish for. Without US, borrowers will be completely at the mercy of lenders, and guess what? They are only trying to make money off of you, and will NOT present you with neutral, unbiased information on which you can make your borrowing decision.

Let’s all repeat together: ”Unintended Consequences”. That’s what’s ahead for all of us, not just appraisers, but the borrowing public and real estate brokers. Realtors have been attacking Appraisers as well, because they also see us as a speed-bump to get over.

NAR has a “Valuation Section” and has published an official policy that states;

The National Association of REALTORS® represents approximately 25,000 state-licensed and certified appraisers throughout the country. NAR’s Responsible Valuation Policy states that “persons who perform appraisals of real property shall be licensed or certified by their respective state regulatory agency and the appraisal shall be conducted in accordance with standards established in the Uniform Standards of Professional Appraisal Practice (USPAP).

An appraisal is an important part of the home buying process because it assures the lender the property has adequate collateral to make the loan. NAR closely monitors federal legislative and regulatory issues related to appraisals. NAR has long advocated for an independent appraisal process and enhanced education requirements that allow appraisers to produce the most credible appraisal reports possible.

Yet has anyone seen any “article” from NAR’s Valuation Section defending their “25,000 appraiser members”??

NAR is a powerful lobbying organization and if these accusations were being levied against Realtors, NAR would have responded by now.

We all should understand that this narrative has been formed at least since June 20, 2019 when Maxine Waters / US House Committee on Financial Services, held the hearing titled;

“What’s Your Home Worth? A Review of the Appraisal Industry – June 20, 2019”

Watch it HERE.

 

If you haven’t watched the entire thing, you need to. NOTE: At the end there was a plan proposed to put together another hearing in order to form a “committee” that would include Professional Appraisers to check into the information they were given by Andre Perry and the Brookings Institute. You can see the documents here. Keep in mind that Mr Perry is NOT a Professional Appraiser and the data utilized in the Brookings Institute Report was put together using data from Zillow. However…THE PROPOSED HEARING WITH APPRAISERS HAS NEVER HAPPENED THAT I AM AWARE OF. If I am wrong, then please send me a link to the info.

In addition, various “powers that be” are jumping on board to help spread the “racial bias” narrative and prove that they are good guys and are joining the effort to prevent it. So we as Appraisers, WILL be subject to new requirements and regulations…they are coming. Be prepared. Since no one has actively sought input from Appraisers up until now, I have no expectation that we will be consulted going forward.

If the public AND these Legislators really understood USPAP, they would all be aware that we are ALREADY under Standards of Professional Practice and Ethics that are more stringent than what LEGISLATORS must follow.

Additional information we ALL need to be aware of;
The US Congress is currently considering this legislation; Read H.R. 2553 – Real Estate Valuation Fairness and Improvement Act

I encourage ALL of us to contact our Legislators, State and Federal, in order to let our voices be heard. PLEASE don’t send a ranting letter filled with profanity and complaints against a specific political party. This issue is way BEYOND that. If you are not able to write a professionally put together letter, then don’t do it at all.

We need to be able to be proud of our Profession, not be embarrassed by letters that may end up being online somewhere. Write your letters as if the world will read them, because they may.

Note that financial companies are coming out with their own commentary; JP Morgan Chase is calling for reforms to stop racial bias in housing.

And if you missed it, NOTE; the Consumer Financial Protection Bureau / CFPB also held a “hearing” just 3 days ago; Virtual Hearing on Home Appraisal Bias / Consumer Financial Protection Bureau.

 
Although this entire narrative could very well end up costing us all, our way to make a living, THAT is not the worst part of it to me.

To me, this feels like a PERSONAL ATTACK on ME and the way I do my job, not to mention the kind of person I am and the way I’ve always lived my life and treated people.

That’s why I’m ANGRY, and why I can’t just be silent. I understand that there are those that are leery to get involved in this issue and voice their concerns. They are leery that they may be labeled as “racist” and that it may just cost them clients. I honestly don’t know how this will all end up. But if I must go down as an Appraiser, and no longer be able to do my job in a neutral, honest way, then I don’t want to go down silent, never having defended myself and those in my Profession.

I’ll go down fighting for the TRUTH.