Seller Filed a Racial Bias Complaint Against Me
Fannie Mae accomplished what they set out to do in July 2011, when they initiated their Uniform Appraisal Dataset (UAD) and the Uniform Collateral Data Portal. The goal was to collect enough property data to effectively remove appraisers from the home buying and refinancing process.
It all started with Dodd-Frank Act, a several hundred pages Act signed into law by then President Obama, sold to unsuspecting Americans as a protection from the corrupt business practices of banks. Included in this massive financial reform bill was the formation of the Consumer Finance Protection Bureau (CFPB), an agency that was supposed to work with bank regulators to stop risky lending and other practices that could hurt American consumers. We all know how ineffective the CFPB is. It never lived up to its name. Enter stage left the Appraisal Management Company, who for a fee will act as a third party buffer between the lender and the appraiser. Who pays the fee? The appraiser, of course.
Fast forward to today where appraisers are increasingly accused of BIAS by irrational Buyers, Sellers, and Agents (urged on by HUD’s leader Marcia Fudge) and persecuted by state regulatory agencies trying to stay inside the good graces of the Appraisal Foundation (a non-profit organization established in 1987 by the largest valuation organizations in North America who gouges the appraiser every two years by forcing them to purchase their published standards at astronomical mark-ups along with a required 7 or 14-hour course).
Today appraisal “innovation” is replacing appraisers with Artificial Intelligence (AI), bifurcated reports using data acquired by previously unemployed fast-food workers and felons, hybrid reports and the best report of all, the Appraisal Waiver. Yep. Congratulations Mr. and Mrs. Buyer! You received an appraisal waiver!
And today’s national interest rate for a 30-year fixed rate mortgage is at 8.02%.
But I’m not telling you anything you don’t already know. Except for this. My year-to-date appraisal income for 2023 is approximately $17,000. For those of us that are not good at math, that’s about $1,900 a month and that’s only income; we haven’t mentioned the astronomical expenses required to maintain an appraiser’s license and be available for work (both lender and private). My income has decreased to about ¼ of what it was over the last three years.And I’m not talking about a gradual drop in income; I’m saying my income has plummeted in the last year. I am an independent fee appraiser. I am not an employee. I am a one-woman shop. And I have been thriving as a self-employed individual for the last 17 years as a certified residential real estate appraiser. A profession I was always proud to be a part of.
So what’s caused the sudden loss of income? Could it be because of the racial bias complaint filed against me by an unhappy Seller 16 months ago and the 14-month-long ensuing witch-hunt performed by knuckle-dragging appointed state regulators, ultimately dismissing the complaint because it was without basis in fact? Were lenders made aware of the complaint? Was I blacklisted? At first I thought so, but now I’m more convinced the death of the appraiser is by design. It is intentional. And do I have any legal recourse? Realistically? No.
So take a hard look at your numbers, folks. Are you using your credit cards more? Are you transferring money from savings every month to stay afloat? Have you invested in a website? Performing more marketing? Trying desperately to make ends meet? Did you just receive a statement that payment is due December 31 to maintain membership to your local NAR board and corresponding MLS fees? Have you cut your expenses while fighting increasing inflation?
I have to renew my license in less than a year. Would you?
Kimberly, you are not alone. It’s like someone shut off the spigot last fall when interest rates spiked. My income this year mirrors yours, after several good years. Thankfully, I’m 62 and began drawing social security, we sold two rentals the last two years, have one more, and my wife has a great public pension, so we’re fine and I pretend I’m retired, and have not sought new clients or additional work.
I am faced with the same decision as you; do I spend the big bucks for education and to renew my license one year from now? Do I re-up my E&O in May? I switched to monthly payments for Clickforms at $54/mo. Is one job per week worth it? Do I learn the new forms? Sad times indeed for appraisers. I’m glad they threw out your lawsuit, and it’s a shame you had to go through that. Best wishes to all.
The insane administration (BIDEN), has screwed our profession forever. VOTE TRUMP!!!
What exactly did Biden do to screw up the appraisal profession? I know Trump kept NY appraisers busy appraising and reappraising his properties high for loans and low for taxes. But what exactly in your own words has Biden done to hurt appraisers?
Page,
please keep up with industry news.
– Biden Calls Out Racial Bias Among Appraisers
https://appraisersblogs.com/biden-calls-out-discrimination-in-appraisals-n-wants-2-push-4-training-2-address-racial-bias-among-appraisers
– Biden Claims on Racial Bias in Appraisals
https://appraisersblogs.com/joe-biden-racial-bias-claim-in-appraisals-faces-criticism-from-appraisers
Biden’s administration:
HUD’s Private Inquisitors Will Chill Protected Speech of Appraisers
https://appraisersblogs.com/hud-hands-54-million-dollars-2-nonprofits-in-quest-2-cow-appraisers
‘Preference Falsification’ – Why Licensees Parrot Notions They Know Are Untrue
https://appraisersblogs.com/preference-falsification-why-licensees-parrot-notions-they-know-are-untrue
Etc…just use the search bar above
Page, for starters, interest rates were less than 3%. Now they are at 8%. Gas was less than $2.50 a gallon, now it’s more than $4.00 a gallon. Both of these were caused by your hero Biden, and both of these have a direct impact on our profession, assuming you are actually an appraiser. If you need more examples, please let me know. Thanks for your attention. Have a nice day.
Sad that you as a licensed appraiser have such poor knowledge of how the world works. POTUS has no influence on interest rates and gas prices. How in the world can you do proper research and market analysis with such limited knowledge of supply and demand?
Wow! Do you really think POTUS has no influence over gas or interest rates? His POLICIES do.
Especially refusal to permit actions to capitalize on America’s own petroleum reserves and transport of gas and petroleum products from Alaska to the Lower 48.
He can’t control everything, and both wings of the Uniparty are equally responsible for voting to fund many of his bad policies, but lets not pretend he has no influence.
I wonder, how did you ever pass the Appraiser Qualification test? Sad that you ever got licensed, if you can’t understand basic economics. What a joke you are.
You are just being rude now. Move on.
Yep, Called him out in the beginning.
FA Q
Page, how was your income (therefore your profession) under Trump? How is it now? How do you see world affairs then vs. now. Truly curious….I’m sure it’s all just a big coincidence.
The current admin has pressured the GSE’s to shove the racial bias and DEI into residential appraisals to ‘further liquidity into markets’. Why accelerate all the new alternative valuations products we are seeing? Why the drop off in full interior residential appraisals? Pretty obvious who dunit and why.
Eric Kretz said; ‘The current admin has pressured the gse’s to shove the racial bias and dei into residential appraisers to further liquidity into markets’
Why the drop off in full interior appraisals? That’s a great question and astute insight Eric. Well, I mean, this is a long standing problem in real estate loan management.
I just wrote an article worthy post on this topic, on a ten year old thread, just today. If you’re interested, read this on how destructive the amc companies have been, how this may have led to billions in losses, especially in the reo asset disposition realm.
If admin is reading, perhaps post that as a stand alone with reference to the hud doc. Something like; Looking back, important rule changes, hud, reo’s, and amc’s today.
Wouldn’t it be so easy just to blame one person? Everything that goes wrong, just blame the president. The appraisal management industries betrayal of trust to every appraiser in this nation and every borrowing customer whom seeks GSE loans, is nearly complete. As I’ve been saying; the amc industry does not just want a slice of the appraisal action, they want the entire thing and to eliminate appraisers entirely. Amc’s are non partisan that way, their predatory behavior and insatiable need to destroy the appraisal industry is unaffected by political affiliations.
Don’t expect clueless politicians and entrenched deep state bureaucrats whom earn more yearly than most of us earn in a lifetime, to ever come around to this reality check. But we can still correct much of this through process changes, and wrestle some of our industry back, in turn protecting a nations worth of unsuspecting consumers along the way. Just never stop reminding people that the appraisal management industry is the root cause problem of a multitude of real estate industry and financial management shortcomings today.
You guys are getting me excited about politics and I’m about to start posting meme’s. Be careful what you wish for. Ha!
https://appraisersblogs.com/appraisal/new-appraisal-requirements-set-for-reo-properties/#comment-39401
Thanks Mike and Page. You two totally screwed up this blog.
Biden is nothing more than a paid democrat traitor who has committed treason on the USA. The illegal immigrants biden is allowing in this country for votes are costing you billions of dollars, your safety, your freedom along with lying about gas prices et inflation being transitory. Plus much more. All you have to do is look around you to see how biden is bringing down this country and hurting appraisers. Along with the above hurting appraisers, biden is pushing this die and crt crap which says colored people can sue you for anything and they will get away with their lies. Pure and simple democrat biden is a traitor and is hurting appraisers. WAKE UP!!!!!!
John, do you read; The American Thinker? You’d probably like that website, I do. On this specific subject matter, one sentence is all you need;
When do the deportations start?
Seneca, are you sure you name isn’t sinical? Having truthful conversations is helpful.
Thanks for your attention.
So why one cannot refinance his/her business for lower interest rates and for tax purposes?
ps., He said in the debate with Hillary, back then: roughly: “I know the tax laws, I use them. so do your financing contributors, hence you will not change them…” For me it means it is legal and it is done by many…
Page, normally as appraisers it behooves us to avoid being side tracked by partisan politics.
In answer to your question, AFTER the Abeena Horton misrepresented “bias” case in Florida, Joe Biden in a purely pandering announcement confessed that “the federal government has been systematically biased for decades”…
But he didnt identify how, or take responsibility for his confession.
He deflected it on to appraisers being (at the time) accused of race bias by Congress Member Waters, among others.
I can write pages beyond this, but I only want to answer your specific discussion. What he’s done to us as unimportant collateral damage with NO IDEA as to what he was talking about is unforgivable.
Its also undeniable. Regardless of ones preferred party
Mike, you’re entirely too mature, logical, and well grounded.
Missing the IVPI proposal yet?
https://www.workingre.com/wp-content/uploads/2013/08/IVPI-Proposalfinal.pdf
Putin for president.
Dan, I did the same. Took SSI, work when I am lucky enough to get some work.
Vote correctly (right) if you want to start fighting back from the guilty until proven innocent, everyone is a victim nonsense. Not a joke
I understand completely. After 53 years in the business I have had enough of the BS that comes with the job now. I used to enjoy what I was doing and always gave an hones, supportable value, if it didn’t please someone, so be it. My job was to protect the client, and I always did just that.
Kimberly- AI is taking over EVERYBODYS job it seems! I am in the same boat. Time to move on. Im sorry you got stuck in the racial bias thing. I hope you find something inspiring and new. I am certainly looking! I wish we (appraisers) could just re-group and come up with a new name and make our own rules and distance ourselves from banks and the GSE’s!
Well welcome to the presentday state of appraising. I too went through a “Racial Complaint” twice, once with the VA and then once with HUD for the same appraisal/ homeowner. Horrible that a homeowner who does not know a thing about appraising and who can cause so much pain and turmoil because of their ignorance and racist attitudes. You have a very limited way to fight back against this. I did and won once and will win again. Hang in their appraisers their day is coming when there in another 2008 melt down, this time they cannot blame the appraisers because there will not be any.
Walmart pays $20/hour x 32 hours per week = $640 x 4 weeks = $2,560 x 12 months = $30,720.
My home is paid for. My children grown. Just over 5 more years till full retirement age. No more E & O insurance. No more MLS fees. No more National Exploitation of REALTOR fees. No more appraisal license renewal fees. No more continuing education fees. No more software fees.
Walmart…..here I come.
So after running your own business as an appraiser, you willing to settle for Walmart? Don’t you think you can service your community and self with a higher paying job and something more consistent with your skill set?
To straight up answer your question, yes….there are many things I could do more aligned with my skill set. To be honest…I’d go to work at Walmart just for the human interaction. The reason I still work at all is for fun. Most days…being an appraiser is no longer “fun”. My wife is an attorney. She is still having some “fun”. The company she works with fly’s her all over the country (and me when I want to go with her). She’ll hang it up in 5 years and we are on the road in our RV.
Speaking of different working choices. Can you picture me trying to wrestle full size vending machines up stairs, by myself with a dolly? I checked with the county contract bids assignment guy and only two parties put in bids for the multi dozen vending machine contracts in my county. But then I’d have to be like mechanic pro with all the mini plastic items and such, like ricks restoration or something, always fixing machines trying to save a dime. Buy a bunch of machines. I’ll need a van with a ramp. You’ll see me at costco with pallets of soda pops and fancy waters, always chasing the deal and hedge buying sugary drinks by the thousands. It’s going to take up my entire garage.
Let’s do an analysis of all the other government contract work, independent work in general, and call every industry predominately ran by one race or another, we’ll call them all racists. Who’s still buying this? You’re all guilty of thought crime now.
FYI – you will need to keep prior acts E & O for a few years just to make sure you are clear of any liability.
Hello, soo sad what has happened. Every aspect of your emotional journey, of loosing clients and never knowing “WHY you were fired” and because you performed the SOW based on USPAP, truths, & professionalism AND where the client would not stand-up for YOU. I have chills reading your post and those posted afterwards. Demise: I believe it HAS BEEN an ongoing plan & sadly without fail will happen. It’s like a Movie but we are living the reality. Modernization: the Sky was indeed Falling. My crystal ball (GUT) kept telling me it was time to GET OUT. Two years in the planning and now 4 +++ years ago I stopped providing lender-services. Started prior “mandatory licensing” and was a great career until…HVCC. Retired while heathy to Live a Stress-less Life away from the Witch Hunt of Liars & Greed. Wish you well, life is short.
Sorry that happened to you. I’ve luckily never had a complaint. I worry about complaints in today’s world where everything you don’t like “must be” caused by someone else’s “bias.” I over analyze, over explain my results in layman’s terms for this reason. Still, I worry. No appraiser is safe no matter how perfect and exact you try to be. If I had another means of making a living, I’d quit but I don’t.
Something is going on. MLS reports a 30% decline in home sales but appraisal orders are down 75% at my one person office. Just making expenses so far in 2023. Meanwhile, the Appraisal Institute is doing nothing about these appraisal waivers to my knowledge.
And that’s the sad part. What is the Appraisal Institute doing to actually help appraisers? It seems like absolutely nothing. Not helping fight against the bias/discrimination crap, not fighting against the property data collectors and appraisal waivers.
Can you point to a specific directive TAF should be adhering to that they are not as it specifically relates to the appraisal waivers and/or the racial bias? They are there to create standard, rules, etc for the appraisal process. They can’t help the market’s create another product that is outside of their scope. Why do think those were created in the first place – for just that, to be outside of the regulations scope to grease product through and keep the money flowing with ease. Remove the appraiser and allow faster markets. I can’t think of a single thing that would cause TAF to actually advocate for the profession, even though we pay their salaries and without us, there will be appraisal foundation. While logic would dictate the AI and TAF would speak up, money donations prevent logical thought to proceed.
From my reading Waivers are not predominantly the reason. However, in reading Tech’ Companies along with Fake News propaganda BS is Influencing the Third Party Property Inspector DeskTop type reports. In Working RE latest publication ( a must read ) HUD IS & has been using appraisers as Test Rats to promote homeowners Bias complaints. And there is NO vetting in those complaints as they go straight to an Investigation. Resulting in “ uneducated “ overwhelmed backlog of Witch Hunters! Once “ investigated “ regardless of the stress-filled lengthy outcome that appraiser must check that BOX on applications for approval. Meaning your career is ruined & so is your reputation! There should be a Class Action lawsuit … if that even was a possibility. Now on to the NAR Lawsuit. What a mess our GOV’ has allowed to happen. If negotiations of commissions percentage looses many owners won’t be able to afford using a brokerage to sell. Free will IS THE BIG FIGHT!
EDIT last line of previous post: Meant: many “BUYERS” won’t be able to BUY.. ** 1.8 Billion and NAR lost to fight another day. Sure-to-know Other suits will follow. Whatever the outcome, it will drastically change the NEW home buyer’s ability to afford a home. Given the Big Time Investors chomping up homes, examples Invitation Homes & Blackstone, etc., affordability and the once Great Appraiser Career is a thing of the past.
Biden has done Nothing, and has a result we have 2 wars, Very high inflation (Things start with groceries up 100% up to interest rates and home buying/rentals up triple). Appraisers getting 25% if they are lucky. This economy sucks in every way possible. This is NOT Trumps fault
Regarding the racial thing: if you’re white and the borrower is a person of color…..just make certain you always come in well above the contract price. If you are a person of color and the borrower is white…..you can do anything you want.
Is that…….accurate?
Amazing article Kimberly. As a recently retired appraiser I am sorry you are going through this. As a professional I apologize to you for other people’s actions.
Specifically, you have an Appraisal Institute that has absolutely no backbone and has done nothing to support appraisers in this assault. You are exactly right that this is a setup. My appraiser brother and I saw this coming 10 years ago. Bit by bit the industry is dying….. by design. Would it be a problem if it was designed naturally? No. Things change. But lets abuse the hell out of the industry and sue a few people along the way. The day I heard Maxine Waters in congress complain about racial issues with appraisals…… something she has no understanding of…. was the day I said enough. I quit a year ago in June because of what you are going through. I don’t need any bureaucratic people who have no clue about my legal USPAP requirement to be UNBIASED telling me I am incompetent to do my job, and especially them saying I am racist. Its upsetting and damn right disgusting. As I was going through similar thoughts of quitting…. I looked in the mirror one day and said to myself… I am a better person than these people trying to destroy the industry. That is when I quit. I wish you the best. Other appraisers may think differently. I respect that. But to those of you who think it is BS… you could be next.
From Working Real Estate Magazine ~ “HUD Grants Millions to Test for “Racist” Appraisers”
You bet your ass its a conspiracy.
The reasons why the GSE are in this way. It is because they are still in control under the government due to the downturn of 2008. The governmental opinions are being manipulated their own agendas with no oversight and no check and balances. The GSE needs to have independent thinking and be out of the control of the government. They must come out of receivership and stand alone and become competitive with one another again. Without this we will become government puppets. (Read 1984)
Receivership… Dare to look what’s really going on with that. I did and provided a research roadmap if anyone was interested. If appraisers would write and appeal to those people instead…
https://appraisersblogs.com/fannie-mae-continued-effort-2-get-rid-of-appraisers/#comment-39155
Waivers, fees, dismantling of the appraisal profession. Wrote about that too.
https://appraisersblogs.com/the-real-cause-of-the-home-value-gap-is-the-income-gap#comment-38867
Perverse incentives to manufacture complaints against appraisers. Mr Bagott wrote about that.
https://www.linkedin.com/pulse/false-compassion-inflated-appraisals-kim-palmer
Thanks for the article Kim.
Check this out.
https://www.bidnetdirect.com/
June 1, 2021, PAVE was created by biden administration, to address appraisal bias. Now they need some cases to prove their existence is valid. Online can be found the advised path how to file case against an appraiser based on racial bias.
Shouldn’t appraisers lobbying at their own representatives to cancel PAVE?