Comments on: Bias and Discrimination in Reports, Yes or No?

By: Dan

Dan — Tue, 26 Sep 2023 19:00:08 +0000

When a appraiser excludes homes under a mile away that are comparable and sold less than a year ago, cherry picks homes 4 miles away that were sold 2 years ago to lower an appraisal, and does this in a diverse area. The question of racial bias is valid. Not only is the appraiser liable, but the lender is to, according to the DOJ, since the lender is responsible for identifying a appraisal with bias flags.

By: jaydee

jaydee — Fri, 06 Jan 2023 16:50:50 +0000

You know I find this all amazing in that ever since I started appraising at the end of 1996; it was “drilled into me” that we cannot discriminate about any race, color, creed, nation origin, sexual preference, cannot say that such and such is in a high crime area blah, blah, blah on and on it went. That we have to examine “the subject’s market”. Now this all stems from one mixed race couples complaint about discrimination by getting a 2nd appraisal which by the way was what I thought was not longer allowed under Graham-Bliley-Leach. But the AMC/Lender ordered another full appraisal anyway. Now with different results in hand about an “OPINION OF VALUE”. This MASSIVE uproar has commenced. Not that the original appraiser was discriminatory remains to be determined (I don’t believe she was). Was the 2nd appraiser influenced solely by the sanitizing of the home of all mixed race items? Or was the 2nd appraiser one of the “There is no value I cannot hit” school of thought and was that thought process influenced by the conversation that the 2nd appraiser had with the borrower/home owner. We’ll never know. But people now have a carrot to go after appraisers; a “field dominated by whites”. When I started, this was all “family and friends”. Recently retiring to the Pacific Northwest from the Navy; I had neither. I was taught by both black and white appraisers. In the service; no one cares about skin color, religion etc. Your ship is sinking your not going to pull you hand away from someone who is pulling you out of a flooding compartment or into the life raft. Ergo colorblindness is drilled into us. USPAP and the Ethics standards makes it CRYSTAL CLEAR THAT NO ONE OF CAN DISCRIMINATE ABOUT ANYTHING, or ANYONE at ANYTIME. FULL STOP. This is all I believe, is “the brass ring” on which the lenders are hoping to finally get rid of appraisers. This has always been the end goal. Change my mind. I’ll wait.

By: Dave Harper

Dave Harper — Thu, 05 Jan 2023 22:28:47 +0000

Research and/or analysis of demographic and/or racial composition have not been undertaken nor considered in this assignment. Investigation and study of externalities are limited herein to only those necessary for credible (worthy of belief) assignment results. Consideration of demographic and/or racial composition are not essential for credible assignment results; therefore, examination of historic, present, or prospective demographic and/or racial elements has not been undertaken nor considered herein.

By: don

don — Thu, 05 Jan 2023 22:24:06 +0000

In reply to jaydee.

Yeah man stuff changed, appraisers lost track of values and yet we trying to continue by using old stuff. Using, or justifying a 1031 trade in as a comparison is an impossibility justifying (BOOT) for residential or for other purposes than TAX considerations. And then only due to the stupid contradictions that the HOUSE has initiated. AND we just voted!

All the old stuff in the appraisers’ books of the thirties is biting us in or asses. Each contract appraisal has to state the principles cited by Schmutz, McMichael’s, & The appraisal of R.E. published from 1935 of: the Function and the Use as well as the specific Definition of Value for that use and function.

And cite a method of collecting our fees.

By: Chuck Minzenberger, SRA

Chuck Minzenberger, SRA — Thu, 05 Jan 2023 13:49:07 +0000

https://www.housingwire.com/podcast/jillian-white-on-tackling-appraisal-bias/

I just listened to this podcast, if you have the time I recommend you do too. Jillian is a credible appraiser and is now in a position to address some of these issues, I think she will be fair but she does comes to the table with some bias herself. Most interesting thing to me about this is she is putting bias into two buckets. 1] placing racial bias at the foot of the appraiser. This is how most of us are hearing the message, and probably most of the country too, and 2] appraisal bias is the reason neighborhoods with predominantly black and brown peoples appraise at lower values. I was a bit surprised to hear this. IMHO blaming the appraiser for lower values in any neighborhood is like blaming the temperature on the thermometer. These issues are real, the fact that the President and Vice President of the US plus high level officials at HUD are blaming appraisers for the the fallout for things like redlining is a farce. HUD should look at the lending industry, what are the chances of that? 0.00%

By: PJTMC

PJTMC — Thu, 05 Jan 2023 13:18:56 +0000

Outstanding insight. Thank you.

By: jaydee

jaydee — Wed, 04 Jan 2023 19:22:01 +0000

Anytime, EVERYTIME the R.E. Market takes a hit, 99% is because of banking and lending practices. The appraisers are the convenient escape-goats every time. During the 1980’s it was the commercial side, yet residential appraisers received both barrels of double-odd buck. Then in 2008 again: Stated income, 40 yr loans, predatory lending (REFINANCING), NO money down (no skin in the game); people used their homes as a slot machine that paid out every time; that is as long as the market values continued to rise. Predatory lenders had a filed day. Until the market topped out and prices became linear and started for fall. People who had a $500 dollar a month mortgage which they barely could afford, suddenly found themselves with a $1,350 per month loan. So they walked away. Others lost their jobs and had paid 22 years for their 30 year mortgage to have it foreclosed upon. So here we are again, this time it’s “racial discrimination – red lining”. NO appraiser compares a modest home to a shack to a mansion out side the general market area and calls them: comparable sales. I know that read absurdly stupidly, but this is EXACTLY the perceived discrimination. NO ONE is ever satisfied. NO ONE. Census tract(s) are used by “banks” not appraisers. I’ve never researched sales by census tracts. Why do you suppose they are in your reporting requirements? This is a banker/credit union item. So exactly who would be doing the actual discriminating? Now we find ourselves with yet another bulls-eye on our backs. So glad I’m nearing retirement age). Bankers want to do away with appraisers, yet won’t lend without assurances/insurance i.e. an appraisal for their risk. What a conundrum we find ourselves in. People who have expressed interest in becoming an appraiser: I tell them to FLEE!!!!

By: Norfolk Appraiser

Norfolk Appraiser — Wed, 04 Jan 2023 19:07:17 +0000

Great read.

By: Chuck Minzenberger, SRA

Chuck Minzenberger, SRA — Wed, 04 Jan 2023 18:31:57 +0000

thank you! good information!

By: Diana Nytko

Diana Nytko — Wed, 04 Jan 2023 17:25:11 +0000

Excellent says it all.

By: Kathy Morton Bunting Hoey on Facebook

Kathy Morton Bunting Hoey on Facebook — Wed, 04 Jan 2023 15:59:02 +0000

Thank you! Excellent article!