Tagged: data

NAR Paints a Different Picture: Appraisers Among the Least Discriminatory Practices 16

NAR Report Paints a Different Picture

The study also shows the appraisal was the LOWEST scored item on the list of discriminatory practices… On February 23, 2022, NAR published the “2022 Snapshot of Race and Home Buying in America” report. The study examines homeownership trends and challenges by race and location to explain current racial disparities in the housing market. Using data from the 2021 Profile of Home Buyers and Sellers, the report looks at the characteristics of who purchases homes, why they purchase, what they purchase and the financial background for buyers based on race. The study noted that for those who said they witnessed...

Bias in Automated Valuation Models 11

Bias in Automated Valuation Models

The CFPB is reviewing bias in Automated Valuation Models (AVMs). The proposed rules are a joint effort by the Consumer Financial Protection Bureau, the Office of the Controller of the Currency, the Federal Deposit Insurance Corporation, the National Credit Union Administration and the Federal Housing Finance Agency. These agencies are concerned AVMs may reflect bias in design and function. The mathematical models rely on biased data resulting in inaccurate valuations. Basically the agencies are stating historical data going back to redlining is built into these models and do not reflect current market data. Remember markets are not static and are...

Time Adjustment Methods... How Do You Time Adjust? - Appraisers Blogs 1

How Do You Time Adjust?

I was able to sort time adjustment methods by data source used (mostly compiled, published reports) and by the analytic used… Time adjustments is a timely topic. Recent ski-jump rises in prices have been ramp-ant in many places. Valuemetrics.info provided a free, two-hour webinar on the topic, and we had almost exactly 1000 appraisers sign up. (Although many did not show – free, you know.) Prior to the webinar, I asked some reviewers about how appraisers were handling the price changes. Also, my friend Steve Smith raised the question on his National Appraisers Forum (NAF) to see what sources they are using to support time...

Racial Bias in Real Estate: Is it the Property Appraisers’ Fault? 17

Racial Bias in Real Estate: Is it the Appraisers’ Fault?

In the past year, the appraisal industry has been under attack from various academics who claim “racial bias” on the part of real property appraisers providing appraisal services to lenders who provide home mortgages. These academics do not fully understand various types of valuation specialties, the appraisers who practice in these specialties, and the myriad of laws that must be followed. Help is needed to explain the appraisal industry, including the specialties and the types of reports. An understanding of the different components of the appraisal industry is necessary to assist various academics, journalists, the media, the public, and the public...

Racial Bias Narrative to Remove Appraisers From the Lending Equation 10

Racial Bias Narrative to Remove Appraisers

…the racial bias narrative will be what is utilized to remove appraisers from the lending equation… Removing us will finally put the FOX completely in charge of the HEN HOUSE…this entire narrative could very well end up costing us all, our way to make a living… 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 Other Side, Racism in Appraisals 26

The Other Side, Racism in Appraisals

…the other side of things, the appraiser profession side since no other news media and organizations are willing to do so… Note: The following blog article is not to defend anyone or to place blame. It is simply a blog looking at this issue from the other side of things, the side that hasn’t been discussed in the media. A couple weeks ago, I was privileged to speak on The National Real Estate Post about appraisal issues. One of the issues we discussed briefly was the ever-growing number of articles being written about allegations of racial discrimination in the appraisal...

Statistically Supported Appraisal 14

Statistically Supported Appraisal

Lenders are convinced that a statistically supported appraisal is a more reliable valuation. Wow! Does anyone that understands the home valuation process really think a “statically supported” appraisal makes for a better quality report? This is not that hard to understand. What does “statically supported” really mean? It means you get a computerized report, similar to what Zillow or Trulia provides, based on the information in public records. Statistically speaking, the margins of error are frightening!!! Great products for entertainment, NOT for determining the value of your home. This all comes down to the Golden Rule. Lenders are looking for...

Forms Redesign Extended Into 2023-24 8

Forms Redesign Extended Into 2023-24

What once was a ‘three year’ project to redesign and implement revised appraisal forms has morphed into one taking far longer. Actual implementation and use of ‘new forms’ are not scheduled to happen until (presumably) early in 2024, but could be extended even further. By 2024, the currently used ‘forms’ will be 19 years old, and the current UAD overlay entering ‘teenage hood’ at 13. For context, the current Planet Mars Perseverance Rover mission to successfully plan and land scientific instruments took only 9 years! Details for the ‘forms redesign extension’ are based on the announcement from Fannie Mae (and Freddie...

CoStar Higher Offer to Buy Corelogic - Appraisers Blogs 1

Bids to Acquire CoreLogic

I heard from a number of appraisers about their adverse situations involving CoStar… It was announced on Feb. 4, 2021 that CoreLogic will be sold, with the transfer happening in the April-June 2021 time frame. See Inman news service article, “CoreLogic Acquired By Stone Point Capital, Insight Partners For $6B – Inman”. From the article: The deal is expected to close in the second quarter of 2021, subject to shareholder approval. See another news source here. CoreLogic currently owns several companies with ties to appraising: A la mode – appraisal report software Columbia Institute – appraiser education service provider Matrix...

Appraisal Racism... Fact or Fiction? Where is the Actual Evidence? 10

Appraisal Racism… Fact or Fiction?

Not one single point provides any evidence to the appraiser engaging in a racist act… No appraisal reports or actual evidence of racism has been produced by the accuser… Not one single case has been presented to the appraisal state boards… The real estate community is aware of the recent onslaught of articles going around accusing real estate appraisers of racism and appraising homes for less than what the actual homeowner thinks the home is worth. It started with Abena Horton in Jacksonville, FL Additional accusations were made in Chicago, Denver, and Newark, NJ. Each article written accuses the appraiser...

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