AI Showed this Video and Anger Ensued
At a recent meeting, the Appraisal Institute showed this video and anger ensued…
The following video was aired in Canada by CBC in March 2021 and has nearly a half a million views.
At a recent meeting, the Appraisal Institute showed this video and anger ensued. The audience was deeply divided, and the conversations almost came to blows. My guess from past actions of AI CEO to remove the diversity committee would assume the FOJs want to continue to hope that this issue goes away and will continue to do little as an organization. And without Rodman’s leadership on his personal passion point and Super Duper’s dear in headlights compassionate pleas on how awful this is but does nothing because it’s completely up to Jim even though technically it absolutely isn’t (gasp for air), these stories and situations expand to daylight without the industry trying to solve it. At this point, it’s probably better they do nothing and suffer their fate. The issue is not going away.
So the New York Times story: Widespread Racial Bias Found in Home Appraisals, Bloomberg: New Federal Data Shows the Home Appraisal Gap Is Getting Worse, Inman: Those claims of appraisal bias? Another study backs them up, NPR: How home appraisal methods can end up perpetuating racial inequality and The Real Deal: Appraisal gap worsened as racial disparity persists shows that is too late to provide credible input. The cowardice of Appraisal Institute and Appraisal Foundation leadership on this topic is forever etched in stone. Congratulations. Were all those first-class airplane tickets to boondoggles really worth it?
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Am I missing something? They “whitewashed” or “blackwashed” the homes being appraised but the appraisers weren’t allowed inside and that’s their proof for racism?
Why dont we do a video showing that appraisal values can differ, no matter what color you are?
It is not a perfect mathematical process. The lack of leadership (crickets) is appalling.
100% of the time I pick my comps BEFORE I even get to the property. I have no idea what color their skin is.
Again, lack of information and facts. Competency, different effective dates, lack of interior observation, quality of photos provided, etc can all play a role in value differences. This is not proof of bias. What does any appraiser gain from completing a biased report? NOTHING
How convenient. The “COMMENTS” section in the Youtube video is turned off.
How convenient. The appraiser was NOT ALLOWED to go inside.
OK, So the black “owner” got the highest appraised value. Also this is a silly home to do a test on. Way too many variables. A pool in Canada?, One car garage, No interior inspection so it’s guess what is the real sq ft? Once again, they never show the reports.
The bias is in the fact that the appraisers were “set up”. The participants wanted this outcome. Like Donna H said, “lack of information and facts …”.
I’m a single white woman that has been discriminated against in the lending world. I don’t see anyone coming to my rescue. I had to jump through many hoops to get a mortgage on my home. I ended up having to pay a higher interest rate in the end. When I went to do a refi, the lender said I had to pay down the balance by $100,000 plus they wanted another 20% down and a cashier’s check for the closing cost. I asked what was the 20% down for, this was a refi. NEVER got an answer. To refi a $450,000 mortgage I had to come to the table with about $165,000. There were 3 appraisals done on this property. I told each appraiser that I was an appraiser and that I didn’t want any special treatment. I wanted them to call it like it is. There were plenty of homes in my development to comp out this property. One guy used comps of properties that were outside of my development and 10-15 yrs old. My home at the time was about 2 years old. I have the most custom-built home in the development. The 1st guy thought it was great that a single woman could afford a house like mine an over appraised it by about $100,000. He called me and I said now you know this house would never sell for this. He laughed. The 2nd & 3rd guys didn’t believe I could have really afforded this house to begin with and very much lowballed the appraisal. 2 years after I built, with the housing process rising, they appraised it for less than what it cost me to build. One guy even asked if this was really my house and wanted to know what my “husband” did for a living. I said I’m not married; this is really my house.
So again, I ask, where is my video!!
With 45 years of appraisal under my belt, I still do not believe this racial bias narrative. If these facts are truly facts then my first response is that a high number of these “alleged appraisal values” were not prepared by real, experienced, educated appraisers.
Nothing to do with race. All to do with appraisers who are ignorant & clueless of the marketplace.
Exterior inspection does not help w reliability.
an appraisal w/o an interior inspection? aren’t those called drive-by’s? using the residents pictures for a report? i’ve never heard of that. this smells fishy. after the silliness we saw in canada over the last two years i have decided it is a real oddball place…glad i live in the U.S.
Aside from the complexity of the property (based on a limited viewing in the film) and no interior viewing by the appraisers what I find most interesting is this is a refinance that inherently has a bias by a homeowner (myself included; appraisers are no different than anyone else) who is wanting to maximize their value to begin with. I do see a problem with some of the large valuation swings and 4 minutes on site however is that bias or incompetence? it seems like every little issue was scrutinized to dramatize the film not to mention the “ah ha, got ya” narrator tone of voice. I do not believe it is a fair assessment to base an industry on. I am sure if a film was made with the intent of not demonizing the appraiser it would be an entirely different outcome. Remember this is an opinion segment and they are looking for ratings and a predetermined outcome. How the AI gave this any credibility is beyond belief and reflects on the weak management there is now. You need to ask yourself, why is the AI not defending the industry instead of giving credibility to a Canadian film where it appears the same sentiment is being played out. What on earth does Canada’s opinion have to do with the US? I’d love to see how this “super-duper secret” ambush would play out with a sale. Funny we never hear about that other side of the coin. All I see and have ever seen, for years, is the color of the houses I’ve appraised; white, black, yellow, green, brown, gray, pink. If that makes me a racist, then so be it.
This appears to be a Canadian Hybird Appraisal Report, A!! Not a real USPAP Appraisal Report. Come on Man!! FAKE NEWS to promote there FAKE APPRAISAL REPORTS!
The issue has been overtaken by the impending collapse of the bubble economy.
Why doesn’t anyone get to the real issue….that the higher appraised value is NOT always the correct one but all the homeowners think it is and all the national news outlets think the higher value is automatically the correct one. The exterior inspection with photos provided by the homeowners. Give me a break! The bottom line is that the market is the Buyer, The Appraiser reports the actions of those buyers. White homes selling for more? Why? Ask the buyers! Fix the issues they have with minority areas and guess what the values will rise. It is a joke to think that more diversity is the answer to ending Appraisal Bias. That statement is biased right there. So if we have more minorities in this profession will they Appraise homes in Minority areas HIGHER? Isn’t that racial Bias? Will they low ball all the White neighborhoods? That is reverse bias. As somene here already stated they review comps before they even get to the home, we have no idea at that point of the race of the homeowner and the comp selection won’t change all of a sudden after we arrive and see a minority in the home. Who cares! We appraise the home not the people. I am so done with this racial bias narrative in just about every single profession we have out there.
TAF just signaled they’ll be rolling in diversity classes into mandatory CE like uspap. And you know who’s going to be teaching those ‘classes’, the same kind of person whom made this documentary if not far more biased or insufferable. FYI, they’re called diversity consultants these days. Imagine Mx Kayla Lemieux droning on about pronouns and crt on your next educational run. Then imagine repeating that every single cycle. That’s really going to help appraiser competency and take a bite out of other more meaningful educational pursuits related to the complex nature of data analysis and liability. I’ve stopped by this page a dozen times and every time only make it through like 2 minutes of the video before I find something better or more important to do. Still trying to get through the intro, lol. Hey Doug, save a beer for me eh!