The Scam of Racial Discrimination by Appraisers
More and more appraisers are retiring every day. Aside from that more and more are changing to lower liability careers. Eventually, the opportunists who have been promoting the scam of racial discrimination by appraisers such as career politicians, and ‘anti-discrimination’ software hucksters like Black Knight will be shown to be what they truly are.
Recently, a highly respected appraiser who is also a senior designated member of a well-known national professional peer association, wrote an article about a new proposed law in New York ostensibly targeting New York appraisers.
Mr. Bagott’s article had an unusual amount of hyperbole within it which is not reflective of his typical or usual objective approach to issues affecting appraisers. He may have been understandably angry when it was written.
Because of that, I linked directly to the bill to see what it says for myself.
The Bill’s introduction refers to the Federal Government’s ongoing & well-documented practice of racial discrimination in housing and finance promoted by FHA in & since the early 1930s.
It then jumps to the 100% fully discredited Brookings Institute Study (based on Dr. Andre Perry’s own flawed, and racially biased perceptions) as some kind of (unsupported) evidence of appraiser discrimination.
This bill is not unlike the buck-passing and pandering recently adopted by HUD and The Appraisal Foundation. They start by identifying proven racial discrimination by the Federal Government, by FHA (you can read it yourself the 1934 FHA Guidelines here). Then they deflect that long-term systemic discrimination as being carried out by real estate appraisers.
To this day, even with the Marin County settlement case that was settled simply because the attorneys wanted to get paid; there is not one credibly proven case in America of appraiser discrimination or bias affecting the appraiser’s conclusions.
That doesn’t mean appraisers have not been low or high in appraising Black American property.
Just as their White fellow Americans have learned, no appraiser can be 100% accurate 100% of the time. Appraisers can and do make mistakes. Honest mistakes. Even careless mistakes. I’ve never seen a race based mistake.
Alternatively, there are also appraisers lacking the competency to handle what may be complex appraisal assignments either due to a lack of training or because they have never encountered specific issues that may be present in a particular assignment.
For example, how many times have appraisers had to appraise in a worldwide pandemic followed by worldwide, national, regional, and local economies like the U.S. has been subjected to since January 2020? Economics affects market value.
To assume lower than hoped for or desired values are the result of racism is simply unsupported. If it exists at all it is so rare as to never have been adequately identified, analyzed or honestly prosecuted.
Does anyone really believe that hatred is so great that despite all the publicity about accusations against appraisers (even though unsupported) highly trained professionals are going to deliberately jeopardize their careers and reputations to go out of their way to harm our Black American neighbors economically?
It takes far more work and follow-up time and aggravation whenever a value comes in lower than hoped for than it does when contract prices or believed values equal price expectations.
There is simply no plausible motive for any appraiser to intentionally appraise property low. Frankly, we can lose our licenses for poor appraisal practices even without racism being a factor.
Anyway, I think the New York proposed law is going in the wrong direction. I think it is little more than a placebo to those it is supposed to help while facilitating egregious regulatory & enforcement consequences on appraisers there. Its only real benefits will be to the hustlers and race baiters who will receive the grant funds for perpetuating the myth. In the long run it is going to result in actual appraiser shortages as opposed to the shortages of convenience used to circumvent FIRREA 1989.
More and more appraisers are retiring every day. Aside from that more and more are changing to lower liability careers. Eventually, the opportunists who have been promoting the scam of racial discrimination by appraisers such as career politicians, and ‘anti-discrimination’ software hucksters like Black Knight will be shown to be what they truly are. Although Black Knight was chosen by Fannie Mae to be one of their six approved Value Acceptance partners, appraisers have not forgotten that it was their former staff counsel Abeena Horton who is seen to have originated the anti-appraiser bias accusations in Florida.
Yet oddly enough, after the racist appraiser meme took hold in the country she never actually filed her complaint with HUD or state authorities according to informed sources. One has to wonder why.
In the meantime, check the bill out for yourselves.
Please feel free to repost this on your own or other group Facebook pages, or any other media.
You can read Jeremy’s article here.
- The New & Improved Fannie Mae “FRAUDULATOR 2.0” - May 15, 2023
- The Scam of Racial Discrimination by Appraisers - May 10, 2023
- What Is My Incentive? - September 20, 2022
I received my first SS deposit today and my IRA payments and set. House is paid off, new car will be paid off in a few months, no CC debt with an 820 FICO score. After 40 years I am done with it and will not be renewing anything at the end of the year. I wish all of you the best.
Another brilliant piece.
I hope it goes VIRAL!!!
good on you mike.
Research is good for all
‘Hope it goes viral.’
Post a link on twitter. Go to popular feeds, post it there. That’s how those viral events happen.
Baggs, Not really sure how. I just posted it on a bunch of sites, but have no idea if that will work, or just get me banned. Feel free to post it if you know how or where.
Thank you Pat; & others. Don’t forget Jeremy.
Thanks Pat. Provided AB has no objection to it being re-posted, I certainly have no objection to what I write being copied and reported anywhere readers think appropriate including Twitter or anywhere else.
Heck if you or anyone can get it re-posted in HUD news publications or FNMA Internal propaganda you have my permission to do so.
We must always seek the truth, find the truth, tell others the truth, and most importantly judge them by what they do with the truth. Too many people, including those who on the surface seem to want to help the profession are all to often putting profits before principles.
Seek the truth.
If anyone else has had the pleasure, when a complaint if filed with HUD, with just a complaint. No other appraisal with a supported higher value, that HUD pushes for a private settlement since it is a better business decision. Extortion!!!! HUD is acting like the mob. Do a private settlement or the threat of a long investigation and no matter the results dozens of hours of required anti bias training.
They also bluff! They will cite federal reg suggesting you must give them the 6 mos or two years “all other files’ they try to demand. Then they infer they can subpoena it if you don’t voluntarily submit it.
Don’t be mislead. ALL that federal reg cited does is to permit them to ASK for VOLUNTARY cooperation by sending the data. You have NOTHING to be gained by doing so, and considerable risk of loss if you do. They are NOT your friends or even people you can trust with candid discussions.
IF they have legitimate cause to subpoena data, then make them do so! If they ask for anything beyond the specific property involved then have your legal counsel respond with a correctly formatted and worded legal refusal.
They cannot use subpoenas to go on a fishing expedition when they have zero evidence of wrong doing to begin with. AGA has already been involved in responding to many of these. Most, but not all are dismissed in less than six months.
They are also supposed to have a one year limit to clear these but they apparently choose to ignore that when E&O attorneys are involved. At least in one case we are aware of.
Good article. Alleged racial appraisal bias first emerged during the 2020 campaign for President. Candidates used Andre Perry’s fake “paper” to promote this false idea. Politicians invented the problem so they could “fix” it. Easy to solve a non-existent problem and proclaim success.
While racism and bias exist there is no wide spread racial bias in appraising. AEI’s research using the government’s own data proved this. The government knows this.
Don’t forget Abena Horton is now a paid consultant, speaker, expert on alleged “appraisal bias.” Here’s an article I wrote about her false allegation of appraisal bias. https://mary–cummins.blogspot.com/2020/08/black-homeowner-claims-discrimination.html
Mary, I just checked, you have a twitter account, but never post.
The situation that existed until about a year ago with twitter, no longer exists. It’s safe to post there now.
Go viral yourself, fill your twitter with links to your website, then repost those tweets on popular accounts.
That is how viral recognition happens.
Go ahead and buy in for more control and more exposure, it’s not that expensive.
I’ll be sure to read your article link thoroughly. She got a raise and is a paid consultant now? Predictable.
I bookmarked your twitter feed anyways, just to be on the safe side.
Twitter can be used to increase public exposure with a variety of issues. People can identify as themselves, or create accounts for businesses or organizations like the Appraisers Guild. (hint hint).
Thanks Mike, for all you do. The racial discrimination complaint filed against me is still being investigated 329 days later. Read that again. The state is still in process of investigating a complaint filed three-hundred-twenty-nine days ago. Just shy of a year.
Let’s use a little logic here. First, since the accusations of discrimination apparently reflect only adverse impacts against black borrowers or property owners, then the purpotrators must all be other than black. That’s the first strong evidence of discrimination that I see in this matter. Second, after over 35 years of practice I have never seen an appraisal that was not subject to EXISTING USPAP and all other industry standards that prohibit discrimination against minorities of any kind in any manner. Third, the reality of these accusations, compounded extensively by the obvious lack of evidence or conviction, is having an industry wide backfire. If I am a non-black appraiser, and my assignment is on a neglected or structurally unsound home with several health or safety standard negative issues, I am now reluctant to disclose the actual condition or impact if the borrowers are black (which, buy the way, has not been disclosed in any appraisal assignment in my thee decades of practice….at least) for fear of retaliation or litigation from all sides. Now then, someone explain to me how such discrimination charges are in the best interest of the borrower, the lender, the government, or how it helps cure whatever bias is being perceived? Or, in the alternative, if I am a non-black borrower then I have grown apprehensive about having a black appraiser form an opinion of value on my home for the same reasons. How, pray tell, does this help the problem of discrimination in any way? I have believed for my entire life that the government cannot legislate equality, and my position on this has only been strengthened over the years. Racial acceptance, from all sources, is from within and not from without. Being the melting pot of the Earth, this whole scenario is rather disturbing and extremely counter-productive. Just sayin.
Incorrect Don. Logical, but not accurate.
I’ve dealt with situations with an Asian owner against Asian appraiser; Latino against other Latino, Latino against White, Latino against Black, Black against Latino and in one of the multiple Baltimore cases a White Social Justice warrior out of DC filing against a local Black appraiser (who ALSO happens to be our AGA Maryland State Representative). Complicating this is a Black trainee who never say or was involved in the property or appraisal in any way being cited as if he was a source in the Hustlers complaint. That same trainee is upset because our member (his mentor) refused to sign falsified experience logs or to ignore up to 120 alleged forgeries attesting to experience.
30 Year old Trainee’s Baltimore Police Commission Member-Mommy attempted to bring pressure via the State Regulatory agency. It seems participating or possibly instigating a race based complaint against another African American appraiser with an outstanding record is not out of bounds anymore either.
Don, your logic is fine. The reality is far more complex.
FWIW-the White CEO social justice warrior’s FIRST move was to fill out a HUD complaint form and post it to Reddit. THEN he or his minions contacted the E&O insurer to see if they wanted to ‘get involved’. Our member learned of the complaint via his own E&O carrier.
The social Justice flack didn’t actually file the HUD complaint until after our member indicated he was “not interested in a monetary settlement.”
The sneaky set up by the SJHustler alone warrants its own article here. Expect more of these since Marcia Fudge of HUD has enabled these types of parasites to run “audits” of appraisers. Like Baltimore, outright lies will be used either to or by the AMCs they use to facilitate the set ups.
This particular case reeks of criminal extortion against a Black appraiser.
Buyer’s that file complaints like these are picking on the one neutral party that has nothing to gain. If anything we backstop them from making a poor decision. Does the lender, AMC or the realtors do this? No! They have skin in the game. I can’t tell you the number of times I’ve seen the buyer’s agent lure their client into what was clearly a bad deal. Of course most realtors truly represent their client, but I’ve seen many that were clearly representing their own interests alone.
I have no problem being questioned about value, I kindly state the facts as I see them. I then give them every opportunity to provide me data that supports their opinion. Usually the information they send me is useless, but there are times they make a case to adjust the value. We ain’t perfect. But to ascribe a motivation of racism to an appraiser, with no real proof, is very underhanded.
More likely to involve a refinance than a sale. OR be a deliberate set up from the outset where an appraisal is sought “for our own use. No specific plans. We just want to know what our property is worth.”
Then after the appraisal is done, the media is told some ‘loss’ of some type took place (with no evidence). Like a lost refinance or sale. Not always, but more often than not. At least in our experience with several dozens of such cases filed with state regulators, or HUD.
Minorities appear to be better at avoiding excess housing taxation imposed by a runaway government and their corrupt non profit business sector partners. What exactly is wrong with lower prices?
Higher sales taxes
The “RED LINING” is accomplished by the census tract. The bankers want the census tract in the appraisal. NO ONE uses the census tract for determining value. NO ONE. So WHO is doing the actual discrimination? Bankers and the left who see victims of discrimination everywhere. When my Certification is up next year, I will not be renewing. I’m done with being a target all the time.
God Bless you! One of very few people to recognize or comment on that. Decry racism and redlining in public, but hide it in AVMs where location factors are hidden in the demographics claimed to power the AVM algorithms and risk scoring programs.
FNMA ALSO runs their collateral underwriter comparable sales selection based on census HEAT maps. A more detailed article should appear shortly on that particular issue. Looking more to the fraud rather than the hidden potential racism in FNMA’s system.
Norton A.F.B. had its own zip code when in operation as an A.F.B.
Imagine the consternation of the reviewers and the accusers?
Thanks to you, the nail now has a flatter head. You hit it. Right on. Well said; well written.
There must always be a problem (real or imagined), victims (racial group in this case), unfairness (alleged -the accusation is often all it takes), and “guilty” parties (appraisers this time / again). …..Sad. Tragic. Misguided. Unproductive.
Good observations. It’s very simple, the mortgage banking industry has been trying to get rid of appraisers for as far back as I can remember. The bottom line is no one in the banking industry wants appraisers because they can’t bypass the appraisal process until now. It kind of went something like this I’m sure…”Hey Bob, what can we do to rid ourselves of these pesky appraisers? Hmm, we haven’t tried racism yet so let’s give it a try since nothing else has worked. Great idea! That way anyone who supports the appraiser will be labeled racists too and no one wants that stigma. This is brilliant.”…..So, now that they have a foothold, what more effective way than saying appraisers are racist and, since NO ONE wants to appear racist, jump on the bandwagon to prove how honest and credible you are by extinguishing the industry. It’s all self-serving politics Kind of like the McCarthy area only then it was communists. It will all come out in the wash how corrupt the politicians, civil servants and bankers are.
Close… 12/23/1913. What we need around here is a sweep it clean platform.
Wrong period in history. Outright and flagrant racism, religious and social standing (class) discrimination was rampant then.
Even promoted by FHA shortly after it was created in the 1930’s.
ANYONE in Virginia, MD or DC able to attend should do so. Its May 19th though.
Thanks for spreading the facts, Mike.
Thank you Troy.
Promoted (and incorporated in) my local MLS. Im not interested in another software huckster’s questionable products so I’m not going to book a trial. The static example looks like one location criterion is the ‘economic ability of residents.
I’m curious about what other prohibited consideration demographic data these MLS data providers think comprise 48% of value. Anyone else? No wonder people think bias is rampant.
The sample in the link above will even let you draw your own boundary around the area being ‘analyzed’.
Just don’t use a red marker!