https://www.ruraltransformation.org/wp-content/uploads/2023/02/ASC-Appraisal-Bias-Letter_PRT_Final-1.pdf

PARTNERS FOR RURAL TRANSFORMATION
Housing bias is one of many contributing factors for racial disparities in homeownership and wealth and financial well-being between white and communities of color, specifically black communities and must be addressed if we wish to correct the decades of systemic racism within housing policy and the housing industry. Communities Unlimited, a PRT Partner, tells the story of a community affected by appraisal bias within their footprint: Pine Bluff, Arkansas. The population of Pine Bluff is 76% black/ African American and 18% white. The current median appraised value for owner occupied homes is $78,500. We can compare this to the nearby city of White Hall, with a population that is 70% white and 19% black, and an appraised median value of $170,300. Homes in Pine Bluff appraise significantly lower than homes in White Hall, with appraisers refusing to use comparables from the nearby city of White Hall to adjust to current market rates in the area.
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White Hall vs Pine Bluff. A simple comparison of crime in relation to demographic. Using the governments own statistical data. This is one example that Partners for Rural Transformation suggested the soon to be retiring Jim Park from the ASC appraisal subcommittee consider in their PAVE task force decision making process. Let’s review a broader spectrum of data.

http://www.usa.com/white-hall-ar-crime-and-crime-rate.htm
The White Hall crime rate is much lower than the Arkansas average crime rate and is lower than the national average crime rate.
Crime Index, #43

http://www.usa.com/pine-bluff-ar-crime-and-crime-rate.htm
The Pine Bluff crime rate is much higher than the Arkansas average crime rate and is much higher than the national average crime rate.
Crime Index, #200

http://www.usa.com/rank/arkansas-state–crime-index–city-rank.htm
(Pine Bluff is literally at the bottom of the page.)

People pay less for real property when there is substantial differences in amenity and safety, crime related issues, school performance measurements, employment opportunities, etc. The race baiters call that disparate valuation outcomes, blaming the appraiser for reporting on factual pricing variances which the respective communities and market participants create for themselves.

http://www.usa.com/
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https://www.greatschools.org/

The same story plays out no matter where you dare to compare through the entire country.

By eliminating the independent human appraiser and coding in disparate valuation adjustment algorithms into the now approved AVM final rule, the lending community is setting up entire communities to be subjected to lifelong debt traps. That’s where the proposed HUD 40 year loan modification for delinquent borrowers and FHFA’s 2023 implementation of 115% LTV loan modifications for fannie and freddie have come into play. Because if the goal is to place people in debt traps, an associated desire is to keep them in debt traps to maximize the financial exploitation. Any questions?

A well seasoned developer/investor obtains an appraisal first to determine if the project is actually going to be financially feasible and maximally productive. Don’t fall for those tv shows about home improvement and property flipping which are sponsored by building material companies in order to sell more product. Cost and value are not synonymous and can easily lead to bankruptcy if not truly understood. I’m still chuckling about Zillow losing hundreds of millions and Open Door losing $1.4 Billion in 2022 through property flipping.

Will the actual odds today are one in eight (so Im told). That means that 7 our of 8 people will NOT receive complaints. It’s a testament to your apparent quality of workmanship as well as good fortune.

Don’t feel left out. NOT ONE STATE requires a credible complaint from actual clients in order to open an investigation that automatically includes you sending your work file for review. They are NOT concerned with the complaints made so much as whether or not they can find fault in other areas. Different states have different levels of integrity.

I hope your good fortune lasts forever.

The only surprise to me is that they were able to reach so far down into the barrel without falling in.

March 10, 2023
Fannie Mae approves six vendors for controversial new valuation initiative
Participating service providers are Solidifi, Class Valuation, Clear Capital, Mueller Services, Accurate Group and Black Knight’s Collateral Analytics LLC

We all knew her motives all along. $$$$$$$

Did your mothers, fathers and religious leaders take an “anti-racism” course?

Some of us took our anti racism courses from our mothers, fathers and religious leaders. We don’t need some leftist racist or opportunists teaching us what they think racism is.

You wouldn’t want to take an “anti-racism” course? Why not?

She could say what specifically was in the reports, rather than showing 1 appraisal is higher than the other, which means nothing really.

Have you heard of pineapples?

Thing is, even if you do it won’t show racism based on the values.

Was actualy 125k and 110k, she bough the house for 100k.

I figured this was sarcasm, then I realized you were actually serious and I had to laugh.

Agree 100%.

Modifying racism to favor one group ALWAYS adversely impacts those outside of that group.

It prevents social growth where we just have an opportunity to enjoy each others varied cultures, ideas and talent.

The very policy and mechanism feds adopted to ‘measure’ fair housing compliance, is the reason racism continues today.

Another metric that doesn’t rely on a census system that collects the exact information all the rest of us are supposed to disregard needs to be found.

Maybe a complaint based system rather than one which permeates all aspects of finance like census tract reporting does?

The reason Jussie Smollett had to fake his race hoax in Chicago was that there were no real-world examples of whites roaming the streets with nooses and bleach looking for black men to abuse. That this was so obviously a hoax yet immediately accepted as “truth”, then publicized and promoted as an example “of where we are in America today” by nearly every media personality and politician in the country (local, state, national and international) with no due diligence, much less an open-minded inquiry seeking the real truth. The most damning aspect of this farce is that even after the irrefutable evidence of fraud was finally, begrudgingly, exposed for public consumption by a few media outlets, the mainstream/legacy media, politicians, and other promoters of this race hoax ignored it instead of apologizing to the public and informing them of the truth in the matter, much less revising their racist worldviews where all whites are irredeemable racists who oppress minorities everywhere all the time.

Finally, it has become fashionable of late to condemn the ideal of being “colorblind”, that is judging individuals based on their character and not the color of their skin, as a “racist” concept. The undermining of this ideal will have disastrous social consequences. It is time to have an honest, real conversation that recognizes the importance of maintaining and seeking to realize the universal ideal of judging individuals based on the color of skin is wrong, no matter what that color may be. The path that we are currently on (emphasizing group identity over individual merit) leads to white people being forced into a corner where they do the same thing as a coping mechanism for defensive purposes, which will set us back 100 years in race relations. And nobody should want that.

The only way to make race a non-issue is to stop making it an issue.

However, we have yet to see any evidence in any of the cases amplified in news media or your situation that indicates racism. That is not to say your experience did not bring you to that conclusion. I would ask that you identify which of the nine appraisals were completed by a racist appraiser.

Most people do not understand the appraisal process or the product, everyone seems to believe they do, including some poorly trained appraisers.

In regard to your original post, there are some red flags that I would consider if I were looking at this, the first is the time frame between the appraisals, every appraisal has an effective date and markets change rapidly. Additionally, the different intended uses of the reports as well as the lender may have played a part. Neither the use or the lender should result in a significant variation in the opinion of value on the effective date. But, the reality is that many national lenders do not hire the best appraisers, they hire the cheapest and fastest.

Fact: there are bad appraisers that over value as well as under value properties and it is not related to race but is generally a sign of poor training, bad habits, laziness or speed.

I wish you success in your future endeavors.

I have to admit my comment had a lot in there if you missed it. It has been frustrating. Seneca, I think that there are folks in every situation that will seek to exploit. I am not that kind of person. The fact that I refuse to see myself as a victim is the reason why I didn’t not seek legal counsel for the numerous times in the past that this had happened to me. Some people will never know the anguish of telling their kids that the family photos on the wall have to come down because of an appraisal and that daddy and the kids have to leave the house when the appraisal is ongoing. This is no lie. What is happening to folks is real. I regret it if there was any derision in my tone earlier… crickets… this country has come a long way. There is more integration now. If this hasn’t happened to you, you can be certain that I had happened to a close friend, or family member who is not white. I don’t think it is fair. Have I had good appraisers in the past? Absolutely. Have I had non-white appraisers that I felt low-balled me? Yep. The system needs to change in order for us all to be able to enjoy the fruits of our labor. Not sure why this is not a fair ask. Anyway. Thanks.