The article addresses the ongoing challenges appraisers face regarding fair housing claims from HUD, emphasizing the urgent need for resolution and due process. In July 2024, a coalition of federal agencies introduced guidance to enhance the process for reviewing appraisals and combating appraisal bias. Despite legislative measures against discrimination, a Brookings Institution study highlighted that homes in majority-Black neighborhoods face significant undervaluation, which severely impacts homeownership equity. The guidance aims to empower consumers in the appraisal process and mitigate these biases moving forward.
We urge HUD to provide a clear path to resolution and a fair, transparent process to ensure appraisers have due process in these cases.
Standardized federal ROV policy had been viewed as a tool to combat appraisal bias.
A December 2022 study by the Brookings Institution found that homes in majority-Black neighborhoods are nearly twice as likely to be appraised below the contract price compared to homes in predominantly white areas.
Discriminatory appraisals continue to limit homeownership opportunities, particularly among Black and Latino buyers.
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