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Spotlight Continues on Appraisal Bias – New Report Findings and Recent Roundtable

Oct 05, 2021

The spotlight on appraisal bias continues with new findings released by Freddie Mac and a recent roundtable held by the Appraisal Subcommittee.

Freddie Mac released findings on September 20 of a study they conducted on appraisal bias. The study, titled Racial and Ethnic Valuation Gaps in Home Purchase Appraisals, looked at whether minorities are more likely to receive an appraisal value that is lower than the contract price during purchase transactions.

Commenting on the study findings, ASA CEO Johnnie White said, “The Freddie Mac research sheds new light on a number of issues we hope to overcome through collaborative efforts with all housing finance stakeholders. We are committed to creating awareness about unconscious bias and promoting diversity, equity and inclusion for the appraisal profession. We look forward to working with all our industry partners to find durable solutions.

Click here to view a summary of the study and related research notes.

The topic of appraisal bias also took center stage at the September 22 Appraisal Subcommittee (ASC) Roundtable, an event featuring speaker presentations, audience question and answer sessions, theme-based concurrent breakouts, and closing comments outlining next steps focused on building a more equitable appraisal system to address factors that contribute to inequities in home values.

ASA CEO Johnnie White was a breakout session speaker at the event, which included leaders in government, housing finance, real estate appraisal, and civil rights advocates.