Webinar
NFHTA Forum | Strategies for Investigating Discriminatory Residential Appraisals
September 15, 2021 | 2:00 PM - 4:00 PM EDT
Online
Description
"It is the hope that we will begin to narrow the wealth gap in our society and stem the tide of the persistent and systemic undervaluation or misvaluation of homes within our societies' black and brown communities."
Melody Taylor, Executive Director of PAVE, Senior Advisor for National Fair Housing Training Academy, Associate Deputy Assistant Secretary for Enforcement Compliance, FHEO, HUD
The Biden-Harris Administration is taking new steps to help narrow the racial wealth gap and reinvest in communities that have been left behind by failed policies. On June 1, 2021, President Biden charged Secretary of Housing and Urban Development Marcia Fudge to lead "...a first-of-its-kind interagency initiative to address inequity in home appraisals." Discrimination in real property appraisals has been linked for more than 85 years to systemic devaluation of homes owned by people of color and homes in communities of color, especially for Black homeowners. Inflated discriminatory appraisals were key also in the ability of unscrupulous mortgage lenders to target homeowners with predatory loans, often resulting in foreclosure and economic decline of neighborhoods. Today, homeownership is the principal source of wealth for most American households and properly setting a home's value is integral to household wealth creation. Appraisal discrimination has undermined the ability of homeowners of color to accumulate wealth and to create accrued generational wealth.
The National Fair Housing Training Academy (NFHTA) and the National Fair Housing Alliance (NFHA) hosted a public forum focusing on understanding the fundamentals of the appraisal process, comprehensive strategies and approaches to conducting appraisal bias investigations, and exploring discriminatory impact and treatment theory in appraisal investigations. This forum contained information on how a discriminatory appraisal may violate fair housing laws; recapped key cases alleging appraisal discrimination; and provided strategies and tools that fair housing practitioners and attorneys can utilize to thoroughly, timely and comprehensively investigate complex appraisal cases. Nearly 700 fair housing partners joined us in this critical conversation.
Overview
- Welcome from moderator, Cashauna Hill, Executive Director at the Louisiana Fair Housing Action Center.
- Brief description of the Property Appraisal and Evaluation (PAVE) Task Force by Melody Taylor, Executive Director of PAVE, Senior Advisor for National Fair Housing Training Academy, Associate Deputy Assistant Secretary for Enforcement Compliance, FHEO, HUD
- Introduction of panelists:
- Steve Dane, Esq., Dane Law LLC
- Lisa Rice, President and CEO, National Fair Housing Alliance
- Lon Meltesen, Regional Director, Region V, Office of Fair Housing and Equal Opportunity, HUD
- Presentation and discussion by panelists on:
- Legal standards to establish a claim of discrimination in appraisal
- Types of relief in appraisal discrimination cases
- Key ways discrimination occurs in appraisals
- Strategies for investigating discriminatory appraisals
- HUD Conciliation Agreement with JP Morgan Chase
- Question and answer session moderated by Ms. Hill.
A video of the forum has been posted on this page, along with a transcript of the conversation and a robust resources list for your continued reference.
Learning Objectives
- Provide a comprehensive overview of the legal standards for appraisal discrimination cases.
- Identify intentional and unintentional appraisal discrimination that occurs in the purchase, refinance, or sale of a home.
- Build FHIP and FHAP investigators' capacity in investigating appraisal cases.
- Review existing conciliations and settlements.
Audience
This forum is targeted to Fair Housing Initiatives Program (FHIP) organizations, Fair Housing Assistance Program (FHAP) agencies, legal services providers, and other interested fair housing partners.
Materials
Know Your Price: Valuing Black Lives and Property in America
Date Published: May 19, 2020
This book by Dr. Andre M. Perry of the Brookings Institute examines the history of appraisal bias and its economic and social consequences for Black families and neighborhoods.
Date Published: June 1, 2021
This resource outlines the Biden-Harris Administration's agenda to take steps to address racial discrimination in the housing market, including the launch of an Interagency effort to address inequity in home appraisals.
Black Appraisers Call Out Industry's Racial Bias and Need for Systemic Change
Date Published: June 7, 2021
In this NBC News report, it is noted that racially based appraisal bias is a well-documented issue in the industry, of which there is only 2% of appraisers are Black.
Sample Form 1004 - Uniform Residential Appraisal Report
Date Published: March 2005
This is a sample template for appraisal reports with the purpose of providing a lender/client with an accurate and informed opinion of the market value of a subject property.
The Appraisal Subcommittee (ASC) provides federal oversight of state appraiser and appraisal management company (AMC) regulatory programs and a monitoring framework for the Appraisal Foundation and the Federal Financial Institutions Regulatory Agencies in their roles to protect federal financial and public policy interests in real estate appraisals utilized in federally related transactions.
The Appraisal Foundation is the nation's foremost authority on the valuation profession. The organization sets the Congressionally authorized standards and qualifications for real estate appraisers as well as qualifications for personal property appraisers and provides voluntary guidance on recognized valuation methods and techniques for all valuation professionals.
NFHTA Job Aid: Flowchart of the Real Estate Appraisal Process
Date Published: May 2021
This job aid provides information for FHIP and FHAP practitioners on the home appraisal process. It includes a flowchart of a typical home appraisal and introduction of the different parties involved in the appraisal process. Intake and investigative staff can reference this job aid while interacting with potential aggrieved parties and it serves as a tool for effective investigative planning to address allegations of home appraisal bias.
HUD Conciliation Agreement with JPMorgan Chase on Alleged Discriminatory Appraisal
Date Published: March 2021
This document details the terms and conditions of a conciliation agreement involving an October 2020 fair housing complaint filed with HUD by a Complainant in Illinois. The agreement includes monetary relief for the Complainant and robust public interest relief - including training for all the Respondent's lender advisors and client care specialists; HUD review of policies; review of how the Respondent addresses customer complaints; and guidance for customers to escalate concerns of appraisal bias.
Moderator and Panelist Bios
About the Forums
Forums are online conversations designed to allow multi-directional interactions between HUD and its FHIP and FHAP partners around emerging fair housing issues regarding processing complaints, conducting investigations, and managing agencies. Topics will evolve based on partner needs and interests.
Disclaimer: The National Fair Housing Forum webinar series provides training by and to HUD partners, including entities and persons participating in HUD's FHAP Program and FHIP Program. The series offers multidirectional idea sharing in real-time. The views offered by speakers and participants do not necessarily reflect HUD's views. Similarly, unless otherwise noted, documents provided as part of the webinar were created and maintained by other public and private organizations and may not reflect HUD's official position. HUD-produced guidance documents, except when based on statutory or regulatory authority or law, do not have the force and effect of law and are not meant to bind the public in any way. Such guidance documents are intended only to provide clarity to the public regarding existing requirements under the law or HUD policies. The information is not intended to provide legal advice to any individual or entity. Please refer to relevant laws and regulations and/or your own legal advisor before taking any action based on information appearing on this site or any site to which it may be linked. Some materials have been translated into languages other than English; slight variations may have resulted from the translation.
Tags: Fair Housing NFHTA