On November 2, 2022 the Federal Housing Finance Agency (FHFA) released the Uniform Appraisal Dataset (UAD) Aggregate Statistics Data File and Dashboard. The UAD:

  • Documents appraisal bias.
  • Is derived from more than 47 million appraisals conducted between 2013 and June 30, 2022. Lenders selling loans to Fannie Mae and Freddie Mac must submit appraisal information in the UAD format.
  • Standardizes various data elements regarding an appraisal.

Undervaluation Rates

The 2021 FHFA appraisal statistics reflect a rate of undervaluation (the appraised value was below the contract sales price):

  • 13.4% in White tracts, tracts in which Whites comprise up to 50% of the residents;
  • 19.2% in minority tracts, tracts in which minorities comprise between 50.1% and 80% of the residents; and
  • 23.3% in high minority tracts, tracts in which minorities comprise over 80% of the residents.

The FHFA notes that:

  • Based on these numbers, the proportion of properties that are undervalued,
    • In high minority tracts is 74% higher than in White tracts; and
    • In minority tracts is 43% higher than in White tracts.
  • In 2021 on a national basis:
    • 15.2% of appraisals were below the contract sales price;
    • 26.7% of appraisals were equal to the contract sales price; and
    • 58.1% of appraisals were above the contract sales price.