Archive

FHA PROPOSED ACTIONS REGARDING APPRAISALS

Recently the Department of Housing and Urban Development released a draft Mortgagee Letter. The proposed letter establishes a process for mortgagees when a borrower requests a review of the appraisal results associated with their application for an FHA-insured mortgage. On June 1, 2021, President Biden announced the creation of an Interagency Task Force on Property Appraisal and Valuation Equity (PAVE) to combat bias in home appraisals. FHA is committed to strengthening safeguards against unlawful discrimination […]

APPRAISAL BIAS FINDINGS BY THE FHFA

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 […]

NATIONAL COMMUNITY REINVESTMENT COALITION – APPRAISAL DISCRIMINATION

In early November, the National Community Reinvestment Coalition (NCRC) filed two complaints against appraisers with the Department of Housing and Urban Development asserting different treatment based on race in violation of the Fair Housing Act. The first complaint, against RMC Appraisal Services, asserts different service levels based on race; and The second complaint, against Atlantic Appraisers & Associates, addresses home valuations that differ based on race. Mystery Shoppers The Complaints evolved from mystery-shopping regarding appraisals […]

PLAN FOR PROPERTY APPRAISAL AND VALUATION EQUITY

Over the past few years, stories have circulated about properties being appraised for less than typical market value. When the property is reappraised, after the homeowner removes all evidence of his or her blackness, the property appraises for market value. On October 14, 2020, it was reported that an unnamed individual (Complainant) filed a complaint against JPMorgan Chase Bank, N.A. with the United States Department of Housing and Urban Development (“Department”), alleging Complainant was injured […]

REGULATION Z CONSUMER CREDIT EXEMPTION AND HPML APPRAISAL THRESHOLDS UNCHANGED FOR 2021

On November 18 the Consumer Financial Protection Bureau (CFPB) and Federal Reserve Board (FRB) published the 2021 threshold for the consumer credit exemption in Regulations Z and M. Additionally, the CFPB, FRB, and Office of the Comptroller of the Currency (OCC) published the 2021 threshold for Higher Priced Mortgage Loan (HPML) appraisal exemption in Regulation Z. There will be no changes from the 2020 threshold amounts. The thresholds for 2021 are as follows: The protections […]