The National Fair Housing Alliance (NFHA), numerous civil rights groups and consumer advocates are urging the House Financial Services Committee, the Senate Banking Committee, and the Biden administration to support appraisal-reform legislation.

In a letter sent to numerous Washington politicians, the groups allege that the systemic failure of the nation’s property valuation system stifles wealth creation for too many people and communities and undermines the nation’s economy.

The groups are urging Congress to transfer rulemaking authority for the Uniform Standards of Professional Appraisal Practice and the Real Property Appraiser Qualification Criteria from The Appraisal Foundation to the Appraisal Subcommittee. They contend any other approach would be cumbersome, ineffective and fail to provide meaningful reform.  

“As fair housing advocates, we urge Congress and the Biden administration to reform the home valuation system to stop appraisal bias and the economic injury it causes,” NFHA Executive Vice President Nikitra Bailey said. “Removing The Appraisal Foundation’s ability to set appraisal standards and appraiser criteria while enhancing the power of the Appraisal Subcommittee will help create a fair appraisal system.” 

NFHA was commissioned by the Appraisal Subcommittee to study appraisal criteria, standards and bias. It found systematic challenges that drive bias.

“Appraisal reform is something our nation and communities desperately need as the lack of oversight has led to an acute shortage of qualified appraisers and decades of unfair and biased practices,” Bailey said. “HUD has been inundated with complaints of appraisal discrimination. Just recently, yet another appraisal bias lawsuit was filed involving two Black professors from Johns Hopkins University who had to whitewash their home to get a fair and accurate appraisal. We ask that Congress and the Biden administration move as quickly as possible to support robust, comprehensive appraisal reform legislation.”

In addition to the NFHA, the letter was jointly issued by Americans for Financial Reform, Consumer Action, the Joint Center for Political and Economic Studies, the Leadership Conference on Civil and Human Rights, the NAACP Legal Defense and Educational Fund, Inc., National Action Network, the National Association of Real Estate Brokers, Inc., the National Coalition for Asian Pacific American Community Development, the National Consumer Law Center, the National Urban League and UnidosUS.