New York Community Bancorp, Inc. recently announced its subsidiary, Flagstar Bank, N.A., donated $1 million to the Appraiser Diversity Initiative (ADI), a collaboration between the Appraisal Institute, the National Urban League, Fannie Mae, and Freddie Mac. The initiative aims to attract more diverse applicants to the appraisal field, overcome barriers such as education and access, and provide support to help aspiring appraisers achieve professional success, according to a press release.

“Curbing racial bias in real estate and appraisals has not garnered the attention of more familiar barriers to homeownership for minorities, such as the lack of funds for a down payment and credit scores,” Thomas Cangemi, president and CEO of New York Community Bancorp said in the release. “Now with the involvement of a government task force and the advocacy of the Appraiser Diversity Initiative, paths for success are being developed for diverse, aspiring appraisers.”

“As a leading national originator of home loans, Flagstar is deeply invested in the appraisal business,” Lee Smith, president of mortgage at Flagstar, said. “We understand the damaging effects of appraisal bias and the importance of diversity in service professions such as appraisals. We’re excited to be part of the team working to help make homeownership more accessible to more minorities and look for good things to come from Flagstar’s involvement and support,” Smith said.

The funding from Flagstar will:

• Support recruiting, training, and credentialing of diverse appraiser trainees.
• Support pathways to appraiser licensing through industry connections and experience, including simulations of the appraisal experience as an alternative to the traditional supervisory appraiser-trainee model.
• Sponsor and support recruiting workshops in targeted markets.

“The Appraisal Institute is grateful for Flagstar’s generous and important commitment to the Appraiser Diversity Initiative, which we expect will open doors to minorities and help diversify the appraisal field,” Appraisal Institute President Craig Steinley said.

“Advancing diversity in the appraisal workforce is a key component to reducing instances of appraisal bias and knocking down barriers in the home valuation process,” Jake Williamson, senior vice president, single-family collateral risk management, Fannie Mae, said. “We commend Flagstar Bank for their contribution to ADI, which reflects the growing industry commitment to expanding opportunities for new appraisal professionals to begin their careers.”

“We appreciate the support of Flagstar Bank for this great initiative,” Pamela Perry, single-family vice president of equitable housing at Freddie Mac, said. “Already, our ADI efforts have put hundreds of diverse candidates on the path to success and this commitment by Flagstar Bank will help us create even more opportunities for the next generation of appraisal professionals.”