The Appraisal Foundation (TAF) issued a statement following the release of a research analysis from Freddie Mac on appraisal bias in which TAF President David Bunton shared his thoughts.
Freddie Mac’s analysis found appraisal values are more likely to fall below the contracted sale price of a home in census tracts with a higher share of Black and Latino households. The extent of that appraisal gap increases as the percentage of Black and Latino individuals in the census tract increases, according to Freddie Mac.
“The results of this analysis are deeply troubling,” Bunton said in the released statement. “Having data like this publicly available is critical to continuing to address issues of discrimination and promote diversity, equity and inclusion in the appraisal profession. I hope that we will see even more data released on this issue in the near future so we can better understand the best ways to build and uphold public trust in the appraisal profession.
“The Appraisal Foundation will continue its efforts to create an appraisal profession that is reflective of the United States we live in today and trusted by all Americans. We look forward to working with professional appraisal organizations, federal and state agencies and other stakeholders to address this sobering report,” Bunton added.