: ‘The economic consequences are real’: Officials push for deeper scrutiny of racial bias in home-appraisal process

by | Jan 14, 2023 | Stock Market

The federal government is taking steps towards addressing bias in the home-appraisal process, after media reports and a new documentary series surface instances of bias and undervaluations.  Marcia L. Fudge, secretary of the U.S. Department of Housing and Urban Development, on Thursday said that through the Federal Housing Administration, HUD was creating a process that people who are seeking FHA financing can use to ask for a review of their appraisal, if they feel like their results have been skewed by racial bias.  

“Having your home undervalued is bigger than just a number on a page. It can be the difference between getting a home, a loan — or not,” Fudge said during a Brookings event that focused on racial bias in home appraisals. “It can determine whether your children or your children’s children have access to broader and better opportunities,” she added. “Make no mistake. These gross racial disparities are byproducts of systemic racism, including the lasting legacies of slavery, Jim Crow, segregation, redlining and other policies that not only targeted Black people and other communities of color, but [ones] that live on during the home valuation process,” U.S. Representative Maxine Waters said during the event. During the event, the ABC Owned Television Stations
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documentary series, ‘Our America: Lowballed’ was screened. A couple that owned a home in Marin City, Calif., was featured in the documentary series. They shared that their home’s value jumped over 50% after a white woman stepped in and made it look like her home. The home was ap …

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