This is part of a larger federal effort to close the wealth gap caused by systemic inequality.
This plan includes 21 steps to improve oversight, accountability, and transparency. Appraisers are used to assess the home’s value so that buyers can get a mortgage.
Harris stated that Black and Latino homeowners often pay more for their mortgages, get less when they sell their home, and have less access to home equity lines of credit. “
Multiple reports including a September analysis from mortgage buyer Freddie Mac show that appraisers are more inclined to undervalue homes in Black or Hispanic communities.
A Black homeowner found that her home’s appraised value increased from $125,000 to $249,000. She also removed all family photos, African American art, and her race from her application.
The government will expand the complaint hotline to the Department of Housing and Urban Development and to the Consumer Financial Protection Bureau. Homebuyer education classes will also be expanded to address appraisal bias. To ensure that computer systems used for valuing homes are not biased by racial factors
