AI Seeks to Partner with TAF on Alleged Bias in Valuation

As you might have seen, two studies have been released in recent years that are gaining some attention in light of recent events in Minneapolis and elsewhere. The Brookings Institution conducted a study on racial wealth gaps attributable to valuation processes. It does not review appraisals, but uses Zillow and owner estimates of value to draw inferences about appraisal. Another report was published by the American Sociological Society, which interviews several field appraisers and takes issue with appraisal neighborhood/location adjustment processes.

The body of knowledge is well established and accepted. The appraisal process is rigorous, and we must defend it to the greatest extent possible. People (and appraisers) are not perfect. We can do more to reinforce existing requirements and to help illuminate important issues. That spirit is central to our Aug. 20 letter to TAF and to the actions we are taking to improve education and awareness.

We are suggesting that the AQB Real Property Appraiser Qualification Criteria can be more illustrative on matters involving bias and that USPAP could too. We are already working with Fannie Mae and the National Urban League on introducing the appraisal profession to minority communities, which utilizes scholarships from the AI Education and Relief Foundation.

We will continue to reinforce these initiatives and play our role in public policy development, promoting liquidity and economic development.

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