Black And Latino Homeowners Are About Twice As Likely As Whites To Get Low Appraisals
Originally published on September 23, 2021, by Joe Hernandez for NPR.
Home appraisers are more likely to undervalue homes in Black and Latino areas than those in white ones, a new report by Freddie Mac has found.
It's the latest example of racial inequities in the housing sector, a well-documented phenomenon that has led to lower rates of homeownership among Black and Latino families.
"An appraisal falling below the contracted sale price may allow a buyer to renegotiate with a seller, but it could also mean families might miss out on the full wealth-building benefits of homeownership or may be unable to get the financing needed to achieve the American dream in the first place," said Michael Bradley, a senior vice president at Freddie Mac, a government-controlled entity that guarantees home mortgages.
"This is a persistent problem that disproportionately impacts hundreds of thousands of Black and Latino applicants," he added.