{"id":3425,"date":"2023-11-24T07:14:07","date_gmt":"2023-11-24T12:14:07","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=3425"},"modified":"2024-04-25T23:17:04","modified_gmt":"2024-04-26T03:17:04","slug":"fair-appraisals-matter-to-the-white-house-and-to-us","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/fair-appraisals-matter-to-the-white-house-and-to-us\/","title":{"rendered":"Fair Appraisals Matter\u2014To the White House, and to Us"},"content":{"rendered":"\n
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Have you heard about PAVE? Most people haven\u2019t. It stands for Property Appraisal and Valuation Equity<\/em>.<\/p>\n\n\n\n

When it comes to homeownership, fair appraisals are not just a matter of numbers\u2014they’re a cornerstone of equity and financial prosperity. Enter PAVE. This initiative, championed by the White House, is more than just an acronym; it’s a pivotal step towards addressing long-standing biases in home valuations that disproportionately affect Black and Brown communities. While many are still unaware of PAVE, its impact could reshape the landscape of real estate fairness. Two years since its introduction by the Interagency Task Force, it’s crucial to examine the progress and understand why fair home appraisals are not just beneficial but essential for a more equitable society.<\/p>\n\n\n\n

Why? We believe fair home appraisals can help promote good selling and buying experiences for more people. In short, PAVE is good for deed holders, good for title transactions, and helpful for ensuring fairness when deeds change hands.<\/p>\n\n\n\n\n\n\n\n

Appraisal Bias Contributes to a \u201cSprawling Racial Wealth Gap\u201d<\/h2>\n\n\n\n

Everyone who buys a home should get a fair shot at building wealth through homeownership. That doesn\u2019t seem controversial. But here\u2019s the thing.<\/p>\n\n\n\n

\u201cFor far too long,\u201d writes the White House, \u201cbias in home valuations has limited the ability of Black and brown families to enjoy the financial returns associated with homeownership, thereby contributing to the already sprawling racial wealth gap.\u201d<\/p>\n\n\n\n

Lip service isn\u2019t enough. California\u2019s efforts to ensure fair appraisals<\/a> \u2014 within the state, and nationwide \u2014 has pushed this point.<\/p>\n\n\n\n

So the Biden administration introduced its plan to promote fair appraisals. Before checking in on the administration\u2019s plan, let\u2019s take a look at what goes on when the government takes no action.<\/p>\n\n\n\n

What Appraisal Discrimination Looks Like: The Case of Connolly v. Lanham<\/h2>\n\n\n\n

Earlier this year, the federal government sued lenders for discriminatory appraisal use in violation of federal law. The lawsuit, Connolly v. Lanham<\/em>, was filed in the U.S. District Court for the District of Maryland.<\/p>\n\n\n\n

Here\u2019s the gist of it. A Black couple applied to refinance their Baltimore home, to benefit from the super-low mortgage interest rates in 2021. The loan was denied, based on a lowball appraised value. The owners were forced to try a new mortgage lender. For this second appraisal, one of their white colleagues met the appraiser on their behalf. The newer appraisal showed the home\u2019s appropriate and expected value.  <\/p>\n\n\n\n

Lending institutions must treat applicants with respect, professionalism, and fairness, no matter their race, ethnicity, country of origin, sex or sexual orientation, or family status. Lenders have a duty to change course if they have disproportionately withheld loans for reasons that aren\u2019t relevant to the ability to repay the loans. And the federal government is making sure this duty is met.<\/p>\n\n\n\n

Now, Lenders Must Heed the Federal PAVE Action Plan<\/h2>\n\n\n\n
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What headway has the PAVE initiative made so far?<\/p>\n\n\n\n