ALEXANDRIA, Va.–NCUA is one of 13 federal agencies and offices that participated in the Interagency Task Force on Property Appraisal and Valuation Equity (PAVE) Action Plan, which has now been sent to President Biden.
According to the agencies, the PAVE Action Plan is aimed squarely at dismantling racial bias in the home lending and appraisal process and promoting generational wealth creation through homeownership.
“This Action Plan, when enacted, represents the most wide-ranging set of reforms ever put forward to advance equity in the home appraisal process,” the agencies said.
The PAVE Task Force, co-chaired by HUD Secretary Marcia L. Fudge and White House Domestic Policy Advisor Susan Rice, is the first-of-its-kind interagency initiative to address racial bias in home appraisals and includes senior leaders from 13 cabinet and independent agencies and components of the Executive Office of the President.
President Biden first announced the creation of the Task Force on the June 1, 2021 centennial of the Tulsa Race Massacre, where he charged federal agencies with evaluating the causes, extent, and consequences of appraisal bias and establishing a transformative set of actions to root out inequity.
“Homeownership remains the biggest driver of the wealth gap, with wide racial and ethnic disparities in homeownership rates and the financial return associated with owning a home,” the federal agencies said. “Today, the median white family holds eight times the wealth of the average Black family and five times the wealth of the average Latino family.”
150 Groups Engaged
The PAVE Task Force reported it engaged more than 150 stakeholder groups including appraisers, appraisal management companies, lenders, civil rights and advocacy groups, academic institutions, philanthropy organizations, and individuals who have experienced instances of appraisal bias to listen and learn diverse perspectives on what is working and how the Federal government can work to embed equity in the home valuation process.
The Plan outlines actions that will substantially reduce racial bias in home appraisals, including steps federal agencies will take using their existing authorities to enhance oversight and accountability of the appraisal industry and empower homeowners and homebuyers to take action when they receive a valuation that is lower than expected, the agencies said.
‘Fixing’ the Problem
“For generations, millions of Black and brown Americans have had their homes valued for less than their white counterparts simply because of the color of their skin or the racial makeup of the neighborhood. Black and brown homeowners in communities just like mine have not felt that they have had a voice or that the Federal government was doing enough to redress the issue of racial bias in the appraisal process. With the PAVE Task Force, the Biden-Harris Administration is taking a whole-of-government approach to fixing this problem,” said Secretary Fudge. “We are proud of the work of this task force and we are looking forward to continuing to work within the Administration and with partners to do all we can to root out discrimination in the appraisal and homebuying process.”
The PAVE Action Plan is available at PAVE.hud.gov.
Members of Task Force
The Task Force membership is comprised of the following officials:
- Secretary of Housing and Urban Development (co-chair)
- White House Domestic Policy Advisor (co-chair)
- Attorney General of the United States
- Secretary of Agriculture
- Secretary of Labor
- Secretary of Veterans Affairs
- Comptroller of the Currency (OCC)
- Chairman of the Board of Governors of the Federal Reserve (FRB)
- Chairman of the Federal Deposit Insurance Corporation (FDIC)
- Chairman of the National Credit Union Administration (NCUA)
- Director of the Federal Housing Finance Agency (FHFA)
- Director of the Consumer Financial Protection Bureau (CFPB)
- Executive Director of the Appraisal Subcommittee (ASC)