WASHINGTON—Systemic bias in home appraisals exacerbates the homeownership gap, racial wealth gap, and harms long-term U.S. financial security, according to a letter sent by CUNA to the Senate Banking, Housing and Urban Affairs Committee.
The letter was sent ahead of a committee hearing on oversight and equity in the appraisals process.
“Credit unions rely on appraisers for accurate and unbiased opinions on the market value of homes serving as collateral for mortgage loans,” the letter reads. “When racial prejudice is injected into that process, it prevents credit unions from meeting their mission to serve their members and introduces risk into the housing finance system.”
As CUToday.info reported, President Joe Biden’s Interagency Task Force on Property Appraisal and Valuation Equity (PAVE) released its action report last week on the topic.
CUNA’s letter also calls for:
- Increasing the number and diversity of qualified, working appraisers
- Considering increased use of technology and data—including bias-free artificial intelligence and video communications—to conduct valuations