Appraisal bias undermines long-term U.S. financial security
Systemic bias in home appraisals discredits the reliability and value of home appraisals, CUNA wrote to the House Financial Services Committee Tuesday for its hearing on home appraisal bias. Credit unions rely on appraisals for accurate and unbiased opinions on the market values of homes.
“Addressing bias in appraisals and valuations is complex, and will likely involve efforts on multiple fronts, including improving the number and diversity of appraisers, training and certification requirements, establishing equity in selecting comparable valuations, increased use of technology and automation when appropriate, and increased accountability for appraisers,” the letter reads.
“Unfortunately, credit unions have reported that when bias in an appraisal has been identified and reported to appropriate state authorities, often nothing comes of the report,” it adds.
The letter highlights CUNA’s support for President Joe Biden’s creation of the Interagency Task Force on Property Appraisal and Valuation Equity, which released an action plan last week.