Appraisers and their state regulators are in the best position to limit bias in the appraisal process as banks are not well-positioned to detect such bias, ABA VP Sharon Whitaker told the federal Appraisal Subcommittee.
A proposed interagency rule to regulate the quality of algorithmic models used in real estate valuations would likely overburden—and therefore discourage—the very technology it is seeking to regulate, ABA said.
Six federal regulatory agencies requested public comment on a proposed rule to regulate the credibility of algorithmic models used in real estate valuations, which is part of a larger effort by the Biden administration to address appraisal bias.
Freddie Mac’s online tool for assessing valuation risk—Loan Collateral Advisor—will soon include feedback messages to alert users when certain prohibited, subjective or potentially biased words or phrases are included in appraisal reports submitted through the Uniform Collateral Data Portal, the GSE recently announced.
A proposed update of professional guidelines for property appraisals contains confusing language about what constitutes discrimination, and would even suggest appraisers could engage in “ethical” discrimination, regulators from across multiple federal agencies said this week in a letter to the Appraisal Foundation’s Appraisal Standards Board.
These challenges will affect all markets, but will have local distinctions that will be important for market participants to understand as they navigate the uncertain road ahead.
An interagency task force including the Department of Housing and Urban Development, the Federal Housing Finance Agency and the federal banking agencies today released an action plan to ensure appraisal and valuation equity for all Americans.
The CFPB today announced the next step in a joint agency rulemaking to develop quality control standards for the use of computer models, known as automated valuation models, used to help assess home valuations.
Climate change is a big issue, but compliance officers are adept at issue management. Start with root cause analysis.
Acting Comptroller of the Currency Michael Hsu told attendees at a CFPB roundtable today that banks are being held accountable when they rely on housing appraisals that are discriminatory.