The Biden Administration announced Wednesday (March 23) it plans to take concrete steps to address racism in home appraisals.
The Property Appraisals and Valuation Equity (PAVE) plan outlines ways the administration will increase oversight and take accountability on the pervasive issue including updating the governing structure of the appraisal industry, and improving the way federal enforcement agencies identify and address claims of racism discrimination in home appraisals.
"Because their homes are undervalued –– because, understand there is a real consequence –– Black and Latino people often have to pay more for their mortgage, receives less when they sell the home, and are less able to access home equity lines of credit," Vice President Kamala Harris said in a statement.
On more than one occasion, Black homeowners have seen their home appraisals double in value after having a white friend stand in for them or after removing their own family photos, Black art, and other identifying objects from the home.
The PAVE plan, VP Harris says "outlines a comprehensive set of actions our administration will take to advance equity in the appraisal process." That includes diversifying the appraisal workforce, Harris added.
"Less than 5% of home appraisers in America are people of color. This lack of diversity can introduce both conscious and unconscious biases that make home appraisals less accurate and less fair."