UNITED STATES NEWS

New federal proposal aims to stop racial bias in formulas used to value homes

Jun 1, 2023, 11:39 AM

WASHINGTON (AP) — Vice President Kamala Harris said Thursday that federal agencies are taking new steps to stop racial discrimination in appraising home values by proposing a rule intended to ensure that the automated formulas used to price housing are fair.

“Everyone should be able to take full advantage of their aspiration and dream of owning a home,” Harris told reporters on a telephone call.

Announcement of the proposed rule comes a year after the administration laid out a plan to stop appraisers from systemically undervaluing the homes of Black people and other underrepresented groups. Low appraisals make it harder for these homeowners to build wealth and access home equity lines of credit, worsening racial inequality. Appraisers help to determine the value of a home so buyers can receive a mortgage.

The extent of the discrimination by appraisers can be massive, in some instances more than halving the value of a property. In Indianapolis, one Black homeowner found the appraised value of her home jumped to $259,000 from $125,000, after she declined to disclose her race on her application and removed all family photos and African American art in the home.

Because many financial institutions and mortgage companies use formulas to judge the value of a home, the proposed rule would set out new standards to prevent discrimination. Companies that rely on appraisals would need to adopt policies to improve the accuracy of their appraisals, stop data manipulation and avoid conflicts of interest.

The proposed rule would have a 60-day comment period.

The Biden administration is also having federal agencies make it easier for homebuyers to appeal racial bias in appraisals and is providing the public with more data in order to increase transparency. The administration is also seeking to make it easier for people in underrepresented groups to become appraisers.

In June 2021, President Joe Biden announced the formation of the Interagency Task Force on Property Appraisal and Valuation Equity, known as PAVE, to address the challenge of bias in appraisals.

United States News

Associated Press

Montana judge blocks enforcement of law to ban gender-affirming medical care for minors

HELENA, Mont. (AP) — A law to ban gender-affirming medical care for transgender minors in Montana is temporarily banned, a state judge ruled Tuesday, just four days before it was to take effect. District Court Judge Jason Marks agreed with transgender youth, their families and healthcare providers that a law passed by the 2023 Montana […]

18 minutes ago

Associated Press

Authorities make arrests in the case of Kentucky woman reported missing 8 years ago

LOUISVILLE, Ky. (AP) — The former boyfriend of a central Kentucky woman who disappeared more than eight years ago has been arrested on charges stemming from the investigation, the FBI and Kentucky State Police said Wednesday in a statement. Brooks Houck was arrested without incident on charges stemming from the Crystal Rogers investigation, the statement […]

26 minutes ago

From left, former Arkansas Gov. Asa Hutchinson, former New Jersey Gov. Chris Christie, former Vice ...

Associated Press

Republican hopefuls face growing urgency to stop Donald Trump entering 2nd debate

Republicans are meeting for their second presidential debate on Wednesday as Donald Trump's top rivals seek to blunt the momentum of the former president.

1 hour ago

President Joe Biden meets with Israeli Prime Minister Benjamin Netanyahu in New York, Wednesday, Se...

Associated Press

US allows Israeli citizens to travel to US visa-free as Israel joins a select group of countries

WASHINGTON (AP) — The Biden administration is admitting Israel into a select group of countries whose citizens are allowed to travel to the United States without getting a visa in advance. The decision announced Wednesday comes despite Washington’s concerns about the Israeli government’s treatment of Palestinian Americans and marks a major accomplishment for Israeli Prime […]

3 hours ago

In this photo provided by the Morgan & Morgan law firm, utility contractors remove a charred Hawaii...

Associated Press

Takeaways from AP report on Maui fire investigation

Investigators are trying to solve a mystery about the origin of last month’s deadly Maui wildfire: How did a small, wind-whipped fire sparked by downed power lines and declared extinguished flare up again hours later into a devastating inferno that killed at least 97 people? Here are the key takeaways of an Associated Press investigation […]

10 hours ago

This photo provided by the Morgan & Morgan law firm shows a charred Hawaiian Electric utility pole ...

Associated Press

How did the Maui fire spread so quickly? Overgrown gully, stubborn embers may be key to probe

Melted remains of an old car tire. Heavily burned trees. A charred stump of an abandoned utility pole. Investigators are examining these and other pieces of evidence as they seek to solve the mystery of last month’s deadly Maui wildfire: How did a small, wind-whipped fire sparked by downed power lines and declared extinguished flare […]

11 hours ago

Sponsored Articles

...

Ignite Digital

How to unlock the power of digital marketing for Phoenix businesses

All businesses around the Valley hopes to maximize their ROI with current customers and secure a greater market share in the digital sphere.

Sanderson Ford...

Sanderson Ford

Sanderson Ford congratulates D-backs’ on drive to great first half of 2023

The Arizona Diamondbacks just completed a red-hot first half of the major league season, and Sanderson Ford wants to send its congratulations to the ballclub.

...

re:vitalize

When most diets fail, re:vitalize makes a difference that shows

Staying healthy and losing weight are things many people in Arizona are conscious of, especially during the summer.

New federal proposal aims to stop racial bias in formulas used to value homes