By Trevor Hunnicutt

WASHINGTON, (Reuters) – The Biden administration announced Wednesday that it will take new measures to punish real estate appraisers for estimating lower prices to Black homeowners and Latino homeowners.

Agency for mortgage financing Freddie Mac (OTC) In 2021, it was found that black and Latino homeowners were less likely to get their home valued below the stipulated sales price than white sellers.

An appraisal like this can reduce the mortgage amount that can be written for a property. This can cause homeowners to either sell their house at a lower price, or even cancel it altogether. Refinances may also be affected by this appraisal.

Senior government officials stated that they work to strengthen appraisal standards, diversify the workforce responsible for creating estimates, and to reduce discrimination under federal law.

Officials said that Kamala Harris, the U.S. vice president for national security will make the announcement at a White House event on Wednesday.

U.S. officials claim that the low appraisals are responsible for the large wealth gap between Black and Latino Americans, and their white counterparts. According to Freddie, white applicants received appraisals that were lower than the contracted sale price in 6.5% cases, compared with 9.5% for Latino applications and 8.6% for Black.

Joe Biden visited Tulsa in Oklahoma last June to commemorate the massacre of hundreds Black Americans by the white mob and the destruction of their property.

Biden made a speech at that event, stating that he would fight racial discrimination and correct racially biased home valuations.