Stock Groups

Biden administration to fight racial bias in U.S. real estate appraisals -Breaking


© Reuters. FILE PHOTO A vacant home is seen with a sign stating “For Sale”, at Courtland Ridge in Alpine, Utah on March 26 2008. REUTERS/George Frey


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.

Disclaimer: Fusion MediaThis website does not provide accurate and current data. CFDs include stocks, futures, indexes and Forex. Prices are provided not by the exchanges. Market makers provide them. Therefore, prices can be inaccurate and differ from actual market prices. These prices should not be used for trading. Fusion Media is not responsible for trading losses that may be incurred as a consequence of the use of this data.

Fusion MediaFusion Media and anyone associated with it will not assume any responsibility for losses or damages arising from the use of this information, including buy/sell signal data. You should be aware of all the potential risks and expenses associated with trading in the financial market. It is among the most dangerous investment types.