147 Comments
Nika Aniton Maybe you didn’t read or maybe you just don’t want to see how this couple could be right and how so many other people experience the same thing. Maybe you’re looking at what is customarily done and I’m looking at what should have been done to avoid legal ramifications. In this case, the company, at the least, relied on bad data and ignored the customer as they requested it be corrected. They live in one neighborhood but their home was assessed using comps from a different neighborhood and factors of that majority black neighborhood vs the majority white neighborhood they actually lived in. The company could have requested another appraiser especially since the submitted appraisal was lower than even their estimated appraisal with no significant problems. As I’m sure you know companies are adding the chase language to their applications. “If you believe that any person has attempted to influence the appraiser in the preparation of the appraisal of your property, or have any concerns with the reliability or credibility of the appraisal, please contact us by calling _____________ as soon as possible to report any concerns of discrimination or bias or to discuss your options to contest the reliability of the appraisal.” It seems no one in the company was trained to handle the concern calls. That’s failure on the company’s part and contributed to the racial discrimination. They left themselves open to liability.
Link: http://www.vin3.org/index.php?c=article&cod=273284&lang=EN#vin3Comment-1290180
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Georgette Nicole there is no one size fits all answer. Without seeing the appraisals, I could not tell you how to account for the difference. There are so many factors used to determine value. The appraisal grid is just one of the steps we use to determine if the opinion of value makes sense. Do the comps bracket the subjects overall market appeal? For example, if my subject is a 2 bedroom, 1 bathroom house, a 5 or 6 bedroom sale is not really comparable. If a 5 bedroom comp is used in this instance, the appraiser has justify why it was used vs another 2 bedroom comp. Individual, net, and gross adjustments can't be excessive. If they are excessive, then there is a possibility the sale used is not comparable. Did the appraiser use the sales comparison, income, or cost approach when determining value. So again, without seeing the appraisals it is hard to give a definitive answer. Too many variables.
I noticed the article said the appraiser used comps from an adjacent neighborhood, which is absolutely OK as long as the dates of the comps are within six months and the distance is less than 5 miles in suburban and urban areas. Rural allows some leeway on distance and date of sales. So for example, I live in Smyrna with is a suburban of GA, my SO lives in Fairburn, also a suburban of GA, which is about 25 minutes away. The appraiser can't use comps that far out without a justification. But if he cross the bridge 2 miles from me and pulled a comp from Mableton and explained that was best comp available at the time of inspection, the comp can be used and considered a good comp.
Sorry so long, but just giving you my perspective on how I review appraisals.
Link: http://www.vin3.org/index.php?c=article&cod=273284&lang=EN#vin3Comment-1290195
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We are white and live in a neighborhood that is mostly people of color. We got our home refinanced last year and we did it again this year. We were just looking to lengthen the loan term this time because we're concerned about the economy and wanted a lower payment in case things get really bad. When we refinanced this time I told the mortgage company we were concerned about the appraisal process because we felt our home was severely underappraised last time because of living in a neighborhood with mostly people of color. This time, they had an FHA appraisal done for us. Last time it was not FHA. Last time our home was compared with homes that were 50 years older with few of the amenities ours has and in areas where most of the homes were in visible disrepair. This time, our home was actually compared to homes in neighborhoods similar to ours, of similar age and with similar amenities. One year apart, our home appraised 66% more. I know home prices went up in that year's time, but NOT 66%. More like 20%.
It was the type of appraisal-I don't know if it had to do with the bias of the appraiser.
It all seems like a big scam to me, in general. And specifically, the deck is stacked against people of color. Our systems are in need of a serious overhaul.
I promise you, I knew that before this process, but seeing it first hand was a hard pill to swallow.
How do we fix this? Because the only thing I truly hate is injustice.
Link: http://www.vin3.org/index.php?c=article&cod=273284&lang=EN#vin3Comment-1290087
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Nika Aniton It will be difficult to prove discrimination on the part of the lender but as I said continuing to use an appraiser that is discriminating (again that has to be proven and that is what the lawsuit is for) is problematic for the lender and may not be liable for discrimination but UDAAP at least. This case and the other two I’m aware of all from black people who had HUGE increases to their appraisals after whitewashing the home and having their white friends pose in their place is questionable. Does that specific scenario happen to white people? We’re not just speaking of appraisals not meeting the desired value, which of course happens all of the time. Yes, appraisals are opinions but if it’s not solely based on what they should be and the appraiser can’t support their opinion, there is a problem. With the history of housing discrimination in this country this isn’t off base in the least. Discrimination remains to be difficult to prove in many cases and that’s why people get away with it more then they are held accountable for it. The Austin case filed earlier this year in CA has gotten the attention of the DOJ and the judge has accepted there is sufficient evidence to support race discrimination to allow the suit to move forward. This new case, interestingly enough, the man is a housing discrimination scholar; both cases will be very interesting to follow and see how they play out. It’s just not so easily dismissible to me.
Link: http://www.vin3.org/index.php?c=article&cod=273284&lang=EN#vin3Comment-1290183
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Ok, I am NOT trying to diminish their feelings, not trying to advocate or defend or act like racism in appraising doesn't happen, and NOT calling them liars here..
But I can't help having the knowledge I have about this profession & seeing some inconsistencies here. The plaintiffs purchased their home back in 2017 for $450k - that right there should tell ANYONE with common sense that, unless you've made drastic changes to this property (i.e. - new in-ground pool + solar panels + added an entire legal addition onto the home + energy efficient upgrades everywhere + interior remodel), it does NOT jump $300k in value after 5 years.
The plaintiffs obtained a $30k HELOC in 2020 & made improvements to a game room, tankless water heater, window well repair, recessed lighting addition, landscaping... a $30k investment after 5 years of ownership does not boost the value of your home $300k over your purchase amount.
They applied with loan depot to obtain a $550k loan for a specific interest rate... if the appraiser gave them a $472k value after 5 years of ownership in THIS economy??? That might be lower than the possible value, I agree... a 25% increase in the value for that area wouldve been more accurate possibly + improvements, but i wasnt there. Granted, I haven't seen the report, and I don't deny at all that they do feel extremely upset, but unless they also know FNMA comparable selection requirements, sales comp approach methodologies and grid adjustment requirements, along with being able to specifically say "the appraiser used these 1-3 or 4 sales from outside our white neighborhood on purpose when this list of sold properties within our neighborhood boundaries in the last 6 months, that wouldn't result in exceeding net and gross adjustment % and would reflect marketability, were available but purposefully ignored."...
THAT would've been blatant racism by the appraiser. My concern here is the grossly overinflated value given by the 2nd appraiser....
People act like they don't remember the last housing market crash, ffs. But either way, I wish this couple the best... they don't deserve this stress or strain and I'm sorry they faced it.
Link: http://www.vin3.org/index.php?c=article&cod=273284&lang=EN#vin3Comment-1290213
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Truth is alot of whites think like this. Even the ones that claim not to be racist. I don't blame the whites in my generation they have been greatly misinformed, All they see is black people on the news committing crimes in the hood, gang banging and doing drugs. They don't know much about the older whites that did everything they could to keep blacks from progressing. How they burned down and flooded thriving black towns, murdered black leaders, stole black inventions, hindered black scientists and innovators, made laws that indirectly kept blacks from growing, introduced drugs into the black communities, put countless black men in jail that ruined the black family structure and even influence music producers to make violent music to increase profit and intice the already poor black communities. All these things happen well past slavery. And why alot of black families did not have generational wealth or strong family values to pass down. Whites could not have a thriving black community surpassing the poor whites or it would've caused an uprising, another reason why they stopped reparations. Not all whites benefited from slavery.
So today's whites just see blacks as descendants of dirty slaves. They don't mind living next to blacks, working with them, sharing restaurants or theaters but two things alot of whites do not like doing is taking a black person's pass me down home or taking orders from a black person as their boss. No matter how educated, sophisticated and civilized they are. Alot of them will still see blacks as 2nd class citizens that were former slaves conquered by their ancestors. It's a stigma that will follow blacks for some time. Today's whites were not taught how blacks in America came to be. They were told that blacks created their own mess bc they are lazy and violent. But having my own business I have went into several white customers homes and seen a great majority of the hoarding coming from them. Piles of animal feces and liquor bottles everywhere. And these are half a million to million dollar homes. How ironic
Link: http://www.vin3.org/index.php?c=article&cod=273284&lang=EN#vin3Comment-1290098
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Andrea Radmilovich Buy online in conditions where your identity will not be known. Read a book entitled “whistling Vivaldi “. There are some tips there. Buy your home in White neighborhoods - they have better community facilities, sale value and when it comes to selling your home, it becomes easier.
Throw that ego away. You can’t blame an innocent white person for racism. The entire society has been intoxicated by it. At work, if you have a good idea, let your White friend present it. It is more likely to be adopted. As a black, you are less likely to be promoted. Start your own business and get a White salesperson. Male even better and pay them a good commission. There is gender discrimination also. It is what it is. Society is f*cked up, it is not your fault.
Get that unemployment insurance. You are more likely to lose your job being black. Get a private medical insurance that guarantees a short wait time for healthcare intervention; you are more likely to be put at the back of the waiting list as a black.
Read up on medications, you are more likely to be prescribed the cheapest and the lower quality medicines. Research on the best medicine for your condition.
When shopping, do your home work about quality. The assistant is likely to recommend inferior goods to you because they perceive you as poor.
Dress up whilst out shopping or you will have a trail of security personnel following you in the shops.
Don’t wear hoodies at night or you will be shot by the Police in a case of mistaken identity.
Don’t go jogging in White neighborhoods; you will be shot.
You will pay more for your car. Get a White friend to do the buying. Even after tipping them, you will still be better off. Remember, bias is unconscious. You can only call out after the act but you don’t want to be a victim.
When the UK movie industry was discriminating against actors, responding to viewer preferences, they moved to the US. Now that is insulation. Others have stayed back to fight the invisible enemy. Well, good luck to them.
Link: http://www.vin3.org/index.php?c=article&cod=273284&lang=EN#vin3Comment-1290081
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After 10 years in America, I have realized there are two types of racism: The vocal racism, usually characterized by someone calling you the N word and trying some Karenism. Then comes the silent racism, usually only felt, very nuanced and disguised, and very dangerous. Some are just vocal racists and some are silent racists. Some can be both. The vocal racist is bad but can be avoided by simply not going where he/she is. The silent racist by their disguised nature causes serious damages and usually found occupying managing jobs in US institutions. They are professors that will smile with you and tell you how smart you are and will refuse to write you a recommendation letter. They are managers that will try to have some very strange conversation around Sports ( just to make things look familiar) and screw you up secretly. There are neighbors or “friends” that will tell you how good (flavored and spicy) foods from your country are and will go online bashing Miss America for looking like another nation. While both types of racism are NATURALLY bad and the vocal racist will definitely cause some short-term emotional damage and might lead to death in some instances, it is the silent racism that MUST be crushed because the silent racist knows how to disguise him/herself to make serious long-term institutional discrimination that will eventually leading to financial, emotional and social damages. Those damages will keep black people crippled for a very long time if the silent racist isn’t taken care of.
Link: http://www.vin3.org/index.php?c=article&cod=273284&lang=EN#vin3Comment-1290104
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Alex Nollie we know it was because of their race because nothing changed as it pertains to the house only that his colleague who was white met with the 2nd appraiser and magically the value increased $300K! Appraisers have guidelines to follow but they also have their own discretion as to what value they’re giving to a particular thing, and they typically never change what they initially said the value was. They’re essentially independent contractors so they can kind of do what they want…maybe your situation wasn’t racism because you’re not black so it was probably a legitimate reason why you had to wait for the value of your home to change but there’s no way 2 different appraisers should be able to look at the same property within weeks of each other with nothing changing other than who is at the home at the time of the appraisal and they come up with a $300K difference in appraisal amounts, I could see if it was $10K or $20K but definitely not $300K and it be any other reason outside of racism…as I said I worked in the industry and lived it myself & most people of color know when we’re experiencing racism which is why we would spend the extra money getting a property reappraised and asking our white friends to be at the home for the appraisal for us! If you’ve never had to remove pictures out of your home or ask a friend to lend you some of their white family photos just because you want a fair value assessed for your home then you would never understand what I’m saying however hopefully you can comprehend it…
Link: http://www.vin3.org/index.php?c=article&cod=273284&lang=EN#vin3Comment-1290071
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Richard Hall you know what’s crazy is that you’re laughing at something that really really happens society has always done things to stop African-Americans in there procedures to get equal opportunities example blacks were allowed to vote but only if they could read knowing that it was illegal for blacks to learn how to read that’s just one example and throughout history they continue to do similar things like Tulsa and many others were black communities doctors lawyers schools dentist offices banks barbershops hair salons the list goes on it was burnt down and people were murdered because a white woman lied on a child in the elevator the fact that we were allowed to ride the bus but only in the very back and if a white person wanted to sit in the very back you had to get up and stand up and if you refused you got beat up and sent to jail it was a lot of Black people back then that were beat up murdered hung sent to jail for years and these men and women had jobs and businesses they lost all of that By refusing to be mistreated by a white person can you imagine if none of those people went to jail and they were allowed to prosper can you imagine if none of those black cities and towns were ever burnt down all the business owners that were black were able to prosper descendants and families of those people will be able to prosper if crazy things didn’t happen in the past because white people said so so many black families will have more. I have a ancestor who’s barbershop was stolen from him they went in through everything outside on the sidewalk wrote up a fake Deed that said the white man owns it. And they threaten his life if he told anybody they made it seem like he sold his barbershop but he didn’t a lot of things happen like that and if you say that was a long time ago it really wasnt it happened in the mid 1960s many white cops are getting prosecuted for their crimes against blacks a white cop just got sentenced to 12 years because he was putting drugs in minorities cars and this current thing that we’re talking about with the mortgages it’s real my aunt is a realtor in Atlanta those big eight bedroom houses she sees it all the time with her black clients their houses would get appraise lower than a white persons house even if they both have eight bedrooms and because of my Aunt it don’t go down like that in her realtor office but so many people experience the same thing and it is racism and it’s very sad that you don’t see it and I know I gave examples of the past because I don’t believe I need to point out the examples from the present If you don’t see it it just means that your heart is closed and you really don’t care
Link: http://www.vin3.org/index.php?c=article&cod=273284&lang=EN#vin3Comment-1290095
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