Raveen Phifer and Dalila Ramos had some delicious Tacos while they were in Dallas for the NEXT Mortgage Event, in November 2022, where they discussed Appraisal Tech in the housing industry.
In last week’s episode of Taco Tuesday, Raveen specifically addressed Appraisal Bias and how it’s been in the industry for a while. There has been a persistent practice of home values being higher when the occupants are white and devalued when the homeowners are people of color. Certain communities’ valuation is much lower than the asked price, crowded by bias.
The FHFA’s director, Sandra Thompson, has been trying to help overcome appraisal bias in the industry. A few prominent initiatives were aligned over time to mitigate the bias; they include; automation of the appraisal process, the introduction of desktop appraisals, and the addition of hybrid appraisals along with some other valuation solutions that address the bias for equal and fair equity for everyone.
Watch the full episode of Taco Tuesday below: