NFHA Applauds Introduction of Senator Warnock’s “Appraisal Modernization Act”
FOR IMMEDIATE RELEASE:
NFHA Applauds Introduction of Senator Warnock’s “Appraisal Modernization Act”
WASHINGTON, D.C. – The National Fair Housing Alliance® (NFHA™) applauds Senator Raphael Warnock and his colleagues, Senators Elizabeth Warren, Cory Booker, Angela Alsobrooks, Lisa Blunt Rochester, and Andy Kim for introducing the Appraisal Modernization Act. The bill seeks to address bias in the home valuation process and ensure all homebuyers have a fair chance to build wealth through homeownership. The bill would:
• Require the Federal Housing Finance Agency to publicly disclose property-level appraisal data; and
• Require lenders to standardize the consumer’s right to appeal an appraisal (also known as a reconsideration of value or ‘ROV’).
“An appraisal has the power to determine the value of a consumer’s most important financial asset and can hold the key to determining whether the consumer is able to purchase a permanent home rather than rent, access credit on reasonable terms, and build wealth for generations to come,” said NFHA’s Executive Vice President Nikitra Bailey. “NFHA commends Senator Warnock and his colleagues for a sensible bill designed to help consumers, appraisers, and lenders obtain the data necessary to ensure home valuations are fair and consistent. Importantly, the bill provides consumers the right to appeal an appraisal, which is crucial to maintaining a fair process and will help more consumers achieve the American Dream of homeownership free of discrimination with the ability to build wealth. These provisions are a minimal burden to lenders as most lenders already have processes for data collection and the reconsideration of value. This bill could truly be a win-win for consumers and industry.”
“Over the past few years, NFHA’s work, academic research, and news stories have consistently highlighted how appraisal bias disproportionately harms Black and Latino consumers and communities while exacerbating racial wealth gaps,” Ms. Bailey said. “NFHA led the charge for fair and accurate appraisals, including by releasing a groundbreaking report detailing the barriers to consistent appraisals for all. Removing bias from the home valuation process strengthens individuals, families, communities, and the economy.”
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The National Fair Housing Alliance (NFHA) is the country’s only national civil rights organization dedicated solely to eliminating all forms of housing and lending discrimination and ensuring equal opportunities for all people. As the trade association for 200 fair housing and justice-centered organizations throughout the U.S. and its territories, NFHA works to dismantle longstanding barriers to equity and build diverse, inclusive, well-resourced communities.