By Josh Boak
Vice President Kamala Harris said Thursday that federal agencies are taking new steps to stop racial discrimination in appraising home values by proposing a rule intended to ensure that the automated formulas used to price housing are fair.
“Everyone should be able to take full advantage of their aspiration and dream of owning a home," Harris told reporters on a telephone call.
Announcement of the proposed rule comes a year after the administration laid out a plan to stop appraisers from systemically undervaluing the homes of Black people and other underrepresented groups. Low appraisals make it harder for these homeowners to build wealth and access home equity lines of credit, worsening racial inequality. Appraisers help to determine the value of a home so buyers can receive a mortgage.
The extent of the discrimination by appraisers can be massive, in some instances more than halving the value of a property. In Indianapolis, one Black homeowner found the appraised value of her home jumped to $259,000 from $125,000, after she declined to disclose her race on her application and removed all family photos and African American art in the home.
Because many financial institutions and mortgage companies use formulas to judge the value of a home, the proposed rule would set out new standards to prevent discrimination. Companies that rely on appraisals would need to adopt policies to improve the accuracy of their appraisals, stop data manipulation and avoid conflicts of interest.
The proposed rule would have a 60-day comment period.
The Biden administration is also having federal agencies make it easier for homebuyers to appeal racial bias in appraisals and is providing the public with more data in order to increase transparency. The administration is also seeking to make it easier for people in underrepresented groups to become appraisers.
In June 2021, President Joe Biden announced the formation of the Interagency Task Force on Property Appraisal and Valuation Equity, known as PAVE, to address the challenge of bias in appraisals.
As the US braces for the what's the follow after the end of the Title 43 pandemic-related restrictions, experts discuss the ramifications with Cheddar News.
A man who kept a chokehold around the neck of an agitated fellow passenger in the New York City subway has turned himself in on a manslaughter charge.
New York State Senator John Liu spoke with Cheddar News about Asian-American representation in politics, his bill to make Asian-American history mandatory in schools, and the ongoing hate crimes against his community. State Sen. Liu also discussed the debate over student loan forgiveness and gave his take on artificial intelligence in education.
The Senate Banking Committee held a hearing Thursday on the cannabis bill the Secure and Fair Enforcement (SAFE) Banking — a first step toward what advocates hope will be a full vote on the Senate Floor.
New blood donations rules will allow sexually active gay and bisexual men in monogamous relationships to give in the FDA guidelines ease decades-old restrictions put in place to protect the blood supply from HIV.
During a contentious CNN town hall Wednesday night, former President Donald Trump dug in on his lies about the 2020 election, downplayed the violence on Jan. 6, 2021, and repeatedly insulted the woman whom a civil jury this week found him liable of sexually abusing and defaming.
Criminal defense attorney Tamara Holder joined Cheddar News to break down the charges that New York Republican Congressman George Santos is facing. "When the feds come after you -- and this is for anyone, a politician or not -- they generally have already built their case before they indict you," Holder said, regarding the timeline of Rep. Santos' arrest.
Officials in Missouri's largest city are moving to declare it a sanctuary for people seeking or providing gender-affirming care, defying state officials who are intent on banning it for minors and restricting it for adults.
The Biden administration on Thursday will begin denying asylum to migrants who arrive at the U.S.-Mexico border without first applying online or seeking protection in a country they passed through.
Federal health advisers said Wednesday that a decades-old birth control pill should be sold without a prescription, paving the way for a likely U.S. approval of the first over-the-counter contraceptive medication.
