Vice President Kamala Harris announced a 21-point plan to help homeowners affected by racial and ethnic discrimination in the home appraisal process. The announcement came during an event with Housing and Urban Development Secretary Marcia Fudge and Domestic Policy Advisor Susan Rice on Wednesday.
"A home is more than just a roof over your head and a place to live -- those are essential needs. But a home represents, in addition to that, so much that is about financial security. That is about the potential to build intergenerational wealth," Harris said. "We don't want to have a system that denies people an ability to have that goal simply because there is bias in the system.”
She added that the administration is "fighting to make sure every person, no matter where they live, or who they are, has an opportunity to not only succeed, but to thrive."
This comes as a part of a larger federal initiative to address systemic inequality. Last June Presiden Biden announced the formation of the Property Appraisal and Valuation Equity (PAVE) task force, which is dedicated to ending bias in home valuation. The task force is made up of 13 federal agencies and offices and is chaired by HUD and the White House Domestic Policy Council. PAVE worked with more than 150 groups and individuals including appraisers, appraisal management companies, lenders, civil rights and advocacy groups, academic institutions, philanthropy organizations, and individuals who have been personally affected by appraisal bias, with the goal of learning how the Federal government can achieve equality in the home valuation process.
The plan will include enhancing oversight and accountability in the appraisal industry and providing homeowners with education on actions to take when they receive a lower than expected valuation.
Homeownership plays a critical role in wealth-building for many households, however an analysis by Freddie Mac shows appraisers are more likely to undervalue homes in Black and Hispanic neighborhoods compared to White neighborhoods. Additionally, a report by the Census Bureau shows that in 2021 the Black homeownership rate was just 44%, versus the White homeownership rate of 74%.
“For generations, millions of Black and brown Americans have had their homes valued for less than their white counterparts simply because of the color of their skin or the racial makeup of the neighborhood. Black and brown homeowners in communities just like mine have not felt that they have had a voice or that the Federal government was doing enough to redress the issue of racial bias in the appraisal process,” said Secretary Marcia L. Fudge.
Fudge went on to note the “whole-of-government” approach PAVE is taking to solve this problem, adding, “We are proud of the work of this task force and we are looking forward to continuing to work within the Administration and with partners to do all we can to root out discrimination in the appraisal and homebuying process.”
