Tag Archives: racial bias

In a new article jointly authored by the Federal Home Loan Bank of San Francisco and the Urban Institute, new research examines the effects of Artificial Intelligence (AI) in helping level the playing field for minorities and borrowers of color, with the ultimate goal of advancing racial equity in homeownership.

A new report from the American Enterprise Institute found multiple pitfalls in current governmental and GSE data and recommends that they turn their eye to individual appraisers to get a better picture of potential racial bias.

Addressing the issue of appraisal bias is critical, and Jeffrey Hogan of Veros explains what can be done to identify and prevent this problem.

“It is the sacred duty of community leaders, policy makers, and financial industry specialists to lift communities so that all children can thrive and grow up with opportunities for good health, wealth, and happiness in their lives,” said NAREB President Lydia Pope.

“The Brookings Institute showed a robust relationship between lower valuations and Black neighborhoods,” wrote Jonathan Liles, Senior Financial Analyst for the FHFA.

“It is crucial to utilize professional-grade AVMs that can help identify potential racial bias in home valuations and to flag concerns of potential undervaluation of minority-owned properties,” said Eric Fox, Chief Economist at Veros.

According to a new study released today by Veros Real Estate Solutions (VEROS), Automated Valuation Models, or AVMs, may be the solution necessary to identify potential racial bias ...

In breaking down 1.8 million appraisals over 2019-2020, the GSE investigates divergent appraisal values among Black and white borrowers.