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NAR Letter to HUD Asking for Legal Clarification for Appraisal Discrimination

Issue Date: March 29, 2023


On March 29 NAR wrote a letter to the Department of Housing and Urban Development (HUD) thanking the agency for its commitment to improving the appraisal process for all homebuyers. Credible and fair valuations are key to sustainable financing and REALTORS® commend HUD as well as the Property Appraisal and Valuation Equity (PAVE) task force for their ongoing efforts to eliminate discrimination in the valuation process. NAR has actively advocated for solutions that will increase diversity, reduce bias and maintain the public trust in the appraisal profession. Legal clarity from HUD is needed, however, to build the tools to best educate the appraisal community.Letter to HUD Asking for Legal Clarification for Appraisal Discrimination
 
The letter:
  • Recommends that HUD move forward quickly with its outstanding investigations, requests that the agency provide legal clarity both in cases where discrimination was found and also in cases where discrimination was not found,
  • Provides an NAR summary on how appraisal bias affects appraiser- and agent-REALTORS®and
  • Offers academic analysis of the magnitude of the effect of appraisal bias, and emphasizes NAR's efforts to help eliminate it.