Female or property appraiser with clipboard outside a residential home

Phrases like appraisal bias, the appraisal gap, and discrimination in appraisals have become buzz words in the media over the past year. As a real estate appraiser, actions you can take to avoid bias and accusations of discrimination may include educating yourself on these issues, avoiding use of subjective terminology, carefully complying with USPAP and Fair Housing laws, and, in general, completing all appraisal assignments with objectivity and impartiality.

Here are three useful and timely resources for appraisers:

This newsletter from the Collateral Policy Team at Fannie Mae includes tips on “avoiding problematic phrases” in appraisal reports. On pages 3-4 of the newsletter, you’ll find the section devoted to reviewing problematic words and phrases and their implications.

It includes an easy-to-read table chart highlighting specific problematic phrases to avoid in your reports, as well as helpful examples of what you should write instead.

Read the newsletter.

USPAP’s Advisory Opinion 16 (AO-16)

Advisory Opinion 16 in the USPAP publication is titled “Fair Housing Laws and Appraisal Report Content.” Remember that Advisory Opinions (AOs) do not establish new standards and are not intended to be enforceable. AOs are issued to illustrate the applicability of appraisal standards in certain situations and to offer advice from the ASB.

AO-16 states, in part:

Fair housing law(s) preclude the use of certain specific information or supported conclusions related to protected group(s) in some assignments. Accordingly, an appraiser should be knowledgeable about the laws that affect the subject property of an assignment.  Laws and regulations on fair lending and fair housing (such as the Fair Housing Act, the Equal Credit Opportunity Act (ECOA), and the laws and regulations of applicable federal, state, and local jurisdictions) continue to evolve.  Further, appraisers must continue to provide appraisals that do not illegally discriminate or contribute…




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