Credit unions and banks are expected to have systems in place to ensure that real estate appraisers who evaluate property in connection with loan applications are not biased, the Federal Financial Institutions Examination Council said Monday.
The council, which includes the National Credit Union Administration, said that credit union and bank examiners are expected to hold institutions accountable if they do not fix the problem.
The statement is the latest development in the Biden Administration’s effort to root out appraisal bias. In 2021, the administration formed the Interagency Task Force on Property Appraisal and Valuation Equity. The task force was formed amid press reports that Blacks were being discriminated against by property appraisers.
Federal agencies already have issued proposed rules governing automated valuations and have proposed ways for consumers to request reconsiderations of valuations. Federal agencies also have been working on ways to increase diversity in the appraisal industry.
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