The Federal Housing Finance Agency (FHFA) does not report evidence of appraisal bias to the appropriate state agencies, those that both license appraisers and could sanction them, the agency’s Office of the Inspector General reported last week.
As a result, state officials may be unaware of a bias problem among its appraisers.
“Filing complaints with state authorities and prompting investigations into potential noncompliance with [appraiser standards] is consistent with the purposes of the Fair Housing Act, the Administration’s policy set forth in executive order 13985, and with actions FHFA has taken to promote fair lending,” the IG reported.
The IG further revealed the FHFA has found that appraisal reports demonstrate that valuation bias continues to exist.
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