Tackling appraisal bias

Since the end of 2020, news media reports have alleged racial bias in home appraisals, turning a spotlight on the appraisal process in the housing finance system.

An analysis of 1.8 million appraisals in 2019 and 2020 by Fannie Mae—a government-sponsored enterprise—evaluated the appraisal values of homes owned by Black and White borrowers. The results published in a 2022 research publication titled “Appraising the Appraisal” showed that:

  • Black borrowers refinancing their home on average received a slightly lower appraisal value relative to automated valuation models.
  • Homes owned by White borrowers were more frequently overvalued than homes owned by Black borrowers.


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