Appraisal Bias Considerations and Compliance Updates

This document is a technical report discussing appraisal bias in commercial and residential contexts, presented at the Appraisal Institute Fall Conference in 2023. It includes public statements from the Consumer Financial Protection Bureau (CFPB) and the Department of Justice (DOJ) regarding appraisal-related discrimination. The report highlights the 2024 update to the Uniform Standards of Professional Appraisal Practice (USPAP), which emphasizes the ethical obligation of appraisers to avoid discrimination. The updated USPAP includes a new section on nondiscrimination, requiring appraisers to comply with all relevant antidiscrimination laws and regulations. Additionally, the report outlines the role of the Interagency Task Force on Property Appraisal and Valuation Equity (PAVE), urging lenders to implement or review their reconsideration of value policies. Best practices for appraisers are also provided, focusing on education, awareness of bias, and the importance of language in appraisal reports. The report stresses the need for appraisers to stay informed about current litigation and fair housing laws.