Letter to Marcia Fudge, Secretary of Housing and Urban Development, Melody Taylor, Director of Region III of the HUD Office of Fair Housing and Equal Opportunity, Susan Rice, Director of the White House Domestic Policy Council - Chairwoman Waters Requests Timeline for Implementation of PAVE Task Force Administrative Appraisal Reforms

Letter

Dear Secretary Fudge, Director Rice, and Director Taylor:

I commend the Biden Administration for its convening of the Interagency Task Force on Property Appraisal and Valuation Equity (PAVE) to address inequity in home valuations, including appraisals.[1] The Task Force recently released its first report entitled, "Action Plan to Advance Property Appraisal and Valuation Equity" ("the Action Plan").[2] The Action Plan includes proposed administrative actions to advance valuation equity along with various legislative recommendations. My discussion draft of the "Fair Appraisal and Inequity Reform (FAIR) Act of 2022," which was noticed at a recent full Committee hearing,[3] includes legislative recommendations from the Task Force. As I work with my Congressional colleagues and the Biden Administration to formally introduce and advance the FAIR Act, I ask that the Task Force move quickly to implement its planned administrative actions and provide the Committee with a clear timeline for implementation of each action.

The Task Force's Action Plan is a critical step forward in our nation's duty to root out bias and discrimination in the appraisal industry, which has gone under the radar for too long. During the pandemic alone, we have seen countless reports of appraisal bias and alleged discrimination, which are exacerbated by gaps in federal home valuation policies and regulations. The systemic undervaluation of homes owned by people of color and located in communities of color has blocked many homeowners of color, especially Black homeowners, from fully benefiting from the equity in their homes, from refinancing their mortgages into historically low interest rates, and devaluing the communities they live in. Biased valuations that affect mortgage loan-to-value requirements can also block individuals from becoming homeowners altogether.

As each of you know, the safety and soundness of our nation's housing finance market depends on fair and accurate home valuations. Similarly, we cannot ensure equitable access to homeownership for every family without fair and accurate home valuations. I look forward to your prompt response to this request. Please contact Alia Fierro, Deputy Director of Housing, Community Development, and Insurance at alia.fierro@mail.house.gov.

Sincerely,

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