As part of her commitment to preserve and expand access to safe, affordable, and equitable homeownership opportunities for all Massachusetts residents, Attorney General Andrea Joy Campbell released the office’s first-ever ‘Know Your Rights’ guide designed to help homebuyers and homeowners understand, recognize and report appraisal discrimination.
An appraisal is an important component of the process of buying, selling, or refinancing a home, as it is used to determine the home's value. Appraisal discrimination refers to bias based on race, national origin, or other protected classes in an appraiser’s estimate of the value of a home. For example, appraisal discrimination could involve assigning a lower value to a home because of the race of the homeowner or the racial composition of the neighborhood.
AG Campbell’s guide helps consumers identify both explicit and subtle signs of potential appraisal discrimination, including written commentary that refers to the race, national origin, or other protected characteristics of a homeowner or a neighborhood, or comparing a homeowner’s property to properties that differ in size, condition, or location.
In Massachusetts, the homeownership rate is just 37.4% for Black families compared to 70.4% for white families. Racial disparities in both the rates of homeownership and in the financial returns associated with owning a home, including through bias in home valuation, are among the most significant drivers of the racial wealth gap.
According to national research from the Brookings Institute, homes in Black neighborhoods are valued at 23% less than those in non-Black neighborhoods despite having similar quality and amenities.
The guide aims to raise awareness among consumers about how to recognize and report appraisal discrimination. Consumers who believe they have received a discriminatory home appraisal are encouraged to file a consumer complaint with the MA Attorney General’s Office online or by calling the Civil Rights Division at (617) 963-2917.
This guide is maintained by Senior Advisor for Economic Mobility and Opportunity Sherry Riva. Chief Yael Shavit of the AGO’s Consumer Protection Division, Deputy Chief Shafaq Islam of the AGO’s Civil Rights Division, Director Esme Caramello of the AGO’s Housing Affordability Unit, Chief Bill O’Hearn of the AGO’s Consumer Advocacy and Response Division, and Intern Ananya Kulkarni of the AGO’s Office of Diversity, Equity, and Inclusion provided valuable support in creating this Consumer Guide.
Original source can be found here.