Freddie Mac Finds ‘Pervasive’ Bias in Home Appraisal Industry
A new study augments a body of evidence that homes in Black and Latino neighborhoods are undervalued.
Several recent studies have documented significant gaps in the appraisals of homes in Black and Latino neighborhoods, compared to white ones.
Photographer: Craig Warga/Bloomberg
A study from the Federal Home Loan Mortgage Corporation, known as Freddie Mac, adds to a growing body of research that finds racism in the appraisal industry is undervaluing the homes of Black and Latino Americans compared to white-owned homes.
In an analysis of more than 12 million housing appraisals, Freddie Mac researchers found that “appraisal gaps seem pervasive” in lowering home value determinations in Black and Latino neighborhoods.