Acting Chairman Gruenberg Issues Statement on the Property Appraisal and Valuation Equity (PAVE) Task Force Report
March 25, 2022 / Source: FDIC
WASHINGTON – Federal Deposit Insurance Corporation (FDIC) Acting Chairman Martin J. Gruenberg issued the following statement regarding the release of the Action Plan to Advance Property Appraisal and Valuation Equity (PAVE):
I want to thank Secretary Fudge and Ambassador Rice for their leadership in bringing agencies of the federal government together to focus attention on an underappreciated facet of discrimination in the mortgage market – appraisal bias that negatively impacts wealth building opportunities for minority homeowners and communities.
The PAVE Task Force is the first–ever federal government effort to explore and focus attention on this issue, and the Action Plan released this week highlights key actions to address it. The FDIC has made a number of concrete commitments as a member of the Task Force, including:
- Addressing potential bias in automated valuation models by including a nondiscrimination quality control standard in the upcoming rulemaking;
- Issuing guidance to improve the opportunity to have a home valuation reconsidered if the initial valuation is lower than expected;
- Reviewing and updating guidance and procedures to ensure nondiscrimination requirements applicable to appraisals are effectively evaluated in examinations;
- Collaborating with other members of the Appraisal Subcommittee of the Federal Financial Institutions Examinations Council to exercise its authorities to support a more equitable state appraisal certification and licensing system;
- Supporting additional research into appraisal bias; and
- Providing consumers with additional information and resources related to appraisals.
The release of the Action Plan is an important step towards addressing barriers faced by families and communities of color. The FDIC intends to follow through on its commitments and will continue to engage with members of the PAVE Task Force as it continues its work.
FDIC: PR-24-2022