black couple sues appraisal company for low appraisal on home

[Leo123]

wrong the gross difference is amounts proves the point.

IMO, it does not necessarily prove discrimination though. There is really not enough detail in the article IMO.

 

[Leo123]

"We conclude allegation that knowing the race of the applicant results in racial bias by appraisers on refinance loans is uncommon and not systemic. This same analysis supports the conclusion that unintentional bias based on race is also uncommon and not systemic."

How Common is Appraiser Racial Bias?

We analyzed big data whether it is common or uncommon that an appraiser’s knowledge of an applicant’s race results in valuation bias.

www.aei.org

 

[konradv]

The article stated they went to another bank and they sent out a different appraisal company. What would whitewashig the house prove since it's a different company doing the appraisal?

$300K difference is no accident.

 

[konradv]

IMO, it does not necessarily prove discrimination though. There is really not enough detail in the article IMO.

…and there never will be, right?

 

[Leo123]

…and there never will be, right?

Not in that article however, I would be interested to see what eventually happens.

 

[konradv]

Never will be what?

Worth my time

 

[Leo123]

$300K difference is no accident.

Correct, values must be supported.

 

[Leo123]

Worth my time

I added to my post but, if it's not worth your time why are you even in this thread?

 

[JoeB131]

Welfare Ray, never sees Racism.

He's like Sgt. Schultz.

This whole scam is to see if they can get a few hundred thousand from the appraisal company, and it's the lawyer who probably contacted the media to support their case.

By Scam, you mean expecting fair treatment and for the bank to follow the law? HOW DARE THEY! Next they'll be demanding the police don't shoot their children while playing with toys.

The second appraisal they got was from a different bank and different appraisal company. So if you want an equity loan, why not just get it with that second bank?

Because the first bank massively violated their rights and needs to be punished so they don't do it to the next family.

The article stated they went to another bank and they sent out a different appraisal company. What would whitewashig the house prove since it's a different company doing the appraisal?

Duh... are you really this dense, Ray? They proved exactly what they set out to prove- that if you whitewash your house, you get a better valuation.

It still doesn't prove race had anything to do with it. Read slower: Different bank, different appraisal company. Now if it was the same bank and appraisal company, then they'd have a legitimate case.

Nope, they have a completely legitimate case now.

 

[Superbadbrutha]

This whole scam is to see if they can get a few hundred thousand from the appraisal company, and it's the lawyer who probably contacted the media to support their case.

It's amazing how folks like you and Horseshitting will always make excuses and defend racism. It is actually a disgrace.

 

[Couchpotato]

Yes, because sadly, the housing and banking industry is one where we have a long history of racism.

You cant hold an entire industry responsible for the crimes of the past forever. At some point you have to let that shit go or dont do business with that industry anymore. There's no indication that Loandepot,com did ANYTHING wrong and only anecdotal evidence that the appraiser is more than just terrible at his job.

We also don't know if these two customers were black who complained. Or even if one of them IS the complainant in this case.

Yeah and?

And here's the problem, it doesn't matter. "I had no idea this contractor I hired was a bigot" doesn't matter. It's on you to NOT hire a bigot. It's why most companies fire racists, homophobes, or harassers without so much as a hearing, because they are liable for anything they do.

Ok lets assume this guy is a raging racist. How is Loandepot supposed to know that exactly? Is there some database they should have checked that lists all the racist appraisers in the country? Seriously. What due diligence should a lender be required to do in order to make sure they dont hire a racist appraiser, that loandepot didnt do? Can you google search their company name and racist? Prior this this incident I highly down anything comes back. Should the lender send out a team of people to do background checks on any appraiser they might hire? That's not to mention that there are rule and regulations regarding how lenders hire appraisers which I admitted know little about other than they are using them to limit the lender's influence on the appraiser.

Actually, renovations do a lot to increase the value of a home. I once bought a fixer-upper for 55K and sold it for 110K 11 years later. (This was back in the 1990's).

Also, even if i thought this was an innocent mistake, I would STILL be for hanging the appraiser and LoanDepot out to dry so this sort of thing NEVER HAPPENS AGAIN.

Sure renovations can raise the value of a home a ton, depending on the renovations. A tankless water heater isn't one of those renovations. Again it's a selling point for sure, but you are just not likely to get out of it in home value (or energy savings) what it cost you to put it in. The other renovations we know nothing about. They may have raised the value a lot or little to none at all depending on what they did.

I still dont understand how you can blame the lender for any of this. There is anecdotal/circumstantial evidence that the appraiser acted in some nefarious way, there is zero evidence that the lender did.

 

[JoeB131]

You cant hold an entire industry responsible for the crimes of the past forever. At some point you have to let that shit go or dont do business with that industry anymore. There's no indication that Loandepot,com did ANYTHING wrong and only anecdotal evidence that the appraiser is more than just terrible at his job.

Again, you don't get the benefit of the doubt with the banking industry's history. If ANYTHING, given their history, they should have shown MORE caution, not less.

Ok lets assume this guy is a raging racist. How is Loandepot supposed to know that exactly? Is there some database they should have checked that lists all the racist appraisers in the country? Seriously. What due diligence should a lender be required to do in order to make sure they dont hire a racist appraiser, that loandepot didnt do? Can you google search their company name and racist? Prior this this incident I highly down anything comes back. Should the lender send out a team of people to do background checks on any appraiser they might hire? That's not to mention that there are rule and regulations regarding how lenders hire appraisers which I admitted know little about other than they are using them to limit the lender's influence on the appraiser.

Well, they could review his work product, that would be a good place to start. If they had reviewed his work product, they'd have realized his comps weren't anywhere near the property he was appraising.

Sure renovations can raise the value of a home a ton, depending on the renovations. A tankless water heater isn't one of those renovations. Again it's a selling point for sure, but you are just not likely to get out of it in home value (or energy savings) what it cost you to put it in. The other renovations we know nothing about. They may have raised the value a lot or little to none at all depending on what they did.

I still dont understand how you can blame the lender for any of this. There is anecdotal/circumstantial evidence that the appraiser acted in some nefarious way, there is zero evidence that the lender did.

Except they hired this appraiser... That makes them responsible for him.

 

[Ray From Cleveland]

It's amazing how folks like you and Horseshitting will always make excuses and defend racism. It is actually a disgrace.

No, it's just so far, none of you racists have been able to point out what was racist about this situation. It's all assumptions which is no proof of discrimination. Show me one racist thing done by this bank or appraisal company and we can go from there. This OP was one-sided at best. We don't know what the companies stance is on this situation as they've probably been advised by their lawyers not to make any comment until the trial if there is one.

 

[Ray From Cleveland]

$300K difference is no accident.

You don't know that and neither do I.

 

[Ray From Cleveland]

wrong the gross difference is amounts proves the point.

How? All it proves is that the first appraisal company gave a different appraisal than the second one. It's not like this couple got four or five different appraisals.

 

[Superbadbrutha]

No, it's just so far, none of you racists have been able to point out what was racist about this situation.

No, it's been pointed out. The fact is you are a racist, so of course you don't see it as racist.

It's all assumptions which is no proof of discrimination. Show me one racist thing done by this bank or appraisal company and we can go from there. This OP was one-sided at best. We don't know what the companies stance is on this situation as they've probably been advised by their lawyers not to make any comment until the trial if there is one.

Explain to me how they came to a difference of 300K dollars, please the floor is yours explain away. I could see maybe 20 or hell maybe even 40, but 300K. No.

 

[Ray From Cleveland]

No, it's been pointed out. The fact is you are a racist, so of course you don't see it as racist.

Explain to me how they came to a difference of 300K dollars, please the floor is yours explain away. I could see maybe 20 or hell maybe even 40, but 300K. No.

Perhaps it was a mistake on the computer. Perhaps this company always rates property lower than other companies. Perhaps the person (who never even met the couple) made a mistake on the house he was appraising. It could be a number of things.

Your turn: How is it when I applied for a home equity loan, just like this couple did, the appraisal company quoted half of what the county claimed my property was worth? Not only that, but I was paying taxes on the county appraisal for years. To lower my tax liability, I had to go to a hearing downtown where they fought with me then, didn't bring it down nearly as much as my bank appraisal, and then I had to file for a hearing in Columbus (120 miles from my home) before they brought my property value down to the appraisal company quote. Oh, and I'm white too!

 

[JoeB131]

Perhaps it was a mistake on the computer. Perhaps this company always rates property lower than other companies. Perhaps the person (who never even met the couple) made a mistake on the house he was appraising. It could be a number of things.

Your turn: How is it when I applied for a home equity loan, just like this couple did, the appraisal company quoted half of what the county claimed my property was worth? Not only that, but I was paying taxes on the county appraisal for years. To lower my tax liability, I had to go to a hearing downtown where they fought with me then, didn't bring it down nearly as much as my bank appraisal, and then I had to file for a hearing in Columbus (120 miles from my home) before they brought my property value down to the appraisal company quote. Oh, and I'm white too!

That's an easy one. By your own description, you live in a slum, with rats and furniture in the streets. The appraiser saw your hovel, the city just used raw facts.

 

[Couchpotato]

Again, you don't get the benefit of the doubt with the banking industry's history. If ANYTHING, given their history, they should have shown MORE caution, not less.

Loandepot.com has a history of racist lending procedures?
And how exactly was loandepot.COM an online loan provider supposed to ferret out what race these people were?

You want banks to research their potential clients determine what race they are and then treat them one way or another based on that information? Seriously?

Well, they could review his work product, that would be a good place to start. If they had reviewed his work product, they'd have realized his comps weren't anywhere near the property he was appraising.

They aren’t allowed to do that dummy. That’s the point. The banks aren’t allowed to influence the appraisers one way or another. But even if they did how would they know a particular neighborhood in Baltimore was a “white” one vs a “black” one? Loandepot.con isn’t based in Baltimore. If they looked at his work they would (I assume) see houses near these peoples house that priced near what he put on it.

Except they hired this appraiser... That makes them responsible for him.

They aren’t responsible for him being a racist unless they knew or should have known he was one. I’m pretty sure he doesn’t advertise that as part of his business if he is in fact a racist.
Can you provide one scintilla on evidence other than this incident that would even hint at him being a racist? If you can’t how would loandepot know?

 

[Couchpotato]

Again, you don't get the benefit of the doubt with the banking industry's history. If ANYTHING, given their history, they should have shown MORE caution, not less.



Well, they could review his work product, that would be a good place to start. If they had reviewed his work product, they'd have realized his comps weren't anywhere near the property he was appraising.



Except they hired this appraiser... That makes them responsible for him.

BTW Loandepot.com uses an AMC Appraisal Management Company. They dont pick their appraisers. Says so right on their website.

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