Washington – The Federal Deposit Insurance Corporation’s (FDIC) Acting Chairman Martin J. Gruenberg has issued a resounding statement on the release of the PAVE Action Plan to Advance Property Appraisal and Valuation Equity, signaling a historic federal government effort to combat appraisal bias in the mortgage market.
Gruenberg expressed his gratitude to Secretary Fudge and Ambassador Rice for leading this initiative, which aims to address the underappreciated facet of discrimination impacting wealth building opportunities for minority homeowners and communities. The PAVE Task Force marks the first-time-ever federal government focus on this critical issue, with the newly released Action Plan outlining key actions to address appraisal bias.
The FDIC has committed to several concrete measures as a member of the Task Force, including:
1. Addressing potential bias in automated valuation models by introducing a nondiscrimination quality control standard in upcoming rulemaking;
2. Issuing guidance to enhance the opportunity for home valuations to be reconsidered if initial valuations are lower than expected;
3. Reviewing and updating guidance and procedures to ensure effective evaluation of nondiscrimination requirements in appraisals during examinations;
4. Collaborating with other members of the Appraisal Subcommittee of the Federal Financial Institutions Examinations Council to support a more equitable state appraisal certification and licensing system;
5. Supporting additional research into appraisal bias; and
6. Providing consumers with expanded information and resources related to appraisals.
The release of the PAVE Action Plan represents a significant step towards addressing barriers faced by families and communities of color. The FDIC is committed to following through on its commitments, maintaining engagement with the PAVE Task Force as it continues its vital work.
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Key Facts
- Agency: FDIC
- Category: Public Corruption|Financial Regulation
- Source: Official Source ↗
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