The Maryland Commission on Civil Rights (MCCR) and the Maryland State Commission of Real Estate Appraisers, Appraisal Management Companies, and Home Inspectors (SCREA) will work together regarding fair housing issues and complaints regarding real estate appraisals. The main goal of this interagency cooperation agreement is to better enforce Title 20, Subtitle 7 of the Annotated Code of Maryland concerning appraisal bias.
This is being done because recent research suggests that there are racial and ethnic differences in home valuations. According to the Federal Housing Finance Agency’s 2021 appraisal statistics, 23.3% of homes in high minority tracts (80.1-100%) were undervalued. This is compared to 13.4% of homes in White tracts (0-50%) and 19.2% in minority tracts (50.1-80%). Bias plays a major factor in this statistic. While home appraisals are supposed to be independent, fair and objective estimates of market value so lenders can accurately evaluate risk, the results depend upon the appraiser’s expertise and familiarity with the neighborhood. The appraisal industry remains one of the country’s least diverse professions; 98% of appraisers are White, according to the U.S. Bureau of Labor Statistics.
“This is one of the major economic barriers that prohibit people of color from gaining generational wealth,” said Cleveland L Horton, II, Deputy Executive Director of MCCR. “By MCCR and SCREA formally working together, we can improve the appraisal process and create an equitable system that can be used to lift all Marylanders up the proverbial economic ladder.”
A formal memorandum of understanding solidifying this interagency cooperation between MCCR and SCREA will be signed on February 26th at 10 a.m. in MCCR’s headquarters (6 St Paul Street, Suite 900, Baltimore MD 21202.)
The Maryland Commission on Civil Rights (MCCR) represents the interest of the State to ensure equal opportunity for all Marylanders through enforcement of Title 20 of the State Government Article and Title 19 of the State Finance & Procurement Article, Annotated Code of Maryland. MCCR investigates complaints of discrimination in employment, housing, public accommodations, health services, commercial leasing, and state contracts that are filed by members of protected classes under federal and state law.
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