![]() The second appraisal came in as $557,000. The couple then decided to remove pictures of their family and replace them with photos of White people before getting a second appraisal, USA Today reported. In Ohio, Black homeowners Erica and Aaron Parker reportedly had their home appraised for $465,000. The homeowner, Carlette Duffy, is now suing the appraiser who she said undervalued her property, the Indianapolis Star reported. To some extent, the data collected by Freddie Mac - which buys mortgages from commercial banks to help lower the costs of borrowing to buy a home - validates the many anecdotal claims of discrimination that Black and Latino homeowners say they have experienced for years.Īn African-American homeowner who had her home in a historic neighborhood in Indianapolis appraised for $110,000 even though the true value was closer to $259,000. are 44%, 47% and 74%, respectively, according to St. Michael Bradley, a senior vice president for Freddie Mac, said in a statement that the gap "could also mean families might miss out on the full wealth-building benefits of homeownership or may be unable to get the financing needed to achieve the American Dream in the first place."Īs of April, the Black, Hispanic and White homeownership rates in the U.S. The differences suggest there's an "appraisal gap" among homeowners of color and it exists across the nation, Freddie Mac officials said. That figure compares to 7.4% of homes in White neighborhoods and as 9.4% of homes in Latino areas, the analysis found. Researchers found that 12.5% of homes appraised in Black communities were valued at less than the original cost of constructing the home. The government-chartered mortgage giant's analysis includes more than 12 million home appraisals and pinpoints where in the U.S. ![]() The appraisal value of homes in predominantly Black and Latino neighborhoods is oftentimes much lower than that of houses in mostly White communities, according to a recent analysis from Freddie Mac.
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