Biased home appraisals steal $150 billion from Black home wealth

For most consumers, buying a home is the single-largest investment of their lifetimes. But for Black America, home equity – the increase in market value from the time of purchase – is often the dominant, if not sole source of wealth-building. Home equity represents 65 percent of all Black wealth, according to the nation’s oldest minority professional trade association, National Association of Real Estate Brokers (NAREB).Yet the unfortunate reality for Black homeowners, according to NAREB is that systemic discrimination used in appraisals that determine home fair market values all too often perpetuate — instead of narrow — racial wealth gaps, for homeowners and buyers alike. These mandatory reports are a key factor used by lenders to reach decisions on loan applications to purchase, sell or improve homes.