Appraisal Bias in Residential Mortgage Lending: Key Insights for Lenders

Agencies across the federal government have intensified their scrutiny of property appraisals relating to residential mortgage loans and refinancings based on concerns that property values are being adversely influenced by ethnic and racial bias. With the support of the Biden Administration, the U.S. Department of Housing and Urban Development has led a multi-agency effort to implement an action plan to promote property appraisal and valuation equity, while the federal banking agencies and Consumer Financial Protection Bureau have committed to dedicate enhanced supervisory focus on these matters. Lenders now face mounting pressure on multiple fronts to ensure that appraisal services providers do not provide inequitable property valuations and may face direct litigation risk as theories of lender liability gain support from courts and government agencies.

Join us for a discussion on the government's enhanced focus on appraisal bias in residential mortgage lending and the steps that lenders can take to manage regulatory and litigation risk.

Topics

• Legal and Regulatory Developments: Stay informed about recent legal developments, including emerging theories of lender liability.
• Supervisory Expectations and Examination Preparation: Understand what regulators expect of lenders and how to prepare for examinations and supervisory inquiries.
• Strategies for Handling Government Inquiries and Litigation: Learn effective approaches to navigate potential challenges.
• Risk Management and Mitigation: Explore ways to proactively manage and mitigate risks relating to appraisal bias.