Rep. Ayanna Pressley unveils new bill aimed to combat bias in home valuations

After witnessing story after story of Black and Brown homeowners having to adjust their entire lives to obtain the proper value for their homes, Congresswoman Ayanna Pressley (D-MA) is taking action.

On Friday (Nov. 21), one day before National Housing Day, Pressley introduced the Appraisal Modernization Act, aiming to ensure equity and eliminate biases against Black and brown individuals in home valuations.

Raphael Warnock (D-GA) is leading the companion legislature in the Senate.

“It is a damning injustice that Black and brown folks have to whitewash their homes to get a fair shake during the appraisals process,” Pressley exclusively told theGrio about her motivations to file the bill. “Our families are being shortchanged in a housing market that is built to disregard our worth, our lives, and our livelihoods. Our bill would confront this head-on.”

She added, “Home valuation has a direct impact on one’s ability to build generational wealth, and discrimination in home appraisals have exacerbated America’s glaring racial wealth gap for far too long. To address these disparities and advance economic justice—including for families of color—I’m proud to introduce the Appraisal Modernization Act. Our bill would combat systemic bias in home valuations and help ensure our home appraisal processes are accurate and equitable for all.”

Over the years, several lawmakers, including former Vice President Kamala Harris, have been vocal about the biases in home valuation. The Biden-Harris Administration made addressing systemic racism and prejudice in home appraisals a top priority during their time in the White House, launching a task force to combat racial disparities in home valuations and developing an action plan.

Pressley’s bill is the next step.

It would require lenders to have a standardized practice and polices in place to ensure consistent treatment of consumers who request that the appraiser reconsider the opinion of value or that the lender order a subsequent appraisal. Also included in the bill would be guidelines that represent a minimal burden for lenders and a requirement to enact a study to inform an appraisal database.

“Home valuations are a critical part of the mortgage lending process and help ensure families can build generational wealth through homeownership,” Warnock said. “This legislation will help Georgia families and all Americans realize the full value of their homes, and it empowers them with more data and tools to fight bias that would lower their homes’ values.”

The legislation is endorsed by Lawyers for Civil Rights, The Boston Foundation, National Fair Housing Alliance, National Consumer Law Center, National Low-Income Housing Coalition, the NAACP Legal Defense Fund, and Southern Poverty Law Center.