Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra has said the new report from the Interagency Task Force on Property Appraisal and Valuation Equity (PAVE) “underscores the critical importance of fair and accurate appraisals in residential real estate.”
“Discriminatory home valuations, whether computed by an algorithm or conducted in-person, undermine longstanding goals for fair housing and fair lending across our country,” he said.
He said the CFPB would be taking more active leadership in the Appraisal Subcommittee of the Federal Financial Institutions Examination Council. The CFPB will be looking closely at The Appraisal Foundation, which sets standards for appraisal professionals.
In addition, the CFPB will be working with a dormant authority in federal law to make sure there’s fairness in algorithmic valuations.
“We will also be taking additional steps through our research, through our supervisory examinations of financial institutions and their service providers, and through law enforcement actions,” the statement from Chopra said. “We welcome input and engagement from the public, the professional appraiser community, and across the residential real estate industry.”
See also: CFPB Releases Policy Guidance Related to Fake and Dishonest Reviews
Those will look into “potentially illegal practices” and will make sure customers can write reviews that accurately reflect how they feel.
According to CFPB, fake reviews are an issue, as are companies with agreements that “forbid a customer from publishing an honest review,” according to the agency press release.
Chopra is quoted saying that no corporation should be allowed to “silence a customer from posting an honest review online.”
“Corporate disinformation campaigns that suppress legitimate reviews or manufacture fake reviews are not only a threat to free speech and fair competition, they are also illegal,” he said.
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