Answer: Yes. A new CFPB initiative has been developed known as PAVE – Property Appraisal and Valuation Equity. It is an Interagency Task Force to address inequity in home appraisals. Examiners will be looking to see how financial institutions ensure there is no appraisal bias in minority neighborhoods or minority homes by monitoring the financial institution’s appraisal process as well as monitoring their Appraisal Management vendors. A financial institution will need to develop mitigating controls to ensure no pattern of appraisal bias is occurring. TCA will be publishing an article soon with more detail – stay tuned!
