On March 8, 2021, the U.S. Department of Housing and Urban Development (HUD) announced that it had approved a conciliation agreement between a national mortgage lender and an African-American woman (the Complainant), resolving allegations that the mortgage lender provided an inaccurate appraisal of the Complainant’s home due to her race in violation of the Fair Housing Act (FHA).
Under the FHA, it is unlawful to discriminate in the terms, conditions, or privileges of the sale of a dwelling due to race, color, religion, national origin, sex, disability, and familial status. Residential real estate transactions, including making home loans and appraising residential property, are also covered by the FHA. Here, the Complainant filed a complaint with HUD, alleging that the mortgage lender, while providing an appraisal, valued her home at a lower amount than she believed it was worth due to her race.
Under the terms of the conciliation agreement, the lender agreed to pay $50,000 to the Complainant. The lender will also implement additional mandatory training on the Reconsideration of Value process and fair lending issues related to appraisals.