Why Valuation Bias Training Matters
for Appraisers
Valuation bias can create significant financial and social impacts, affecting property owners, lending institutions, and entire communities. For appraisers, understanding and addressing bias is essential to developing value conclusions, ensuring fair lending practices, and reducing risk. At Trusted Advisors GAP Services, our Valuation Bias Training educates appraisers on the origins of valuation bias, key legal requirements, and practical strategies to support equitable appraisal practices. This training aligns with regulatory standards, helping appraisers develop compliant reports and minimize risks tied to discriminatory valuations.
Valuation Bias and Fair Housing Laws and Regulations for Appraisers
Module 1:
Historical and Contemporary Context
Overview:
Module 1 sets the foundation for understanding how historical and systemic practices in the real estate industry have caused disparities in the housing and lending markets.
Module 1 explores the origins of discriminatory real estate related policies and practices and the disparate impact they have had on minorities. As appraisers, your role is vital in ensuring equitable access to housing and credit. By understanding the roots and impact of housing discrimination, you will be better equipped to uphold ethical practices that support your value conclusions and promote fair access to credit for everyone.
Learning Objectives:
- Describe the historical perspective of housing discrimination in the United States.
- Explain the concept and genesis of “redlining” in the United States.
- Develop an understanding of the basis of court cases alleging discrimination or bias in an appraisal or evaluation report.
Module 2:
Laws and Regulations
Overview:
This module builds on the foundational concepts of Module 1, taking a closer look at legal developments over time that both supported and hindered anti-discrimination practices related to housing.
Module 2 enhances your understanding of laws and regulations, such as the Fair Housing Act and changes to the Uniform Standards of Professional Appraisal Practice (USPAP) that have shaped our modern-day practices to ensure ethical housing practices in the real estate and lending industries.
Learning Objectives:
- Describe the protected characteristics and the Federal laws and regulations that prohibit discrimination or bias in housing and the appraisal process.
- Understand the prohibitions in the Uniform Standards of Professional Appraisal Practice (USPAP) regarding discrimination and bias.
- Review the Appraisal Regulation’s requirements for appraisal and evaluation reports.
Module 3:
Valuation Bias
Overview:
Module 3 describes the different types of bias and
addresses ways to recognize and avoid bias.
Learning Objectives:
- Define different types of bias.
- Discover new ways to learn about bias.
- Appreciate how a financial institution’s policies and procedures for reconsideration of value and complaint processes will potentially impact appraisers.
Module 4:
Case Studies
Overview:
Module 4 discusses current valuation bias topics, presents ways to avoid appraisal bias, and engages participants in case studies based on recent appraisal reports.
Learning Objectives:
- Discuss the current topic of cultural competency and its benefits.
- Describe the appraisal or evaluation report review process, and what content reviewers will consider as it relates to bias and discrimination.
- Consider some “best practices” for recognizing and avoiding potential discrimination in appraisal reports prior to their submission.
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Why Choose Valuation Bias Training with Trusted Advisors GAP Services?
Our Valuation Bias Training for lenders is led by industry experts Suzy Gardner and Candi Coleman, who bring decades of experience in appraisal, banking compliance, and regulatory standards. This training equips lending professionals with essential tools to meet regulatory requirements, promote fair lending practices, and reduce potential legal and reputational risks. By enhancing cultural competency and implementing robust quality controls, lenders can foster equitable appraisal outcomes, strengthen compliance, and build trust within their communities.
Need a Tailored Approach?
If the Valuation Bias Training Course doesn’t perfectly align with your organization’s unique needs, we’re here to help. At Trusted Advisors GAP Services, we offer custom-designed training solutions that are built around your specific compliance goals, team requirements, and industry challenges. Our experienced consultants can work with you to create a course that addresses your institution’s unique regulatory concerns and promotes fair, unbiased valuation practices.