Freddie Mac Finds ‘Pervasive’ Bias in Home Appraisal Industry (Correct)

A study from the Federal Home Loan Mortgage Corporation, known as Freddie Mac, adds to a growing body of research that finds racism in the appraisal industry is undervaluing the homes of Black and Latino Americans compared to white-owned homes.

In an analysis of more than 12 million housing appraisals, Freddie Mac researchers found that “appraisal gaps seem pervasive” in lowering home value determinations in Black and Latino neighborhoods.

Other recent studies have shown that homes in Black neighborhoods are appraised at lower values than similar homes in white neighborhoods by as much as 23% on average, and that that ...