Posted To: MND NewsWire
A cluster of stories about appraised values of homes in minority areas hit the national news earlier this summer and now Freddie Mac has released an analysis of the smoke/fire variety. The company says it found appraised values are more likely to fall below the contracted sale price of a home in census tracts with a higher share of Black and Latino households, resulting in what is known as an appraisal gap. This is precisely what was alleged in news reports. Further, the extent of that gap increases as the percentage of persons of color living in the census tract grows. Freddie Mac based its analysis on 12 million appraisals it received as part of the home purchase process between 2015 and 2020. “An appraisal falling below the contracted sale price may allow a buyer to renegotiate with a seller…(read more)
Source: Mortgage News Daily
