Studies Have Shown that Systemic Bias in Home Appraisal Processes Disadvantages Families of Color

Bill Text

WASHINGTON– Today, on National Housing Day, Congresswoman Ayanna Pressley (MA-07) introduced the Appraisal Modernization Act, legislation to promote equity and combat systemic bias in the home appraisal process that has disadvantaged many current and aspiring homeowners—especially homeowners of color. The Senate companion legislation is being led by Senator Raphael Warnock (D-GA).

“Home valuation has a direct impact on one’s ability to build generational wealth, and discrimination in home appraisals have exacerbated America’s glaring racial wealth gap for far too long,” said Rep. Ayanna Pressley. “To address these disparities and advance economic justice—including for families of color—I’m proud to introduce the Appraisal Modernization Act. Our bill would combat systemic bias in home valuations and help ensure our home appraisal processes are accurate and equitable for all.”

“Home valuations are a critical part of the mortgage lending process and help ensure families can build generational wealth through homeownership,” said Senator Reverend Warnock. “This legislation will help Georgia families and all Americans realize the full value of their homes, and it empowers them with more data and tools to fight bias that would lower their homes’ values.”

“Lawyers for Civil Rights applauds Representative Pressley’s Appraisal Modernization Act, which aims to bring accountability, transparency, and fairness to the home appraisal process. Combating bias in home valuations is a key step towards closing the racial wealth gap and addressing discrimination against homeowners of color. It is past time that we begin to level the playing field by ensuring that all families have the same opportunity to build generational wealth through homeownership.” – Jillian Lenson, Senior Attorney, Lawyers for Civil Rights

“An appraisal has the power to determine the value of a consumer’s most important financial asset and can hold the key to determining whether the consumer is able to purchase a permanent home rather than rent, access credit on reasonable terms, and build wealth for generations to come,” said Nikitra Bailey, Executive Vice President of the National Fair Housing Alliance (NFHA). “NFHA commends Rep. Pressley and her colleagues for a common-sense bill designed to provide consumers with consistent standards for obtaining a fair and accurate home valuation.”

“The long history of bias in home appraisals has denied entire communities the full advantages of intergenerational wealth-building and economic development. The neighborhood impacts hurt everyone: renters, homeowners, and prospective homeowners alike. NLIHC applauds Rep. Pressley for addressing this injustice by introducing the Appraisal Modernization Act in the House.” – David Gonzalez Rice, Senior Vice President for Public Policy, National Low-Income Housing Coalition

“Fair housing requires fair appraisals,” said Demetria McCain, Director of Policy at the Legal Defense Fund. “Black households have been callously discriminated against in home appraisals, preventing them from building wealth and limiting their ability to start a business, pay for their children’s education, and access other economic opportunities. Appraisal discrimination has no place in the housing ecosystem. We are pleased at the introduction of this bill and urge the House to swiftly pass it.”

“For too long, biased appraisals have robbed families — especially Black and Brown families — of the opportunity to buy homes, build stability, and create generational wealth,” said Sakira Cook, Federal Policy Director at the Southern Poverty Law Center. “The Appraisal Modernization Act is a crucial step toward correcting decades of discrimination by bringing long-overdue transparency and accountability to the process. We applaud Congresswoman Pressley, Senator Warnock, and their colleagues for advancing this essential legislation to ensure every family is treated fairly — and that future generations can fully participate in the promise of homeownership.”

For most Americans, the largest driver of wealth is their home, making it critically important to have accurate, unbiased home valuations. Instead, several studies have identified a clear relationship between lower valuations and Black neighborhoods, revealed race was considered in the appraisal process, and concluded that White borrowers’ homes were consistently overvalued, but especially so in Black neighborhoods. There have also been several high-profile incidents of Black or Latino families receiving a higher appraisal after “whitewashing” their home. Biased appraisals have real world consequences: today, Black and Latino families have considerably less wealth than White families. White families on average hold $1.3 million in wealth, compared to $211,000 for Black and $227,000 for Latino families.

The Appraisal Modernization Act would require lenders to have standardized policies to ensure consistent treatment of consumers who request that the appraiser reconsider the opinion of value or that the lender order a subsequent appraisal. It would:

• Ensures a standard consumer right to appeal: The Act would ensure that every consumer is provided with a standardized process to obtain a fair appraisal and has the opportunity to access the full benefits of homeownership.
• Represent minimal burden for lenders. Most responsible lenders already have a standardized process that follows the guidance issued by Fannie Mae and Freddie Mac. Also, standardized processes are a critical part of a lender’s Compliance Management System. This Act would help reduce a lender’s legal liability by clarifying that processing a consumer’s request for a reconsideration of value does not conflict with the Appraiser Independence Rules.
• Provide appraisal data to the public: This Act would also require the General Accounting Office (GAO) to issue a public report assessing the feasibility of a public appraisal database. Providing appraisal data to the public would increase the transparency and consistency of the appraisal process.

Bill text is available here.

The legislation is endorsed by Lawyers for Civil Rights, The Boston Foundation, National Fair Housing Alliance, National Consumer Law Center, National Low-Income Housing Coalition, the NAACP Legal Defense Fund, and Southern Poverty Law Center.

In January 2024 House Financial Services Committee hearing, Rep. Pressley highlighted the growing housing crisis and how appraisal bias and discriminatory tenant screening practices exacerbate the racial wealth and homeownership gaps, especially for Black communities.

As a Member of the Subcommittee on Housing and Insurance of the House Financial Services Committee (FSC), Rep. Pressley has consistently advocated for policies that affirm housing as a human right and center the dignity and humanity of all people.

• In May 2025, Rep, Pressley, along with Representatives Delia C. Ramirez (IL-03), Rashida Tlaib (MI-12), Jimmy Gomez (CA-34), and Greg Casar (TX-35), reintroduced the Tenants’ Right to Organize Act, legislation to protect the power of tenants, including those with federal vouchers, to organize.
• In June 2024, Rep. Pressley, along with Representatives Maxine Waters (CA-43) and Rashida Tlaib (MI-12), re-introduced the Tenant Empowerment Act, bold legislation to strengthen HUD tenant protections and provide renters with the tools necessary to improve the quality of their homes.
• In March 2024, Rep. Pressley, along with Mayor Wu, visited Roxbury to celebrate the $1,000,000 in federal funding she secured to provide emergency childcare support for families experiencing homelessness in the City of Boston.
• In March 2024, Rep. Pressley, along with Senators Warren and Markey, applauded the final passage of $850,000 in federal community project funding for The Pryde, an affordable housing development for LGBTQ+ seniors in Hyde Park.
• In March 2024, Rep. Pressley urged Federal Reserve Chairman Jerome Powell to cut interest rates to boost home affordability and construction of affordable housing.
• In January 2024, Rep. Pressley, during a House Financial Services Committee Hearing, highlighted the growing housing crisis and how appraisal bias and discriminatory tenant screening practices exacerbate the racial wealth and homeownership gaps, especially for Black communities.
• In January 2024, Rep. Pressley celebrated the $2.4 million in federal funding she secured to support the community-led transformation of the Clarendon Hill housing community, an ethnically, linguistically and economically diverse neighborhood in Somerville.
• In December 2023, Rep. Pressley requested the Centers for Medicare and Medicaid Services (CMS) to provide data on housing needs for Medicaid beneficiaries and feedback on challenges the agency is having in covering housing support for people requiring home and community-based services (HCBS).
• In July 2023, Rep. Pressley, along with Chairwoman Rosa DeLauro (CT-03) and Congresswoman Cori Bush (MO-01), reintroduced the Housing Emergencies Lifeline Program (HELP) Act, critical legislation to provide much-needed assistance to those facing eviction amid the ongoing COVID-19 pandemic. 
• In September 2021, Rep. Pressley joined Rep. Bush and Senator Elizabeth Warren (D-MA) in introducing the Keeping Renters Safe Act of 2021 to enact an urgently needed nationwide eviction moratorium. 
• On July 2021, ahead of the expiration of the previous CDC eviction moratorium, Reps. Pressley, Bush, Gomez and their progressive colleagues sent a letter renewing their calls for President Biden and CDC Director Rochelle Walensky to extend the federal eviction moratorium and prevent the historic and deadly wave of evictions that would occur if the government failed to do so. 
• On July 30, 2021, Rep. Pressley joined House Financial Services Committee Chairwoman Maxine Waters (D-CA) in introducing the Protecting Renters from Evictions Act of 2021, legislation to extend the eviction moratorium through the end of the year. 
• In June 2021, Rep. Pressley, along with Reps. Gomez and Bush, led over 40 of their colleagues on a letter urging President Biden and CDC Director Walensky to extend and strengthen the moratorium for the duration of the public health crisis. 
• In June 2021, Congresswoman Pressley, along with Rep. Ilhan Omar (D-MN), re-introduced the Rent and Mortgage Cancellation Act, a bill to institute a nationwide cancellation of rents and home mortgage payments through the duration of the coronavirus pandemic.
• On May 18, 2021, Reps. Bush and Pressley sent a letter to the Director of the Centers for Disease Control and Prevention (CDC), calling on the CDC to strengthen and extend the federal moratorium on evictions, ensuring families can remain safely in their homes for the duration of the COVID-19 global health emergency.
• On July 28, 2020, Rep. Pressley, Rep. DeLauro and Sen. Harris introduced the Housing Emergencies Lifeline Program (HELP) Act to provide much-needed, layered assistance to those facing eviction amid the COVID-19 pandemic.
• On July 24, 2020, in a Financial Services Committee hearing, Rep. Pressley discussed the unprecedented financial cliff facing millions of renters and homeowners, the economic consequences of millions losing their homes, including the ability to return to work, and why funding for legal representation is so critical.
• On May 11, 2020, Reps. Tlaib, and Joe Neguse (D-CO) urge House and Senate leadership to include $11.5 billion in funding for Emergency Solutions Grants (ESG) in the next relief package to aid the nation’s homeless population who are experiencing heightened vulnerability during the COVID-19 pandemic.
• On April 10, 2020, Rep. Pressley urged Congressional leadership to prioritize recurring monthly cash payments to those most at-risk during the COVID-19 crisis. This funding would allow people to cover all their bills, including rent.
• On April 17, 2020, Reps. Pressley, Ilhan Omar (D-MN) and colleagues introduce the Rent and Mortgage Cancellation Act, a bill to institute a nationwide cancellation of rents and home mortgage payments through the duration of the coronavirus pandemic.

• On March 23, 2020, Reps. Pressley and Rashida Tlaib (D-MI) introduced the Public Health Emergency Shelter Act of 2020, legislation to provide critical funding to states and local governments responding to the needs of families and individuals experiencing homelessness during the COVID-19 crisis. This legislation was included and passed through the HEROES Act and H.R. 7301, the Emergency Housing Protections and Relief Act of 2020.
• On March 19, 2020, Rep. Pressley, along with progressive lawmakers and organizations, introduced the Housing is a Human Right Act to authorize more than $200 billion in federal spending over 10 years for crucial housing infrastructure and reduce homelessness.
• On March 18, 2020, Reps. Pressley, Katie Porter (D-CA) and Sens. Elizabeth Warren (D-MA), Bernie Sanders (I-VT) and Jeff Merkley (D-OR) wrote to HUD calling for a moratorium on evicting renters during the coronavirus pandemic.
• In July 2019, Rep. Pressley announced legislation that would prohibit the use of biometric recognition technology in most public and assisted housing units funded by the Department of Housing and Urban Development (HUD), protecting tenants from biased surveillance technology. 
• In November 2019, Rep. Pressley and Rep. Tlaib wrote to HUD blasting the agency for ignoring low-income tenants seeking to save their homes.

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