Freddie Mac Finds Wide “Appraisal Gap” For Black and Latino Homeowners

A new report by Freddie Mac found that homes in Black and Latino neighborhoods were more than twice as likely to be undervalued than homes in white neighborhoods. The report analyzed 12 million appraisals between 2015 and 2020. Though only 7.4 percent of homes in majority-white areas were undervalued, that proportion rose to 12.5 percent and 15.4 percent of homes in Black and Latino areas, respectively. “This is a persistent problem that disproportionately impacts hundreds of thousands of Black and Latino applicants,” said Michael Bradley, a senior vice president at Freddie Mac.

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