{"id":5328,"date":"2022-05-18T04:26:00","date_gmt":"2022-05-18T08:26:00","guid":{"rendered":"https:\/\/nationalfairhousing.org\/?p=5328"},"modified":"2022-05-18T12:40:36","modified_gmt":"2022-05-18T16:40:36","slug":"leading-civil-rights-consumer-and-technology-advocates-urge-the-cfpb-and-other-federal-regulators-to-promote-fairness-in-automated-valuation-models","status":"publish","type":"post","link":"https:\/\/nationalfairhousing.org\/leading-civil-rights-consumer-and-technology-advocates-urge-the-cfpb-and-other-federal-regulators-to-promote-fairness-in-automated-valuation-models\/","title":{"rendered":"Leading Civil Rights, Consumer, and Technology Advocates Urge the CFPB and Other Federal Regulators to Promote Fairness in Automated Valuation Models"},"content":{"rendered":"\n

WASHINGTON <\/strong>\u2013 May 18, 2022 \u2013 A diverse group of leading civil rights, consumer, and technology advocates has submitted a letter<\/a> to the Consumer Financial Protection Bureau (CFPB) in response to its request for comment on an outline of proposals<\/a> (CFPB Outline) for a rule to impose quality control standards on Automated Valuation Models (AVMs). Racial discrimination in home appraisals continues to affect homeowners of color throughout the country, and documented instances of appraisal discrimination in California<\/a>, Indiana <\/a>and other areas are reflective of practices that restrict housing and lending access. AVMs are sometimes used as an alternative to or a check on traditional home appraisals, but there are no national quality control standards to ensure that AVMs are fair, unbiased, and transparent.<\/p>\n\n\n\n

The CFPB Outline comes at a time when the United States is once again at a critical crossroads in determining whether to develop equitable systems that serve and uplift the whole of the housing market, or systems that perpetuate, amplify, and even exacerbate existing discriminatory patterns. For example, AVMs may rely on biased data that reflects the undervaluation of communities of color and formerly-redlined areas. The advocates believe that the time to act is now as the use of automated technologies proliferates and has the potential for far-reaching adverse impacts for borrowers of color and other protected groups. <\/p>\n\n\n\n

\u201cWe need continued innovation as well as strong regulatory oversight to put an end to housing and financial inequality,\u201d said Lisa Rice, President and CEO of the National Fair Housing Alliance (NFHA). \u201cWe must be intentional about developing technology that places underserved families in positions to participate fully in economic opportunities, own homes, and accumulate intergenerational wealth.\u201d <\/p>\n\n\n\n

Specifically, the advocates believe it is critically important for the CFPB and the other agencies involved in this rulemaking (the Board of Governors of the Federal Reserve, Federal Deposit Insurance Corporation, Federal Housing Finance Agency, National Credit Union Administration, and Office of the Comptroller of the Currency, collectively, the \u201cAgencies\u201d) consider the following:<\/p>\n\n\n\n