Federal laws require impartiality and prohibit discrimination in all actions relevant to the sale, refinancing, and purchase of a home. However, bias in home valuations lead to inequity in housing values and adversely impacts opportunities for minority communities to build wealth through homeownership.

The NCUA is a member of the Property Appraisal and Valuation Equity (PAVE) Task Force, an interagency initiative to address inequities in home appraisals. On March 23, 2022, the Task Force released the PAVE Action Plan, which describes steps that federal agencies will take to advance equity in the appraisal process.

Property Appraisal and Valuation Equity FAQs

  • What is a residential property appraisal and why is it important?

    A residential property appraisal is a written statement independently and impartially prepared by a qualified appraiser with an opinion of the market value of a home supported by the analysis of relevant market information. An appraisal is an important part of the homebuying process, as it establishes the value of the property to secure a home loan. Appraisals affect how much people make when they sell their home, how much people pay when they buy a home, and how much equity people can get out of their home when refinancing.

  • Is an appraisal required in all real-estate related financial transactions?

    No. Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (Title XI) generally requires credit unions to obtain appraisals for real estate-related transactions regulated by the NCUA. In 2020, the NCUA amended its regulations to require credit unions to obtain appraisals when originating residential real estate loans of $400,000 or more. Loans for less than $400,000 generally require written estimates of market value instead of appraisals. While written estimates of market value do not have to be issued by state-licensed or -certified appraisers, they must still be issued by individuals with qualifications and experience to perform such estimates.

  • What qualifications must appraisers have?

    Under Title XI, the Appraiser Qualifications Board (AQB) establishes the minimum education, experience, and examination requirements for real property appraisers to obtain a state license or certification. The AQB issues the Real Property Appraiser Qualification Criteria.

  • What should I do if I believe I have experienced discrimination with my property appraisal?

    Appraisal discrimination is illegal under federal law and prohibited by professional appraisal standards. The Fair Housing Act and the Equal Credit Opportunity Act prohibit appraisers from discriminating against you. If you think you have been discriminated against, you can file a complaint with the state agency that regulates appraisers. To find out which agency to notify, contact the Appraisal Complaint National Hotline. The hotline doesn't handle complaints but will refer you to the appropriate authority. You may fill out a form on the website or call the toll-free number at 1.877.739.0096.

    You may also file a complaint with a state or federal financial regulatory agency if you think your lender discriminated against you by relying on a biased appraisal. To submit a complaint against your credit union, please contact the NCUA’s Consumer Assistance Center or call 800.755.1030. You may also contact the Consumer Financial Protection Bureau at https://www.consumerfinance.gov/complaint/ or call 1.855.411.2372.

    You may also file a fair housing complaint directly with HUD's Office of Fair Housing and Equal Opportunity, online at www.hud.gov/program_offices/fair_housing_equal_opp/online-complaint or by calling 1.800.669.9777.

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