In two similar assignments, appraiser Heather Mills writes extensive comments labeling one area a "high-crime neighborhood" and ties that phrase to a lower value conclusion, even though she did not analyze crime statistics consistently across comparable assignments. What is the best appraisal compliance conclusion?
Correct Answer
A) The report may violate appraisal standards by using crime as a proxy or pretext for a protected characteristic
Current appraisal guidance treats unsupported references to crime and similar coded language as serious compliance concerns. Such language may signal the use of race or another protected characteristic as a proxy or pretext, and Fannie Mae separately lists crime references as unacceptable appraisal practice.
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More Valuation Market Analysis Questions
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Previous Question
A lender first orders an appraisal on a mixed-use building with retail space and apartments, then asks about a later assignment involving industrial land. Which credential clearly has authority to appraise all types of real property under AQB minimum classifications?
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A lender assigns an appraiser who has never worked in the subject market and does not have access to local data sources. The lender says the appraiser can learn as they go because the fee is low and the turn time is fast. For a Fannie Mae mortgage assignment, what is the best response?