U.S. Sen. Reverend Raphael Warnock and five of his Senate colleagues have introduced new legislation to address appraisal bias in the home buying and selling processes. Under the Appraisal Modernization Act, the nation’s homebuyers would be equipped with more data and tools to fight bias that would lower their homes’ values.
The Appraisal Modernization Act would:
- Increase transparency to support oversight and enforcement against bias by requiring the Federal Housing Finance Agency (FHFA) to publish an online database of property-level appraisal and other home valuation data that lenders collect in connection with a mortgage application.
- Protect and empower consumers by codifying a consumer’s right to appeal a home valuation (also known as a Reconsideration of Value [ROV]) or request a second appraisal and directing the development of standardized policies to ensure consistent treatment of consumers who request an ROV or second appraisal.
Research from Brookings has found that homes in Black neighborhoods are valued roughly 21% to 23% below what their valuations would be in non-Black neighborhoods.
“Home valuations are a critical part of the mortgage lending process and ensuring families can build generational wealth through homeownership,” said Sen. Warnock. “This bill is an important next step in helping 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.”
The Appraisal Modernization Act is cosponsored by Sens. Angela Alsobrooks, Lisa Blunt Rochester, Cory Booker, Andy Kim, and Elizabeth Warren.
“For far too long, the American Dream of buying a home has been kept out of reach for families of color by a system that is fundamentally broken,” said Sen. Kim. “Every family should be able to achieve that dream, and this bill will take common sense steps to make the changes needed to make those dreams come true.”
Inconsistency in the appraisal market can disrupt the entire housing ecosystem by improperly inflating or deflating home values, while bias can perpetuate historic disinvestment in communities of color and contribute to the widening racial and ethnic wealth and homeownership gaps. That is why industry stakeholders and fair housing advocates have long supported increasing transparency in appraisal data and why most responsible lenders believe ROV is an important part of maintaining the integrity of the appraisal process. Several studies have also identified a clear relationship between lower valuations and Black neighborhoods and revealed overt references to race in appraisals. On average, today White families hold $1.3 million in wealth, compared to $211,000 for Black and $227,000 for Latino families. For most Americans, the largest driver of wealth is their home.
James Nabors II, President of the National Association of Mortgage Brokers (NAMB), said: “As President of NAMB, I will always support any legislation that ensures the fairness, protection, and privacy of homebuyers, and I applaud Sen. Warnock for leading this effort. The reality is that we must be thorough in the quest to protect consumers, and we hope that your colleagues will consider this important bill as it navigates the legislative process.”
In March 2025, Sen. Warnock introduced a comprehensive legislative package of housing bills to address the ongoing housing affordability and availability crisis in the U.S. In the past few years, Sen. Warnock voted for government funding legislation that increased America’s housing supply, strengthened housing affordability, and addressed the homelessness crisis, including by: increasing the supply of affordable housing nationwide with funding to build 10,000 new rental and homebuyer units; extending funding for the Yes In My Backyard (YIMBY) grant program to support efforts to increase our nation’s housing supply and lower housing costs through state and local zoning changes; and delivering $275 million in new funding for Homeless Assistance Grants to help address homelessness in communities across the country and providing new resources to better connect people experiencing homelessness with health care services.
“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, EVP of the National Fair Housing Alliance (NFHA). “NFHA commends Senator Warnock and his colleagues for a sensible bill designed to help consumers, appraisers, and lenders obtain the data necessary to ensure home valuations are fair and consistent.”
Click here for more on Sen. Warnock’s Appraisal Modernization Act.
