New York [US], October 14:Racial biases and discrimination in housing markets have been a longstanding concern in the United States, reported Financial Post on Monday.
"Systematic examples include refusing mortgage loans to homebuyers in minority neighbourhoods, known as redlining, and comparatively lower appraisal values of homes sold by racial minorities," according to the Canadian business newspaper.
Federal Home Loan Mortgage Corp. studied more than 12 million appraisals and found that homes in predominantly Black or Latino neighbourhoods were "more likely to receive an appraisal lower than the contract (transaction) price."
"More than 97 percent of property appraisers in the U.S. are white. Therefore, the racial differences between the appraisers and the appraised could have contributed to the lower valuation of minority-owned properties," said the report.
Homes owned by Black families received lower appraised values by Black and white appraisers alike, but relative to white appraisers, Black appraisers gave a higher valuation to homes owned by white families, it added.
Source: Xinhua