At the start of their refinancing journey, Florida couple Abena and Alex Horton were hopeful. They had equity on their side and a valuable piece of property they called home. But once the appraiser was gone, a troubling surprise followed.
The home they believed would be valued at between $350,000 to $550,000 was only worth a pitiful $330,000! How could that be? Abena had a strong hunch.
After removing family portraits, books from Black authors, and basically anything that might signal the presence of a Black homeowner, the couple tried again with a second appraiser. The result was a 40% JUMP in the value of their home – to $465,000!
Their experience shows how systemic discrimination plays out for Black property investors.
According to the New York Times, “home appraisers, who [are obligated to] work under codes of ethics but with little regulation and oversight, are often all that stands between the accumulation of home equity and the destruction of it for Black Americans.”
The family is taking legal action, citing the Fair Housing Act of 1968 and Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 as the statutes that underpin industry integrity.
Although the Hortons ultimately received a fairer assessment, their story shines a spotlight on persistent systemic bias in the industry!