This new regulation is part of an effort to establish quality control standards to help guarantee the fairness of automated algorithmic models (AVMs) and increased transparency for home valuations.
AVMs would have to adopt policies and safeguards to guard against data manipulation, avoid conflicts of interest, and conduct random sample testing, experts said.
“We are also releasing the guidance to make it easier for consumers to appeal what they suspect to be unbiased valuation,” Harris stated.
Harris described homeownership as among the most powerful ways for American families to build wealth, and said that Black and Latino families are more likely to have their homes undervalued than other homeowners, raising the cost of a mortgage.
These measures build on President Joe Biden’s creation of the Interagency Task Force on Property Appraisal and Fair Valuation, which he announced two years ago on the 100th anniversary of the Tulsa Race Massacre of June 1, 1921.