Jim Amorin steps down as CEO of the Appraisal Institute

Jim Amorin, CEO of Evaluation Instituteannounced his resignation from the valuation trade group on Thursday.

In a statement, the Valuation Institute said Amorin’s five-year term would end on February 14, 2023. The organization said he was “moving on.”

The board will immediately begin the search for a new CEO, the Valuation Institute said in the statement.

The residential appraisal space has been rocked by increased federal scrutiny over the past two years, with several agencies investigating whether appraisers let racial bias alter their appraisals.

At the end of October, the Federal Housing Finance Agency made public for the first time 47 million assessment reports. The ratings, compiled between 2013 and 2021, show that the home appraisal industry places higher values ​​on homes with white owners, and lower values ​​if the owners are people of color.

In November, sociology professors Junia Howell and Elizabeth Korver-Glenn published research concluding that the higher the proportion of white residents in each community, the higher the appraised value of single-detached homes.

The two researchers used census tracts as a proxy for neighborhoods and compared communities with nearly identical housing stock. The study compared metropolitan areas with at least 500,000 people and at least 50,000 residents of color; it looked at residents of the same socioeconomic status who have access to similar amenities, such as parks, grocery stores, banks, and more.

“Home value inequalities are the result of valuation practices that elevate white space as the most valuable,” the report says.

Korver-Glenn and Howell said that since 2013, homes in white neighborhoods have been assessed to be worth $371,000 more, on average, than homes in white neighborhoods. The racial gap itself in appraisal values ​​increased by 75% during this period.

The Evaluation Institute has recognized that it needs to modernize. According to the group’s own statistics, 78% of U.S. reviewers identify as male, 1.3% identify as black and 4.3% as Hispanic. More than 70% of appraisers are over 50 years old.

In an interview with HousingWire in January 2022, Appraisal Institute president Jody Bishop said the group is working to address allegations of racial bias.

“What I can tell you is that the Evaluation Institute is trying to tackle unconscious bias,” he said. “We are trying to improve our diverse recruiting. We push for higher ethical standards. It is a work in progress.

“I can tell you from personal experience that there are biases in my work. I don’t like those split level houses, like the one at Brady Brunch, and that was huge in the late 60’s and early 70’s. I could be considered biased about this type of home. That’s kind of what an unconscious bias is. And we need to understand the actual events that happened.

In March, the Department of Housing and Urban DevelopmentThe Property Appraisal and Valuation Equity (PAVE) task force has released an action plan to eliminate bias.

Among the measures to be taken is increased control of the Valuation Foundationa quasi-governmental body that “wields enormous power to set standards and collect fees from the professional appraiser community,” Consumer Financial Protection Bureau Director Rohit Chopra said in March.

About Robert Wright

Check Also

A philosophy professor publishes a book on ethical consumption

Nicole Hassoun reflects on political activism in her second book, “Global Health Impact: Extending Access …