CFPB Tackles Algorithmic Bias in Home Valuations

The Central Financial Protection Bureau (CFPB) on February 23rd, 2022, outlined options to assist in ensuring accurate and fair computer-driven home valuations. Addressing fair lending risks to homeowners and homebuyers, and citing the Dodd-Frank Wall Street Reform and Consumer Protection Act, the CFPB believes proper safeguards will be necessary to avoid perpetuating historical lending and home value disparities prevalent in the appraisal process.