Valuation Bias: Where Do We Stand?

Valuation Bias: Where Do We Stand?

Part I – Federal Context and Policy Reset 

• Topics Covered:
  • Opening remarks on the significance of the 2025 transition.
  • Shift from PAVE-era activism to standards-based oversight.
  • Federal priorities emphasizing due process, transparency, and education.
  • HUD/OMB policy reset in July 2025, including rescission of prior policy letters.
  • Prompt: Discussion on the practical effects of the policy shift on daily review and compliance.

Part II – Oversight and Local Action

• Topics Covered:
  • HUD enforcement cases, including the Rocket case and 2024 TAF conciliation.
  • State and municipal trends, such as Philadelphia’s use of AVM to evaluate appraisals and related reports/forums.
  • Prompt: Debate on whether AVMs can correct or replicate appraisal bias. 

Part III – Legal Landscape & ROV Practice

• Topics Covered:
  • Lanham Decision focusing on methodology and documentation over perception-based claims.
  • Rocket Mortgage litigation (DOJ v. Rocket and Rocket’s countersuit against HUD in late 2024).
  • Evolution of Reconsideration of Value (ROV) practices post-ML 2025-08, with a focus on fairness, best practices, and case scenarios.

Part IV – Standards & Future Outlook

• Topics Covered:
  • AQB 2026 criteria introducing bias and fair-housing education requirements.
  • Industry implications, including a fragmented but predictable environment with emphasis on credibility and documentation.
  • Wrap-up with Q&A on ethical leadership, transparency, and public trust.