This legislation will empower Marylanders with more data and tools to fight bias that would lower their homes’ values
July 24, 2025
Washington, DC – U.S. Senator Angela Alsobrooks (D-Md.) joined Senator Reverend Raphael Warnock (D-Ga.) and four Senate colleagues in introducing new legislation to address appraisal bias in the home buying and selling processes. Housing appraisals are supposed to provide an objective estimate of a home’s market value to ensure homebuyers pay a fair price and homeowners receive the full value of their home. Unfortunately, systemic bias in the appraisal process has disadvantaged families of color for far too long. To combat appraisal biases faced by many current and aspiring homeowners, the Appraisal Modernization Act would empower Marylanders with more data and tools to fight bias that would lower their homes’ values.
“I am very proud to continue the work I started as County Executive to make homeownership more equitable and accessible. As County Executive, I signed a law that outlawed appraisal bias in Prince George’s County – and now it’s time we outlaw it across the nation. Home ownership should not be just a dream for the rich but an opportunity for all. Many Marylanders see home ownership as the surest way to build wealth, and they’re right. This legislation will increase transparency, protect consumers, and give Marylanders a true chance to thrive,” said Senator Alsobrooks.
“The Maryland Department of Housing and Community Development, Senator Alsobrooks, and Senator Warnock are in perfect alignment on how to address the pervasive problem of systemic bias in residential property valuation — in fact, the State’s Task Force on Property Appraisal and Valuation Equity also identified its top two recommendations as increased transparency and changes to the Reconsideration of Value process,” said Maryland Department of Housing and Community Development Secretary Jake Day. “We’re on the ground each and every day fighting to make sure all Marylanders have equal access to homeownership, and I’m proud to know we’re in lock step with our partners at the federal level.”
“The Appraisal Modernization Act marks a new dawn for the appraisal industry, offering long-overdue transparency in a field that has historically lacked it. First, it provides the public and professionals with clearer, more equitable insight into how property values are assessed. Second, it empowers future home sellers with vital information needed to fairly determine their home’s worth. Third, it helps create a level playing field for both buyers and sellers, enabling strategic and accurate home pricing. Fourth, it supports the transfer of generational wealth in a way that is grounded in true, data-based value—not bias or outdated systems. And fifth, perhaps most importantly, this Act represents common-sense politics—something our housing market, and our broader society, needs now more than ever. I stand firmly behind this legislation and urge others in the real estate community to do the same,” said Rodney Dotson Real Estate Strategist & Real Estate Compliance Manager, Baltimore County, Maryland.
The Appraisal Modernization Act would:
- Increase transparency to support oversight and enforcement against bias by requiring the Federal Housing Finance Agency (FHFA) to publish an online database of property-level appraisal and other home valuation data that lenders collect in connection with a mortgage application.
- Protect and empower consumers by codifying a consumer’s right to appeal a home valuation (also known as a Reconsideration of Value (ROV)) or request a second appraisal and directing the development of standardized policies to ensure consistent treatment of consumers who request an ROV or second appraisal.
Together, these provisions will empower consumers to realize the full value of their homes. The urgency of this legislation was only further heightened when, last week, the Trump administration announced it was ending the federal task force dedicated to removing racial bias from the appraisal process.
Research from Brookings has found homes in Black neighborhoods are valued roughly 21% to 23% below what their valuations would be in non-Black neighborhoods.
“Home valuations are a critical part of the mortgage lending process and ensuring families can build generational wealth through homeownership,” said Senator Reverend Warnock. “This bill is an important next step in helping Georgia families and all Americans realize the full value of their homes, and it empowers them with more data and tools to fight bias that would lower their homes’ values.”
“Too many families of color suffer from systemic biases in the home appraisal process,” said Senator Booker. “One of the largest drivers of wealth for Americans is their home, and the color of your skin should not be a determinant of your home’s value. This bill is a critical step in ensuring more reliable appraisal methods, and empowering consumers to appeal potentially discriminatory valuations.”
“For far too long, the American Dream of buying a home has been kept out of reach for families of color by a system that is fundamentally broken,” said Senator Kim. “Every family should be able to achieve that dream, and this bill will take common sense steps to make the changes needed to make those dreams come true.”
Inconsistency in the appraisal market can disrupt the entire housing ecosystem by improperly inflating or deflating home values, while bias can perpetuate historic disinvestment in communities of color and contribute to the widening racial and ethnic wealth and homeownership gaps. That is why industry stakeholders and fair housing advocates have long supported increasing transparency in appraisal data and why most responsible lenders believe ROV is an important part of maintaining the integrity of the appraisal process. Several studies have also identified a clear relationship between lower valuations and Black neighborhoods and revealed overt references to race in appraisals. On average, today White families hold $1.3 million in wealth, compared to $211,000 for Black and $227,000 for Latino families. For most Americans, the largest driver of wealth is their home. This makes it important to have accurate, unbiased home valuations.
In addition to Senators Alsobrooks and Warnock, the Appraisal Modernization Act is cosponsored by Lisa Blunt Rochester (D-Del.), Cory Booker (D-N.J.), Andy Kim (D-N.J.), and Elizabeth Warren (D-Mass.).
A fact sheet on the legislation can be found HERE.
Bill text for the Appraisal Modernization Act can be found HERE.
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