OAKLAND, CA – The California Civil Rights Department (CRD) said Monday it reached settlements with Clear Capital, an appraisal management company, and an individual appraiser following allegations of racial discrimination in a home valuation involving a Black and Latino family in Oakland.
CRD Director, Kevin Kish, in a statement, said, “Whether it’s lowball appraisals or a history of redlining, communities of color across the country continue to confront the multigenerational harms of housing discrimination.”
CRD’s statement added, “Appraisers, lenders, and brokers all have a responsibility to prevent discrimination in real estate transactions.”
The case began in 2022, said CRD, when the family filed a complaint through the Fair Housing Advocates of Northern California (FHANC), asserting their home was undervalued by $254,000 compared to an appraisal eight months earlier and $300,000 less than its sale price nine months later.
CRD explained, despite raising concerns and requesting a new appraisal, the family’s request was allegedly ignored until media attention forced a response, but, according to the complaint, it was then too late because the family, unable to refinance at a lower interest rate, sold its home and moved out.
Following its investigation, CRD notes it determined there was cause to believe that discrimination had occurred, both in the appraisal and in the subsequent denial of the loan. In mediation, the parties reached settlements mandating corrective actions
CRD details these actions to be: “Providing training to all employees who review complaints regarding racial bias and discrimination in the appraisal process; Continuing to maintain a process for tracking and investigating consumer complaints related to racial bias and continuing to notify lenders of discriminatory appraisals.”
“Watching the ‘Our America: Lowballed’ documentary on the impact of appraisal discrimination on communities of color (and) the individual appraiser paying $90,000 in compensation, including $75,000 to the complainants,” said Kish.
Kish added, “These settlements are an important step forward for protecting the fair housing rights of all Californians.”
And, CRD concluded in its statement that the resolution was supported by CRD’s legal and dispute resolution teams, including Associate Chief Counsel Azadeh Hosseinian, Senior Staff Counsel Matt Turnbull, Staff Counsel Nassim Moallem and Assistant Chief Counsel Nadia Aziz.
