Senator Warnock Introduces Bill to Combat Racial Bias in Home Appraisals

U.S. Senator Reverend Raphael Warnock is leading a renewed legislative push to address long-standing racial disparities in home appraisals. Joined by five fellow Senate co-sponsors, Warnock has introduced the Appraisal Modernization Act, a bill aimed at increasing fairness and transparency in the home valuation process and empowering consumers to challenge biased or inaccurate appraisals.

“Appraisals influence how families build generational wealth through homeownership,” said Sen. Warnock. “Our legislation ensures buyers and homeowners especially in historically marginalized communities have the tools they need to advocate for the full value of their property.”

Closing the Equity Gap in Housing

The proposed legislation takes aim at structural problems in the appraisal industry that have historically led to undervaluation in communities of color. A Brookings Institution study revealed that homes in predominantly Black neighborhoods are routinely appraised 21–23% lower than similar homes in non-Black neighborhoods a disparity with profound implications for wealth-building and generational equity.

The Appraisal Modernization Act seeks to:

• Create a public, property-level appraisal data hub maintained by the Federal Housing Finance Agency (FHFA), making valuation data more accessible to regulators and consumers.
• Protect homeowners’ rights by legally establishing their ability to file a Reconsideration of Value (ROV) or request a second appraisal.
• Standardize ROV procedures to ensure consistent and fair treatment of all consumers who challenge an appraisal.

Sen. Warnock’s bill is co-sponsored by Senators Angela Alsobrooks, Lisa Blunt Rochester, Cory Booker, Andy Kim, and Elizabeth Warren, all of whom underscored the urgent need for reform.

“Bias in the appraisal system undermines homeownership for families of color and reinforces a cycle of economic inequality,” said Sen. Kim. “This bill is a vital step toward a more equitable future.”

Industry and Advocacy Groups Applaud the Move

Housing advocates and industry leaders praised the legislation for its practical approach to increasing fairness in property valuations. James Nabors II, President of the National Association of Mortgage Brokers, expressed support, saying, “This bill reflects a sincere effort to safeguard homebuyers and preserve the integrity of the lending process.”

Nikitra Bailey, EVP at the National Fair Housing Alliance (NFHA), highlighted the legislation’s significance: “An appraisal can make or break a family’s path to homeownership. We commend Senator Warnock for putting forward solutions that will improve accountability and transparency.”

A Broader Housing Policy Vision

This new bill builds on Sen. Warnock’s continued efforts to address housing disparities. In March 2025, he introduced a sweeping housing package aimed at boosting affordability, expanding the nation’s housing stock, and supporting people experiencing homelessness. Past efforts included funding for 10,000 new affordable homes, expanded YIMBY grants to support zoning reform, and $275 million for homeless assistance programs.

Critically, Warnock’s team believes the Appraisal Modernization Act can help prevent undervaluation from sabotaging lending opportunities and future home equity. The proposed reforms would align with existing efforts across the financial sector to identify and eliminate bias in decision-making tools and data.

A Call for Equity in Homeownership

Racial wealth disparities in the U.S. remain stark: the average White household holds approximately $1.3 million in assets, compared to $211,000 for Black households and $227,000 for Latino households. For most Americans, homeownership is the primary vehicle for building wealth and appraisal bias can undermine that opportunity before it even begins.

Senator Warnock’s bill is the latest attempt to ensure that every family, regardless of race or zip code, can fully participate in the American dream of homeownership—with equal value placed on every home. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.