An appraisal that improperly takes into account a person’s protected status in estimating value has violated which standards?

• A. Fair Housing Act
• B. The Fair Housing Act and USPAP
• C. USPAP
• D. ECOA

Answer: (B)

The key idea is that valuation must be based on property-related factors, not on who the buyer or owner is. Discriminating in an appraisal by considering a person’s protected status is both illegal and improper professional conduct.

The Fair Housing Act prohibits discrimination in housing-related activities, including appraisals, based on protected characteristics such as race, color, religion, sex, national origin, familial status, or disability. If an appraiser lets a protected status influence the estimated value, that directly violates the act’s purpose and protections.

At the same time, USPAP governs how appraisers must perform assignments. It requires appraisers to act ethically, impartially, and in compliance with applicable laws. USPAP expects appraisal conclusions to be free from bias and to be based on observable property characteristics and accepted methods. Violating anti-discrimination laws by letting protected status affect value also breaches USPAP’s standards for ethical, compliant practice.

ECOA focuses on lending discrimination and isn’t the primary standard governing appraisal bias in valuation, so it doesn’t alone address the issue as directly as the combination of the Fair Housing Act and USPAP does.