Which organization released a 2021 study indicating differences in distance to comparables by tract racial composition?

• A. Freddie Mac
• B. Fannie Mae
• C. National Association of Realtors
• D. HUD

Answer: (A)

Appraisal bias can creep in when the way comparables are chosen depends on the neighborhood’s racial makeup. Freddie Mac’s 2021 study examined appraisal data to see if the distance from the subject property to the used comparables varied with tract racial composition. The study found statistically meaningful differences in how far appraisers looked for comparables based on whether a tract was predominantly White or had a higher minority presence. That pattern suggests valuation practices can yield different results for similarly situated properties simply because of race, tying directly to fair housing and anti-discrimination concerns. The finding highlights the need for robust appraisal standards, broader data use, and stronger oversight to ensure valuations aren’t biased by tract demographics. This specific study was released by Freddie Mac in 2021.