Termination of DEI PAVE task force policies will improve efficiency, reduce regulatory burden, and expand access to homeownership
U.S. Department of Housing and Urban Development (HUD) Secretary Scott Turner and Acting Administrator of the Office of Information and Regulatory Affairs (OIRA) at the Office of Management and Budget (OMB) Jeffrey Clark announced the termination of burdensome policies introduced under the Biden-era’s Property Appraisal and Valuation Equity (PAVE) task force. As part of the PAVE task force, members were directed to issue guidance on anti-discrimination obligations, review policies and practices, and issue new policies focused on “eliminating bias and advancing equity in home appraisals.”
Eliminating the core policies of the PAVE Task Force upholds President Trump’s Executive Orders, including Ending Radical and Wasteful Government DEI Programs and Preferencing and Delivering Emergency Price Relief for American Families and Defeating the Cost-of-Living Crisis.
The termination of specific policies eliminates unnecessary regulatory hurdles imposed on lenders, appraisers, and other program participants, which will allow HUD’s Federal Housing Administration (FHA) to better serve American homebuyers and homeowners.
“By tearing down these onerous hurdles, we’re freeing professionals from a tangle of red tape that drove up costs, inhibited access to homeownership, and discouraged market participation,” said HUD Secretary Scott Turner. “Under President Trump’s leadership, the Biden-era’s obsession with DEI and overregulation is over. At HUD, we’re restoring common sense and putting the American Dream of homeownership back within reach.”
“The myth is that wokeism is just a social policy. And it surely is corrosive social policy. But, in reality, wokeism at HUD was brass-tacks economic policy that snatched away the American Dream of homeownership from an entire generation. That ends today,” said Acting OMB OIRA Administrator Jeffrey B. Clark.
Established in 2021, the PAVE task force exemplified government overreach by increasing bureaucracy using various tools aimed at addressing so-called systemic biases in the home appraisal process. It asserted that, in part, appraisals often result in systematic undervaluation of properties in black and Hispanic neighborhoods. However, data from the American Enterprise Institute (AEI) concludes that other characteristics unrelated to race – including educational attainment, average credit score, and family formation – are more likely significant drivers in differences between home values and appraisal outcomes.
“We’re encouraged that HUD and other agencies are beginning to roll back certain PAVE-inspired policies adopted by the Biden administration. These actions were driven by claims of race-based disparities in home values, mortgage denial rates, and appraisal under-valuations. These claims ignored AEI Housing Center research that found similar disparities in white communities with similar socioeconomic status, thereby invalidating the argument that the disparities were race based,” said Tobias Peter and Ed Pinto, Co-Directors at the AEI Housing Center.
As a result of pro-growth economic policies under President Trump’s first term, real household income and wages grew at a record pace, including for individuals at all levels of educational attainment and socioeconomic status. President Trump’s One Big Beautiful Bill continues many of these successful policies that create a stronger economy and greater homeownership opportunities for all Americans.
The terminated policies related to Reconsideration of Value and Appraisal Fair Housing Compliance include:
- ML 2024-16, Extension to the Effective Date of Appraisal Review and Reconsideration of Value (ROV) Updates
- ML 2024-07, Appraisal Review and Reconsideration of Value
- ML 2021-27, Appraisal Fair Housing Compliance and Updated General Appraiser Requirements
Current laws, including The Fair Housing Act and Equal Credit Opportunity Act, prohibit discrimination in all housing-related transactions including in the homebuying and lending processes. The Fair Housing Act and Equal Credit Opportunity Act will continue to be enforced.