an 17 opinion of value, except in the limited circumstances discussed below. The words “actual or perceived” mean, for 175 example, a person could either be Hispanic or just be perceived (by the appraiser) as Hispanic because he or she 176 has a last name that is believed by the appraiser to be a Hispanic name. 7 Itrelevance of Homogenelty of the Inhabitants of a Geographic Area 178 The Nondiscrimination section also prohibits an appraiser from basing an opinion of value upon the premise that 179 homogeneity of the inhabitants of a geographic area is relevant for an appraisal. The homogeneity—or diversity— 180, of the inhabitants of an area is not relevant when appraising residential real property. 181 Blas with Respect to Certain Personal Characteristics 182 An appraiser also must not “perform an assignment” with bias with respect to the actual or perceived race, 183 ethnicity, color, religion, national origin, sex, sexual orientation, gender, gender identity, gender expression, marital 10% status, familial status, age, receipt of public assistance income, or disability of any person(s). 185 “Bias” is defined in USPAP as: 186 preference or inclination that precludes an appraiser's impartiality, independence, or objectivity in 187 an assignment. 188 ‘The Conduct section of the ETHICS RULE prohibits an appraiser from performing an assignment with bias. 189 Performing an assignment with bias with respect to any of the personal characteristics listed is a violation of both 190, the Conduct section and the Nondiscrimination section of the ETHICS RULE. Although this prohibition relatesto. 191 bias, bias is not required for a violation of any other portion of the Nondiscrimination section. 192 Pretext 193 An appraiser must not conceal the use of or reliance upon any of the personal characteristics enumerated inthe 19 ETHICS RULE by pretextually referring to some other characteristic as though that other characteristic were the 195, reason for the appraiser's opinions or conclusions. Misrepresentation of an appraiser's reasoning is misleading, 196 in violation of USPAP’s Standards Rules, and concealment by using pretext in this way also is a violation of the 197 ETHICS RULE. Although it can be acceptable for an appraiser to use data that may have a correlation with a 198 protected characteristic, it is never acceptable to use correlated data because of its correlation with one of these 199 personal characteristics. This would constitute a pretext. 200 The Limited Circumstances When Use of a Protected Characteristic In

to use additional information. Information that was not available to the original appraiser in the normal course of business may also be used by the reviewer; however, the reviewer must not use such Information in the reviewer's development of an opinion as to the quallty of the work under review. (Bold added for emphasis) 335, REVIEWER CITATION OF USPAP NON-COMPLIANCE Question: Ifa review appralser concludes that an appraisal report Is unacceptable, does the reviewer need to cite specific requirements In USPAP that were not fulfilled appropriately? 278 c= USPAP Guidance: Frequently Asked Questions oS © The Appraisal Foundation --- Page 367 --- oc « ‘APPRAISAL REVIEW Response: No, but the review appraisal report must include the reasons for the reviewer's conclusion. When the scope of work requires the review appraiser to evaluate compliance with relevant USPAP requirements, it is appropriate to analyze compliance or non-compliance with USPAP. However, USPAP does not require a reviewer to determine that the subject of an appraisal review complies with USPAP. 336. REVIEW APPRAISER BIAS Question: An appraiser receives a request to review an appraisal; however, the reviewer has previously appralsed the same property. Does the reviewer's prior experience with the property create a bias that then precludes an objective review? Response: No. Prior appraisal experience with the subject of the work under review might be considered an asset and may have contributed to the reviewer being selected for the assignment. Before agreeing to perform any assignment, an appraiser must be certain that he or she will be able to attest in the certification that the assignment results are impartial and unbiased. If the performance of the prior appraisal assignment creates a predisposition regarding appropriate and reasonable assignment results, the appraiser should decline the appraisal review assignment. In addition, a reviewer with prior experience with the property should be aware that the Conduct section of the ETHICS RULE states: If known prior to agreeing to perform an assignment, and/or if discovered at any time during the assignment, an appraiser must disclose to the client, and in each subsequent report certification: + any current or prospective interest in the subject property or parties involved; and + ony services regarding the subject property performed by the appraiser, as an appraiser or in any other capacity, within the three-year period immediately preceding the agreement to perform the assignment. 337, “REBUTTALS” AND APPRAISAL REVIEWS Question: | ama state certified

SOURCE: Chief Appraiser Knowledge Base — Fair Housing Laws and Appraisal Bias Regulation Compiled from: Fair Housing Act (Title VIII, 42 U.S.C. 3601 et seq.); Equal Credit Opportunity Act (Regulation B); USPAP Ethics Rule and Advisory Opinions AO-39/AO-40 (The Appraisal Foundation); Appraiser Qualifications Board Real Property Appraiser Qualification Criteria (effective January 1, 2026); HUD Mortgagee Letters; FHFA Enterprise ROV policy announcements; Fannie Mae Selling Guide; Nevada Revised Statutes Chapter 118; Nevada Equal Rights Commission (detr.nv.gov/nerc) Last reviewed: July 2026 ===================================================================== Fair Housing Laws and Appraisal Bias Regulation Appraisers operate under two overlapping obligations: general civil rights law that applies to anyone engaged in a residential real estate transaction, and USPAP-specific ethics requirements that apply because they are appraisers. Getting the appraisal right on value is not sufficient. The process and the language used to get there must also be free of bias, whether intentional or not. This is a fast-moving regulatory area. Several federal enforcement initiatives launched between 2021 and 2024 were rolled back in 2025. What has not changed is the underlying law, the Fair Housing Act and the Equal Credit Opportunity Act, and USPAP's Ethics Rule. What has changed is which federal mortgagee-letter-level enforcement mechanisms are currently active. Federal law: the two statutes that govern appraiser conduct. The Fair Housing Act, Title VIII of the Civil Rights Act of 1968, 42 U.S.C. 3601 et seq., protects race, color, national origin, religion, sex, familial status, and disability, and applies to any person or entity involved in a residential real estate transaction, including appraisers. The Equal Credit Opportunity Act, Regulation B, protects race, color, national origin, religion, sex, marital status, age, and receipt of public assistance income, and applies to anyone involved in a credit transaction. Appraisals ordered for lending purposes fall within its scope. Practical effect for appraisers: an appraisal may not be developed or reported in a manner that considers, or gives the appearance of considering, the race, color, national origin, religion, sex, disability, familial status, marital status, or age of current or prospective owners or occupants, or of the residents of the surrounding area. This applies to comparable selection, adjustments, narrative comments, and photographs. Common violation patterns include using neighborhood demographic composition, rather than market data, to support a value conclusion; describing a neighborhood or its residents in a way that signals racial or ethnic composition; selecting comparables that steer value based on the racial composition of