> Appraiser Coach > AMC Resource Guide > OREP E&O ★★★★★ “They are knowledgeable, professional, and understand urgency.” – Joe Thweatt

Open Letter to Government Efficiency Commission on HUD’s Appraiser Complaints

by Isaac Peck, Publisher

From the Publisher:
Working with bright and tenacious attorneys to help defend appraisers across the country is one of the favorite parts of my job at OREP.

Geoff Binney is one such attorney.

As a former FBI agent and a fierce litigation attorney in Texas, I’ve known Geoff for over five years as he’s worked tirelessly to support OREP’s Members—helping defend our home inspectors, and transitioning into work with OREP’s real estate appraisers—to include responding to several HUD discrimination complaints that HUD is pursuing against appraisers.

Based on the latest public records request that Working RE submitted to the Department of Housing and Urban Development (HUD), HUD has received and pursued close to 300 complaints alleging appraisal bias in the last five years and as of February 14, 2025—well over half of those discrimination complaints are still open and pending. (Roughly 14 percent have been concluded with conciliation, settlement, or other agreement.)

Many appraisers have reported experiencing a deep sense of dread and stress from having a HUD complaint hanging over their heads for three or even four years and still have their complaints pending today.

While HUD’s internal policy is to resolve discrimination complaints within 100 days, appraisers who have been facing an open complaint for years understandably feel denied their due process. Having issued their rebuttal, supplied supporting documentation, and made the case for their innocence, HUD has, in many cases, still refused to dismiss the case and simply left the appraiser in limbo.

Below is an open letter (slightly edited for anonymity) that Mr. Binney submitted to several U.S. Senators as well as the House Budget Committee’s Government Efficiency Commission, urging them to act and resolve the 150+ HUD bias complaints still pending against appraisers.

We’ve made the decision to republish this letter because we believe appraisers on both sides of the political spectrum may appreciate Mr. Binney’s framing of the challenges that appraisers have faced around this thorny issue. (Working RE is published for appraisers on both sides of the political aisle.)

Letter by Texas Attorney Geoff Binney

U.S. Senator Markwayne Mullin
3817 NW Expressway #780
Oklahoma City, OK 73112
VIA Regular Mail

U.S. Senator Honorable James Lankford
401 South Boston Avenue, Suite 2150
Tulsa, OK 74103
Via Regular Mail

The House Budget Committee’s
Government Efficiency Commission
204 Cannon House Office Building
Washington, D.C. 20515

U.S. Congressman Honorable Kevin Hern
2448 East 81st Street, Suite 5150
Tulsa, OK 74137
VIA Fax: (202) 225-9187

Re: Wasteful Spending on the Interagency Task Force on Property Appraisal and Valuation Equity (PAVE)

HUD Complaint Inquiry No. [III] Fair Housing Act Case No. [IIII]

To Whom It May Concern:

I am writing to bring to your attention the concerning issue of wasteful spending associated with the Interagency Task Force on Property Appraisal and Valuation Equity (PAVE), established by the previous administration. As an attorney who represents real estate appraisers, I have firsthand experience with the impact of these initiatives. A significant portion of my practice involves responding to complaints made against appraisers by the Department of Housing and Urban Development (HUD) for alleged discriminatory appraisal practices.

Over the past couple of years, I have handled several such cases, and not one has reached a resolution. Without exception, every complaint I have reviewed has been entirely baseless, founded solely on a complainant’s subjective belief that their appraisal was undervalued due to racial discrimination. HUD does not pre-screen these complaints for validity before initiating an investigation, opening a file, and sending an appraiser a letter demanding a formal response.

The appraisers I have represented categorically deny these allegations. Many have been deeply distressed by the accusations, going so far as to refuse settlement offers, even when no financial penalties were involved, because of the implications such agreements might carry. In one case, an appraiser was moved to tears by the accusations and the ensuing investigation. Another refused a settlement requiring only an apology, emphasizing his innocence and concern for any perceived stigma attached to the matter.

(story continues below)

(story continues)

Despite the lack of supporting evidence, HUD investigators require appraisers to provide extensive documentation to defend themselves against these claims. These investigators often demonstrate a startling lack of knowledge regarding the appraisal process, industry guidelines, and the standards appraisers are bound by. For example, in one case, a HUD investigator requested the following documents:

Copies of appraisals conducted for two Hispanic clients in [City, State], from April 2022 to November 2022.

Copies of appraisals conducted for two White clients in [City, State], from the same period.

Copies of appraisals conducted for two Black clients in [City, State], from the same period.

This request, as stated in HUD’s email, reveals a profound misunderstanding of appraisal standards. Appraisers do not and should not collect data on the race of homeowners or borrowers, as doing so violates the Uniform Standards of Professional Appraisal Practice (USPAP). USPAP’s Ethics Rule explicitly requires appraisers to act with impartiality, objectivity, and independence, without unsupported conclusions based on race or other characteristics. Moreover, even if such data were available, it would be impossible to draw meaningful comparisons between appraisals of different homes, conducted at different times, and valued under entirely different circumstances. When we pointed this out to the investigator over eight months ago, we received no response. That claim has remained open since August 2023, further illustrating the inefficiency and lack of direction in these investigations.

After researching these complaints, I discovered that the previous administration created the PAVE Task Force, composed of thirteen federal agencies and offices, co-led by HUD and the White House Domestic Policy Council. This initiative has been funded with significant taxpayer dollars. Initially, $54 million was allocated to 182 fair housing organizations across 42 states through the Fair Housing Initiatives Program (FHIP). The stated goal was to support organizations addressing Fair Housing Act violations and to enforce fair housing efforts.

See this article:
https://www.housingwire.com/articles/hud-awards-over-54-million-in-grants-to-curb-discrimination/

The funding did not stop there. The following year, an additional $22.24 million was distributed to similar organizations to combat housing discrimination and promote equity. However, the results have been questionable. Articles from industry publications highlight a dramatic spike in race-based complaints against appraisers since PAVE’s inception. These complaints are often left unresolved for years, with HUD investigators offering no clear timeline or substantive updates. This lack of accountability and inefficiency undermines both appraisers and the goals of fair housing.

See this article:
https://www.workingre.com/hud-discrimination-complaints-skyrocket/

This article is the first I can find that details the effect of the previous administration’s PAVE program. Specifically, it confirms the huge spike in race-based complaints against appraisers since PAVE’s inception. It discusses the experiences of litigators similar to me who have open cases that, once responded to, continue to remain open with no end in sight. While there should be some deadline for HUD to complete its investigation, inquiries as to case status are consistently met with “the investigation is continuing” response and the appraiser is left wondering. Here is quote from a litigator:

“After the initial interviews and document requests, there has been no action whatsoever. None have been dismissed and no determination has been made in favor or against any of my clients. Unlike a typical fair housing violation, such as rental discrimination, which can normally be vetted and addressed at the regional level, valuation-related complaints appear to be being handled differently. It feels like regional offices don’t have the authority or the discretion to make determinations. On every file I have, I’ve received a letter from HUD that they will exceed that deadline because they need more time to ‘conduct more investigations and analysis.’ The letter then provides an updated projected date for completion with the caveat that the date is also subject to change. I received one such letter in November 2021. The matter is still open and their last estimate of when they would conclude their investigation was May 2022. When I reach out to HUD it is common that the case has been handed to a different investigator or they simply do not have an update.”

See these articles:
https://www.workingre.com/hud-grants-millions-to-test-for-racist-appraisers/

https://appraisersblogs.com/hud-mulls-use-of-convicted-felons-2-ramp-up-discrimination-testing/

Most alarmingly, HUD is reportedly sitting on between 150 to 200 unresolved complaints. The resources allocated to these baseless investigations represent a gross mismanagement of public funds, particularly as the investigations fail to yield meaningful results or resolutions.

The recent executive order signed by President Donald Trump on January 20, 2025, terminating DEI programs within the federal government, mandates a review of discriminatory initiatives such as PAVE. Given its focus on promoting equity in home appraisals, PAVE falls squarely within the scope of this order and will likely face significant scrutiny and dissolution.

On January 27, 2025, I emailed HUD investigator Mr. Justin Smith, demanding the immediate dismissal of the baseless complaint filed against my clients, Mr. Appraiser, by February 14, 2025. To date, Mr. Smith has not responded.

In conclusion, I respectfully request that the House Budget Committee’s Government Efficiency Commission, or another appropriate entity, investigate HUD’s appraisal claims against appraisers. I urge you to facilitate their immediate dismissal to prevent further waste of taxpayer dollars. Specifically, on behalf of my client, Mr. Appraiser, I request an investigation into the above-referenced matter and that HUD be directed to dismiss the claim without delay.

Please feel free to contact me if you have any questions or require additional information.

Sincerely,

Geoffrey S. Binney

After sharing this letter with the HUD investigators overseeing the HUD complaints Mr. Binney is involved in, one of the investigators voluntarily dismissed the complaint immediately (the complaint had been open for nearly two years).

>> IMPORTANT: Today, over 10,000 appraisers trust OREP with their insurance for one simple reason: We stick up for appraisers. OREP has a network of attorneys and USPAP experts with deep expertise ready to defend YOU—and we’ve been serving appraisers for over 20 years.

If you enjoy reading Working RE and appreciate the work that we do for the profession, please consider shopping OREP for your E&O insurance.

Click Here for a Quote (in 5 Minutes or less!)

About the Author
Isaac Peck is the Publisher of Working RE magazine and the President of OREP, a leading provider of E&O insurance for real estate professionals. OREP serves over 10,000 appraisers with comprehensive E&O coverage, competitive rates, and 14 hours of free CE for OREP Members (CE not approved in IL, MN, GA). Visit www.OREP.org to learn more. Reach Isaac at isaac@orep.org or (888) 347-5273. CA License #4116465.

OREP Insurance Services, LLC. Calif. License #0K99465