Undervalued: U.S. Department of Labor certifies first National Appraisers Apprenticeship Program

Washington, D.C. (InvestigateTV) — Leaders with the U.S. Department of Labor signed off on the nation’s first appraiser apprenticeship program in an effort to eliminate bias when valuing home prices.

InvestigateTV highlighted the disparities in a 2023 report and was the only news media camera invited into the room for the signing ceremony at the Department of Labor’s headquarters in Washington, D.C. on June 24.

Members of the organization, 10K Minority Appraisers Foundation, along with other advocates, stood by as CEO and founder, Thaddaus Dawson, signed the document.

Dawson, who launched the program, has been an appraiser for more than 30 years, fighting for both diversity and equity in the appraisal profession.

“This is the first. This hasn’t been done before, so it’s revolutionary,” Dawson told InvestigateTV.

10K Minority Appraisers Foundation strives to diversify the appraisal industry. Dawson says that the timing for this ceremony is long overdue, especially for people of color nationwide.

“I’m not standing here by myself, I’m standing on many, many shoulders,” Dawson said.

The national apprenticeship program will help expose minority homeowners and future appraisers to the true sense of feeling the American dream - a dream that Dawson says is long overdue.

“The purpose I am here today, standing with the federal government, is just beyond belief. It’s bigger than anything I’ve ever imagined,” Dawson said.

The signing ceremony launches the foundation’s mission to recruit and train students in specialized areas, such as rural land valuation, urban property valuation, and evidence-based data market analysis.

“Not only does it open up an opportunity that didn’t exist for them before, but we’re also eliminating the barriers to entry. Typically, in order to get into this field you have to work for two years for free,” Dawson said. “Under the apprenticeship program, we’ll be able to pay you while you learn. You’ll be able to make $25 an hour. That’s a game-changer in and of itself. Now, we’re not giving the money away. This is your job. So we’re gonna have some real, live expectations in order for you to be able to produce.”

The labor department certified the program to help train the next generation of real estate appraisers, and Dawson says 7% of appraisers currently are under 35 years old. With the labor department’s approval, it allows 10K Minority Appraisers to take this program across the country.

InvestigateTV first interviewed Dawson in 2023 for a story exposing high appraisal gaps in many minority communities, specifically those with Black homeowners. The investigation showed that despite the nation eliminating the discriminatory housing practice known as, “redlining,” disparities still exist.

Redlining is a practice created by the Federal Housing Administration in 1934 where neighborhoods were graded based on how risky a property loan would be, with maps denoting the areas of highest risk in red.

Determining grades often came down to one thing: the racial and ethnic makeup of the area — having higher proportions of Black residents, immigrants or non-protestant religious groups directly correlated to a tract receiving a low score.

While the federal program that produced the maps ended in the 1940s, many experts say those systemic red lines still linger to this day, especially in the appraisal process.

InvestigateTV reviewed data from the Federal Housing Finance Administration (FHFA), which released a de-identified, representative-sample database of appraisals for single-family homes from 2013 to 2021.

When looking at appraisals done in historically redlined census tracts where the appraised value came in below the contract price — the amount of an accepted offer from a buyer — homes with non-white owners consistently had appraisal gaps at higher rates than properties with white owners.

InvestigateTV also found examples in different states where “subjective language” was used to describe the racial makeup of a homeowner or neighborhood.

Manny Lamarre, deputy assistant secretary of the Employment and Training Administration with the U.S. The Department of Labor also attended the signing ceremony.

“I’m excited about all of the opportunities to connect with young people and create pathways for young people, with high schools, community colleges…to really not just be on the sidelines, but actually be part of the solution,” Lamarre said.

Lamarre believes the apprenticeship program will open doors for the younger generation to show them that becoming an appraiser is attainable.

“I remember a few years back, I was talking to some young adults, particularly African Americans, and I remember a young girl said, ‘We can only be what we can see.’ And through that conversation, she also said one other thing. She said, ‘How can we get experience if every job we apply to requires experience.’ And so, I think when you juxtapose those two kinds of anecdotes together, it’s particularly exciting because we’re one, making it real. But then two, they’re getting that experience to operationalize and intern for their careers,” Lamarre said.

With the signing of this program, Dawson feels the true essence of the American dream can start, thus helping to reduce appraisal bias and increase diversity throughout the appraisal profession.

Those interested in the program can contact the 10K Minority Appraisers Foundation at 470-725-4245 or by email at support@10kminorityappraisers.org. Officials with the program also plan to tour the country this year to bring awareness to the program and get young adults signed up for the program.

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