This op-ed originally appeared in National Mortgage News.

The recent decision by the Department of Housing and Urban Development and the Office of Management and Budget to roll back key policies of the Property Appraisal and Valuation Equity (PAVE) task force marks a pivotal shift in federal housing policy. What began as an effort to address perceived shortcomings in the appraisal process ultimately became a case of bureaucratic overreach, driven by flawed research rather than solid evidence. This policy reversal signals an acknowledgement that claims of widespread racial bias in home appraisals, mortgage denials, and property valuations were based on weak empirical evidences — claims we at the American Enterprise Institute have consistently challenged through rigorous research.

The PAVE task force, formed by the Biden administration, operated on the premise that disparities in home valuations between racial groups could only be explained by systemic race based discrimination. Based on that presumption, it recommended sweeping changes to appraisal practices, increased regulation, and interagency directives aimed at “eliminating bias and advancing equity.”

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