Which organization identifies the use of phrases such as pride of ownership and poor neighborhood as subjective terminology?

Which organization identifies the use of phrases such as pride of ownership and poor neighborhood as subjective terminology?

• A. HUD
• B. USPAP
• C. BOCA
• D. Fannie Mae

Answer: (D)

Identifying subjective terminology in appraisal reports focuses on avoiding bias in how a property or its neighborhood is described. Fannie Mae provides explicit guidance that phrases like “pride of ownership” and “poor neighborhood” are subjective terminology. They require appraisers to rely on objective, verifiable data—such as comparable sales, physical features, property condition, and market data—rather than subjective impressions. This helps ensure valuations are consistent and fair, reducing the influence of biased language on lending decisions. While HUD and USPAP address fairness and ethics in housing, the specific categorization and guidance about these kinds of subjective terms come from Fannie Mae’s appraisal guidelines.

Identifying subjective terminology in appraisal reports focuses on avoiding bias in how a property or its neighborhood is described. Fannie Mae provides explicit guidance that phrases like “pride of ownership” and “poor neighborhood” are subjective terminology. They require appraisers to rely on objective, verifiable data—such as comparable sales, physical features, property condition, and market data—rather than subjective impressions. This helps ensure valuations are consistent and fair, reducing the influence of biased language on lending decisions. While HUD and USPAP address fairness and ethics in housing, the specific categorization and guidance about these kinds of subjective terms come from Fannie Mae’s appraisal guidelines.