Rocket Mortgage Is Being Sued By DOJ For Lowballing Appraisal Values On Homes Owned By Black People
Detroit-based Rocket Mortgage is being sued again by the Department of Justice. The DOJ claims the firm engaged in discriminatory practices.
A Black homeowner’s mortgage refinance application was canceled by Rocket Mortgage. She claims they canceled it after she complained the appraisal was lowballed for racial reasons.
The homeowner then filed suit in federal court in Colorado. The are accusing Rocket Mortgage and two separate appraisal firms of violating the Fair Housing Act.
The lawsuit states the company did not offer the homeowner the option of another appraisal. The homeowners had express concerns about possible racial discrimination.
Rocket Mortgage issued a statement Monday afternoon in response to the lawsuit, claiming “massive overreach” by the government.
The Black homeowner purchased the Denver area duplex for $270,000 in 2011. Appraisers had appraised the property for $860,000 in spring 2020.
The homeowner applied for a mortgage with Rocket in January 2021. As part of the process, Rocket Mortgage required a more recent appraisal.
Denver’s housing market had heated up since 2011. The homeowner also made several improvements since purchasing the home. The homeowner said she replaced the back doors and gutters. She also states she installed new granite countertops and updating the bathrooms.
Black Homeowner Says She Regrets Being Home When The Appraiser Came
The lawsuit also said the duplex is in a predominately white neighborhood. The Black homeowner was at the home during the January 2021 visit by the white appraiser.
The Rocket appraisal came in at $640,000. This is well below the earlier one. The appraiser allegedly used comparable sales of properties from neighborhoods with larger Black populations further away. He allegedly did not use closer neighborhoods that were predominantly white.
The lawsuit alleges the appraiser disregarded the sales of five higher priced comparable duplexes within a mile of the property.
The homeowner informed Rocket Mortgage that the new appraisal was much lower than expected. She then stated that in her opinion it was undervalued because of her race.
The homeowner states she had a Black Lives Matter sign in the yard. She also says she regretted being in the house during the appraiser’s visit.
The loan officer agreed that the 25% drop in value didn’t make sense. He said Rocket would review the situation.
The loan application then went on to a Rocket Mortgage “Solution Consultant.”
The Solution Consultant allegedly told the woman he could not talk to her or help her. Why? It was because she brought up the issue of discrimination. He also told her Rocket would cancel the loan application if she didn’t accept the lowballed appraisal.
Afterwards, the homeowner filed a complaint with HUD. HUD conducted an investigation. As a result, HUD determined that Rocket Mortgage and two appraisal companies engaged in discriminatory housing practices. The two appraisal companies are Solidifi U.S. and Maverick Appraisal Group.
Solidifi issued a statement saying it will vigorously defend against the lawsuit’s allegations.
Read More About Rocket Mortgage On MFI-Miami.com.
Also, Check Out These Articles About Appraisers Lowballing Appraisals:
Racist Florida Home Appraiser Undervalues Home Of Mixed Raced Family
Real Estate Appraiser Certification Officials Bullied By Governor Noem
Write A Comment