AQB, DEI, College Degree & Comment Period

[djd09]

DOJ sues Rocket Mortgage after Black homeowner got lowball appraisal​

The Justice Department is suing Detroit-based Rocket Mortgage, claiming the firm engaged in discriminatory practices when canceling a Black homeowner's mortgage refinance application after the owner complained about a lowball appraisal she believed was a result of racism.

The lawsuit, filed Monday in U.S. District Court in Colorado, accuses Rocket Mortgage and two separate appraisal firms of practices that violate the federal Fair Housing Act.

According to the lawsuit, Rocket Mortgage did not offer the homeowner the option of another appraisal after the owner voiced concerns that racial discrimination was the reason her property was valued way too low.

Rocket Mortgage issued a statement Monday afternoon in response to the lawsuit, claiming "massive overreach" by the government.


“Under federal law, mortgage lenders are required to work at arm’s length during the appraisal process, partnering with independent appraisal management companies who assign the work to state-licensed professional appraisers. The law's intent is to determine the home's value without any input or bias from the lender or any other party with interest in the transaction," the statement said.

"It is clear the government isn’t interested in their own rules, or facts, and are simply including us in this case to score headlines based on our strong brand and prominent position in the industry. We look forward to exposing the government’s massive overreach in this matter.”


The Black homeowner lives in Denver in a two-level duplex that she purchased for $270,000 in 2011, and which had been appraised for $860,000 in spring 2020.

DOJ sues Rocket Mortgage after Black homeowner got lowball appraisal

The U.S. Department of Housing and Urban Development believes that Rocket and two appraisal firms violated the Fair Housing Act.

www.freep.com

just hit the number...big dummies

 

[Fernando]

Don't know how lender, appraiser, and buyer got into this mess.
Either lender dropped the ball or Appraiser was incompetent or Buyer somehow got wrong impression of discrimination.

 

[Dublin ohio]

Don't know how lender, appraiser, and buyer got into this mess.
Either lender dropped the ball or Appraiser was incompetent or Buyer somehow got wrong impression of discrimination.

There was no buyer. It was a refi.

 

[Fernando]

Buyer, Borrower, Same thing.
When doing appraisals, keep in mind of the unintended reader for bias.

 

[Dublin ohio]

keep in mind of the unintended reader for bias.

Won't make a difference because the bias of the unintended reader is in the eyes of the unintended reader

 

[Fernando]

Won't make a difference because the bias of the unintended reader is in the eyes of the unintended reader

Unintended reader either thinks "flawed" appraisal report is bias or incompetently done.
Since we appraisers are licensed, we can't be incompetent.

 

[Fritz in NY]

The AI is run on our dollar. Stop paying Dues, stop taking classes and buying books. I know 2 MAI's, One used to send me overflow work 20+ years ago and would insist on signing as supervisor, but I was Cert. and didn't need her sig. She never looked at my work, too busy. The other MAI is now semi employed in a secretarial profession, divorced, foreclosed upon and is basically down & out. So much for that designation IMHO.

 

[Mile High Trout]

There was no buyer. It was a refi.

Incorrect.

When one refinances 'their home', they are in fact, refinancing their loan.

Meaning they release their indebted status on the old loan, and buy into a new loan.

Bought into new loan terms. Buyer is an accurate enough representation.

Because they have never once 'bought that home', despite popular vernacular.

'Home owner' would be the misnomer in the argument which is most commonly used.

Nobody who has a mortgage loan owns their home. Nobody.

They 'got robbed' the moment they signed their name to a mortgage loan.

The only way to win is not to play.

 

[George Hatch]

Semantics notwithstanding there was no market exposure, no arm's length buyer or seller, no meeting of the minds, no sales contract to indicate to what other market participants thought the value might be, and no subsequent transaction to close the feedback loop. Those are the salient points of the "it was just a refi" comment.