HUD Files Against Appraiser & Rocket Mortgage

[gregb]

Another discrimination case-

https://www.valuationlegal.com/wp-content/uploads/2024/07/HUD-Charge-of-Discrimination-Appraiser-AMC-and-Mortgage-Lender-7-15-24.pdf

 

[George Hatch]

If the facts alleged are as presented then this looks like a legit allegation insofar as the value is concerned. It's kind of interesting that an appraiser would have to leave the neighborhood at all in order to find any comparables but that's exactly the reason why the problem identification phase of the assignment should ideally include an analysis of the sales histories for the different areas to see how they have done in comparison with each other in the past. I'd be looking closely at rental rates to see what the tenants think about these locations, and I'd be looking at the SFR sales to see how those buyers are reacting to these locations.

 

[Joe Flacco]

I would think that if HUD is filing the complaint then the complaint probably has merit. Not the same as a homeowner filing the complaint.

 

[J Grant]

It is from 2021, per the article.

 

[Dublin ohio]

It is from 2021, per the article.

The case was just filed

 

[George Hatch]

I dunno what is/isn't actually in the report, but by the time an appraiser runs into this they need to get to disclosing the existence of such and explain why they didn't consider the locations as similar as the subject. If they can't articulate the reason why then they should be giving serious consideration to whether the location actually is dissimilar. There might be a valid reason for their opinions but any such reasoning that isn't presented in the report might as well not even exist.

I almost always acknowledge that there are other sales in the area which I consider to be less similar and comment in general why they're less similar as a group. Whether those other sales are selling for more or for less.

With a complaint like this, Rocket shot themselves in the foot by not aggressively reviewing the appraisal. In no case should any lender want to take the risk of being the last party to find out about their problems; always better to know sooner rather than later. If I were a lender and someone was accusing me of violating their civil rights I'd be looking for a field review w/comps and a comprehensive sales analysis going back several years. This is not a situation to be counting pennies.

 

[Mejappz]

Isn't it interesting how many of these complaints are about appraisers hired by Solidifi?

 

[Mejappz]

Oh really so now we have "standards" being set by corrupt AMC and online lenders?

 

[CGinMN]

Appraiser was licensed in Colorado May 2020, having moved from PA/NJ. Effective date of the report was January 2021. Maybe bias, likely lack of competency, maybe both

 

[George Hatch]

The complaint alleges the appraiser violated the applicable laws/regs (which compliance is required in our appraisal standards) and that Solidifi didn't notice in their review. Any user can add their own extras, but the (actual) minimum requirements under the law and per our existing appraisal standards still comprise a hard deck.

My otherwise uninformed assumption is that any actual problems with the appraisal almost certainly would also have been in violation Rocket's written appraisal policies. I've never yet seen a lender's written appraisal policies "permit" an appraiser to not comply with all legal and professional requirements. Perhaps you have.