TerryRohrer
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- Certified General Appraiser
- State
- Montana
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Latest Appraiser Bias Lawsuit
- Thread starter TerryRohrer
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TerryRohrer
Elite Member
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- Professional Status
- Certified General Appraiser
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The appraiser plaintiff: https://veloxval.com/service-areas/
Fun Facts About Our
Fun Facts About Our
Name and Logo
- Velox (vel-ox) is a Latin word that means "swift, "rapid," or "speedy." It's often used to describe things that are fast or agile.
- Joined
- Feb 14, 2002
- Professional Status
- Certified Residential Appraiser
- State
- Louisiana
I'm guessing the appraiser isn't too happy about being sued over a 50% fee split to Velox right about now.
Last edited:
- Joined
- Feb 14, 2002
- Professional Status
- Certified Residential Appraiser
- State
- Louisiana
It's behind a paywall:
www.nationalmortgagenews.com
A homeowner is suing Bank of America and an appraisal firm for racial discrimination, the latest appraisal bias lawsuit against a major lender.
Darchelle Braxton, a Black woman, sued the businesses last week in federal court for violating the Fair Housing Act and the Equal Credit Opportunity Act in handling her mortgage application last year. The lawsuit describes Braxton's "humiliating" experience with the bank and its loan officers, and a purportedly lowball appraisal by a professional with Velox Valuations.
The homeowner says she obtained a higher valuation for her investment property in a second appraisal, and obtained the loan she'd sought with minimal hassle from a nonbank lender in stark contrast to her earlier experience.
Braxton's alleged ordeal is similar to that of other minority homeowners who have sued real estate companies for biased appraisals this decade. It's also a rare, if not the first, biased appraisal suit to emerge during the Trump administration, which has dismantled federal efforts to root out racial bias in the property reviews.
Neither an attorney for Braxton nor spokespersons for the bank responded to requests for comment Tuesday, while the appraiser named as an individual defendant told National Mortgage News he was not aware of the lawsuit.
Doomed application, low appraisal
According to the suit, Braxton began working with Bank of America earlier last year, seeking a $100,000 loan with an interest rate of 6.2% for her Richmond-based property. Although she had a strong equity position and creditworthiness, Braxton said she endured a "demeaning" process with the lender, as she experienced unprofessional treatment compared to other customers of different races and genders.
The homeowner worked with four different loan officers who ignored her correspondence, or repeatedly asked her to resubmit her application. Allegedly, one LO walked out of a branch to avoid interacting with the visiting Braxton, while another LO made an implicit threat to steal her sensitive financial information.
The bank tapped David Boyd of Velox Valuations to perform an appraisal, and his review last September found a $135,000 value for Braxton's home. The plaintiff claims the appraisal's errors spanned from an incorrect zip code for a different state; fewer comparison properties than a subsequent review; and ignoring her rental income data.
"The appraiser did not like the idea that a black woman owned the home being rented by a white tenant," the complaint read, explaining that the appraiser had interacted with Braxton and her investment property's tenant.
Bank of America later denied Braxton's mortgage application, based on the low appraisal and on disputes regarding her auto loan and tax payments, of which the plaintiff didn't reveal financial details. Braxton says she later got an appraisal on her property for $208,000, and obtained a $105,000 loan from Guild Mortgage at a 6.5% interest rate.
Bank of America, appraiser sued for discrimination
The investment property owner says she was stonewalled and humiliated by BofA's loan officers, and that an error-riddled appraisal was short by over $70,000.
www.nationalmortgagenews.com
A homeowner is suing Bank of America and an appraisal firm for racial discrimination, the latest appraisal bias lawsuit against a major lender.
Darchelle Braxton, a Black woman, sued the businesses last week in federal court for violating the Fair Housing Act and the Equal Credit Opportunity Act in handling her mortgage application last year. The lawsuit describes Braxton's "humiliating" experience with the bank and its loan officers, and a purportedly lowball appraisal by a professional with Velox Valuations.
The homeowner says she obtained a higher valuation for her investment property in a second appraisal, and obtained the loan she'd sought with minimal hassle from a nonbank lender in stark contrast to her earlier experience.
Braxton's alleged ordeal is similar to that of other minority homeowners who have sued real estate companies for biased appraisals this decade. It's also a rare, if not the first, biased appraisal suit to emerge during the Trump administration, which has dismantled federal efforts to root out racial bias in the property reviews.
Neither an attorney for Braxton nor spokespersons for the bank responded to requests for comment Tuesday, while the appraiser named as an individual defendant told National Mortgage News he was not aware of the lawsuit.
Doomed application, low appraisal
According to the suit, Braxton began working with Bank of America earlier last year, seeking a $100,000 loan with an interest rate of 6.2% for her Richmond-based property. Although she had a strong equity position and creditworthiness, Braxton said she endured a "demeaning" process with the lender, as she experienced unprofessional treatment compared to other customers of different races and genders.
The homeowner worked with four different loan officers who ignored her correspondence, or repeatedly asked her to resubmit her application. Allegedly, one LO walked out of a branch to avoid interacting with the visiting Braxton, while another LO made an implicit threat to steal her sensitive financial information.
The bank tapped David Boyd of Velox Valuations to perform an appraisal, and his review last September found a $135,000 value for Braxton's home. The plaintiff claims the appraisal's errors spanned from an incorrect zip code for a different state; fewer comparison properties than a subsequent review; and ignoring her rental income data.
"The appraiser did not like the idea that a black woman owned the home being rented by a white tenant," the complaint read, explaining that the appraiser had interacted with Braxton and her investment property's tenant.
Bank of America later denied Braxton's mortgage application, based on the low appraisal and on disputes regarding her auto loan and tax payments, of which the plaintiff didn't reveal financial details. Braxton says she later got an appraisal on her property for $208,000, and obtained a $105,000 loan from Guild Mortgage at a 6.5% interest rate.
chad hampton
Elite Member
- Joined
- Nov 10, 2006
- Professional Status
- Certified Residential Appraiser
- State
- North Carolina
Is the fact that appraisals are opinions totally lost in this entire conversation?
He didn't like that a black woman owned a home rented by whites? That's a wild argument. This profession gets crazier by the day. Like a train wreck, you can't look away.
He didn't like that a black woman owned a home rented by whites? That's a wild argument. This profession gets crazier by the day. Like a train wreck, you can't look away.
shrubberyvaluation
Elite Member
- Joined
- May 2, 2012
- Professional Status
- Appraiser Trainee
- State
- Maryland
Another reason to refuse to meet the borrower/buyer whenever possible. Its hard for refis, and that is where most of these complaints come from, because there is no buyer. It doesn't state it is a refi, but that seems to be the case.It's behind a paywall:
Bank of America, appraiser sued for discrimination
The investment property owner says she was stonewalled and humiliated by BofA's loan officers, and that an error-riddled appraisal was short by over $70,000.
A homeowner is suing Bank of America and an appraisal firm for racial discrimination, the latest appraisal bias lawsuit against a major lender.
Darchelle Braxton, a Black woman, sued the businesses last week in federal court for violating the Fair Housing Act and the Equal Credit Opportunity Act in handling her mortgage application last year. The lawsuit describes Braxton's "humiliating" experience with the bank and its loan officers, and a purportedly lowball appraisal by a professional with Velox Valuations.
The homeowner says she obtained a higher valuation for her investment property in a second appraisal, and obtained the loan she'd sought with minimal hassle from a nonbank lender in stark contrast to her earlier experience.
Braxton's alleged ordeal is similar to that of other minority homeowners who have sued real estate companies for biased appraisals this decade. It's also a rare, if not the first, biased appraisal suit to emerge during the Trump administration, which has dismantled federal efforts to root out racial bias in the property reviews.
Neither an attorney for Braxton nor spokespersons for the bank responded to requests for comment Tuesday, while the appraiser named as an individual defendant told National Mortgage News he was not aware of the lawsuit.
Doomed application, low appraisal
According to the suit, Braxton began working with Bank of America earlier last year, seeking a $100,000 loan with an interest rate of 6.2% for her Richmond-based property. Although she had a strong equity position and creditworthiness, Braxton said she endured a "demeaning" process with the lender, as she experienced unprofessional treatment compared to other customers of different races and genders.
The homeowner worked with four different loan officers who ignored her correspondence, or repeatedly asked her to resubmit her application. Allegedly, one LO walked out of a branch to avoid interacting with the visiting Braxton, while another LO made an implicit threat to steal her sensitive financial information.
The bank tapped David Boyd of Velox Valuations to perform an appraisal, and his review last September found a $135,000 value for Braxton's home. The plaintiff claims the appraisal's errors spanned from an incorrect zip code for a different state; fewer comparison properties than a subsequent review; and ignoring her rental income data.
"The appraiser did not like the idea that a black woman owned the home being rented by a white tenant," the complaint read, explaining that the appraiser had interacted with Braxton and her investment property's tenant.
Bank of America later denied Braxton's mortgage application, based on the low appraisal and on disputes regarding her auto loan and tax payments, of which the plaintiff didn't reveal financial details. Braxton says she later got an appraisal on her property for $208,000, and obtained a $105,000 loan from Guild Mortgage at a 6.5% interest rate.
Bank of America is awful to begin with, regardless.
I can understand people turning down work if they think the market value will be lower than what the borrower wants and they think they are a minority. You can act all high and mighty that you need to just do your job, but at the end of the day, no one will have your back for doing your job right in these scenarios and they can cost you your job even if you did everything correctly.
If I had to take a couple guesses they would be
1. The property is probably in rough shape with a tenant in it and the higher appraisal might of used properties in better condition
2. The appraiser slams out 5 a day for Velox and doesn't really care.
Neither of which is racial.
I lean more towards 2, I'm guessing BOA paid the appraiser $200 and isn't getting the best.
Last edited:
Fritz in NY
Senior Member
- Joined
- Dec 16, 2004
- Professional Status
- Certified Residential Appraiser
- State
- New York
Fair Housing continuing education is now insane. I need 7.5 hours for my Broker License and 7.5 hours for my Appraisal License. Of course in NYS you need to take Both, one is not good enough to suffer through. Who sold us out? Realtors and Appraisers now have a monkey on their back that 99.9% do not deserve. Have you ever seen a qualifying class being phased out, NO. Keep paying and spending your time, to learn what? If I wasn't discriminatory in the past, I don't think I will all of a sudden become one...
Terrel L. Shields
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- Arkansas
You can register and log into the US court system on pacer
RCA
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- Jun 27, 2017
- Professional Status
- Certified General Appraiser
- State
- California
It's behind a paywall:
Bank of America, appraiser sued for discrimination
The investment property owner says she was stonewalled and humiliated by BofA's loan officers, and that an error-riddled appraisal was short by over $70,000.
A homeowner is suing Bank of America and an appraisal firm for racial discrimination, the latest appraisal bias lawsuit against a major lender.
Darchelle Braxton, a Black woman, sued the businesses last week in federal court for violating the Fair Housing Act and the Equal Credit Opportunity Act in handling her mortgage application last year. The lawsuit describes Braxton's "humiliating" experience with the bank and its loan officers, and a purportedly lowball appraisal by a professional with Velox Valuations.
The homeowner says she obtained a higher valuation for her investment property in a second appraisal, and obtained the loan she'd sought with minimal hassle from a nonbank lender in stark contrast to her earlier experience.
Braxton's alleged ordeal is similar to that of other minority homeowners who have sued real estate companies for biased appraisals this decade. It's also a rare, if not the first, biased appraisal suit to emerge during the Trump administration, which has dismantled federal efforts to root out racial bias in the property reviews.
Neither an attorney for Braxton nor spokespersons for the bank responded to requests for comment Tuesday, while the appraiser named as an individual defendant told National Mortgage News he was not aware of the lawsuit.
Doomed application, low appraisal
According to the suit, Braxton began working with Bank of America earlier last year, seeking a $100,000 loan with an interest rate of 6.2% for her Richmond-based property. Although she had a strong equity position and creditworthiness, Braxton said she endured a "demeaning" process with the lender, as she experienced unprofessional treatment compared to other customers of different races and genders.
The homeowner worked with four different loan officers who ignored her correspondence, or repeatedly asked her to resubmit her application. Allegedly, one LO walked out of a branch to avoid interacting with the visiting Braxton, while another LO made an implicit threat to steal her sensitive financial information.
The bank tapped David Boyd of Velox Valuations to perform an appraisal, and his review last September found a $135,000 value for Braxton's home. The plaintiff claims the appraisal's errors spanned from an incorrect zip code for a different state; fewer comparison properties than a subsequent review; and ignoring her rental income data.
"The appraiser did not like the idea that a black woman owned the home being rented by a white tenant," the complaint read, explaining that the appraiser had interacted with Braxton and her investment property's tenant.
Bank of America later denied Braxton's mortgage application, based on the low appraisal and on disputes regarding her auto loan and tax payments, of which the plaintiff didn't reveal financial details. Braxton says she later got an appraisal on her property for $208,000, and obtained a $105,000 loan from Guild Mortgage at a 6.5% interest rate.
For those appraisers on this forum who claim (unbelievably) that traditional appraisals are accurate, - just note that $208,00/$135,000 = 1.54, or in other words, one appraisal is 54% highert than the other.