Rocket Mortgage Sued

[shrubberyvaluation]

even the Zillow and Redfin don't agree on a value. Redifin is close to the appraiser's value and Zillow is close to the previous value.

So Redfin is racist, at least for this one. Where is the address at?

 

[Sadie]

Justice Department Sues Rocket Mortgage, Appraisal Management Company and Appraiser for Race Discrimination in Mortgage Refinance Application

The Justice Department announced today that it has filed a lawsuit alleging that Rocket Mortgage LLC; Solidifi US Inc.; Maverick Appraisal Group Inc.; and Maksym Mykhailyna discriminated against a Black homeowner by undervaluing her home based on her race in an appraisal required as part of a...

www.justice.gov

Ugh, The owner I think is an attorney.

 

[Sadie]

So Redfin is racist, at least for this one. Where is the address at?

749-751 Ash St, Denver

 

[shrubberyvaluation]

Part of the complaint is that he didn't use closer homes to the West, instead using homes to the East. Looking at a map there appears to ba major road a couple blocks to the west, which can divide neighborhoods. It may be better to use more distant properties to the East if that is the edge of the neighborhood to the West.

 

[John Hassler]

An ongoing story. Think of the details and implications though. So much for client confidentiality because on the GSE level, investigators apparently have instant access to the appraisal repositories.

You don't understand Denver and what these places are like. There is a block by block differential where one side is standard regular homes, the others are custom homes with tremendous hundreds of thousands of value dollars difference. And sometimes they're intermingled so after time you learn about these patterns, that if you land one of the orders for a regular amid the customs, they tend to comp out more on this area then that, and vice versa. Not to mention the consistent 2/3rds ratio of land value being higher than home value, unless you're into the customs but even then it's often half and half.

There is no white area or black area in these communities like one might presume, just pockets of yuppies and urban folk congregating in micro pockets not but blocks away from each other.

Mykhailyna appraised the property to be over $200,000 lower than an appraisal on the same property that had been completed less than a year before, a more than 25% decrease at a time of rising home values in the Denver.

That's probably because the appraiser prior had over valued the property that much is the more likely situation. Probably chasing down a realtors figures based on flawed Denver based MLS Corelogic Realist avm estimates which are known for presenting six digit possible price ranges.

Don't worry, the lender and AMC will crawl out of this mess by dumping the entire thing on the appraiser and leave the appraiser with the full burden of all investigative and representative costs.

Thanks you providing your thoughts on the complexity of the neighborhood. This seems to be a commonality among bias claims.

I don’t see the appraisal community accepting of the bias accusations unless and until multiple bias cases wind all the way through the courts and the evidence released to the public. Just stating one appraisal proves the other is biased is insufficient.

 

[Elliott]

The appraisal company accused of not making value:

Real Estate Appraisal & Property Valuation Services | Maverick AG

Maverick AG provides comprehensive real estate appraisal and property valuation services. Our experts ensure precise, trusted valuations for all types of properties. Get your property appraised today!

www.maverickag.co

Response from Rocket:

"In a statement to Denverite, Rocket Mortgage said the company is "required to work at arm's length" during appraisals due to federal laws, partnering with appraisal companies so the lender does not bring bias.

"For that reason (and more), our company is clearly a misplaced target used simply to score headlines because of its brand and position in the industry," wrote a Rocket Mortgage spokesperson. "We look forward to bringing the facts of this case to court to set the record straight. Until then, we will continue offering affordable options and championing other equitable initiatives to make the dream of homeownership accessible to all." "

 

[shrubberyvaluation]

The appraisal company accused of not making value:

Real Estate Appraisal & Property Valuation Services | Maverick AG

Maverick AG provides comprehensive real estate appraisal and property valuation services. Our experts ensure precise, trusted valuations for all types of properties. Get your property appraised today!

www.maverickag.co

Response from Rocket:

"In a statement to Denverite, Rocket Mortgage said the company is "required to work at arm's length" during appraisals due to federal laws, partnering with appraisal companies so the lender does not bring bias.

"For that reason (and more), our company is clearly a misplaced target used simply to score headlines because of its brand and position in the industry," wrote a Rocket Mortgage spokesperson. "We look forward to bringing the facts of this case to court to set the record straight. Until then, we will continue offering affordable options and championing other equitable initiatives to make the dream of homeownership accessible to all." "

I'm actually kind of shocked, I thought Rocket did mostly bifurcated appraisals. I am curious when the first case for a bifurcated appraisal comes, will it be the appraiser, the "inspector", the AMC, and the lender accused of bias?

 

[shrubberyvaluation]

749-751 Ash St, Denver

Per redfin here are some similar homes.

 

[Sadie]

I have to wonder about Rocket cancelling the loan. Did they offer an ROV? Also, is it regulations or guidelines that does not allow them to appraiser shop? Rocket might have been stuck with the appraiser/appraisal and her only recourse would have been to pay for a private appraisal. And for Petes sake, she must not have wanted a loan too bad if she could just say ** to Rocket and go somewhere else. Its not like she's special or anything. Just like everyone else whose appraisal did not spit out the requested number.

 

[Terrel L. Shields]

Part of the complaint is that he didn't use closer homes to the West, instead using homes to the East. Looking at a map there appears to ba major road a couple blocks to the west, which can divide neighborhoods. It may be better to use more distant properties to the East if that is the edge of the neighborhood to the West.

View attachment 92505

Hmm. That's straight north of where my old GF lived off Mississippi St. Kinda 60-70s housing as a recall. Her daughter lived in Cherry Creek in "Ft. Rich".