Rocket Mortgage Sued

[TerryRohrer]

As I suspected, nothing to do with discrimination. It was about fraudulent appraisals. Multiple people filling the forms probably part of the reason for the discrepency between reports, not discrimination.

But the takeaway will be the coming settlement with HUD to end the bleeding, which will require a guilty plea. It is not about getting to the truth, it is about advancing the narrative, facts be damned.

 

[CGinMN]

Ignorance is not a defense. There is a reason why it is very easy to get on AMC panels and very difficult to get on direct engagement panels. DE lenders generally vet their appraisers, interview them, understand their business models, their history and background in the field, how many employees, how many trainees, etc. The big AMCs don’t do any of this, which is why they are culpable here. Had they been providing the oversight function they are hired for, they would have never put this guy on in CO.

 

[shrubberyvaluation]

Ignorance is not a defense. There is a reason why it is very easy to get on AMC panels and very difficult to get on direct engagement panels. DE lenders generally vet their appraisers, interview them, understand their business models, their history and background in the field, how many employees, how many trainees, etc. The big AMCs don’t do any of this, which is why they are culpable here. Had they been providing the oversight function they are hired for, they would have never put this guy on in CO.

The incentive structure is different. As long as an AMC gets paid a lump sum and profits based on how little they can pay an appraiser they will go for the cheapest one they can get away with. Speed helps too, after they shop it for a week or two they need an appraiser who can turntime it 24 hours.

 

[Sadie]

I'm sure there were no warnings signs at all. I don't buy the ignorance defense. Could of been ignorant of forging signatures, but written by people out of the country, and this guy slammin em out for probably pennies, had to be sloppy reports. Using runners and written by people out the country, I doubt these were great USPAP compliant reports...

I am sure there were warning signs and either the AMC was too clueless to figure it out or they did the AMC two step and avoided responsibility. "Look our engagement letter says the appraiser must produce USPAP compliant reports. We didn't know."

 

[shrubberyvaluation]

I am sure there were warning signs and either the AMC was too clueless to figure it out or they did the AMC two step and avoided responsibility. "Look our engagement letter says the appraiser must produce USPAP compliant reports. We didn't know."

I'd go with didn't care cause they were making good money off of that guy. The incentive structure of AMCs to use these types of people is insane.

 

[alebrewer]

One more time and with a different link:

• When complete the participant is eligible for up to 100% of experience credit for Licensed and Certified Residential credentials.

PAREA

appraisalfoundation.org

It's a losing battle, bro...

 

[Terrel L. Shields]

WRE has an article on the HUD v Appraiser/Rocket appraisal. I am a bit familiar with the Cherry Creek and north off Colorado Blvd. area. Not a pro but at least I have been there several times. I do think it remarkable that the subject appears to be on the fringe of the apparent neighborhood if one defines the neighborhood as the comps shown on that map. That's a big area with hundreds of houses and surely a lot more sales that is shown on the map. It's not far from Cherry Hills - a high rent district - but uses sales some distance away by all appearances. And Zillow shows several hundred sales currently in the area. So, what was the problem in 2021? Can they claim it is flood zone? Can they say Covid had damaged the market? It certainly looks potentially under-valued as the comps should almost certainly have come from closer sales. And I agree, Colfax Streets reputation has long been something less than that further south. The DOJ may well have nailed this one correctly...and the "oversight" provided by the AMC and Rocket was non-existent.

OTOH, 749 -751 Ash Street is a rather eclectic looking house to me as well. But it appears to be a duplex? And or 2 properties???? And Zillow has valued them miles apart? WTF??? So, perhaps if attempting to match the 'curb appeal' then I don't know. But I know if I had to go miles to find comps for an oddball property...maybe I would just pass.
Figure these pix out - tell me that this isn't the same view, or the houses are identical twins - which does not seem possible.

 

[shrubberyvaluation]

WRE has an article on the HUD v Appraiser/Rocket appraisal. I am a bit familiar with the Cherry Creek and north off Colorado Blvd. area. Not a pro but at least I have been there several times. I do think it remarkable that the subject appears to be on the fringe of the apparent neighborhood if one defines the neighborhood as the comps shown on that map. That's a big area with hundreds of houses and surely a lot more sales that is shown on the map. It's not far from Cherry Hills - a high rent district - but uses sales some distance away by all appearances. And Zillow shows several hundred sales currently in the area. So, what was the problem in 2021? Can they claim it is flood zone? Can they say Covid had damaged the market? It certainly looks potentially under-valued as the comps should almost certainly have come from closer sales. And I agree, Colfax Streets reputation has long been something less than that further south. The DOJ may well have nailed this one correctly...and the "oversight" provided by the AMC and Rocket was non-existent.

OTOH, 749 -751 Ash Street is a rather eclectic looking house to me as well. But it appears to be a duplex? And or 2 properties???? And Zillow has valued them miles apart? WTF??? So, perhaps if attempting to match the 'curb appeal' then I don't know. But I know if I had to go miles to find comps for an oddball property...maybe I would just pass.
Figure these pix out - tell me that this isn't the same view, or the houses are identical twins - which does not seem possible.

View attachment 96916View attachment 96917

I wouldn't say DOJ nailed it correctly if the claim is discrimination, unless there is compelling evidence I don't know about.

I think that is the same house. You can see the stairs to the other entrance on the right side of the first photo. The building on the left of the phot appears to be the same.

Hundreds of houses tells me nothing, are they duplexes? Are they similar duplexes?

 

[Tom D]

I always question the owner if i see a recent refi was done on the property. Always think that they are trying to use the house as an atm. Also, can tell by the loan amount sorta the before value.
So had the appraiser asked, a big red flag would come out as to why am i doing this existential threat. But, i know that many of you don't talk to anyone. I so friendly to any owner that you can't say i have systemic racism towards you. I love owners and buyers, they support my life style.

In this case, it could also be a knowledge issue, especially with 2-4, when there isn't a lot of data. These owners are now looking for the lottery ticket known as racism. In either case, racism or stupidity, the appraiser put their own foot into that bear traps. But this is a business decision about clients. Unfortunately, if this mistake goes towards racism then that is the end of this appraiser, period.
And the perception of it can be very expensive to disprove, and not much left of you even if innocent.

List that law suit on your E&O application.

 

[glenn walker]

The case is dead...lol