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Rocket Sues HUD

djd09

djd09

Elite Member
Joined
May 20, 2009
Professional Status
Licensed Appraiser
State
Ohio

Rocket sues HUD, alleges misplaced blame in appraisal bias case​

Lender defends against claims it failed to address bias in a third-party appraisal, calling them legally unfounded

Rocket Mortgage has filed a suit against the Department of Housing and Urban Development (HUD) for dragging its name in a “baseless” complaint alleging that the lender is responsible for correcting appraisal bias by an independent appraiser.

The lawsuit, filed in the District Court for the District of Colorado, seeks clarity on conflicting regulatory mandates and asks the court to dismiss claims brought by HUD and the Department of Justice (DOJ) as part of a broader case on appraisal bias.

The DOJ’s lawsuit, filed on October 21, accused Rocket Mortgage of failing to correct a biased home appraisal conducted by an independent third-party appraiser during a refinance for a borrower.

Despite the appraisal being conducted by an external, state-licensed appraiser with no direct affiliation to Rocket, the DOJ claimed Rocket “had the authority to correct the discriminatory appraisal” but failed to do so.

“This is 100% false,” the mortgage giant said in a statement, asserting that federal laws such as the Dodd-Frank Act and the Truth in Lending Act (TILA) mandate appraiser independence and prohibit lenders from influencing valuations.

“It is unreasonable that the DOJ chose to sue Rocket Mortgage for the conduct of an independent appraiser,” said Rocket Companies president Bill Emerson. “We will not stand idly by while the courts are used as venues to leverage our company’s name to publicize the case instead of pursuing justice against those who may have committed wrongdoing.”

The company also noted that it “originated three home loans for the borrower named in the lawsuit, with which there were no issues. The borrower’s loan is currently being serviced by Rocket Mortgage, and also was being serviced by Rocket Mortgage at the time of the appraisal in question.

“When the applicant expressed concern with the home’s valuation during this refinance, Rocket Mortgage offered a path to challenge the appraisal through a value reconsideration process which complies with the law. The borrower declined to engage in that process on two separate occasions.”

https://www.mpamag.com/us/news/gene...misplaced-blame-in-appraisal-bias-case/516830

independent means not controlled by others...cant have it both ways :unsure: :ROFLMAO:
 
djd09 said:

Rocket sues HUD, alleges misplaced blame in appraisal bias case​

Lender defends against claims it failed to address bias in a third-party appraisal, calling them legally unfounded

Rocket Mortgage has filed a suit against the Department of Housing and Urban Development (HUD) for dragging its name in a “baseless” complaint alleging that the lender is responsible for correcting appraisal bias by an independent appraiser.

The lawsuit, filed in the District Court for the District of Colorado, seeks clarity on conflicting regulatory mandates and asks the court to dismiss claims brought by HUD and the Department of Justice (DOJ) as part of a broader case on appraisal bias.

The DOJ’s lawsuit, filed on October 21, accused Rocket Mortgage of failing to correct a biased home appraisal conducted by an independent third-party appraiser during a refinance for a borrower.

Despite the appraisal being conducted by an external, state-licensed appraiser with no direct affiliation to Rocket, the DOJ claimed Rocket “had the authority to correct the discriminatory appraisal” but failed to do so.

“This is 100% false,” the mortgage giant said in a statement, asserting that federal laws such as the Dodd-Frank Act and the Truth in Lending Act (TILA) mandate appraiser independence and prohibit lenders from influencing valuations.

“It is unreasonable that the DOJ chose to sue Rocket Mortgage for the conduct of an independent appraiser,” said Rocket Companies president Bill Emerson. “We will not stand idly by while the courts are used as venues to leverage our company’s name to publicize the case instead of pursuing justice against those who may have committed wrongdoing.”

The company also noted that it “originated three home loans for the borrower named in the lawsuit, with which there were no issues. The borrower’s loan is currently being serviced by Rocket Mortgage, and also was being serviced by Rocket Mortgage at the time of the appraisal in question.

“When the applicant expressed concern with the home’s valuation during this refinance, Rocket Mortgage offered a path to challenge the appraisal through a value reconsideration process which complies with the law. The borrower declined to engage in that process on two separate occasions.”


independent means not controlled by others...cant have it both ways :unsure: :ROFLMAO:
Click to expand...
Completely nuts.
 
(6/24/24) Supreme Court strikes down Chevron, curtailing power of federal agencies

In a major ruling, the Supreme Court on Friday cut back sharply on the power of federal agencies to interpret the laws they administer and ruled that courts should rely on their own interpretion of ambiguous laws. The decision will likely have far-reaching effects across the country, from environmental regulation to healthcare costs.

By a vote of 6-3, the justices overruled their landmark 1984 decision in Chevron v. Natural Resources Defense Council, which gave rise to the doctrine known as the Chevron doctrine. Under that doctrine, if Congress has not directly addressed the question at the center of a dispute, a court was required to uphold the agency’s interpretation of the statute as long as it was reasonable. But in a 35-page ruling by Chief Justice John Roberts, the justices rejected that doctrine, calling it “fundamentally misguided.”

.....................

Rocket just said, "Boo!" to HUD. New DOJ and Sheriff in town.
 
In most cases, no such thing as an independent appraiser these days. Especially not when you're working for rocket.
 

HUD Grants Millions to Test for “Racist” Appraisers​


New Grants
In March 2023, the U.S. Department of Housing and Urban Development (HUD) issued $54 million in grants to 182 non-profit organizations to fight housing discrimination. Over $40 million of the total grants is dedicated to what it calls its Private Enforcement Initiative (PEI). The PEI provides dedicated funds to “non-profit fair housing organizations to “conduct intake, provide testing, and investigate and litigate fair housing complaints.”

https://www.workingre.com/HUD-grants-millions-to-test-for-racist-appraisers/

:whistle:
 
djd09 said:
“This is 100% false,” the mortgage giant said in a statement, asserting that federal laws such as the Dodd-Frank Act and the Truth in Lending Act (TILA) mandate appraiser independence and prohibit lenders from influencing valuations.
Click to expand...

Isn't it interesting that they only mention the Dodd-Frank Act and the Truth in Lending Act (TILA) when it serves their purpose?
 
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