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TEAPOTS Exposed: The PAVE Initiative's Illusion of Justice

Mejappz

Elite Member
Joined
Dec 16, 2005
Professional Status
Certified Residential Appraiser
State
Florida
The PAVE Initiative’s lack of TEAPOTS case entries reveals a fraudulent scheme that betrayed homeowners, vilified appraisers, and hid the truth from Congress.
The Biden administration’s PAVE Task Force initiative was never a legally engineered program to uncover racial bias in the appraisal industry. It was, as I have now uncovered, a systemic administrative illusion: a complex, bureaucratic apparatus designed to justify federal grant funding, inflate internal performance metrics, and maintain political optics — not to administer justice.

This wasn’t enforcement. This was theft of government funds dressed in legal theater. Homeowners were deceived. Appraisers were targeted. The law was sidestepped. And no one, until now, has exposed the machinery behind the curtain.

“I Knew Something Was Wrong — Because I’d Already Been Through a Real Investigation”

I went through a formal racist/discrimination investigation with the Department of Veterans Affairs years ago as an appraiser accused of racism by a disgruntled homeowner that did not get a refinance of his home, an appraised value of his home to make the numbers work. It was year-long investigation that was tough, but it followed the law: proper jurisdictional review, an investigative plan, interviews, and a formal closure letter generated.

When HUD began a mirrored investigating of me under the PAVE initiative (Thus Double Jeopardy), I immediately knew something was off. There was no TEAPOTS case number. No Administrative Law Judge (ALJ) referral. No recorded interviews. Just vague emails and a completely fabricated “second charge” — later disavowed. And worst of all, HUD repeatedly denied my requests for procedural transparency. I was being dragged through a fake legal process — and they assumed I wouldn’t notice.

No law firm would take my case. HUD officials refused to explain what was happening. So I did what no appraiser should ever have to do: I investigated them. And what I found is bigger than me — it implicates HUD’s own lawyers, leadership, and potentially members of Congress.

What Is the TEAPOTS System — and Why Does It Matter?

TEAPOTS (Title Eight Automated Paperless Office Tracking System) is HUD’s official case tracking system for fair housing complaints. Every legitimate investigation must be:

  • Opened in TEAPOTS
  • Assigned a tracking number
  • Include an investigative plan (HUD Handbook 8024.1 REV-2)
  • Be subject to jurisdictional review under 24 CFR § 103.25
In my case — and potentially hundreds of others — no TEAPOTS entry was ever made. That means:

  • No formal cases existed
  • No legal processes were triggered
  • No oversight bodies could audit it
If it’s not in TEAPOTS, it’s not real — and that’s why HUD’s Office of Inspector General (OIG), FOIA office, and others never responded to my certified letters or emails, my pleas for legal interventions: they had no legal record to examine.
Marcia Fudge’s False Statements to Congress and the Public


Former HUD Secretary Marcia Fudge repeatedly testified under oath and gave public statements suggesting that PAVE was actively investigating hundreds of appraisers for racial bias:

“We are investigating over 800 appraisal bias cases. We are serious about enforcement.” — Secretary Marcia Fudge, House Financial Services Committee, March 2022

“These are real cases with real people. We are holding appraisers accountable.” — Fudge, PAVE Public Briefing, June 2022

“We are seeing patterns of bias, and we’re launching enforcement actions across the country.” — Fudge, White House Equity Roundtable, 2022

But based on my experience, my FOIA records, and internal documentation — these claims were categorically false:

  • These were not “cases.” They were intake-only inquiries, never reviewed by attorneys or entered into TEAPOTS.
  • No formal charges were filed in the vast majority of claims.
  • Homeowners were never notified of any resolution.
  • Appraisers were threatened, manipulated, and often left in limbo with no due process.
This is more than misrepresentation. It may constitute a violation of 18 U.S.C. § 1001 — making false statements to Congress.

How PAVE Was Built to Bypass the Law

The legal foundation of PAVE was not built in public. It was likely authored by:

  • Attorneys inside HUD’s Office of General Counsel (OGC)
  • Coordinated with the DOJ Civil Rights Division
  • With political pressure from the White House Domestic Policy Council
  • And justified by policy advisors or civil rights think tanks
Instead of creating a lawful civil rights enforcement mechanism, they created a procedural illusion:

  • No real case files
  • No administrative law judge referrals
  • No proper jurisdictional vetting (especially of homeowners)
 
So - What happens now?

I keep reading these various insights showing the unraveling of the unethical things involving governmental and organizational arms who impact our profession, and I’m waiting for the ripple to reach the bank of the lake, so to speak.

Will all just be forgotten, and we’ll go about our days as though nothing has happened? Is there a congressman or legal eagle who is promising to look into any of this?
 
I doubt it.
it's like investigating the FBI
or any covert operation, a single congressional member wouldn't get anywhere and since it effects zero to none of their constituents it's not somthing anyone cares about.

So nope the Ship Sailed and unfortunately nobody but a few powerless appraisers even cares.
 

Rep. Maxine Waters Hit With Huge Penalties For Campaign Finance Violations​



Chairwoman Waters Requests Timeline for Implementation of PAVE Task Force Administrative Appraisal Reforms​

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Washington, D.C., June 29, 2022

Congresswoman Maxine Waters (D-CA),
Chairwoman of the House Financial Services Committee, sent a letter to the Property Appraisal and Valuation Equity (PAVE) Task Force asking that the Task Force move quickly to implement its planned administrative actions and provide the Committee with a clear timeline for implementation of each action.

“The Task Force’s Action Plan is a critical step forward in our nation’s duty to root out bias and discrimination in the appraisal industry, which has gone under the radar for too long. During the pandemic alone, we have seen countless reports of appraisal bias and alleged discrimination, which are exacerbated by gaps in federal home valuation policies and regulations. The systemic undervaluation of homes owned by people of color and located in communities of color has blocked many homeowners of color, especially Black homeowners, from fully benefiting from the equity in their homes, from refinancing their mortgages into historically low interest rates, and devaluing the communities they live in.”

See here for the letter, which is also provided below.


Honorable Marcia L. Fudge

... :rof:
 
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