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"The lawsuit against Shane Lanham by Connolly/Mott has been dropped!!! Unfortunately, Shane's countersuit was also dropped. Shane is relieved it is finally over and thanks everyone for their support."
Nathan Connolly and his late wife Shani Mott, both Black homeowners in Baltimore, accused appraiser Shane Lanham and his company (20/20 Valuations) of racial discrimination. In 2021, they wanted to refinance their home. Lanham appraised their property at $472,000.
Later, the couple removed evidence that they were Black ("whitewashed" the home), and a different appraiser valued it at $750,000. The couple sued Lanham, claiming the low appraisal was due to racial bias. Lanham denied this and counter-sued them for defamation because they publicly accused him of racism in the media.
What did the court decide?
On July 17, 2025, the court ruled:
In favor of the appraiser (Lanham) on the discrimination claims.
The court found there wasn’t enough evidence that the lower appraisal was due to race rather than legitimate professional reasons (like location near a busy road).
The couple’s expert witness wasn’t an appraiser and couldn’t prove the appraisal was improper or discriminatory.
In favor of the couple (Connolly and Mott) on the defamation claims.
Although they accused Lanham publicly of racism, those statements were protected because they were based on allegations in their lawsuit. This is called the “fair reporting privilege,” which shields people from defamation claims if they’re repeating what’s in a lawsuit filed in good faith.
Bottom line:
The couple lost their discrimination lawsuit against the appraiser.
The appraiser lost his defamation countersuit against the couple.
Rolling back PAVE signals a return to evidence-based housing policy and a rejection of flawed claims of systemic appraisal bias, say co-directors of the AEI Housing Center.
AI has the solution for the systemically racially biased report. Once a minority borrower has been identified, the appraiser just needs to plug in the values and make an adjustment.
Common Research Model
A typical regression model used to estimate racial bias in home values is:
• Minority: 1 if the owner or neighborhood is predominantly a minority, 0 otherwise.
• X: Other variables (e.g., location, property features, market variables).
• β1: Represents the average value difference attributable to minority status after controlling for relevant factors.
• ε: Error term.
For instance, a significant negative β1 (e.g., -0.013) indicates the appraised value for properties with minority status tends to be 1.3% lower, on average, after accounting for other factors.
Illustrated Example
If a study found an average bias of -1.3% for Black homeowners:
• Predicted adjustment: Add +1.3% to appraised value to “correct” for average bias.
• Formula: when β1 is negative.
So easy, no need to for a costly lawsuit. Or, just ask the HO what they think the house is worth. : ~ )
Good morning to everyone, Some of you have probably heard, but for those that have not, yesterday the judge ruled in our favor for summary judgement. Unless there is an appeal the case is over, and trial will not be had. In the judge's opinion Relman/Colfax was unable to provide the evidence to support their argument & a debate in a courtroom is not warranted. Unfortunately, she ruled in favor of summary judgement on the counterclaim, so I will not be able to pursue the defamation case further. While that is disappointing, because I think Relman/Colfax & Nathan Connolly got off easy, I am happy to be done with this. Thanks again for all of your support, both financially and with words of encouragement. from gofundme from Shane
Thanks again to OREP for covering this issue. Going way back in time, they supported Pam and have always been an advocate for boots on the ground appraisers. I am a proud member and customer.
With that said, read below and ask yourself if TAF and the rest of the appraiser alphabet soup in DC give a rats arse about boots on the ground appraisers.
"This case is particularly significant for two key reasons.
First, it is likely a material test case for "appraisal discrimination" litigation-funding. Connolly and the late Mott were represented by Relman Colfax, a leading fair housing law firm that recently billed over $500,000 to The Appraisal Foundation (TAF) to advise on USPAP revisions. According to court records from months ago, Relman Colfax has billed 5,411 hours to the case at an average hourly rate of $583, with total expenditure reaching $3.15 million (The final bill is expected to exceed this amount).
Some industry insiders have questioned whether Connolly and the late Mott, both academics, are the ones paying this multi-million-dollar legal bill. This questioning occurs against a backdrop of litigation where many (nearly all) of the bias lawsuits filed against appraisers have been joined or co-filed by a local fair housing organization. The plaintiffs in a Marin County, California lawsuit, another suit that drew headlines across national media outlets, were backed by the Fair Housing Advocates of Northern California, for example.
The fact that Relman Colfax billed over $3 million on this case alone means that it is likely representing one of the most expensive cases that has been brought against an appraiser to date, at least for plaintiff-side accounting. This, combined with the fact that many of these cases are backed by non-profit fair housing organizations, suggests that this case may set an example and discourage other non-profits or private litigation-funders as they contemplate financially backing future cases suing an appraiser for racial discrimination.
Second, as one of the most widely publicized discrimination lawsuits and one of the last ongoing lawsuits against an appraiser, this case is a material victory for appraisers nationally. It is also the second example in 2025 of an appraiser prevailing in Court against claims of appraisal discrimination and bias. The lender in this case, loanDepot, chose to settle with Connolly and Mott in early 2024, but Lanham chose to stay the course and refused to settle."