On December 5, 2024, Rocket Mortgage filed a lawsuit in Federal District Court against the U.S. Department of Housing and Urban Development (HUD). The suit aims to resolve conflicts between government regulations on appraiser independence and enforcement actions that seek to hold lenders liable for independent appraisers' conduct. This proactive legal step addresses a critical regulatory ambiguity.
Concurrently, Rocket Mortgage filed a motion to dismiss a claim brought by the Department of Justice (DOJ) on October 21, 2024. The DOJ's claim alleged that Rocket Mortgage was liable for alleged discriminatory appraisal conduct by an independent appraiser. Rocket Mortgage asserts that the accusation of discrimination is against the independent appraiser, not the company, and that it followed all applicable laws.
The company emphasized that it had no authority to 'correct' the appraisal as a matter of law, citing Dodd Frank Act and Truth in Lending Act requirements for independent appraisers. Rocket Mortgage also noted that the borrower in the DOJ case declined to engage in the value reconsideration process on two separate occasions. This legal action seeks to clarify lender responsibilities and defend against what Rocket views as wrongful accusations.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.