On October 21, 2024, the Department of Justice (DOJ) filed a lawsuit against Rocket Mortgage in the U.S. District Court for the District of Colorado. The complaint alleged that Rocket Mortgage was liable for the conduct of an independent appraiser in a case of alleged racial discrimination. This legal action marks a significant challenge for the nation's largest mortgage lender.
Rocket Mortgage stated that the accusation of discrimination was directed at the independent appraiser who performed the appraisal, not the company itself. The company asserted that it followed all applicable laws and had no authority to correct the appraisal value, as government regulations mandate appraiser independence to prevent conflicts of interest. Rocket Mortgage also noted that the borrower declined to engage in the value reconsideration process on two separate occasions.
This lawsuit could have substantial implications for Rocket Mortgage, potentially leading to legal costs, reputational damage, and operational adjustments. The company has publicly stated its commitment to fair housing lending and has introduced programs aimed at bridging the racial homeownership gap.
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.