Rocket Mortgage, a leading mortgage lender in the United States and part of Rocket Companies, has filed a lawsuit against the United States Department of Housing and Urban Development (HUD) in Federal District Court. The legal action seeks to address conflicts between government regulations that mandate appraiser independence and enforcement actions holding lenders accountable for the conduct of independent licensed appraisers.
The company has also filed a motion to dismiss a claim brought by the Department of Justice (DOJ) regarding similar regulatory issues. "It is unreasonable that the DOJ chose to sue Rocket Mortgage for the conduct of an independent appraiser," stated Bill Emerson, President of Rocket Companies. Emerson emphasized the conflict between HUD's regulations and DOJ's enforcement actions, expressing confidence in presenting their case in court.
On October 21, 2024, the DOJ filed a complaint against Rocket Mortgage in the United States District Court for the District of Colorado. The complaint alleged misconduct by an independent appraiser hired through an unaffiliated third party. "It is notable that, in a case about the alleged actions of an independent appraiser... Rocket Mortgage is listed first," Emerson added.
Rocket Mortgage maintains it followed all applicable laws and denies having authority over or responsibility for correcting independent appraisals. The company argues that current laws prevent them from influencing appraisal values conducted by third-party appraisers.
Rocket Mortgage seeks judicial clarification on HUD's policy changes requiring lenders to oversee and correct appraisals performed by independent appraisers. They request declarations affirming their lack of liability under these circumstances and vacating policies holding lenders accountable for perceived biases or discrimination by appraisers.
The case has been filed as Rocket Mortgage, LLC vs United States Department of Housing and Urban Development in Colorado's United States District Court. Michigan-based Morganroth & Morganroth and Goodwin Procter from Washington, DC represent Rocket Mortgage.
Rocket Mortgage continues its commitment to homeownership across America, having introduced several programs aimed at reducing racial disparities in homeownership rates. As America's largest mortgage lender based on recent Home Mortgage Disclosure Act data from 2023, Rocket Mortgage remains dedicated to providing digital-driven client experiences since its inception in 1985.