March 7, 2025 Story by: Editor
The U.S. Department of Justice (DOJ) has filed a lawsuit against Rocket Mortgage LLC, Solidifi US Inc., Maverick Appraisal Group Inc., and appraiser Maksym Mykhailyna, accusing them of racial discrimination against a Black homeowner in Denver.
The lawsuit alleges that the homeowner’s property was deliberately undervalued due to her race during a home appraisal required for a mortgage refinance application. Additionally, the DOJ claims Rocket Mortgage retaliated against her by canceling the application after she reported the discrimination.
“This lawsuit is part of our ongoing efforts to bring an end to appraisal bias which prevents Black communities and other consumers of color from accessing credit and benefitting from homeownership,” stated Assistant Attorney General Kristen Clarke of the DOJ’s Civil Rights Division. “Appraisal bias exacerbates the racial wealth gap and runs contrary to the principles of fairness, transparency, and equity that we need in our housing market today. The Justice Department will continue to hold appraisers, lenders, and others who discriminate against loan applicants accountable for their actions. No one should have to suffer the indignity and financial harm associated with appraisal bias.”
Acting U.S. Attorney Matt Kirsch for the District of Colorado also addressed the case, stating, “The complaint alleges racially discriminatory practices by a lender and an appraiser that harmed a homeowner. These discriminatory practices have gone on for too long in Denver. The U.S. Attorney’s Office is committed to addressing persistent inequities in housing through vigorous enforcement of federal laws prohibiting discrimination in housing and lending.”
According to the DOJ’s complaint, the homeowner applied for a mortgage refinance loan from Rocket Mortgage in January 2021. Rocket Mortgage hired appraisal management company Solidifi US Inc., which then contracted Mykhailyna and Maverick Appraisal Group to assess the home’s value. The complaint alleges that Mykhailyna used property sales from distant neighborhoods with higher Black populations instead of comparable homes from the homeowner’s predominantly white neighborhood. It further claims that Mykhailyna ignored relevant sales data from less than a mile away—data he had previously used to support a higher valuation for a white homeowner’s property in the same neighborhood. These alleged discrepancies resulted in the home being undervalued by more than $200,000, a decrease of over 25% during a time when property values in Denver were rising.
After receiving the appraisal, the homeowner contacted Rocket Mortgage to dispute what she believed was an instance of racial bias. The DOJ alleges that instead of addressing her concerns, Rocket Mortgage canceled her refinancing application. She later filed a complaint with the Department of Housing and Urban Development (HUD), which investigated the case and determined there was reasonable cause to believe that the defendants had violated the Fair Housing Act, prompting the referral to the DOJ.
“HUD applauds today’s action and remains committed to working with the DOJ to ensure appraisal companies and mortgage providers are held accountable when they violate our nation’s fair housing laws,” said Principal Deputy Assistant Secretary Diane M. Shelley of HUD’s Office of Fair Housing and Equal Opportunity. “It has been over 56 years since the passage of the Fair Housing Act, and it is unconscionable that Black and Brown families still face discrimination during housing transactions.”
The lawsuit is part of the DOJ’s broader effort to address racial disparities in the housing market and hold lenders, appraisers, and financial institutions accountable for discriminatory practices.
Source: DOJ
