The Department of Justice on Monday announced it is suing Dan Gilbert’s Detroit-based Rocket Mortgage, alleging it retaliated against a Black homeowner by canceling her refinance application after she complained about a low-ball appraisal. The woman claimed the appraisal was based on racial discrimination.
When a mortgage firm low balls an appraisal during a refinance, it lowers the value of the home and can prevent owners from getting the loan amount they desire because lenders can only lend against the appraised value.
“This lawsuit is part of our ongoing efforts to bring an end to appraisal bias which prevent Black communities and other consumers of color from accessing credit and benefitting from homeownership,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, in a statement. “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.”…