Rocket Mortgage reports that it has filed a suit in Federal District Court against the U.S. Department of Housing and Urban Development (HUD) to correct conflicts between the government’s regulations requiring appraiser independence and its enforcement actions seeking to hold lenders liable for the conduct of independent licensed appraisers.
Rocket Mortgage has also filed a motion to dismiss the claim the DOJ brought against the company based on the same regulatory conflicts and misapplication of applicable law.
”It is unreasonable that the DOJ chose to sue Rocket Mortgage for the conduct of an independent appraiser,” says Bill Emerson, president of Rocket Companies, in a statement. “We will not stand idly by while the courts are used as venues to leverage our company’s name to publicize the case instead of the pursuing justice against those who may have committed wrongdoing.
“Today’s filings highlight the conflict between HUD’s regulations and the DOJ’s enforcement positions,” Emerson adds. “We are looking forward to laying out all the facts of this case in court. Rocket Mortgage has thousands of passionate team members who focus every day on doing the right thing. It would be an offense to our workforce if we let the DOJ’s and HUD’s wrongful actions go unchecked.”
In October, the DOJ filed a complaint against Rocket Mortgage in the U.S. District Court for the District of Colorado (United States of America v. Rocket Mortgage, Solidifi, Maksym Mykhailyna and Maverick Appraisal Group).
The lender contends that it followed all applicable laws and the only explanation for the company’s inclusion in this case about the alleged conduct of an independent appraiser is the DOJ’s apparent motive to bring headlines to their claim.
“It is notable that, in a case about the alleged actions of an independent appraiser that was contracted through an unaffiliated third party, Rocket Mortgage is listed first in the DOJ’s filing and is the only company mentioned by name in the headline of the government’s press release announcing the DOJ’s lawsuit,” Emerson says. “We have always been guided by the fundamental principle that all homebuyers and homeowners should be treated fairly and should have every opportunity to achieve their dream of owning their own home or using their equity to improve their lives. Our long, exemplary track record of fair housing lending speaks for itself.”