Rocket also called HUD’s interpretation of the FHA overly broad, urging the court to vacate it.
Broader Implications
Appraisal bias has drawn heightened regulatory attention under the Biden administration, which has prioritized combating discrimination in housing. Critics argue that appraisal disparities contribute to racial wealth gaps by affecting home values and loan terms.
Rocket acknowledged the issue’s seriousness but said lenders cannot reasonably detect subtle biases, particularly when working with independent third-party appraisers. The company emphasized that appraisers themselves should bear accountability for discriminatory practices.
Industry Pushback
Rocket Cos. President Bill Emerson accused the DOJ of targeting the lender unfairly, leveraging its prominence for publicity.
Rocket warned that HUD’s position risks undermining the very protections established by Dodd-Frank to prevent lender manipulation of valuations.
Legal Teams and Defendants
Rocket Mortgage is represented by attorneys from Goodwin Procter LLP, Morganroth & Morganroth, and Spencer Fane LLP. The DOJ is represented by attorneys from its Civil Rights Division and the U.S. Attorney’s Office for the District of Colorado.
