Rocket Mortgage Sues HUD Over Appraiser Independence Issues

Rocket Mortgage has filed a lawsuit in the Federal District Court against the U.S. Department of Housing and Urban Development (HUD). The lawsuit addresses a dispute regarding who is responsible for the work of an independent appraisal expert. Rocket Mortgage claims that the Department of Justice (DOJ) unfairly held the company liable for the actions of an appraiser hired by a separate appraisal management firm.

At the heart of the case is Rocket Mortgage's assertion of a contradiction between government regulations that mandate the independence of appraisal experts and the DOJ's enforcement actions that hold lenders accountable for the conduct of those appraisers. Through this lawsuit, Rocket Mortgage seeks legal clarity on these issues.

In connection with the lawsuit, Rocket Mortgage also submitted a motion to dismiss the claims brought against it by the DOJ. The company is contesting the government's stance and is urging the dismissal of the assertion that it is responsible for the work of the independent appraisal expert.

The legal actions come in response to the DOJ's recent claim that implicated Rocket Mortgage in issues related to an appraisal conducted by an independent professional. Rocket Mortgage disputes this claim and emphasizes the distinction between its operations and the work of the appraiser managed through an independent firm.

Rocket Mortgage's actions reflect its position on the need to clearly differentiate lender responsibilities within the real estate sector from the independent work conducted by licensed appraisal experts. The outcome of the lawsuit and the motion to dismiss could have implications on how lender liability is interpreted in connection with independent appraisal work.