T
he US Justice Department has filed a lawsuit against Rocket Mortgage, alleging that an appraisal of a Black homeowner's property was intentionally undervalued due to her race. The suit names Solidifi U.S. Inc., Maverick Appraisal Group, and its CEO Maksym Mykhailyna as defendants. At the center of the case is Francesca Cheroutes, a Black attorney who sought an appraisal on her Denver home after making structural improvements in 2020.

    Mykhailyna's appraisal valued the property at $640,000, 25% less than a previous appraisal before the improvements were made. The Justice Department claims that Mykhailyna's appraisal included errors and used values from homes in predominantly Black neighborhoods as a baseline. This is despite there being comparable properties available within Solidifi's recommended search area.

    The case highlights concerns about racial bias in the home appraisal industry, where white appraisers dominate the field. Since 2020, dozens of Black homeowners have alleged discrimination in home appraisals. Rocket Mortgage contracted with Solidifi to perform the original appraisal and was informed by the company that it could not investigate Cheroutes' concerns over Mykhailyna's work.

    Rocket Mortgage claims it is legally bound to accept the appraisal, but after Cheroutes refused a refinanced loan based on the undervalued property, the company canceled her application. The Department of Housing and Urban Development found "reasonable cause" to believe that Rocket Mortgage and others had violated the Fair Housing Act.