Rocket Mortgage Sued for Discrimination

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Rocket Mortgage Sued for Allegedly Discriminating Against Black Homeowners.

The U.S. Justice Department has filed a significant lawsuit against Rocket Mortgage Sued and two appraisal firms for allegedly discriminating against a Black homeowner during a mortgage refinance process. The complaint claims that Rocket Mortgage Sued, Solidifi US Inc., and Maverick Appraisal Group, along with appraiser Maksym Mykhailyna, undervalued the homeowner’s property based on race. Assistant Attorney General Kristen Clarke emphasized that this case highlights the ongoing issue of appraisal bias, which disproportionately affects Black communities and exacerbates the racial wealth gap.

According to the lawsuit, the appraiser used sales data from neighborhoods with larger Black populations rather than closer, predominantly white areas. Notably, the appraisal came in over $200,000 lower than a previous assessment of the same property—despite rising home values.

The situation escalated when the homeowner reported the perceived discrimination to Rocket Mortgage Sued, leading the company to cancel her refinance application. After filing a complaint with the Department of Housing and Urban Development, the case was referred to the Justice Department, which found reasonable cause to proceed. U.S. Attorney Matt Kirsch stated that discriminatory practices in housing have persisted for too long and stressed the commitment to enforcing federal laws against such inequities.

Rocket Mortgage Sued has drawn considerable attention due to the severity of the allegations. This case against Rocket Mortgage Sued could set a precedent for future actions addressing discrimination in the housing market. With more homeowners coming forward, Rocket Mortgage Sued is facing an uphill battle in the court of public opinion, as well as in legal proceedings. The company maintains that its practices are fair and unbiased, but the case continues to develop.

HUD officials have also expressed support for the Justice Department’s actions, reaffirming the need to hold mortgage providers like Rocket Mortgage Sued accountable for violations of fair housing laws. The outcome of this lawsuit could reshape how companies like Rocket Mortgage Sued conduct their business, especially in racially sensitive matters. In the meantime, Rocket Mortgage Sued will need to address both the legal and reputational fallout from these allegations.

The case against Rocket Mortgage Sued is a clear example of the systemic challenges in the housing industry, and advocates are urging for more accountability. As the proceedings unfold, the pressure on Rocket Mortgage Sued to respond adequately will only increase. The broader industry will be watching closely to see how Rocket Mortgage Sued navigates this significant legal challenge.

Rocket Mortgage Sued now faces a pivotal moment that could impact not only the company but also the wider conversation around fairness and equity in housing. This lawsuit has brought into focus the ongoing disparities that Black homeowners often face when dealing with large financial institutions, including Rocket Mortgage Sued.

Individuals may report housing discrimination to the Justice Department by emailing fairhousing@usdoj.gov or submitting a report online.

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eXp Faces Lawsuit Over Settlement Terms

The ongoing battle surrounding eXp World Holdings’ commission lawsuit settlement has taken a new turn. The Gibson plaintiffs have filed a motion to transfer the case to Missouri, aiming to have Judge Stephen Bough oversee the proceedings.

Despite eXp’s recent settlement with home seller plaintiffs in the Hooper lawsuit, the Gibson plaintiffs—led by Laura Criss, Don Gibson, John Meiners, and Daniel Umpa—are raising concerns. They argue that the settlement, negotiated with the Hooper plaintiffs, is insufficient and potentially unfair to the broader class it seeks to represent.

In their motion, they criticize eXp for allegedly engaging in what they call a “reverse auction,” selecting attorneys willing to accept the lowest settlement terms. They assert that the proposed agreement falls far short of comparable settlements, especially considering eXp’s significant financial resources.

Responding to these claims, an eXp spokesperson expressed confidence that the settlement will ultimately be deemed fair and reasonable. Meanwhile, attorneys for the Hooper plaintiffs contend that the majority of defendants operate solely in the Southeast, making Georgia the appropriate venue for the case.

Earlier this month, eXp World holdings negotiated to pay $34 Million into the nationwide settlement fund, however, that settlement is not yet approved by courts. 

eXp World Holdings is set to report third quarter financial results Thursday, November 7th.

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Douglas Elliman CEO Resigns Amid Scandal

In a abrupt exit, Howard Lorber, the long-serving CEO of Douglas Elliman Real Estate, has stepped down effective immediately, leaving the real estate industry reeling. His resignation, announced Tuesday, comes amid allegations of sexual misconduct involving high-profile agents and significant financial struggles for the company.

Douglas Elliman, once valued at over $900 million, has seen its market capitalization plummet to just $130 million since 2021—a staggering loss that has alarmed investors. The firm’s financial decline has been compounded by accusations against prominent figures, including agents Tal and Oren Alexander, who are facing multiple sexual assault lawsuits.

Notably, broker Jessica Cohen recently recounted an alarming incident where she believed she was drugged by Oren Alexander at a Manhattan party. She lost consciousness and later woke up in a hospital. Similarly, reality TV star Tracy Tutor described a troubling incident in 2014 after an event involving the same agent, raising serious concerns about the company’s culture.

The tipping point for Lorber may have been a letter from shareholder Brad Tirpak, who criticized his compensation and demanded accountability regarding the handling of these allegations.

As the firm grapples with these issues, Michael Liebowitz, a board member, has been appointed as Lorber’s successor. His challenge will be to restore investor confidence while addressing the allegations that have tarnished the company’s reputation.

With Douglas Elliman managing over $51 billion in annual sales and operating more than 100 offices nationwide, the stakes are high. The coming months will be critical for the brokerage as it seeks to navigate this turmoil and redefine its future.

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