Rocket Mortgage vs. HUD

1 Credits

Rocket Mortgage is taking legal action

Against the U.S. Department of Housing and Urban Development (HUD), alleging the agency is “unfairly” holding the lender accountable for an independent appraiser’s actions in a controversial 2021 case.

The Detroit-based mortgage giant, Rocket Mortgage, filed its lawsuit in Colorado’s U.S. District Court, claiming HUD has misused the Fair Housing Act.

According to Rocket Mortgage president, Bill Emerson, the company is caught between “conflicting and irreconcilable positions” concerning government mandates on appraiser independence. Emerson emphasized, “We cannot affect or influence the appraised value — there has to be independence that goes all the way back to the Dodd-Frank Act.”

The case stems from an alleged discriminatory appraisal in Denver that undervalued a Black homeowner’s property by $200,000. While Rocket Mortgage insists it followed legal procedures, the homeowner disputes this and has sought action through HUD and the Department of Justice.

Emerson stated, “If our client was discriminated against, we want our client to get their justice — it’s just not against Rocket Mortgage.”

The lawsuit demonstrates Rocket Mortgage’s stance on preserving compliance with federal regulations while advocating for the fair treatment of its clients. The controversy highlights Rocket Mortgage’s commitment to standing firm against what it perceives as undue accountability for actions beyond its control. As one of the largest lenders in the country, Rocket Mortgage has reiterated that it cannot control appraised values due to the legal mandate for appraiser independence.

With this lawsuit, Rocket Mortgage aims to address broader issues in the mortgage industry while continuing its focus on providing equitable services to all its clients.

Source: Link

Homebuying Activity Rises as Rates Fall

Potential homebuyers received an early holiday gift this week as mortgage rates fell to their lowest levels since late October. Freddie Mac reports the average 30-year fixed-rate mortgage dipped to 6.69%, down from 6.81% last week.

This drop spurred a 2.8% rise in mortgage applications, with the Purchase Index reaching its highest point since January. Joel Kan, deputy chief economist at the Mortgage Bankers Association, explained, “The recent strength in purchase activity continues, supported by lower rates and higher inventory levels.”

However, affordability remains a hurdle for many, with rates expected to stay in the 6% range through 2025. Bright MLS Chief Economist Lisa Sturtevant noted, “Affordability is still a major constraint for moderate-income buyers.”

Meanwhile, more buyers are touring homes and negotiating deals, with Redfin’s Homebuyer Demand Index nearing its peak since September 2023.

Source: Link

Mortgage Approvals Hit New Highs

In the UK, mortgage approvals surged to their highest level since summer 2022. The Bank of England reports 68,300 house purchase approvals in October, a sharp rise from recent months.

Remortgaging also increased for the third consecutive month, with 31,400 approvals in October. The effective interest rate on new mortgages fell to 4.61%, its lowest since May 2023.

Simon Gammon, managing partner at Knight Frank Finance, commented, “October was a busier month as buyers and sellers sought to squeeze deals through ahead of the Budget, but sentiment has since taken a turn for the worse.”

Source:Link

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