DENVER (KDVR) — The U.S. Justice Department is suing Rocket Mortgage for race discrimination after a Denver woman claimed that she was treated unfairly during the home appraisal process.
The lawsuit also alleges Rocket Mortgage retaliated against the Black homeowner by canceling her application when she complained about the appraiser.
Previous coverage: Rocket Mortgage sued for racial discrimination against Black Denver homeowner
Franchesca Cheroutes told FOX31 she believes an appraisal conducted in January 2021 as part of her refinance application didn’t reflect the true value of her home, which had been recently upgraded. Her property is in the Hale neighborhood, and interest rates were falling.
“It showed that my house, according to him, had fallen in value 25% from the last, which was before all those improvements,” she said.
The Justice Department released a statement estimating that amount to be more than $200,000 lower than an appraisal on the property less than a year before, all during Denver’s boom in home prices.