Rocket Mortgage has taken legal action against the U.S. Department of Housing and Urban Development (HUD) in response to allegations of discrimination related to low appraisals affecting a Black borrower.

The company argues that federal law prohibits lenders from influencing appraisal valuations, which are carried out by independent firms. Rocket Mortgage aims to address what it sees as conflicting regulatory requirements that require mortgage providers to use and oversee independent appraisers while also limiting their ability to impact appraisal outcomes.

This case highlights the ongoing tensions in the mortgage industry surrounding appraisal practices and discrimination claims.