According to the housing agency, Rocket chose to solely rely on a biased appraisal when it denied a borrower's refinance application in Denver three years ago. 

The appraiser Maksym Mykhailyna, who owns Maverick Appraisal Group, allegedly issued a "insupportably low appraisal of a duplex owned by a Black woman in a predominantly white area of Denver," HUD said.

Rocket and Solidifi, the AMC, chose to rely on the appraiser's assertions despite the fact that the borrower challenged the validity of the report, according to the housing agency. 

HUD is charging Rocket, the appraiser and Solidifi, an appraisal management company, with discriminatory practices. 

"Homeownership is crucial to build both generational wealth and housing stability for Black and Brown families," said Diane Shelley, principal deputy assistant secretary at HUD on Monday. "HUD will continue to vigorously enforce the Fair Housing Act against those who seek to limit the financial returns associated with homeownership because of race or any other protected characteristic." 

A spokesperson for Rocket Mortgage said the company was "clearly a misplaced target used simply to score headlines because of its brand and position in the industry."

"We look forward to bringing the facts of this case to court to set the record straight," Rocket's spokesperson added. "Until then, we will continue offering affordable options and championing other equitable initiatives to make the dream of homeownership accessible to all."

The appraiser and the AMC did not immediately respond to a request for comment Tuesday.

The complaint, lodged Monday, says that on Jan, 21, 2021, Mykhailyna submitted his appraisal report to AMC Solidifi, which stated that the property value was $640,000 — a significantly lower amount compared to the $860,000, which the property had been appraised for eight months prior. 

Mykhailyna allegedly relied on incorrect measurements to write his appraisal report, which included "numerous inaccuracies and inappropriate comparisons," HUD purports. 

The unnamed borrower questioned the appraisal that claimed her property's value dropped by 25%, arguing to Rocket that housing prices in her area had increased over the past year. 

However, according to the HUD account, Rocket presented the borrower with a choice either to proceed with her loan application using the appraised value or have her loan application canceled or denied. 

Ultimately, the application was denied, HUD claimed, with Rocket sending a letter to the borrower stating that it was "unable to offer her financing at this time." 

This allegation is among a handful of others that have accused mortgage lenders and appraisal companies of discriminatory practices. 

Most recently, Loandepot settled a suit with a Maryland-based couple, which claimed that an alleged discriminatory, undervalued, home appraisal led to the lender's rejection of their refinance application.

As part of the settlement, the plaintiffs, Nathan Connolly and the estate of Shani Mott, who passed away in mid-March, will receive an undisclosed sum from the lender to resolve damages and attorneys' fees.