Originally published in the September 19, 2025, issue of AI’s Appraisal Now
Reprinted with permission from AI

 A federal judge has ruled that Rocket Mortgage and appraisal management company Solidifi must defend themselves against allegations of appraisal bias under the Fair Housing Act.

The case involves a 2021 appraisal in Denver by appraiser Maksym “Max” Mykhailyna, which valued homeowner Francesca Cheroutes’s duplex at $640,000 - more than $220,000 below its prior year value. Both the Department of Justice and Cheroutes allege that the report relied on faulty comparables and reflected racial bias. Mykhailyna has denied the allegations.

In rejecting motions by Rocket and Solidifi to dismiss the claims, Judge Gordon Gallagher clarified that appraisal independence regulations do not prevent lenders or AMCs from addressing potentially biased or deficient reports. The court noted that Rocket could have requested corrections or ordered a second appraisal rather than canceling Cheroutes’s loan application. Gallagher also held that Solidifi could be found vicariously liable for discriminatory practices, even if the appraiser was classified as an independent contractor.

Importantly, Gallagher highlighted that both federal and Colorado appraisal independence requirements allow AMCs to request additional information, ask for further details to support a valuation, or correct errors, actions consistent with addressing allegations of bias.

The ruling underscores two critical issues for the profession. First, appraisers, lenders, and AMCs remain under close watch as courts, regulators, and the public continue to examine allegations of racial bias in valuation. Second, while appraisal independence protects appraisers from undue influence, it does not insulate lenders or AMCs from accountability when credible bias concerns are raised.

For AI members, this case is an important reminder: appraisal independence is not a shield against scrutiny. Courts and regulators expect appraisers, AMCs, and lenders to uphold both independence and fairness. Maintaining defensible methodologies, ensuring comparables are appropriate, and documenting professional judgment remain the best safeguards against allegations of bias - and against drawing lenders and AMCs into costly litigation.