Bay Area home appraiser must pay $75K, watch ABC7 documentary in discrimination settlement agreement
The settlement is the result of complaints a family filed against the appraiser and company that alleged racial discrimination
OAKLAND, Calif. (KGO) -- A Bay Area appraiser is ordered to pay a couple $75,000 and watch the ABC7 News documentary "Our America: Lowballed" as a part of a settlement agreement.
On Thursday, ABC7 news confirmed the couple is Ron and Dominique Curtis-the East Bay family prominently featured in the ABC7 News Documentary "Our America: Lowballed."
WATCH: Our America: Lowballed | Full documentary and interactive site
The Curtises were trying to refinance the loan on their Oakland home in 2020 to take advantage of historically low interest rates. The home was appraised at $900,000--$254,000 lower than it has appraised for earlier that year.
The lower-than-expected appraisal forced the refinance application to ultimately fall through. The Curtises believed that racial bias was a factor.
Ron Curtis joined our Julian Glover on Midday Live with his reaction to the settlement agreement. He gave advice for other families facing appraisal discrimination in the Bay Area.
"My advice would be to document and to gain as much support as you can, and make sure you reach out to Fair Housing Advocates of Northern California," Curtis said. He also recommended reaching out to a real estate professional who may be able to help.
The Curtises had access to the multiple listing service (MLS) because Ron serves as a licensed real estate broker and Dominique, at the time, was in the process of training to become and appraiser.
The Curtises used that information to file a 60-page rebuttal asking for a reconsideration of value and a second appraisal.
The family took issue with the properties used in the appraisal report as comparable homes. Several of the properties were blighted with boarded-up windows, a caved-in garage and bricks lining a roof to hold shingles in place.
Quicken Loans only offered a second appraisal the day after ABC7 News reached out to the company for comment.
The settlement, announced Thursday, is the result of several complaints the family filed with the California Civil Rights department against the appraiser, appraisal management company Clear Capital, and lender that alleged racial discrimination.
As a part of the settlement agreement the appraiser who conducted the appraisal is required to pay the Curtises $75,000, pay the California Civil Rights Department $15,000 and watch "Lowballed."
The resolutions reached with the AMC and lender were for an undisclosed amount and additional terms. Both denied liability or wrongdoing.
The lender agreed to continue its policies and practices for evaluating loan applicant allegations of appraisal discrimination and offering a second appraisal where discrimination is alleged.
While the settlement agreement does not name Quicken Loans, ABC7 News is able to verify through original reporting that Quicken Loans is the lender the family pursued for a refinance application. ABC7 News has reached out to Quicken for comment but has not heard back.
The appraisal management company is forced to retrain employees on preventing possible racial discrimination in property appraisals.
The appraisal management company sent a statement to ABC7News saying:
"Clear Capital appreciates being able to work alongside the California Civil Rights Department (CRD) to resolve this matter. We will continue to maintain the systems and processes outlined in the settlement agreement."
In October 2021, the Curtis family sold their home for $1.2 million -- $300,000 more than the appraiser's valuation.
Glover asked Ron Curtis how the sale of their home as affected his family on Midday Live.
"We're renters now. We've moved three times since, and we're still trying to push and move forward," Curtis said. "We really don't know how it is going to affects us two, three decades from now."
Our award-winning documentary highlighted several acts of appraisal discrimination across the Bay Area and helped several families reach settlements for discrimination.
It also forced action by former President Joe Biden and led to new California laws and reform in the appraisal industry.
However, this settlement comes at a time when President Donald Trump's Department of Housing and Urban Development appears to be dismantling how it handles alleged acts of discrimination.
The website that helped families learn about appraisal bias was first deleted from HUD's website, and then archived.
The Fair Housing Advocates of Northern California is a non-profit dedicated to equal housing opportunity in the Bay Area. For more information on the services FHANC offers visit https://www.fairhousingnorcal.org
Watch the full interview in the player above.
