Consumer complaint received 2025-02-04 00:00:00
Product: Mortgage — FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Negative impact of inaccurate appraisal
Company: LD Holdings Group, LLC
State: MD

Complaint narrative:
LoanDepot Unjust Property Appraisal & Denial of Fair Reassessment On XX/XX/XXXX, LoanDepot conducted an appraisal of my property located in XXXX, Maryland as part of my mortgage refinancing application. The appraisal significantly undervalued my home at {>= $1,000,000}, which is well below the Maryland State Tax Assessment value of {>= $1,000,000} and recent comparable sales in the area. 

Key Issues with the Appraisal Process Incorrect Comparable Sales Used : The appraiser selected inappropriate and lower-valued comparables that do not accurately reflect the true market value of my home. 
Nearby homes with similar size, quality, and features that recently sold at higher prices were ignored in favor of properties with significantly smaller lot sizes, outdated features, and different neighborhood conditions. 
Downgraded Condition Rating to C3 Without Justification : My home was downgraded to C3 condition ( well-maintained but with only limited updates ), despite being built in XXXX and maintained in excellent condition. 
This downgrade unfairly devalued my home and does not align with other homes in similar condition that were rated C2 in previous appraisals. 
Denial of Fair Reassessment and Transparency : I submitted multiple alternative comparable sales, which were located in the same town, had similar GLA ( Gross Living Area ), and sold for significantly higher values. 
LoanDepot refused to include these valid comps in the report or reconsider the appraisal value fairly. 
I requested an opportunity to speak with the underwriter directly, but my request was denied, preventing me from properly contesting the unfair valuation. 
Discriminatory & Unfair Lending Practices : Given the unjustifiably low valuation, the refusal to allow me to contest it, and the pattern of undervaluation of homes in diverse communities, I believe this appraisal process was influenced by bias. 
This unjust appraisal has financially harmed me by increasing my loan-to-value ( LTV ) ratio, thereby affecting my loan terms and interest rate. 
Steps I Have Taken XX/XX/XXXX : I submitted a formal Reconsideration of Value ( ROV ) with detailed comparable sales, which was largely dismissed by LoanDepot. 
XX/XX/XXXX : LoanDepot responded to my second appeal, but only included XXXX alternative comparable while refusing to adjust the valuation. 
I requested an explanation regarding the C3 downgrade, which was ignored. 
I attempted to escalate this issue by requesting a review with the underwriter, which LoanDepot denied, leaving me with no due process. 
Resolution Requested : I am requesting the CFPB to investigate LoanDepots appraisal practices and require : A fair reassessment of my homes value using valid and recent comparable properties in my town and neighborhood. 
An explanation from LoanDepot on why valid comparable homes were excluded from the appraisal. 
Accountability for appraisal biasincluding a review of whether properties owned by XXXX or religious minorities are being disproportionately undervalued. 
This unfair and potentially discriminatory appraisal process has harmed me financially and denied me a fair loan application process. I appreciate the CFPBs assistance in addressing this serious matter.

Company response to consumer: Closed with explanation