Consumer complaint received 2025-03-07 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Negative impact of inaccurate appraisal
Company: Mr. Cooper Group Inc.
State: KY

Complaint narrative:
Date : XX/XX/year> Consumer Financial Protection Bureau XXXX XXXX XXXX XXXX XXXX XXXX XXXX Subject : Formal Complaint Regarding Discrepancies in Appraisal Process and Potential Discriminatory Practices Dear Sir/Madam, I am writing to formally file a complaint regarding the appraisal of my property, which was performed by XXXX XXXX XXXX XXXX XXXX on XX/XX/year>. Upon reviewing the appraisal report and comparing it to the actual condition of the property and comparable sales in the area, I believe there are significant discrepancies that not only undermine the fair market value of my home but XXXX also be indicative of discriminatory practices in the appraisal process. I am requesting an immediate reassessment and investigation into these issues. 



1. Discrepancy in Square Footage The appraisal report lists my property 's square footage as XXXX sq. ft., whereas XXXX XXXX records and my own measurements confirm that the true size is XXXX sq. ft. This discrepancy of over XXXX sq. ft. is critical, as it directly impacts the valuation of my property. In comparison, a nearby property at XXXX XXXX XXXX is reported to be XXXX sq. ft., even though it only has XXXX rooms, while my property has XXXX rooms and a significantly larger total square footage. 



XXXX. Condition Rating Discrepancy ( XXXX vs. XXXX ) The appraiser has rated my property at XXXX  condition, which I believe is inaccurate. My property has undergone several substantial XXXX, including : A new roof A new HVAC system A new water heater Remodeled bathrooms New windows Finished basement ( with some dated materials, but functional and usable space ) These upgrades, along with the overall livability of the home, should place my property in a XXXX condition ( adequately maintained, with minor updates ), not XXXX ( which suggests poor condition with significant deferred maintenance ). In fact, comparable properties such as XXXX XXXX XXXX and XXXX XXXX XXXX are fully remodeled, yet were rated as XXXX, which directly contrasts with the rating of my home. 



3. Questionable Appraisal Practices The fact that fully remodeled homes with new kitchens, flooring, and bathrooms are classified as XXXX by the XXXX, while my home ( which has similarly important updates ) is classified as XXXX, raises serious concerns about the appraisal process. This inconsistency suggests that the appraisers ratings may not be based on objective standards or proper evaluation. Given the substantial improvements in my home, there seems to be an intentional undervaluation, particularly when properties with similar or better renovations are not being treated with the same standards.

4. Potential Impact of Historical Redlining Additionally, it is well-known that neighborhoods such as XXXX in XXXX have been historically redlined and undervalued. While I can not say with certainty that this has affected the current appraisal, there are signs that certain areas within the city may continue to face undervaluation due to residual effects of redlining practices. I believe this could be a contributing factor to why properties in my neighborhood continue to be appraised at lower values than comparable homes in other parts of XXXX. 



XXXX. Request for Action Given these issues, I respectfully request the following actions : 1. Re-evaluation of the Appraisal : I ask that the square footage be corrected to reflect the actual size of XXXX sq. ft. and that the property 's condition rating be adjusted from XXXX to XXXX, reflecting the substantial improvements made. 

XXXX. Investigation into the XXXX Process : I request that an investigation be launched into the practices of the XXXX and their approach to evaluating properties in historically underserved areas like mine. If there are any signs of discrimination or undervaluation due to residual redlining effects, I ask that this be addressed as part of the investigation. 

XXXX. XXXX of XXXX XXXX : Once the appraisal is re-evaluated based on accurate square footage and a more appropriate condition rating, I believe the property should be valued between {$XXXX} and {$XXXX}, rather than the original appraised value of {$XXXX}. 



XXXX. Additional Supporting Information Enclosed with this letter are the following documents : The original appraisal report, with discrepancies noted. 

County records and property measurements showing the accurate square footage of the property. 

Photos of recent updates to the home, including the remodeled bathrooms, new windows, and HVAC system. 

Comparable sales data for properties in the same area and their condition ratings. 



I believe that the appraisal process in my case has been flawed, and I hope that the authorities will take appropriate action to ensure fair treatment and an accurate valuation of my property. 



Thank you for your time and attention to this matter. I look forward to your prompt response and a fair reassessment of my property. If you require any additional information, please do not hesitate to contact me. 



Sincerely,

Company response to consumer: Closed with explanation