Bias Accusation Collapses as HUD Clears the Appraiser
If you read the original article about Steve Orlowski, the Illinois appraiser dragged through a multi year circus over a baseless bias allegation, you probably walked away thinking that surely this nightmare had to end at some point. The state had already taken its shot, the facts were already sitting in plain view, and nothing in the report supported the accusation. But as every appraiser knows, once a complaint enters the system, it tends to move forward on momentum alone, even when the foundation underneath it is paper thin.
Now we finally have the federal conclusion, and it is exactly what anyone familiar with appraisal work expected from the beginning. HUD has officially dismissed the complaint and issued a Determination that there was no reasonable cause to believe any discriminatory housing practice occurred. Five years of investigation, and HUD ended up right where most appraisers would have landed after reading the first page of the report.
And here is the part that will make many appraisers stop and reread the details: the appraisal actually came in higher than the borrower’s own estimate. The borrower said the home was worth $150,000. Steve appraised it at $164,000. The lender increased the loan amount to $123,000 because the value supported it. The loan closed. The borrowers walked away with more money than they expected. This is not the usual “the appraiser tanked my deal” storyline that typically fuels discrimination claims.
So why did they still file one?
HUD’s Determination lays it out. The borrowers believed Steve made a discriminatory comment, and they believed the appraisal undervalued their home even though it exceeded their own estimate. They also said they had a previous negative experience with the same lender, which shaped how they interpreted everything that happened. In other words, the complaint was built on impressions and assumptions, not on anything Steve actually did. And in the current climate, that is all it takes to trigger a full scale investigation.
HUD reviewed the comps, the adjustments, the distances, the dates, the market data, and the alleged comment. They found no evidence of bias or discrimination, no indication that race played any role in the valuation, and no support for the idea that the appraisal was influenced by anything other than the data. They even noted that the property recently sold for $185,100 on March 5, 2026, which validated Steve’s original appraisal. The report was solid, the value was reasonable, & the accusation never had a shred of factual support.
But HUD’s conclusion does not erase the five years that came before it. Steve spent half a decade under a cloud created by an allegation that never had evidence behind it. He faced a state board that treated the accusation as a foregone conclusion, surrendered his license under the pressure, and battled health issues in the fallout. He watched his career get pulled into a process that moved slowly and mechanically, with no regard for the actual facts. And all of it was based on a claim that HUD has now confirmed had no merit.
The most frustrating part is how predictable this outcome was. The holes in the complaint were obvious from the start because the report was supported, the data lined up, and the value made sense. Yet the system still marched forward as if the allegation itself carried weight. It is a pattern appraisers know too well. The accusation becomes the focus, the investigation becomes the story, and the facts show up years later, long after the damage is done.
HUD’s letter is polite and procedural, but it sidesteps the reality of what this process does to an appraiser. It glosses over the personal and professional fallout, the months of uncertainty, the financial strain, and the way a single unsupported claim can derail a career that took decades to build. It simply closes the file and moves on.
But the rest of us shouldn’t move on so quickly. This case is a reminder of the climate appraisers are working in, where a fully supported report can still trigger a federal investigation, a reasonable value can still become the center of a discrimination claim, and even a comment that was never made can still be enough to launch a multi‑year inquiry. Once the machine starts turning, it keeps grinding forward until it has exhausted every angle, no matter how thin.
Steve’s vindication is important, not just for him but for every appraiser who has watched the profession become a convenient target for accusations that do not match the facts. His case shows how far the system can drift from the evidence, how long it can take to correct the record, and how vulnerable appraisers are when perception is allowed to outweigh data.
The original article ended with a system that had already taken too much from someone who did nothing wrong. This update ends with HUD finally saying what the evidence showed from day one, and what the state should have acknowledged long before the federal government had to step in: the complaint never had a leg to stand on, the process stretched miles beyond what the facts justified, and the only thing that ever needed correcting in this entire saga was the system that allowed it to happen in the first place.
- Bias Accusation Collapses as HUD Clears the Appraiser - May 6, 2026
- Flags Over Facts: The Road to Obsolescence - April 2, 2026
- From Dealerships to AMCs: Tech Fees as the New Normal - January 27, 2026
Horrific how this is happening, and the inexcusable length of time it takes. There is no logical reason this dragged on for this appraiser for so long. Sound like Illinois, HUD and more failed Mr. Orlowski, resulting in the loss of yet another good appraiser in the profession. Something seriously needs to be done. There also needs to be harsh consequences for those filing false complaints.
I’m embarrassed for this board. Is there some incompetence with those members? How did they not see what others saw? Are there appraisers guilty of bias? Of course there are some. Same with every other profession. You can’t help that. Howevet, it is extremely difficult to distinguish between appraiser bias and just basic lack of competency in this profession. I find it interesting that the person who filed a complaint supposedly had a bad experience with this lender but decided to engage them again. I’m happy that this has come to a close but sad we lost another good one. Good article Desiree.
Lori Alexandra not hard to see through lack of competency vs bias in most cases.
Donna Halfpenny for us, yes. Everyone else wants to push the bias theory….hard.
Lori Alexandra there is no appraisal bias. There is no racial appraisal bias. It doesn’t exist. This scam was perpetuated by Marcia Fudge, Maxine Waters and Susan Rice. Nothing but identity politics.
Little housekeeping here. Working RE published articles regarding the initial complaints, which was related to Black Knight investment group.
https://www.workingre.com/discrimination-in-appraisals/
Article Quote: One interesting twist that appraisers have been quick to point out is that Abena Horton is currently the Assistant General Counsel & Vice President at Black Knight, a provider of integrated technology, data and analytics for lenders and mortgage services. Black Knight also provides, you guessed it, Automated Valuation Models that provide an opinion of value for real estate. As a potential competitor to appraisers, some appraisers have publicly wondered if Black Knight has a vested interest in seeing such a controversial story about appraisers hit the national news circuit.
I performed a rather detailed analysis just for me to look at housing differences in the neighborhood in question. From one property to the next value variance is substantial. I’m pretty sure this was the zillow pricing map for that particular instance. Of course what nobody wanted to talk about, yet was among the most important talking points, was that an amc whom sought discounted 24hr/48hr turn times and raked half the appraisal fee was involved. Obviously this compromised the appraisers ability and motivation to take the time to provide quality detailed property value analysis.
Baggins, little housekeeping on the housekeeping: Working RE didn’t “break” that angle. They wrote about it a year after a colleague of mine dug into the Horton/Black Knight connection, pulled the documents, and laid it all out on AppraisersBlogs. Here’s the original deep‑dive, receipts and all:
https://appraisersblogs.com/why-is-only-one-side-of-the-racism-claim-appraisal-story-being-reported
What still amazes me is how the national outlets ran full‑speed with the “racist appraiser” narrative while quietly skipping over everything that didn’t fit the script, the conflicting statements, the missing timeline details, the professional background that somehow never made it into a single headline. The article shows exactly how one side of the story got amplified and the other side got buried.
Funny how “journalistic curiosity” seems to stop right where the inconvenient facts begin.
Paid media mouthpieces. I defer to your quite better memory than mine.
Quite amazing anyone was able to keep track of all this nonsense.
That was the program; A fast and furious blitz to dismantle what was left of traditional appraisal process and install what was long awaited in the technical development pipeline.
The appraisers are biased because of to many white people was merely a convenient excuse which fit the popular sentiment at the time. One which was also manufactured for more reasons than just appraisal. This was not the only industry which experienced fundamental operational changes. Yet, may have been among the simplest and easiest sectors to capture, the trade group representatives long since having capitulated and been eagerly compliant to appease ‘stake holder interests.’ That’s why and how they were able to make such a big grandiose show of things with the PAVE task force and various congressional hearings.
“These homes would be worth more if they were located somewhere else. We deserve valuation equality regardless of location, education, crime, or economic factors!” The helicopter argument. Who’s still buying that? Apparently the TAF. Reddit banned my account exactly when I posted in a thread that was removed from r/appraisal, where an appraiser commented that the ‘valuation bias’ class, ‘appears to be written by people whom don’t understand what valuation bias really is’. I had commented something regarding; Is it not also a form of discrimination if everyone except you is a protected class person? Then someone tells me that sub may be managed by amc persons. Limited hangouts. Figures.
The suspiciously absent voice; Appraisal trade groups turning the page. Why would they when they have now secured not one, but two recurrant classes with associated materials their captive audience is coerced into paying for on an indefinite cycle.
Ran across this Cindy Chance article from 02/2026 this year. Had not noticed this. Might as well have been written yesterday.
https://www.linkedin.com/pulse/how-regulation-calcified-appraisal-education-failed-banks-chance-acere
I don’t think Working RE is as credible of a source as they imagine. They perpetuate the amc debacle, being an insurer of the amc industry themselves. Umbrella policies. Central planning never works. Thanks.
A captured license 🪪 network.
Imagine the complaints without merit that never see the light of day of justice.
Policymakers should be weary of agencies in the throws of capture.
There is no logical reason this appraiser had to twist in the wind for this amount of time. NONE. That in itself is a huge failure. End result, another well qualified appraiser has left the profession. We need serious consequences for those who file unsupported complaints as well as a must swifter process to handle complaints. Embarrassed that IL seems to have failed, among the others to accommodate a speedy process.
Missing the IVPI Proposal yet?
https://www.workingre.com/wp-content/uploads/2013/08/IVPI-Proposalfinal.pdf
Several appraisers online recently commented about a detailed question to AI systems; how to resolve the issues with the appraisal industry.
Even the AI bot suggested implementing the IVPI Proposal.
Donna Halfpenny have you heard anything about the Baltimore case?
Lori Alexandra Shane Lanham case?
Donna Halfpenny I was hoping to have something more recent. He’s the one I really am worried about. I saw that appraisal.
Lori Alexandra per one of his friends that I know, Shane is doing better. Less stressed and thankfully has a couple of new clients.
It’s the same story every time: a baseless complaint gets all the attention, the appraiser gets all the damage, and the system walks away like it did its job. Meanwhile, we lose another solid professional.
Steve,
I just read the Working RE follow-up article about your case, and honestly, it says a lot about the state of the profession right now. Five years later, HUD finally confirmed what the appraisal data showed from day one — your report was supported, your value made sense, and there was no evidence of discrimination.
What stands out to me the most is that your appraisal actually came in higher than the borrower’s own estimate, the loan amount increased because the value supported it, and the deal still closed. Yet somehow the system still treated the allegation itself as enough to justify years of investigation and pressure. That should concern every appraiser in this country.
A lot of people outside this profession do not understand how damaging these investigations are even when an appraiser is eventually cleared. The emotional toll, the financial strain, the uncertainty, the reputational damage — none of that gets erased by a short closing letter years later. Once an accusation enters the system, the process itself becomes the punishment.
The article also highlights something many of us have quietly watched happen over the last several years: perception has started outweighing actual appraisal methodology and market data. Instead of beginning with evidence, too many cases seem to begin with assumptions and work backward from there. That creates a dangerous environment for honest appraisers simply doing their jobs correctly.
You handled yourself with professionalism through an extremely difficult situation, and in the end the facts held up. The comps held up. The market held up. Your report held up. That matters.
I also think your story is important because it gives other appraisers encouragement not to automatically fold under pressure when they know their work is solid. Too many good appraisers have left this profession over situations like this, and that loss hurts the entire lending system.
At the end of the day, your case was never really about bad appraisal work. It became an example of what happens when an allegation gains momentum before anyone seriously looks at the underlying evidence. The fact that it took five years to arrive at such an obvious conclusion says more about the system than it ever did about you.
Glad to finally see your name cleared officially. You earned that vindication a long time ago.
Ken, small correction. Working RE didn’t write this one. I did. It’s published on AppraisersBlogs. They just get the credit for everything these days 😉
The appraisal trade groups are most to blame. They purposefully refused to advocate for sound consumer protections, refuse to stand up for small business appraisers. The TAF and AI should have stepped in and advocated for all the appraisers whom dealt with false accusations, represented them with legal resources. Instead they paid substantial amount of money to the same companies and firms leveling false accusations at appraisers. They parroted the false narrative instead, which led to the GSE’s adoption of the same message.
They also refused to step in to save the forty thousand small business appraisers whom are now out of business, many tens of thousands more gone soon. Many of the appraisal trade group’s top people refused to help because many of the AI and TAF members have a stake in amc’s and tech companies, or enjoy direct benefit providing proprietary services for them. They profit from restriction of trade and racketeering practices, ignore each others clear conflicts of interests, support amc’s whom junk fee rake consumers appraisals fees or otherwise capture the lions share of GSE work for themselves. They have in unison captured the space, driving most independent competition out, now supporting a franchise model where real valuation independence is no longer possible.
Independent appraisers whom get caught up in the process are not given an iota of consideration, they are collateral damage in these groups pursuit of total market share and proprietary workflow dominance. They are anti small business at heart, having departed from their justification for congressional approval and a national appraisal licensing program in the first place; To protect consumers from predatory lending practices.
Accusations of appraisal bias and racist appraisers are now firmly entrenched in the process. A readily available whip to punish any appraiser whom does not play ball in their game by their rules. You are required to accept the false premise and pay for their new anti racist classes, or you will lose your professional license. They certainly will not be there to help or represent any independent small business appraiser whom is caught in the aftermath of their plunder. The process is the punishment. The system is the whip. ‘Appraisal modernization.’
‘Someone needs to clean this place up already.’ I’ve drawn up a special meme to celebrate the occasion.
Who can the appraiser sue for losses and punitive damages?
No one. They are protected by “no retaliation suit” rule
Every complaint during the Fudge regime should be dismissed. We all know what the problem is and it’s not us. AND, I got an email from a day or so ago talking about the “appraiser shortage” (didn’t we just go through that?) and some speaker going to educate us about institutional or systemic bias. Thank God we have thousands of leftist college grads who can barely read regulating us, huh?
please STOP with the political bs, of which you have no credibility!
Wait, who put you in charge of anyone elses credibility? Did we miss some memo or something?
HUD, discrimination laws, housing and banking regulations, DEI, and the many institutional initiatives that are the basis of this arbitrary and tyrannical persecution of random, honest, and competent appraisers is pure politics. This bureaucratic quagmire has been foisted on every profession, private business, and association in the country; we only understand this case because it is what we know about. And it was all foisted on us by self-righteous ideologues of a “leftist” mind-set using politics as a weapon. “Leftists” avoiding accountability for this hijacking of the political machinery, especially when the resulting disaster was long predicted by the “far-right” manifests to the point of being undeniable, can not be swept under the rug by “leftists” pretending to be ignorant of their own complicity. Credibility, indeed. It is long past time for a reckoning.
Its about time this bullshit bias witch hunt came to an end. Glad for the appraiser but unfortunately its a hard recovery. Now its time for the appraiser so sue for lost revenue, slander, and everything else possible.
I’m so close to not doing any more mortgage work. Haven’t done a mortgage appraisal in +/-2 years … considering maintaining that tract. While not making the money I once did, life is better in many regards. “F” the banks and the 1% oligarchs!
Appraiser should sue the borrower, and the lender, for defamation of character, and to pay for his legal defense.
The lender was also a respondent. The Illinois Appraisal Board was the malicious actor here.
Well, read the details of fair housing complaints again. It’s in the document. I’m no fast talking slick suit wearing hot dogging lawyer. But this reads to me that if you pursued such counter litigation, the government would fund their defense on round two and they’d all have immunity from the counter.
This is why the appraisal trade groups failed in such a spectacularly epic fashion. It was their job to step in and represent the entire industry, put a stop to all of this before it gained traction. Instead they promoted the concept and institutionalized the fictitious notion there is appraisal bias, now codified into the process. Again, the process is the punishment. The system is the whip. Who want’s to get whipped twice? Appraisers are dealing with larger issues here of not having sound due process, their constitutional rights stripped from them. What do you call it when everyone except you is a protected class individual?
Retaliation is a violation of the Fair Housing Act. Section 818 of the Act makes it unlawful to retaliate against any person because he or she has filed a housing discrimination complaint; is associated with a complainant; has counseled or otherwise assisted any person to file such a complaint; or has provided information to HUD during a complaint investigation.
Section 818 also protects complainants against retaliatory acts that occur after a complainant has withdrawn, settled, or conciliated a housing discrimination complaint. Section 818 protects complainants against retaliatory acts that occur after a finding of no reasonable cause. Any person who believes that he or she has been a victim of retaliation for any of the reasons listed above may file a housing discrimination complaint with HUD within one (1) year of the date on which the most recent alleged retaliatory act(s) occurred or ended.
Right to file a civil lawsuit.
Section 813(a) of the Act, the complainant may file a civil lawsuit in an appropriate federal district court or state court within two (2) years of the date on which the alleged discriminatory housing practice occurred or ended. The computation of this two-year period does not include the time during which this administrative proceeding was pending with HUD. If, upon the application of either party, the court determines that the party is financially unable to bear the costs of the civil lawsuit, the court may appoint an attorney, or may authorize the commencement of or continuation of the civil lawsuit without the payment of fees, costs, or security.
The question is if a defamation or slander action is considered retaliation. My quick perusal of Section 818 found no such mention.
A colleague texted me earlier absolutely fired up about Steve’s case. His first reaction was that Steve should sue the daylights out of the people who filed the claim, drag every player into court by name, & let them feel even a fraction of what he went through. Then he followed it up with a whole campaign idea where Steve names the people who filed the baseless claim, gets it into a major publication, & lets the truth spread far & wide. He even said he would contribute to it.
I get the frustration. If we never go after the people who file these claims with nothing behind them, they will just keep dropping because there is no downside for the filer. The closest we ever came to pushing back was Shane Lanham’s defamation case, which was tossed out by the judge the moment the bias case against him was dismissed. So we are still stuck watching good appraisers get dragged through the mud while the system shrugs.
Steve’s case is exactly the kind of situation that shows why something has to change. The hit to his career, his health, his finances, all of it was unbelievably steep for a claim that never should have gone anywhere. If we ever needed one case to succeed against the people filing this stuff, this is the one.
Curious what others think. How do we actually stop this? What real steps can we take to push back so these baseless claims don’t become the new normal? If anyone has ideas, throw them in. This is a conversation we need to have.
Following the recent publication of Steve Orlowski’s story in Working RE Magazine and the discussion that has followed across several appraisal forums and blogs, I have become increasingly interested in understanding whether there were common investigative procedures, standardized document requests, or similar charge letter formats used in these matters across multiple cases.
I am respectfully asking that any appraiser who received:
* a HUD appraisal bias complaint,
* a Charge of Discrimination,
* investigative correspondence,
* closure letter,
* or related HUD enforcement documents,
consider reaching out to me privately if they are willing to share copies for comparative review and research purposes at kjmull@aol.com.
My interest is focused on understanding:
* procedural consistency,
* jurisdictional structure,
* investigative scope,
* and overall investigative procedures used in these matters.
I am not asking anyone to violate confidentiality obligations, and I am not seeking public accusations or conclusions. I am simply attempting to better understand whether similar processes existed across multiple independent cases.
Any documents shared would be treated respectfully and reviewed carefully.
Thank you,
Kenneth Mullinix
All this bullshit appraiser bias nonsense stems from the southern poverty law whatever whatever,,,who produced a report one time about racism on neighborhoods and impact on values and indirectly associated appraisers as complicitors in their bullshit theory. But at least the one report thats is always bandied about by social justice advocates and self appointed expert valuation arbitors was produced by a credible organization….err wait,,,did I miss something.
Correction, Brookings Institute and Dr. Andre Perry.
Funny coincidence. When the SPLC lawsuit hit the news I had ran an internet research for any tie ins to the fictitious appraisal bias narrative.
https://nationalfairhousing.org/nfha-splc-statement/
NFHA defends the SPLC. Birds of a feather flock together.
Let’s not forget FHFA was in on the charade too, conditioning their executive compensation based on scorecard rating criteria. Several of which included using full service appraisers less, using automated valuation systems more, and encouraging state complaints against independent appraisers. Image attached.
Because HUD was run by, and had policies set by a Black-racist, former Secretary Marcia Fudge.
Meanwhile…
Can’t buy me love ❤️
The Wall Street Journal (https://www.wsj.com/business/jpmorgan-offered-1-million-settlement-before-sexual-assault-claims-went-viral-1be296a9) has released a new report stating that JPMorgan reportedly offered former investment banker Chirayu Rana $1 million to settle his sexual assault, harassment, and racial discrimination claims against Hajdini before he filed the lawsuit.
Bias complain against lender/ homeowner?
We no 💩….. our entire reason for being in business is to NOT have a bias.
Please let the appraiser have some recourse!!
A few months after the HUD complaint was filed, the first HUD investigator assigned to the case, Shannon Baltimore, called me to confirm the receipt of the email containing a settlement offer from Donald and Solonge Robinson. The Robinsons were willing to settle the case for a $125,000 payment, a written apology, and my attendance of a racism sensitivity class. Needless to say, I declined their generous offer.
Say what you want about Trump but he saw the BS and shut HUD down. Marcia Fudge and her entitled associates need to be legally accountable for what happened to this and other appraisers. Where is the civil litigation? I wonder if the current administration would help.