Class Action Lawsuit of Targeted Appraisers
Nationwide Call to Action: Seeking Legal Representation for Class-Action Lawsuit Against HUD Investigations
For over two Years I have been subjected to systemic abuse, unwarranted investigations, and procedural violations at the hands of the Department of Housing and Urban Development (HUD). My name is Kenneth Mullinix, and I am an experienced VA-approved appraiser who has been targeted in a series of baseless investigations that have severely damaged my career, reputation, and personal well-being.
Despite being cleared by other authorities after an extensive investigation, HUD refused to acknowledge the findings and instead initiated its own 18-month-long investigation, disregarding due process and their own investigative guidelines outlined in HUD Handbook 4000.1, Section II.A.1.a, which require proper vetting of complaints before escalation.
A Broken System That Must Be Challenged
My ordeal began when a homeowner—who explicitly expressed racial bias against me, referring to me as “a white appraiser”—filed a baseless discrimination complaint. Instead of vetting the claim as required, HUD subjected me to an endless cycle of accusations, ignoring evidence, disregarding their own findings, and refusing to close my case despite clear documentation exonerating me.
This case is not just about me—it represents a systemic abuse of federal power under the PAVE initiative, which has unjustly targeted hundreds of appraisers nationwide. The goal of this politically motivated program appears to be vilifying appraisers, forcing manipulated values, and destroying careers under the false pretense of combating discrimination.
I have gathered substantial evidence, including:
- Official investigation records from HUD
- Clear documentation of perjury committed by the complainant (Homeowner)
- HUD’s failure to follow its own investigation protocols
- Evidence of selective prosecution and procedural abuses
Time to Fight Back – Join the Class Action Lawsuit
I am seeking a law firm with experience in civil rights, federal agency litigation, and class action lawsuits to represent myself and other appraisers who have been falsely accused, harassed, and denied due process. I am prepared to serve as the lead plaintiff in a nationwide class action lawsuit against HUD to hold this agency accountable for violating our civil rights, professional integrity, and livelihoods.
This class action lawsuit aims to:
- End the unjust investigations and clear appraisers’ names
- Demand restitution for financial loss, emotional distress, and reputational harm
- Force HUD to follow lawful due process and investigative protocols
- Expose the PAVE initiative as a politically motivated attack on appraisers
Appraisers — We Need to Unite
If you are an appraiser who has been investigated, wrongfully accused of racism, harassment, or discrimination, or have suffered retaliation from HUD, I encourage you to reach out immediately. We must stand together to put an end to these targeted attacks and demand that the federal government be held accountable for violating our rights.
How You Can Help
- Law Firms: If you are an attorney or represent a firm that specializes in civil rights litigation, class actions, or federal lawsuits, I want to hear from you. This case has national implications and the potential to restore justice to appraisers across the country.
- Appraisers Under Investigation: If you are an appraiser who has been targeted by HUD under PAVE, send me an email with your name, contact information, and a brief summary of your case. Once I secure legal representation, I will begin compiling a national list of affected appraisers to join the class action suit.
- Industry Supporters: If you are part of an appraisal foundation, real estate organization, or consumer advocacy group, I urge you to share this message and help bring awareness to this injustice.
Contact Me Now
If you are a law firm interested in taking on this case or an appraiser who has been wrongly targeted, please email me at kjmull@aol.com.
This is not just my fight—it is our fight. The future of independent appraisal integrity is at stake, and we must take action now. The time for silence is over. Join me in this class action lawsuit and help take a stand against HUD and the wrongful persecution of appraisers.
Kenneth Mullinix email me at: kjmull@aol.com. If warranted phone me at: 949-697-1717. Give me your email address and contact information.
Spread the Word – We Will Not Be Silenced.
If you know any appraisers or legal professionals who can support this effort, forward this message to them. The more voices we have, the stronger our case will be.

I’m in, I just replied to a baseless complaint from the word police at FNMA. I questioned my state board whether this case can hold water since PAVE was disbanded but they chose to proceed anyway. I’ve had to deal with 2 state investigations in the past 25 years and they have a history of trying to over reach. Prayers to us all.
Please explain exactly what illegal actions have been taken and what specific laws have been broken. I hear words like illegal, improper, dishonest, unconstitutional etc. thrown around but nothing concrete. I have had SIX complaints go to my state board and ALL were dismissed. I did not have to take a class, no reprimand, nor warning. I did not hire a lawyer or have any influence from anyone. You are a pissed off appraiser like the majority of us. Residential appraising is a dying profession due to technology. Lenders will take cheaper and faster anytime they can get it. Good luck PROVING any allegations that are not stone cold perfect. I do not and will not work for anyone who I feel is “out to get me”. Best of luck financing a class action suit that the majority of appraisers will not financially support.
Attorneys that take on class action suits generally do not charge money upfront because they get a huge fee if they win. Also, attorneys do not take on class action suits unless they feel they have a very good chance on winning. So, appraisers most likely will not have to give financial support.
You obviously don’t read very well.
State boards are one animal but the author is fighting a government backed enterprise is completely different.
Here’s hoping to touch the hem of your garment someday and be healed.
They ignore fraudulent appraisers but go after baseless claims of bias!
https://appraisersblogs.com/uncovering-flaws-in-fha-appraisal-n-loan-review-process/#google_vignette
Well, folks, if you thought your biggest headache as an appraiser was dealing with an overgrown lawn, a garage full of feral cats, or a homeowner who swears their 1970s shag carpet “adds value,” think again! The real nightmare isn’t the questionable home décor—it’s HUD’s relentless, baseless investigations targeting appraisers like Kenneth Mullinix. And he’s not going down without a fight.
Kenneth has been trapped in a bureaucratic circus, subjected to endless scrutiny despite being cleared by other agencies. HUD, however, seems to have missed the memo, choosing instead to drag out an investigation longer than a home inspection with no working lights. This isn’t just about one appraiser—it’s about all of us. If HUD can sideline a seasoned professional based on flimsy accusations, what’s stopping them from coming for the rest of us?
Sacramento Real Estate Appraiser
Fellow appraisers I have been getting great feed back on my post. Please contact me and I will place your email into a folder and when I can secured a law firm then I am sure at sometime in the future I will contact those on the list and let them know of the status. Again anyone who has contacts in this industry encourage them to contact me via email so I can find the proper law firm to represent us. I will be calling a few of you to talk about your experiences and give you some advice if you wish. I did the appraisal 4 years ago and this is still going on. Enough!. I have called many fellow appraisers so far to date. Even if the PAVE Initiative has been folded this does not allow them off of the hook. I getting calls of new cases being filed as of today. I have also contacted a few congressmen and am waiting for responses on that front as well. Thanks for your well-wishes? Ken
Any indication that the Trump administration will force a stop to this? Text Elon Musk. I’m sure he’d enjoy ripping the GSE’s, HUD, etc. to shreds over this utter idiocy.
Amen
https://www.housingwire.com/articles/law-firm-opens-investigation-appraisal-fees-management-companies/ These guys are taking on AMC’s. They are the largest law firm in the world apparently. They’ve taken on big tobacco and big pharma or so I’m told. They have very deep pockets and can win cases of this magnitude. Just thought I’d pass it along.
I am also hoping DOGE will investigate the GSEs, and return our profession to the honorable state it once was. Perhaps if enough of us contact them, they will put this on their list. President Trump deals in real estate, so he might have some understanding of this plight – the unfounded bias claims, the AMCs starving us out of business, etc.
Will there be associated aspects of the class action to compensate appraisers whom specialize in gse lending and reo, from being denied fair participation in our own working field(s) for the past two decades? What about all the appraisers whom were compelled to boycott the amc industry for ethical principals. There has been a conspiracy to eliminate residential appraisers for some time now.
Yes, if a “Class Action” suit comes to fruition and appraisers and the lawyers involved would take that part of the appraisal industry into the fold, then absolutely “YES” that charge would be added. The potential law suit is to protect all aspects of the appraisal industry that has been effected.
Thanks Kenneth. Always only a matter of time before someone stood up, great job. The amc’s and lenders bounce appraisers around in an infinite game of musical chairs; play ball, get removed or benched. Apply somewhere else. Experience the same condition. Repeat. Most appraisers don’t complain for fear of being placed on central, shared, or other various specific exclusionary lists. The process became so common place, many simply started turning everyone into the state. Facing possible false accusation claims of racial bias if deals did not pencil? (quote Mr Bagotts articles). Many appraisers felt so intimidated we stopped pursuing origination work entirely.
Here is a fun one; I made it exactly one half day on the Coester amc approval list. Coester of course is out of business. Truth is if anyone audited the complete amc industry… They’re all the same.
Coester… what a joke that company was. I wonder how much money they still owe appraisers.
My advice to you Mr. Class Action is to wake up, smell the roses, and find or create a REAL JOB that pays a decent salary.
*If appraising still paid well (and it hasn’t for 16 years) it may be worth pursuing.
*If you could find 1.25 appraisers who could agree on anything (and that is impossible) it may be worth pursuing.
It’s only going to get worse. Either use the skills that you’ve acquired to make better money (flipping, buyer representation, insurance adjuster, etc) or acquire new skills. A.I. is still in the wild west stages. If you can’t find a way to make money there you deserve to be broke. Beating your head against a concrete wall however is no way to make living. I can assure you that flipping homes (either on your own or with partners) is far more rewarding than waiting for someone to toss you a meatless bone a few times a week. Buy yourself some fertilizer and commit to growing a set this spring. You’ll be amazed at how nice it feels to wake up each morning repeat the following words: “Screw FNMA, screw AMCs, and screw the appraisal profession.” Then walk out to the new car of your choice and make your rounds to check on your construction team’s progress or drive to your new business. You are never too old to reinvent yourself. Eastwood’s famous line always comes to mind when I think of appraising: “Either get busy livin’ or get busy dyin'” If you’re still appraising full time folks…you’re busy dyin’.
P.S. I recommend Scott’s “He Man Billiard Fertilizer”. Guaranteed results within 4 weeks.
https://www.facebook.com/NicholasScottPeterson/videos/abrain-a-pharmaceutical-commercial-parody/1945175912982634/
We are processing your appointment now. What do you think is going to happen to your family, or yourself, people in your community, if they ever need to procure a mortgage again?
Yep, Ipock and Retired and NOT known for their optimism. Peace ya’ll, some of us don’t mind fighting back even if it means mostly banging our heads against a brick wall Occasionally we get a breakthrough.
This is interesting, eight years later Ocwen Altisource on the hook for overcharging for bpo and hybrid valuation services from 2010 to 2017. / Plaintiffs in the home loan fee class action lawsuit claim Ocwen Loan Servicing and Ocwen Financial overcharged borrowers for BPOs and hybrid valuations through undisclosed markups. According to the class action lawsuit, Ocwen should have disclosed these fees. (me; That is the standard practice of most amc’s today.)
https://topclassactions.com/lawsuit-settlements/open-lawsuit-settlements/ocwen-loan-servicing-fees-settlement/
https://www.ocwenfeesettlement.com/
UPDATE “Class Action Suit”: The HUD PAVE Initiative and the Systematic Attack on Independent Appraisers
Over the past few years, the U.S. Department of Housing and Urban Development (HUD) has systematically targeted independent appraisers through the PAVE (Property Appraisal and Valuation Equity) initiative, using baseless allegations of racial discrimination to prolong investigations, entrap professionals, and ultimately reshape the appraisal industry for political and financial gain. I am one of many appraisers who have been subjected to what appears to be a deeply flawed investigative process, and after years of fighting, I am now escalating this case further—seeking congressional intervention, media exposure, and the legal backing to launch a “class-action lawsuit” against HUD for its questionable enforcement practices.
This is not just my story. Dozens of appraisers have come forward and contacted me with similar experiences (And Growing), and the pattern is clear: state appraisal boards and other government agencies review complaints and find no evidence of wrongdoing, yet HUD moves forward with an investigation anyway—disregarding exonerating evidence, extending cases indefinitely, and imposing unjustified hardship on appraisers. The real goal of these investigations appears not to find racism but to make the investigation itself the punishment—ruining the health, finances, and careers of appraisers caught in HUD’s system.
How My Case Exposes HUD’s Actions
I was falsely accused of racial bias after conducting a routine real estate appraisal. Another government agency conducted a year-long investigation and found no evidence of racism. However, instead of the matter being resolved immediately after showing them proof, HUD launched its own separate investigation, disregarding the findings and failing to address clear evidence in my favor.
• Entrapment Tactics: HUD filed a second charge of “Coercion” against me after I followed an investigator’s direct email instructions to contact the complainant about a potential resolution. This was later used against me as an additional violation.
• Prolonged Investigations Without Justification: HUD has exceeded its own statutory limits for investigations, keeping my case open for over two years (the appraisal was performed in 2021) despite clear evidence in my favor. The homeowner was not vetted per (Section 4000.1) HUD’s own handbook guidelines and Fair Housing Regulations, yet HUD proceeded with the case despite blatant perjury by the homeowner.
• Failure to Provide Transparency: I also filed a Freedom of Information Act (FOIA) request to obtain the status of my case, yet HUD has failed to respond.
• Severe Personal and Financial Impact: Like many others, I have suffered significant emotional distress, anxiety, insomnia, and financial hardship—all while HUD continues its prolonged inquiry.
A System That Benefits from Keeping Cases Open
There is growing concern that these prolonged investigations are not about justice, but about sustaining a system that financially benefits from keeping cases open.
• HUD’s Funding Tied to Open Cases
The PAVE initiative has received millions of dollars in federal funding under the premise of addressing appraisal bias.
o More open cases = more funding. If HUD resolves cases quickly, they have no justification for additional grant money.
o Congress must audit HUD’s financial incentives and determine whether prolonged investigations are artificially inflating their budget justifications.
• Bureaucratic Self-Preservation Over Fairness
o HUD investigators are not evaluated based on fair resolutions—they are evaluated based on how many cases they manage.
o Closing cases means less funding and fewer positions within HUD’s enforcement divisions.
o Congress must demand transparency and justification for these prolonged investigations.
• The Industry Profits While Appraisers Are Left Defenseless
o DEI consultants, law firms, and compliance companies profit from prolonged investigations, offering costly “bias training” and “diversity reviews” for appraisers.
o Banks and Appraisal Management Companies (AMCs) benefit as fewer independent appraisers allow them to consolidate control over property valuations.
My Efforts to Seek Accountability
Since the last call for appraisers to join this fight, I have taken the following actions to escalate this case:
• Contacted multiple Senators and House Representatives, including the offices of Rand Paul and Josh Hawley, Adam Shiff, Dave Minn, among others, urging a full congressional investigation into HUD’s investigative practices.
• Contacted the FBI: Confidential.
• Filed multiple reports with HUD’s Office of Inspector General, formally expressing concerns over procedural irregularities and investigative conduct.
• Filed a complaint with the HUD whistleblower hotline, requesting independent oversight of the process and my case.
• Contacted the DOJ Twice, requesting a review of the handling of these cases and the broader implications for regulatory fairness.
• Contacted DOGE/Elon Musk, I populated the proper forms.
• Engaged multiple law firms, including civil rights attorneys, to explore legal avenues for holding HUD accountable.
• Sent follow-up letters to HUD’s San Francisco office, which regulates West Coast appraisers, demanding transparency on how cases are being handled.
• Reached out to many media outlets, reporting DEI violations, and ensuring that this issue is not ignored.
• Contacted the General Accounting Office (GAO) in Washington D.C., seeking assistance or appropriate redirection to an oversight agency.
• Gathered multiple testimonies from appraisers currently under investigation, many of whom report the same pattern of extended cases despite being cleared by other agencies with many Investigators suggesting a quick settlement.
One appraiser even reached out stating that he was battling cancer while HUD continued to investigate him despite evidence clearing him of any wrongdoing. Like myself, many appraisers have suffered severe mental, emotional, and financial distress fighting cases that should have been closed long ago.
What Happens Next? Join the Fight.
This is just the beginning. Many more appraisers are coming forward, and this needs to be a nationally recognized class-action lawsuit.
If you are an appraiser under HUD investigation or past investigations—or if you were previously investigated and cleared by your state board or another agency—I urge you to reach out. We need to gather as much evidence as possible to force Congress and the courts to take action.
? If you have been targeted by HUD, email me at: kjmull@aol.com
? If you are a journalist, legal expert, or someone who can assist in bringing this case forward, contact me immediately.
This issue is not about improving appraisal standards or racial equity—it’s about political and financial manipulation of an industry under false pretenses. If we do not fight back now, the ability of independent appraisers to work without fear of government retaliation will be lost.
It’s time to hold HUD accountable.
– Kenneth J. Mullinix
No professional should have to operate under constant fear of being arbitrarily blacklisted or investigated without due process. Kudos to Kenneth for taking a stand, and hopefully, more appraisers will come together to fight this battle. If the system isn’t working fairly, it’s time to change it.
As I posted on the other thread RE AMC fees, etc., I have submitted a complaint to DOGE.gov website to investigate this whole process. I hope many more will join me with the hope we can return our honorable profession back to what it should be. They are also on X.
Odd, I’m emailed this person a company to consider, and he never even bothered to respond.
a close look at the four ‘appraisal bias’ congressional hearings plus a post mortem on the 3-4 settled cases which made national headlines is in order, and NDAs should be tossed out. The appraisers whos careers were ruined deserve a little sunlight on thier cases. Anyone who gets a ‘love letter’ from HUD should look at themselves very carefully, if you’ve been singled out unjustly, fight hard. If you are just a bad appraiser, please leave the business. The pendulum is swinging back, the last thing our industry needs is for a guilty bad appraiser being thrown in with the good ones – just sayin’
BOOM,,, there it is! IM in!
Donna, Ken please email me again I cannot find the the thread. I have gotten so many emails it just got lost. Thanks. Ken
What’s the updates on Shane Lanham case ? Anyone??
Shane filed for summary judgement..that process is almost finished and the judge should render her opinion sometime in the near future..Thanks for asking !!
Jeremy Bagott dropped an article today on the progress of the investigation.
Really wish he’d keep a repository of all articles online somewhere other than twitter, so we could link them without needing accounts.
Eric your website is awesome; Keeping the reality in real estate. Inspired.
‘The investigation’… I’ll believe it when I see it and not a moment sooner. One can not take a half step any direction in real estate appraisal without hitting a stone wall of concerted racketeering an collusion. It’s the open secret everyone knows about, and nobody does anything to correct. Going on two decades now if not longer.
Look what I found driving around in a small town Northern CO. Had to snap a photo. I could have been someone. I could have been a successful small business owner. If only I’d chose lawn mowing and shrubbery maintenance instead of real estate appraisal. Just bad luck.
Baggins. You still can have a whole fleet of riding lawn mowers if you wanted. These lawn cops don’t have 100. % of the market. There should be plenty of work for more mowers.
Having read that guys website I’m not so sure. He’s a legitimate retired police officer. He’s almost certainly captured the premium lawn care subscribers on the North side. Anyways I’m too old. Almost died just trying to get moving and do spring prep on my own yard last week. We’re pushing another save the bees and butterflies garden this year.
Looked into origination classes I’m not so sure of that either, too much desk time. The stress of appraisal in this new modernized form is simply too much. None of this is what we signed up for. Central planning never works.
Hey Bags – my website is built and managed by SFREP – also my software vendor. “Keeping the Reality in Real Estate” is mine and trademarked – thanks for noticing. It always irks me to get a check made out to Kennedy Reality – however I never had trouble cashing them 😉
I think the MLO direction will be huge in the next 12-24 months both with Reverse Mtg, Refi and purchase loans. I plan to attach myself to a large un named lender and focus on Reverse Mtgs. The only two groups the senior wanting a Reverse Mtg needs to be aware of are the care taker and extended family that just wants all the seniors home equity.
A reverse mtg borrower can be 90 years old and no job and if there is equity in the home say 500k to 2 million, the borrower is on easy street to enjoy their life and travel if they want to.
Empowering Appraisers: Leveraging AI and HUD Guidelines to Uphold Professional Integrity
By Kenneth J. Mullinix
In recent years, appraisers have faced increasing scrutiny from agencies like the Department of Housing and Urban Development (HUD). While oversight is essential, there are growing concerns about investigations that disregard established protocols, leading to prolonged and unwarranted scrutiny. However, by harnessing advanced tools like ChatGPT and understanding HUD’s guidelines, appraisers can effectively defend their practices and ensure fair treatment.
The Accardi Doctrine: Agencies Must Follow Their Own Rules
A cornerstone of administrative law is the Accardi Doctrine, established by the Supreme Court in United States ex rel. Accardi v. Shaughnessy, 347 U.S. 260 (1954). This doctrine mandates that federal agencies are obligated to follow their own regulations, policies, and procedures. Failure to do so can result in their actions being invalidated if challenged in court. This principle empowers appraisers to hold agencies accountable, ensuring that any investigation adheres
strictly to established guidelines.en.wikipedia.org+1en.wikipedia.org+1
HUD’s Single Family Housing Policy Handbook 4000.1: A Tool for Defense
HUD’s Single Family Housing Policy Handbook 4000.1 outlines the procedures and standards for appraisals and related investigations. Familiarity with this handbook allows appraisers to identify any deviations from prescribed protocols during an investigation. For instance, if HUD initiates an investigation without proper notification or fails to provide clear reasons for the inquiry, these actions may violate their own guidelines, rendering the investigation procedural flawed.
Leveraging AI: A Modern Approach to Ensure Compliance
The advent of artificial intelligence offers appraisers a powerful ally. By inputting case documents, correspondence, and relevant files into AI platforms like ChatGPT, appraisers can analyze the investigation’s adherence to HUD’s guidelines. The AI can cross-reference the actions taken against the procedures outlined in the handbook, highlighting discrepancies or procedural missteps.
Example Prompt for ChatGPT:
“Analyze the attached investigation documents and identify any deviations from the procedures outlined in HUD’s Single Family Housing Policy Handbook 4000.1.”
This approach provides a detailed, objective analysis that can be instrumental in defending against unjust investigations.
Case Law Supporting Procedural Adherence
The importance of agencies following their own procedures is further reinforced by cases like Citizens to Preserve Overton Park v. Volpe, 401 U.S. 402 (1971). In this landmark decision, the Supreme Court emphasized the necessity for agencies to adhere to statutory requirements and established procedures, underscoring that failure to do so can lead to judicial invalidation of their actions.en.wikipedia.org+1en.wikipedia.org+1
Actionable Steps for Appraisers
1. Educate Yourself: Familiarize yourself with HUD’s Single Family Housing Policy Handbook 4000.1 and other relevant guidelines.
2. Document Everything: Maintain meticulous records of all communications and actions related to any investigation.
3. Utilize AI Tools: Leverage platforms like ChatGPT to analyze investigation procedures against established guidelines.
4. Consult Legal Counsel: If discrepancies are identified, seek legal advice to challenge any procedural violations effectively.
By proactively engaging with available resources and technologies, appraisers can ensure that investigations are conducted fairly and in accordance with established protocols, thereby safeguarding their professional integrity.