Nathan Connolly and Shani Mott v. Shane Lanham (D. Md.)

On March 13, 2023, the Justice Department and the Consumer Financial Protection Bureau filed a Statement of Interest in Connolly v. Lanham (D. Md.), a private lawsuit brought under the Fair Housing Act (FHA), the Equal Credit Opportunity Act (ECOA), and other laws.  The complaint in the case alleges that an appraiser and a lender violated the FHA and ECOA by lowering the valuation of a home because the owners were Black and by denying a mortgage refinancing application based on that appraisal.  The defendants moved to dismiss the complaint.  The Statement of Interest explains that it is illegal for a lender to rely on an appraisal that it knows or should know to be discriminatory and provides guidance on pleading standards under the FHA and ECOA.  On August 2, 2023, the Court issued an Opinion granting in part and denying in part defendants’ motions to dismiss.  The Court agreed that a lender violates the law by relying on an appraisal that it knows or should know to be discriminatory, adopted the pleading standards in the Statement of Interest, and held that plaintiffs stated claims for relief under ECOA and multiple provisions of the FHA.

Press Release (3/13/2023)