A lawsuit has been filed alleging that appraisal students were not accurately graded based on different states’ minimum passing grades and requirements, with the alleged practice possibly dating back to 2008.
Upon reporting the issue to the trade group, AI, new hire Akins was met with a “don’t ask don’t tell type of policy.” After escalating the matter to AI CEO John Udelhofen and requesting the withdrawal of inaccurate certifications, Akins faced what she believed to be punitive actions, including canceled work trips and threats of employment separation.
Following Akins’ report of the incorrect exam scores and text messages to human resources, Udelhofen began reassigning her responsibilities, ultimately leading to her termination just 10 months after being hired.
The lawsuit, filed in the U.S. District Court for the Northern District of Illinois Eastern Division, accuses AI of violating state whistleblower laws and retaliatory discharge.
Despite HousingWire’s request for comment, AI declined to provide a statement regarding the lawsuit.
This legal action is the latest development in the ongoing saga surrounding AI and its leadership. The abrupt firing of CEO Cindy Chance in September, just a year into her role, sparked backlash among AI members who have long criticized the group’s advocacy for residential appraisers.
Appraisers speculate that Chance was terminated for attempting to implement changes desired by the trade group. Udelhofen was appointed interim CEO following her dismissal.
“She was terminated because her positive changes threatened the entrenched interests of the Institute’s Board members,” said West Virginia appraiser Lori Noble, a vocal critic of AI’s board.
AI has faced scrutiny from the Biden administration for its lack of diversity, with internal data showing a predominantly white and male profession.
Appraisers have also voiced concerns about AI’s relationship with appraisal management companies (AMCs), accusing them of taking a disproportionate share of appraisal fees and misleading the public about the distribution of fees. This has contributed to a significant decline in the number of appraisers.
Recently, the law firm Hilgers Graben filed a class-action lawsuit against three AMCs in California for alleged misconduct, while personal injury firm Morgan & Morgan is investigating the matter.