1. Welcome to AppraisersForum.com, the premiere online community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Wells Fargo

Discussion in 'General Appraisal Discussion' started by Leon Marcus, Nov 5, 2009.

Thread Status:
Not open for further replies.
  1. Leon Marcus

    Leon Marcus Junior Member

    0
    Jan 24, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    Illinois
    Found this article on the web

    Wells Fargo Bank is the target in a new class action lawsuit that accuses the mega-bank of fraudulently claiming that the property values of its customers had declined and using that as a pretense to shut off home equity lines of credit (HELOCs).
    Homeowner Michael Hickman, of Westmont, Ilinois filed the lawsuit on behalf of himself and other Wells Fargo HELOC holders. The lawsuit claims that Wells Fargo used computer models to “appraise” the homes instead of licensed appraisers and that the bank did not give its customers sufficient notice of either its intent to “re-appraise” or what the consequences would be. It then required customers contesting the computer appraisals to pay for their own appraisal to show that the computer appraisal was incorrect in order to seek reinstatement of the HELOC.
    In Mr. Hickman’s case, after Wells Fargo froze his HELOC, it then “offered” to flip him into a high-interest credit card. Bait-and-switch, anyone?
    Note: This author opines that computer modeling is a wildly inaccurate method of appraising homes and can be easily manipulated to obtain the outcomes desired by those who employ them, especially when the algorithms are not made available so they can be validated. Home values can fluctuate significantly between neighborhoods and it is highly improbable that any programming either takes into account such variations or that it would even be possible to program the variations into the model.
    Michael Hickman’s attorneys are Jay Edelson, Steven Lezell and Evan Meyers, all with KamberEdelson LLC. KamberEdelson has previously sued JP Morgan Chase, WaMu, and Citibank in class actions over similar HELOC cancellations or suspensions.
     
  2. panappr

    panappr Senior Member

    3
    Dec 5, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    These lawsuits have been going on for quite some time. I too (along with a few of my neighbors) am a victim of Chases valuation system. Seems they are forecasting, rather than determining current market value??? Their little matrix may backfire on them.....
     
Thread Status:
Not open for further replies.

Share This Page