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  #1  
Old 08-31-2009, 07:47 AM
Mike Kennedy's Avatar
Mike Kennedy Mike Kennedy is offline
 
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Exclamation Fannie Mae Fraud Report- Put The Bullseye Where It Belongs

Federal National Mortgage Association (Fannie Mae)
As of December 2007, the top 10 markets (by zip code area) for mortgage loan misrepresentations according to Fannie Mae included Minneapolis, Minnesota; Atlanta, Georgia; Detroit, Michigan; Memphis, Tennessee; St. Paul, Minnesota; Pompano Beach, Florida; Miami, Florida; Fort Myers, Florida; Houston, Texas; and Dearborn, Michigan.22

Fannie Mae is the nation’s largest mortgage investor. To aid in mortgage fraud prevention and detection, the company publishes a mortgage fraud newsletter that includes information concerning misrepresentations discovered in loan files. Loans originated in 2006 through 2007 and reviewed by Fannie Mae through December 2007 were used to formulate a geographic top 10 list by zip code area for concentrated mortgage loan misrepresentations (see figure 13).

Figure 13: Fannie Mae Top 10 Zip Code Markets for Misrepresentations

Rank for Number of MisrepresentationsTop 10 Zip Code Markets


(first three digits of zip code)Type of Misrepresentation
1


Minneapolis, Minnesota (554)
Credit and SSN
2
Atlanta, Georgia (303)
Credit and Income
3
Detroit, Michigan (482)
Credit and Value/Property
4
Memphis, Tennessee (381)
Income and Assets
5
St. Paul, Minnesota (551)
Credit and SSN
6
Pompano Beach, Florida (330)
Income and Credit
7
Miami, Florida (331)
Income and Assets
8
Fort Myers, Florida (339)
Credit and Occupancy
9
Houston, Texas (770)
Income and Credit
10
Dearborn, Michigan (481)
Credit and Income



SUGGEST COPYING AND EMAILING THE INFO ABOVE TO EVERY MEDIA REPORTER EACH TIME A NEW MISLEADING ARTICLE IS PUBLISHED PAINTING THE bulleye on the chests of Appraisers.



http://www.fbi.gov/publications/frau...ge_fraud07.htm
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Last edited by Mike Kennedy : 08-31-2009 at 07:56 AM.
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Old 08-31-2009, 08:06 AM
DWiley DWiley is offline
 
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Quote:
Originally Posted by Mike Kennedy View Post
SUGGEST COPYING AND EMAILING THE INFO ABOVE TO EVERY MEDIA REPORTER EACH TIME A NEW MISLEADING ARTICLE IS PUBLISHED PAINTING THE bulleye on the chests of Appraisers.
I have copies of several reports done by Mempis appraisers.

Is it just me, or is regularly appraising propeties for twice what they are listed for (while not even disclosing that they are listed) an appraisal/appraiser problem? Just where should the bullseye go in such a case?
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  #3  
Old 08-31-2009, 08:25 AM
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Just where should the bullseye go in such a case?

On the back of the prison stripes the former (a)ppraiser is issued. My personal and professional stance on Enforcement of existing Appraisal Standards (and laws in states which have them such as NY) is well known. Isolated incidents do not change the results reported by Fannie above which clearly illustrate the preponderence of investigated fraud cases (at least in 2006-2007) did NOT involve appraisals as a LEADING factor. Do they?
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Last edited by Mike Kennedy : 08-31-2009 at 08:31 AM.
  #4  
Old 08-31-2009, 08:49 AM
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Houston is on the list. Funny, during those time is when I started loosing most of my clients or I was too conservative.
  #5  
Old 08-31-2009, 08:55 AM
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Quote:
Originally Posted by Mike Kennedy View Post
Isolated incidents do not change the results reported by Fannie above which clearly illustrate the preponderence of investigated fraud cases (at least in 2006-2007) did NOT involve appraisals as a LEADING factor. Do they?
I cannot speak to the other cities listed, but I can state for a fact that in Memphis the example I posted is NOT an isolated instance. Anyone wishing to verify that can call our state board and ask home many cases they have of fraudulent appraisal practice in Memphis.

No entity or group is totally at fault for the current mess. Lenders certainly let greed blind them. But, as I have said in several other posts, appraisers need to step up an and admit that some of our own were indeed a significant part of the problem. Denying that makes us look less credible.
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  #6  
Old 08-31-2009, 08:59 AM
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appraisers need to step up an and admit that some of our own were indeed a significant part of the problem. Denying that makes us look less credible.

Agreed and I always do - when it's deserved.

example: http://appraisersforum.com/showpost....8&postcount=10
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  #7  
Old 08-31-2009, 09:00 AM
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Funny, during those time is when I started loosing most of my clients or I was too conservative.
A lot of appraisers faced that. I am getting calls from companies that would not use our company in 2005-2007 who now want to hire us for forensic reviews.

The irony is that those "cooperative" appraisers are now being turned in by the same lenders that wanted to use them in the past because they were a "team player." Those repurchase notices tend to change the lenders point of view.
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  #8  
Old 08-31-2009, 09:14 AM
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Think many of those files with fake income docs also have a defective appraisal?
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  #9  
Old 08-31-2009, 09:38 AM
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Quote:
Originally Posted by DWiley View Post
A lot of appraisers faced that. I am getting calls from companies that would not use our company in 2005-2007 who now want to hire us for forensic reviews.

The irony is that those "cooperative" appraisers are now being turned in by the same lenders that wanted to use them in the past because they were a "team player." Those repurchase notices tend to change the lenders point of view.
Your last statement is directly to the point, until lenders and their appraisal placement agents (amcs) are held accountable, no complaints were filed. The lenders and their agents place the appraisal orders.

Wonder if and when any bankers will be fined for failing to utilize/demand USPAP compliant appraisal reports for FRTs? (I believe that is in the banking regs).
  #10  
Old 08-31-2009, 09:59 AM
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Plantation Theory and the Studeman Factor are what caused all the problems.

Plantation Theory is in place to keep supply of appraisers high and pickin from can-see to cant-see.

Studeman factor is sort of a Bossman who is a Slave to the actual Slave Master. His job paid well and enabled the Slave MAster to rake billions away from the homeowner.

For those that dont know Studeman was a dude in NC who ran three sweat shops located in NC, FL and TN.

He has been revoked by NC and FL, but last I checked the clown is still licensed and operating in TN.
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