Thats the problem with the current situation as it is. There is no enforcement. Well, there is enforcement. But, I don't consider less than 1% of all loans and appraisals coming under real, objective and unbiased scrutiny enforcement.
So, what we're left with is culling through economics. Unfortunately, the unethical in this business are well positioned to compete in the current market while the ethical are ill prepared to compete. Lets face the facts. If you can't make loans because of inconveniences like poor credit scores, insufficient income, declining values, nasty debt to income ratios then you can't survive in this market. An ethical MB or LO is not willing to do what is necessary in order to overcome these obstacles. The MB or LO cannot do anything about poor credit scores or an applicants current debt. However, they could possibly forge credentials for an applicants level of income thereby manipulating two the the 4 factors I listed and then could manipulate the appraiser or find an appraiser that is more than willing to accommodate the MB or LO thereby manipulating 3 of the 4 factors.
This is capitalism at it's purest. Allow the market to take care of its self *laugh*. So, what we're left with is a lending industry and an appraisal industry that day after day more and more ethical members leave because they can't compete.
Capitalism is a grand and wondrous ideal as long as the playing field is leveled by government regulation AND ENFORCEMENT. While we have regulation it is of little use without ENFORCEMENT. And no body wants to enforce the regulations because the reality of the matter is we are in a worse off economy that we are being lead to believe. And if the lending industry was unable to loan money it would collapse. Along with it the rest of the economy too.
