Fraud alert

[alebrewer]

yeah, it is actually an oligopsony. But your correct on market structure and market power on price.

I think there are quite a few on the demand side - just not on the supply side...

 

[Zoe]

That's why fees were not separated on Truth in lending disclosures.

I remember these things.

Market structure is the answer.

 

[Zoe]

I can dig deeper if you want. Why do Unions exist?

Market structure perhaps?

 

[Zoe]

Supply and demand on unions? Don't kill me. I am getting old.

If you tell me market structure, I can believe you why unions exist.

 

[Zoe]

Let me dig a little deeper. Employee vs Independent contractor?

How deep you want me to dig in market structure?

 

[DWiley]

But how did they get lenders and clients to pay all the fake invoices or use the appraisals, and what loans were involved? That would be the hacking part - from my limited knowledge of it.

The Fannie letter went out to lenders and seemed substantial enough for them to identify it as a problem, so added up in large numbers, the amount over 2years could be significant.

The invoices are not fake. They are for actual completed appraisals.

I get a copy of software that allows me to create my own signature. I set it up under the name J Grant, George Hatch or whatever. I use an email and phone number I control and I start accepting orders from a lender. I have them make the checks out to my company name, XYZ Appraisal.

 

[George Hatch]

The invoices are not fake. They are for actual completed appraisals.

I get a copy of software that allows me to create my own signature. I set it up under the name J Grant, George Hatch or whatever. I use an email and phone number I control and I start accepting orders from a lender. I have them make the checks out to my company name, XYZ Appraisal.

NDA Appraisal Services, LLC

(because it's....a CONSPIRACY)

 

[Zoe]

The invoices are not fake. They are for actual completed appraisals.

I get a copy of software that allows me to create my own signature. I set it up under the name J Grant, George Hatch or whatever. I use an email and phone number I control and I start accepting orders from a lender. I have them make the checks out to my company name, XYZ Appraisal.

I am not denying it is true.

Your sidetracking on appraisal fees and how fake they are on truth in lending disclosures.

Do you see the pattern?

 

[Zoe]

I understand you are buying these loans as GSE. I have that deeply embedded in my mind.

You are an employee of GSE. I got all that.

 

[NC Appraising]

Most direct lenders and AMC's that I deal with require a copy of the appraiser's cert and E&O dec page in the report. If that increases the risk of fraud, that's really on the lender, not the appraiser...

That is why I think it is a loan officer or a mortgage broker for a good % of them. They have access to all of the appraisers data, license, E&O, etc. They could also be teaming up with appraisers...

What Danny and Jgrant said probably accounts for the others....