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24 indicted as mortgage fraud probe widens

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Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
Wow!
U.S, Attorney Mary Beth Buchanan, with officials from federal, state and local law agencies, announces the launch of the Western Pennsylvania Mortgage Fraud Task Force.Local, state and federal prosecutors yesterday issued a warning to the subprime lending industry and punctuated it with two dozen criminal indictments for mortgage fraud.

:clapping: :new_multi: :clapping:
 

Elliott

Elite Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Oregon
Good to see Mary Beth is busy again.

"a large number of fraudulent mortgages were obtained using what is known as "stated income" -- a good-faith estimate of a person's earnings not based on wage statements."

I guess they didn't get those faxes or saw the ads about 'no doc' loans,
wasn't Fannie okay with those too?

"..an accusation that they used unlicensed appraisers to establish the values of properties being purchased."

That was smart, cause if they used licensed appraisers then they would
have been in trouble. Better to use the unlicensed ones.
 

Mike Kennedy

Elite Member
Joined
Sep 28, 2003
Professional Status
Certified Residential Appraiser
State
New York
"This is a very serious criminal activity we're facing here in Western Pennsylvania. Unfortunately, we know that this is just the beginning of many of the cases that we're looking at very closely," said Ms. Buchanan.
The cases unveiled yesterday involved several mortgage service firms in the Pittsburgh area and totaled $13 million in fraud, she said.

Nickels and Dimes DO ADD UP. An Excellent beginning and example to ALL the other States.
 

Laughing Heir

Senior Member
Joined
Oct 16, 2007
Professional Status
Certified General Appraiser
State
Pennsylvania
I'll admit to being naive about how this type of mortgage fraud is perpetrated. How does an unlicensed person perform appraisals? :shrug:

Of our clients, local banks knows us or they ask for a copy of the certification. Non-local ask if we have E&O, certification, etc., and usually want proof or are directed to the PA Dept. of Licensing to check us out.

Wouldn't the lender perform some due diligence to make sure the appraisal is done by a certified or licensed appraiser?
 

USPAP Compliant

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
All a witch hunt!

Just a bunch of publicity seeking enforcement agencies!

That womans jacket was was too tight and she has a smirk on her face!

Oh those poor, misunderstood people that have been wrongfully accused!

None of those people in the picture even look like appraisers!


Now, on a serous note. I hope any innocent folks accused will be vindicated ASAP. Those that are found guilty after a fair trial need to be locked up and their sentences HIGHLY publicized.

I have been praying for more investigations and hope they are all carried out in a lawful and fair manner. Until I see different I will assume that there is a valid reason to charge these folks with a crime. That does not mean they are guilty, jut that there probable cause to charge them.
 

Elliott

Elite Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Oregon
LH asked, How does an unlicensed person perform appraisals?

The state boards have been encouraging unlicensed appraisals for
years. They gave the green light to AVMs, BPOs, CMAs, title company
comp searches. They prefer valuations done by non-licensed
appraisers so they don't have to deal with them. But we are all lucky
the state medical boards don't see the practice of medcine the same
way.
 

jnordquist

Member
Joined
Sep 10, 2007
Professional Status
Certified Residential Appraiser
State
Pennsylvania
Since This Investigation Is In My City, I Can Say That I Have Heard Of Some Of The People Named, But I Have Never Done Any Work For Any Of Them, And Yes There Are Some Shady Characters Named, Not A Witch Hunt They Have The Right Defendants

My Guess Is That The Unlicensed Appraiser Was A Trainee Running Around Unsupervised "getting The Value", Or Some Mortgage Broker Committing Appraisal Fraud. This Group Had No Boundaries, And Would Do Whatever They Needed To Get Their Check.
 
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