A Different Legal Opinion On Ftc And Fees

[djd09]

4) The worst rule in the history of mortgage lending was the Home Valuation Code of Conduct that was rolled up into Dodd-Frank. It needs to be reversed.

Loan originators and mortgage lenders know best when it comes who are the top-tiered appraisers. They should be able to direct business to those best in class.

Todays’ blind round robin system gives equal work to undeserving appraisers, unfairly enriches appraisal management companies at the expense of consumers and appraisers and nullifies countless numbers of loan approvals because properties were unfairly low-balled in value.

https://www.ocregister.com/2018/09/...-and-gun-dealers-need-more-access-to-lending/

If it wasn't for coumo this thread would never exist.

 

[gregb]

https://chicago.suntimes.com/news/2...others-charged-with-property-appraisal-fraud/

12/14/2017, 12:38pm
2 northwest suburban brothers charged with property appraisal fraud

Sun-Times file photo


BySun-Times Wire

email


Two northwest suburban men were charge with fraudulently controlling property appraisals in a scheme to defraud lenders.

Steven L. Garcia, a 45-year-old Schaumburg resident, and his 43-year-old brother, Michael R. Garcia of Streamwood, operated American Financial Mortgage Services Inc., a Schaumburg-based licensed mortgage brokerage, according to the U.S. attorney’s office.

The duo fraudulently caused lenders to make mortgage loans brokered by their company by falsely representing that the supporting property appraisals were performed by independent appraisers, the U.S. attorney’s office said. Instead, the brothers and their employees were selecting and paying the appraisers, managing the appraisal process and influencing property valuation.

Mortgage brokers are prohibited by Federal Housing Administration regulations from having substantive communications with appraisers about property valuations, according to the U.S. attorney’s office. The regulations also prohibit mortgage brokers from ordering or managing and appraisal assignment and paying appraisers.

The Garcia brothers allegedly bypassed these regulations by controlling Residential Appraisal Management Company Inc. through a nominee, according to the U.S. attorney’s office. They used the company to steer appraisals to hand-picked appraisers.

One of the hand-picked appraisers was a relative who gave an appraised value sufficient to support a proposed loan, while falsely representing to lenders that Residential Appraisal Management Company Inc. selected appraisers based on experience and skill, the U.S. attorney’s office said.

The Garcias also fraudulently caused lenders to make mortgage loans to finance fraudulent real estate transactions in which the brothers and their nominees bought and re-sold homes at inflated prices to unqualified nominees who then defaulted on the loans, the U.S. attorney’s office said.

The brothers gave lenders false employment and income information to support the nominees’ loan applications and then gave the nominees money to make the purchases, according to the U.S. attorney’s office. They fraudulently obtained about $1.9 million that was payed out at the closings of the fraudulent real estate transactions. Another $274,000 in commissions was obtained from those deals.

Each of the brothers was charged with one count of mail fraud and one count of wire fraud, according to the U.S. attorney’s office. Arraignments in federal court in Chicago have not yet been scheduled.

 

[Eli]

I read it. The kickers are they focus on consumer with little regard for credibility. They also say it has potential to raise cost to consumer. That’s a lie. Separate fees number one.

Notice the FTC is not sure in their position.

That’s where States will enlighten them.

It’s an oligopsony. Similar to an oligopoly but different. Separate fees number 1 on truth in lending disclosures. That will breed competition between AMC’s.

C&R will fall in place then with States.


You can tell the FTC is saying the
State govt needs to control it. Not appraisers setting on a board.

 

[Eli]

North Carolina lawyers are not stupid. Go NC.

 

[Mike Kennedy]

Appraisal Management Companies (AMCs)
Q27. Is a lender required to use an AMC for ordering appraisals?
No. A lender may order appraisals directly from an individual appraiser

https://www.fanniemae.com/content/FAQ/appraiser-independence-requirements-faqs.pdf


Mortgage Brokers
Q33. May a lender accept an appraisal prepared by an appraiser that was ordered by a mortgage broker?
No. AIR does not allow a lender to accept an appraisal prepared by an appraiser that was ordered by a mortgage broker as noted in Section IV(A).

Q34. May a mortgage broker provide the lender with an approved appraiser list for the lender to use when ordering appraisals for that particular broker? No.

Q35. May a mortgage broker order an appraisal directly from an AMC that was specifically authorized by the lender? AIR prohibits brokers from ordering appraisal services, but brokers may initiate the appraisal process on a lender’s behalf in accordance with arrangements made by the lender. See Q29 for details.

Q36. Does AIR permit a mortgage broker to select an appraiser from the lender’s list of approved appraisers if the lender is responsible for the relationship with the appraiser, including compensation?
No. AIR prohibits lenders from relying on an appraisal if the broker had a role in selecting, retaining, or compensating the appraiser

 

[Mr Rex]

Just wait until the Wal Mart versus Amazon anti trust suits start to fly and all the collateral damage to their "competition" is put under the microscope. What ya think Eli? Do ya hear the C&R train coming?

 

[Eli]

Idk dog. I know this train will get derailed the way it is. It’s teetering on the tracks. It’s a mess. Lol

Lack of data on fees and commingling of fees is a train wreck. You can even tell the FTC is niave. I’m not. Many State lawyers aren’t niave either.

 

[TRESinc]

You can even tell the FTC is niave. I’m not.

the FTC is naive but eli isn't. ya, that makes perfect sense.

 

[Eli]

the FTC is naive but eli isn't. ya, that makes perfect sense.

lol. It’s not their ball of wax. They don’t insure lending institutions. They prolly really don’t want in the middle of it. Too late! Sorry! Lol

 

[Eli]

Look for civil actions soon. Oh, sure, attorneys will tell you before they bring civil action. Lol