Century Mortgage Fraud

[Julia Young]

I use comps "provided" if I they prove valid. I test the product, however. I believe what the management recruiter was telling me during that recruiting phase was, they handle the request, assign the files, pull the comps using their own databases and provide you with raw data, comps, file and you do field work, adjustments,(place your name and license on the line) EDI it to them and they send out the appraisal under their umbrella and billing. The potential risks here are a lot different than examining an occasional comp provided by an agent working a neighborhood closely. When our databases depended on printed material and not electronic data, it was quite often we did not have the latest sales without checking specifically with agents, or hanging out at the assessor's office, particularly in the outlying or rural areas surrounding our city. Now electronic data is plentiful, at least in our metropolitan area, and we have access to the information as soon as it is recorded.
Tom,
I imagine if a disclaimer statement like you suggest is put in place with a management company's finished product, they would discontinue use of the appraiser's services as the appraisal may not be valid if hypothetical or theory based unless it has a time frame or use set outside the sales/market approach. I am speaking of regular market value appraisals for sales and refinance rather than an exceptional request.

 

[Larry Lyke]

Tom --

---Quote
This appraisal was completed under hypothetical conditions ... lender-supplied ... comparable sales ... appraiser makes no guarantees or warranties as to the suitability ... Any persons relying on this appraisal does [sic] so with ... [and] agrees to hold harmless the appraiser for any error in value.
---unQuote

I agree with Julia. I don't see how the CYA paragraph is in harmony with acquiscent behavior regarding the handling of a client's comps used at the client's request, regardless of whether coming through the traditional channel of the actual client to the appraiser or client's customer or other interested party like the Reatlor(s).

 

[Soar Ohio]

I'm sorry. I thought Julia was saying that she had to use the comps and only the comps that they gave you.
Tom

 

[Rrebera]

If you look back and see how many of these dirt bags are operating you may find that many of the folks are holding the property for over one year, because "we" as appraisers and the lenders only look back up to one year on any prior sales. There was a case in Ohio where an investor kept over 30 properties for over one year, before he even touched them, went to his scum bag lender, found a dirt bag appraiser and made new loans for 55k on properties that he paid 5-10k for. He never touched any of them, said they were renovated, confirmed by the appraiser and the rest is history.

It takes an appraiser to get involved in most of these cases and someone is participating. I just came back from Florida in July where I looked at over 40 condos that were refinanced about 55k over their market value. The investors were from the north and had no clue about the value. They assumed that the realtor would never cheat them and that the appraisers would be honest in their evaluations. The appraisers came from about 300 miles north of the area that they appraising-they made $700-1000 per appraisal.

When I was in my last CE class and I heard of all the horror stories going on in our business. I was wondering where all the "bad appraisers' go and get their CE. Is there some special course and class that says" dirt bags" please come and attend, get rich beyond your wildest imagination and retire in five years?

have a good day!

 

[Farm Gal]

Rrebera:
Unfortunately the 'dirtbags' can sit in an ethics class taught by an excellent and engaging instructor, and exit that class with a far different set of conclusions than the intentionally ethical folks sitting on either side!

Folks like that are found in all walks of life... they will find each other (dirt attracts dirt).

What is currently missing in this and many other 'professions' is a reasonable method by which to remove their ability to operate.

My personal objective is to be part of the solution, not the problem. MAKE the time to get involved, voice your opinion, write your congressman, representatives, make yourself heard, and follow through by appearing at state board meetings!

Else the folks who attend those ethics classes with the specific intent to ful-fill mandated attendance or worse learn where they can wriggle through the cracks will WIN!

Turn the rascals in sound the trumpets~!

 

[Julia Young]

CE can be had over the Net, home correspondence, etc. Even in-class courses often spend much of their time "shooting the bull" and little actually in teaching. Bottom line, is we have USPAP every two years in our state and there are some individuals it rolls right off. We have mandatory ethics for the Realtors, same problem. Those who are going to cheat will do it anyway, the rest already know what not to do.
My point was not so much about the sell-outs in our industry as in anxiety over getting caught up in other people's schemes or lies unaware.
A minor example was a mortgage broker who had spent the appraisal money her customer gave her and wouldn't accept my appraisal because she didn't have the money to pay for it. Past experience with her had let me know I had to collect on delivery. If I e-mailed the appraisal she wouldn't pay for it until she needed another one. Even then the checks often bounced. When I learned cash on delivery was necessary and refused to deliver without receiving payment, if she didn't have the money, she would postpone delivery. If I did not prearrange an appointment with her to deliver the appraisal and collect a check, she was not available. She would tell the agent and client that she didn't have the appraisal because I had not finished it. If they called, I had to choose either to tell them the truth about her habits and risk some liability or make excuses for her. It made me the 'bad guy' for an entire agency because "I" cost them a timely closing. I 'looked slow and inefficient' to everyone, including the closing attorney and lender. I finally terminated business with this broker because I refuse to work with people that lie about me and in the process, damage my reputation. I told her I couldn't work for someone that I had to collect my fee on the front end to ensure payment but I was really concerned she might cause even more serious problems.