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Confessions of a Subprime Mortgage Broker

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Laura Goldware

Thread Starter
Sophomore Member
Joined
Jun 6, 2004
Professional Status
Certified Residential Appraiser
State
Florida
http://www.newsweek.com/id/121512?ref=patrick.net


"His biggest criticisms, though, are reserved for mortgage brokers and appraisers."

"They also routinely gamed the appraisal system, encouraging appraisers to look for "comparables" that were far nicer homes in better neighborhoods—all in an effort to drive up the appraised value of the home they were mortgaging."
 

leelansford

Elite Member
Joined
Mar 29, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
http://www.newsweek.com/id/121512?ref=patrick.net


"His biggest criticisms, though, are reserved for mortgage brokers and appraisers."

"They also routinely gamed the appraisal system, encouraging appraisers to look for "comparables" that were far nicer homes in better neighborhoods—all in an effort to drive up the appraised value of the home they were mortgaging."

Say it ain't so! I'm shocked...absolutely shocked by this news!
 

JonGalt

Junior Member
Joined
Aug 4, 2005
Professional Status
Certified Residential Appraiser
State
Illinois
"The rate of property appreciation experienced on a national basis over the last seven years was not only a function of market demand, but was due, in part, to the subprime industry's acceptance of overvalued appraisals, coupled with a high percentage of credit-challenged borrowers who financed with no money down," Bitner writes.

The rarely mentioned side effect of massive appraisal/broker fraud on values. I just finished an appraisal where property values declined over 40% in the last year, the neighborhood was sub-prime heaven for several years. Of course the broker/LO owned appraisers had been inflating values and ignoring home conditions for years over there.

Maybe I should write a book too. I could call it "Ethical Appraising in the Sub-Prime Market". I have some free time, and it would be a very short book.
 

Roscoeman

Member
Joined
Aug 18, 2005
Professional Status
Certified Residential Appraiser
State
Oregon
The rarely mentioned side effect of massive appraisal/broker fraud on values. I just finished an appraisal where property values declined over 40% in the last year, the neighborhood was sub-prime heaven for several years. Of course the broker/LO owned appraisers had been inflating values and ignoring home conditions for years over there.

Maybe I should write a book too. I could call it "Ethical Appraising in the Sub-Prime Market". I have some free time, and it would be a very short book.

How short would it be!
 
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