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Cuomo Subprime Investigation 1st of Many

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Frederick

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Senior Member
Joined
Nov 2, 2005
Professional Status
Certified General Appraiser
State
New Jersey
http://www.foxbusiness.com/article/new-york-subprime-probe-likely_396621_55.html

Larson said Cuomo’s investigation into appraisals could prove more fruitful than his probe of Wall Street banks.

“It’s been an open secret that appraisers have been under pressure to play ball on home prices when lenders come to them,” he said.

Indeed, the Appraisal Institute, a trade group, conceded that problems existed when Cuomo announced his suit last month.

Added Larson, “Clearly something is broken in the appraiser/lender/broker relationship. That’s what he’s digging into. If he can pursue this far enough, I think there were bad actors and bad players in this market who deserve to be stopped.”
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
Let's look hard and long at the affiliations of those in charge of the appraisal departments, in the AMCs, running some of the skippy shops. I sure do hope they clean up their own houses while they are pointing at others.
 

Workbox

Elite Member
Joined
Mar 2, 2005
Professional Status
Certified Residential Appraiser
State
Colorado
I think Cuomo should really put on the gloves and deeply probe in deep and ignore the screams, and find the cancer. And those that are the cause of the cancer get what they deserve.

It is heart breaking to hear the "I trusted the MB/LO, they were so nice", stories. I think it all starts with the Realtor, to lender, to appraiser, then those who have conspired to manipulate the system for data mining in which it caused a Brothelhood of AMC's, which were in cahoots with with the lenders and supposed representatives of the appraiser and those that made regulations.

WHY! WHY! do we not have REPRESENTATION!? Here we have the NAR and AI making Appraisal Laws? to give the impression of doing the right thing, just to save their hides. And don't tell me that the AI only represent it's members. BS! along with the TAF and ASB. They should just stick to education.

Some may be saying "Well, if you do not like it, get out". What I have to say about that is;..............I like what I do, I believe that I have salvaged some clients by letting me do my job correctly and standing my ground and opposing the use of the LO's skippy appraiser. Now, they are the only standing builder/MB/LO in there market, their competition has gone under because they have been blacklisted by lenders because of the tactic/MB/LO's and appraisers they have used.

At the end, be ready for a new form of representation.
 
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Frederick

Thread Starter
Senior Member
Joined
Nov 2, 2005
Professional Status
Certified General Appraiser
State
New Jersey
I have been spending a significant amount of time reading the forum on the Impode-O-Meter site trying to understand the full extent and causes of what has occurred. I always knew the mortgage business had its share of corrupt participants but I was appauled at its pervasiveness and the extent of the criminality.

They had companies that provided telephonic and written fraudulent employment confirmation with charges per phone call and per pay stub provided. They cracked security and forged documents including appraisals. They stole appraiser identities. Account Executives "gamed" their own company's loan products and encouraged brokers in ways to get around the underwriting requirements of their own companies. When told a borrower did not have sufficient income to qualify they advised the broker to take them "stated income". Underwriters were bullied, harrassed and blacklisted as much as appraisers were. Employees who didn't "play ball" were terminated. AVMs were also "gamed" to provide a needed result.

Not only have appraisers had to survive the slings and arrows of those who employ them and the treachery of their colleagues, too weak to resist corruption, but also the senior members of their profession and their affiliated organizations actively participated in systems and business endeavors that undermined them. These men sought to project an image of wise men of the profession while they were something much less honorable.

The term "*****" comes to mind: A person considered as having compromised principles for personal gain.

"All that is necessary for the triumph of evil is that good men do nothing." (Edmund Burke)
 

Workbox

Elite Member
Joined
Mar 2, 2005
Professional Status
Certified Residential Appraiser
State
Colorado
I have been spending a significant amount of time reading the forum on the Impode-O-Meter site trying to understand the full extent and causes of what has occurred. I always knew the mortgage business had its share of corrupt participants but I was appauled at its pervasiveness and the extent of the criminality.

They had companies that provided telephonic and written fraudulent employment confirmation with charges per phone call and per pay stub provided. They cracked security and forged documents including appraisals. They stole appraiser identities. Account Executives "gamed" their own company's loan products and encouraged brokers in ways to get around the underwriting requirements of their own companies. When told a borrower did not have sufficient income to qualify they advised the broker to take them "stated income". Underwriters were bullied, harrassed and blacklisted as much as appraisers were. Employees who didn't "play ball" were terminated. AVMs were also "gamed" to provide a needed result.

Not only have appraisers had to survive the slings and arrows of those who employ them and the treachery of their colleagues, too weak to resist corruption, but also the senior members of their profession and their affiliated organizations actively participated in systems and business endeavors that undermined them. These men sought to project an image of wise men of the profession while they were something much less honorable.

The term "*****" comes to mind: A person considered as having compromised principles for personal gain.

"All that is necessary for the triumph of evil is that good men do nothing." (Edmund Burke)
A Brothelhood comes to mind. Right Ken Verrett and Inserra, and all you Chief Appraisers with the Buzz-erd? and software companies. We have the evidence.............thank goodness to google cache...............Run!!!!..........maybe you should sue them too?
 
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Workbox

Elite Member
Joined
Mar 2, 2005
Professional Status
Certified Residential Appraiser
State
Colorado
I think you mean salvaged some clients.
I visited him, and the owner told stait up, that the LO had their special appraiser, but after awhile they had to many review issues. He did not want to go into it to in-depth, but told me that my appraisals are well received and are well recieved.
 

kerrylanger

Member
Joined
Sep 6, 2005
Professional Status
Certified Residential Appraiser
State
Wisconsin
Let's look hard and long at the affiliations of those in charge of the appraisal departments, in the AMCs, running some of the skippy shops. I sure do hope they clean up their own houses while they are pointing at others.


I think the same goes for the appraisal boards. I good hard look here is necessary as well.
 

Rrebera

Junior Member
Joined
Jan 21, 2002
Professional Status
Certified Residential Appraiser
State
Ohio
It should be nothing new to anyone in the business, but I have stated several times that I have done many investigations in Florida and Ohio and discovered that people on a fixed income-$1500.00 a month were signing leases in Fort Myers on 25 or more condos that were leased at $1800.00 per month. The federal government is their infinite wisdom advised me at first that the contracts were legal, and there was no fraud. They later recanted, but after all the dust settled, over 200 people lost their condo's and these were people that invested in these properties and had the means to absorb some loss, but not all.

This practice well go on forever, because the people that control the money control the players and many legislators are in the hip pockets of the owners and share holders of these companies. We need to pursue these dirt bags and not only obtain heavy fines, but make them payoff the mortgages of the people they swindled. This would take a little bite out their a_ _.
 

Ross (CO)

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Any guesses,....when will the words "manipulated, altered and forged appraisals" appear in a headline story on the front page of the Wall Street Journal ?
 
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