Double Check Those Listing Prices!

[Dale Smalley]

We don't need the Govt when a simple review can catch this before funding. I did 5 reviews last month where the listing info was not included. Amazing as it may be but all were appraised over the MLS asking price. For a measly $250 I saved them 50k-200k on each. But I am still waiting for my congrats. HA HA HA.

 

[Mountain Man]

This is making for a most intersting week.

 

[Tim Hicks (Texas)]

Frank, posting a link to an article that implicates other real estate professionals is unacceptable. I demand you put on a cape and spandex, fly around Florida and round up the appraisers that are the real culprits. We all know that without appraisers, the "facilitators" of real estate fraud, none this would happen.

I do believe that getaway drivers and appraisers get their own trial for their own crimes. It does not make them "facilitators", but does not make them less guilty for their parts in the crimes.

A bank robber needs his getaway driver much like a loan officer needs their appraiser.

The difference is that a bank robber can still bob a bank and flee on foot, but a loan officer still needs their appraiser (or a phony one).

Analogies can be so self serving.

 

[Non Sequitur]

The difference is that a bank robber can still bob a bank and flee on foot, but a loan officer still needs their appraiser (or a phony one).

Again you state all mortgage fraud involves a falsified appraisal, whether produced by an appraiser or forged by some other person. Tim this is just plain false and doesn't help the profession. I've worked in loss mitigation even before earning certifiction and while skippy is a problem, he is one of many in the real estate industry.

 

[Francois K. Gregoire]

Home Sales Draw More Scrutiny

It's getting sticky for those involved

Home Sales Draw More Scrutiny

By SHANNON BEHNKEN The Tampa Tribune
Published: Oct 25, 2006

TAMPA - Two more state agencies launched investigations Tuesday into transactions involving inflated prices on dozens of homes, clustered mainly in St. Petersburg and Pinellas Park.

In addition, the owner of a Tampa mortgage company said she filed a formal complaint with the state Office of Financial Regulation.

http://www.tbo.com/news/money/MGB6HL80PTE.html

 

[Ms. Janet]

I don't know if they are the same 36 sales, but, I just looked at the public records of recorded documents for 36 sales in Pinellas County and it is unbelievable.

At least 19 of them are repeat buyers and its's not surprising that just about every one of them is 100% financed. Looks like quite a few lenders involved, not just the ones mentioned in the newpaper articles.

Not good.

 

[Mister Ed]

No longer have a dog in THIS hunt

Frank...I have no interest in going back and forth with you. My statement had nothing to do with any particular or specific appraiser at all.

I too am tired of people wanting to shift the blame from appraisers to others. That included appraisal boards that refuse to take the blame for years of inaction and failures. Fines, probation and other limp-wristed actions have failed to slow down the flow of appraisal fraud, incompetence and dishonesty.


I don't believe that you, Florida or the FREAB has anything to brag about or hold out as a positive example. Your way of doing things does not seem to be getting the job done. The ASC appears to agree.

http://www.ASC.gov/Content/category5/page3.aspx?id=74

Bob,

I am in the process of moving from Florida to Georgia. I may review what the field review records are for that state, but that is for another time. I read the recent field reviews for Florida and the summary of them seems to be: "Okay, we found some problems, but Florida is making great progress toward addressing and correcting the problems."

Is Florida anywhere near perfect? Not really, but no state is. Are there many problems in Florida with people really trying to cheat the system every way possible? Absolutely! But, if you look at the total record, the FREAB has made many forward strides in their efforts to clean up the mess in this state.

I never went to the FREAB meetings, but I did follow what was happening in the meetings and see that the needed effort to move forward is there.

I am frustrated with the process when I know that many so called appraisers are creating big problems throughout the country. Too many carry "rubber stamps" in their pockets with an attitude of telling the lender to give them a needed value to make the deal and they will make it work. Sooner or later, they will get caught.

I do agree with your tag line that it is all in the enforcement. The FREAB is doing what it can within the parameters of the rules and laws. I have to give credit where it is due.

 

[Tim Hicks (Texas)]

Again you state all mortgage fraud involves a falsified appraisal, whether produced by an appraiser or forged by some other person. Tim this is just plain false and doesn't help the profession. I've worked in loss mitigation even before earning certification and while skippy is a problem, he is one of many in the real estate industry.

Mr. Ledet,

I never said all mortgage fraud involves an appraiser. If you read my post it says "it does not make them facilitators..." which would seemingly imply that appraisers are not always involved unless they are driving the getaway car (bad appraisal). I also imply that an appraiser will be found not guilty if their appraisal is credible. However, in this case it appears the appraiser is involved and is equally as guilty. The appraisal is only part of the mortgage process so it is impossible for all mortgage fraud to be appraisal related. It would seem you are straying from the actual topic, which is mortgage fraud with the use of inflated values on the sales of homes. Any appraiser that uses due diligence should be able to notice and report a list price raised $40-100,000 and comment on it. It would appear that these are sales concessions of the highest order, since the seller did not get any more for their homes.

I will never downplay the role of the appraiser in the mortgage fraud industry. We should accept the blame for any fraud that is appraisal related. We have to be held accountable!

 

[Pittsburg_22_m]

Yowza! Insanity!

I noticed Realtors being a little sneaky around here. The market is a bit stagnant and rising prices are now getting flat. The Realtors are sending the appraiser (and apparently the lender) contracts that I believe to be deceptive.

For example,

123 USA Street listed for $50,000.

Contract states a sales price of $55,000 without any mention of any concessions of any sort.

However knowing that nothing ever sells for more than list around here, its pretty obvious.

I just call it what it is and thats it so it doesn't matter but I still find it to be B/S.

 

[Francois K. Gregoire]

More Follow Up

Underwriter Launches Inquiry Into Home Sales

By SHANNON BEHNKEN
The Tampa Tribune
Published: Oct 26, 2006
http://www.tbo.com/news/money/MGBGHK9GQTE.htmlhttp://www.tbo.com/news/money/MGBGHK9GQTE.html

TAMPA - The underwriter for a Tampa title company involved in inflated real estate transactions in Pinellas and Hillsborough counties says it is taking a closer look at those deals and the company that settled them.

-----------------------------------
You would not believe the number of calls coming in about this article and similar schemes in the Tampa Bay area. Talked with a friend at a title insurance company yesterday. She had 11 deals on her desk; all with the same buyer, or buyers connected with each other. All out of state, major cash back to buyers anticipated and all with loans approved for "owner occupants". She will be talking with the lead investigator for the Attorney General's Economic Crime Unit and Investigations Supervisor for the DBPR.