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FHA Fraud

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Alan Tipton

Thread Starter
Freshman Member
Joined
Nov 7, 2005
Professional Status
Licensed Appraiser
State
Ohio
I was recently sent an FHA appraisal request for a purchase. I inspected the property. The home was built in 1900. The exterior wood trim was peeling. I called the client as a courtesy and let them know that the paint was peeling and the trim would need to be scraped and painted to comply with FHA. He called and indicated that the Realtor was giving him problems about painting the trim. He later informed me that the deal was dead. Yeah. Right! I drove past the property today. Sale sign is gone, new curtains in the window and the trim has not been painted. So I looked up the mortgage. Property was transferred with an FHA loan, same lender, and the same FHA Case # which was originally assigned to my request. Obviously they found someone to overlook the peeling paint. Any suggestions of who I can report this to. This type of behaviour is eating into my business and it is getting old.
 

Tom Woolford

Elite Member
Gold Supporting Member
Joined
Nov 20, 2005
Professional Status
Certified Residential Appraiser
State
Florida
Its my understanding that once the Case# is assigned, the Appraiser can not be changed (probably to prevent just what you describe). You might want to make sure your name and Cert# was not "borrowed". One way or the other, turn this one in to FHA and the State.
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
Search the FHA archives for "courtesty calls" and you will begin to have your answer. On the other hand, I'm sure your HOC might be willing to hear from you.
 

Ken B

Elite Member
Joined
Feb 18, 2004
Professional Status
Certified General Appraiser
State
Florida
Hope you have better luck with that than I did with a similar VA appraisal. Serious POS WAYYYYY out in the country. All kinds of repair requirements and none of them "nit-picky." Some serious structural concerns. The lender first sent over an unsigned letter from a roofing company stating that the floor structure was sound and I should go reinspect for completion of other repairs. Repairs not done, letter from roofing company wasn't worth the paper it was printed on (no crawlspace access...just how did someone determine structure was sound?), failed repair inspection. Never heard anything back; figured deal was dead. Drove by it months later, noticed no sale sign, and decided to find out what happened with it. Sold with VA financing. So I call VA and ask what's up? Yep, it settled. Me: HOW? VA: Seems lender coded the loan as a no cash out refi, so no repair requirements necessary. Me: HOW? VA: Don't know. Me: What are you going to do about it? VA: Well, not much at this point.

Marvelous.
 

William K

Senior Member
Joined
Sep 21, 2007
Professional Status
Certified Residential Appraiser
State
Illinois
Contact your appropriate FHA Home ownership center, I am not sure who yours is ( for Illinois it is ATLANTA) but you should be able to find on HUD clips site. I would send it in Email form as well as trying to call and talk to someone. I am sure they would be interested. Did you complete the appraisal and send it to them?
 

William K

Senior Member
Joined
Sep 21, 2007
Professional Status
Certified Residential Appraiser
State
Illinois
THe FHA use to have a great way to take care of the possibilty of fraud like that in the past. What you had to do was send a copy of the appraisal to HUD directly, in addition to the one you sent to the lender. Their computer would be able to check if you had a bunch of orders from a lender but they weren't receiving the hard copies from you they would contact you directly for your copies. Maybe they might think of going back to that? Lenders I know didnt like it because then they were on the line if they had the appraisal assigned to one appraiser but when HUD contacted that appraiser and they never did the appraisal the lender hads lotsa explaining to do!
 

TC

Elite Member
Gold Supporting Member
Joined
Jan 31, 2002
Professional Status
Certified Residential Appraiser
State
Pennsylvania
I'm not real big on turning appraisers in for minor infractions, but I would definitely look into this one.

TC
 

The Matrix

Senior Member
Joined
Apr 28, 2003
Professional Status
Certified General Appraiser
State
Colorado
This is what happens when you put the fox in charge of the hen house. 80% of current mortgage fraud is directly related to the collusion "lender select" allows. My guess is that it will be difficult to find anyone that cares....however, because of the current climate... where billions of dollars have been lost in mortgage fraud..... officials may feign interest.
 
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CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
The appraiser can be changed. The DEU can waive conditions.
 

Workbox

Elite Member
Joined
Mar 2, 2005
Professional Status
Certified Residential Appraiser
State
Colorado
Document everything, create a file.
 
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