• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

HUD is aware of fraud and okay with it

Status
Not open for further replies.

Timothy Fierek

Thread Starter
Sophomore Member
Joined
Apr 24, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
Just got off the phone with HUD fraud hotline. Found out that case numbers that were submitted to me by loan officers were actually obtained with different appraisers credentials.
After indicating that it seems like loan officers are shopping for value for FHA loans, I was told that is one of the issues that helped create the mortgage mess, but that higher ups in HUD are okay with the practice. I was told to send letters to my local congressman and senators to make them aware of the situation, as no one in HUD is willing to take it on or make any changes.
HUD is well aware that they are the new subprime, and are going to milk it for what it is worth.
 

Workbox

Elite Member
Joined
Mar 2, 2005
Professional Status
Certified Residential Appraiser
State
Colorado
Basicly, take all the gold before the ship sinks.
 

Randolph Kinney

Elite Member
Joined
Apr 7, 2005
Professional Status
Retired Appraiser
State
North Carolina
Maybe the government can issue appraiser licenses to those coming out of prison or make felony conviction a mandatory requirement to obtain the license? It should be part of the appraiser's training so that he has the predisposition to cooperate in committing fraud.
 

Karl

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Arizona
Just got off the phone with HUD fraud hotline. Found out that case numbers that were submitted to me by loan officers were actually obtained with different appraisers credentials.
After indicating that it seems like loan officers are shopping for value for FHA loans, I was told that is one of the issues that helped create the mortgage mess, but that higher ups in HUD are okay with the practice. I was told to send letters to my local congressman and senators to make them aware of the situation, as no one in HUD is willing to take it on or make any changes.
HUD is well aware that they are the new subprime, and are going to milk it for what it is worth.

I'll verify that the above is TRUE. I too have been told the same thing. Plus: Since an Appraiser is NOT a home inspector they shouldn't be so critical of deferred maintance.
 

Timothy Fierek

Thread Starter
Sophomore Member
Joined
Apr 24, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
I also used to do the AQA reviews for HUD. That ended abruptly after the contractor who was sending me the work began to request that I change items which were non compliant to compliant. I did file a complaint with HUD, spent several days on the phone, and in the end basically lost work and never performed another AQA review again.
How can HUD give out a loan, know that fraud was committed after they receive the AQA report, and not sanction the appraisers that are overlooking non compliant items property after property. Then to go and foreclose knowing that the original appraisal was flawed. Many of these appraisers are still on the roster, and many homeowners have lost their homes.
In another instance I filed a complaint as I was supplied with a previous appraisal along with an FHA order from a mortgage broker. The instructions on the order were to hit the same value as this appraisal, as it was already approved. I turned down the assignment. I filed a complaint with HUD after discovering numerous issues with the appraisal, including fictituous sales. I was told by HUD that the loan was already funded and there was nothing that they could do.
What can HUD do? Give out loans based on fraudulent appraisals performed by Skippies and then get bailed out by the taxpayers, which is all of us. This is a bunch of crap.
 

mopickled

Senior Member
Joined
Dec 6, 2007
Professional Status
Certified Residential Appraiser
State
North Carolina
Just makes you want to cry...........
Why does the VA still care?? They seem to be the only ones.
 

RitaB

Member
Joined
Aug 25, 2005
Professional Status
General Public
State
California
I can't speak for VA but the only way to have any kind of accountability in this process is to make an individual responsible if the loan goes belly up. Oh yeah, they've already got that. It's the appraisers with his nice $1 mil E & O policy.

No one cares, because it's not their money and no one holds them accountable. In fact, they may get a raise for "producing".

I'd be curious to know why VA still cares. Must be some good leadership there. Sure wish my supervisor was on THAT panel.
 

Wendy

Senior Member
Joined
Feb 23, 2004
Professional Status
Certified Residential Appraiser
State
Florida
Sigh.....and here I was having a decent day.
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks