Hybrid

[George Hatch]

I will also point out that LOTS of appraisal reviews get performed by reviewers who are out of state and who never physically inspect. Inclusive of their own opinions of value. They are reviewing appraisal reports "provided" to them by the lender they're doing the review for. In the development of their own value conclusions they are adopting those portions of the report that they consider are reasonable, and most of them are not "verifying" that the appraiser whose name is on the report is actually the one who developed the appraisal or wrote the report. According to you and using the rationale you're attempting to fly here , none of this is allowable under the IAEG. Right?

i think you're way out in the weeds on this.

 

[Carnivore]

No it is not.

If it were just a desktop appraisal, only the appraiser would be involved.

the bi-f appraisal is a direct bias of the appraiser to rely on information provided by an interested party, while excluding the appraiser from performing the inspection themselves to gather their own data for analysis.

.

Thanks I did not have a full understanding of the difference. I have been using Desktop as a generic term or should i say all-encompassing

 

[Meandering]

You said the inspections are being provided by "interested parties" which as that term is being used in the discussion is patently untrue. You seem to think the inspectors need to be licensed, but have no reference for that. You think appraisers have to "verify" subject conditions until I pointed that out to be an error in fact. You think inspectors are appraising, which is also an error in fact. And you're saying the lenders are doing things with these valuations that aren't allowed under the regulations, even though Congress and the regulators are obviously all fully aware of it.

These lenders aren't operating in secret.

Nothing you're alleging is panning out. Nor will it ever. I'm opposed to lenders using hybrids for any decisions of consequence but if they aren't going to order a 1004 or a 2055 I'd rather see them use a hybrid prepared by an appraiser who knows how to do a 1004 and a 2055 than see them use an AVM or a BPO prepared by non-appraisers. But that's just me, because in the end nothing appraisers say is going to alter the permissiblity of performing a desktop appraisal whether with or without a 3rd party inspection report.

Stop putting words in my mouth.

I said the data was being provided to the appraiser by interested parties.

now do you want to dispute the AMC's interest as the agent of the lender?

I've alleged nothing,

Simply provided the regulations which you firstly claimed did not exist and then claimed, so what no lender ever sued any appraiser, even though lenders don't sue appraisers, the FBI and the FDIC arrest them - because mortgage fraud is criminal, not civil.

And now you want to claim nobody will ever enforce those regulations.

Yup, into it all goes south again and sure enough, those regulations will be enforced.

FBI Reports

Mortgage Fraud Report 2006

May 2007

This house was used in a Mortgage Fraud Scheme




Mortgage Fraud Report 2007

April 2008

The above photos are from condos that were involved in a mortgage fraud. The appraisal described
“recently renovated condominiums” to include Brazilian hardwood,
granite countertops, and a value of $275,000.

Mortgage Fraud Report 2008

2008 Mortgage Fraud Report

The author(s) shown below used Federal funds provided by the U.S.Department of Justice and prepared the following final report:
Document Title:

Working Paper: Burning Down the House: Mortgage Fraud and the Destruction of Residential Neighborhoods


Yeah George,

Nobody will ever have any reason to give an appraiser one set of photos that, oh my, might be of the wrong property.

Never will happen, never has happened, and nobody is in the mortgaging game to make any money. Everyone just works in the financial and real estate fields because they want to help other people.

.

 

[George Hatch]

If a lender (or the inspector they engage) commits fraud then that isn't the appraiser's problem. An appraiser who is amenable to committing fraud doesn't need the mechanism of the hybrid to do that.

Everyone understands this. Well, you don't seem to want to understand this but everyone else does.

Now if an appraiser has reason to suspect the accuracy of the info they're being given then of course most appraisers aren't going to just blindly proceed. Sure there are some donkeys who will go ahead anyway but even they will have some plausible deniability unless the subject shows up as a burnt hulk in the MLS listings (and hence reportable as part of the sales history).

 

[George Hatch]

Stop putting words in my mouth.

I said the data was being provided to the appraiser by interested parties.

now do you want to dispute the AMC's interest as the agent of the lender?

I've alleged nothing

We've been through this - the manner in which you're using "provided" is exactly the same as if they forwarded a title report, and yes if an appraiser is worried about the source of the inspection report then that can be just as easily verified as any letter from the city or any title report or any Phase I or whatever. There's nothing sinister about an inspection report that makes it different from any other info an appraiser might be given.

Go back to my example about the appraisal review. It's someone else's report that the lender "provided" to the reviewer to use in their review assignment. Does the lender's act of "providing" that report lead anyone to assume the report has been dorked or is otherwise contaminated or biased? Of course not.

 

[Meandering]

IN THE UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRICT OF PENNSYLVANIA
UNITED STATES OF AMERICA
(Criminal No. 10-144-02)(Civil No. 15-1168)
LEWIS WHOOLERY
https://www.gpo.gov/fdsys/pkg/USCOURTS-pawd-2_10-cr-00144/pdf/USCOURTS-pawd-2_10-cr-00144-3.pdf

 

[George Hatch]

C'mon now, I don't think you're even trying.

The case above is obviously a case of blatant fraud, wherein the appraisers falsely certified personal inspection on GSE report forms even though they didn't do it. There is zero overlap between that act of dishonesty and what's going on with these appraisals wherein the appraiser is *honestly* disclosing what they personally did and didn't do, and where they got the inspection info from.

Dishonest /= Honest

 

[timd354]

A Beachwood man has been accused of orchestrating what officials say is the largest mortgage fraud scheme in the history of Ohio and possibly the entire country.

Uri Gofman, 36, was indicted by a Cuyahoga County grand jury along with 40 people and four companies in a conspiracy prosecutors say involved 453 homes in Cuyahoga County and $44 million in fraudulent loans.

http://blog.cleveland.com/metro/2009/08/41_people_indicted_in_44_milli.html

Uri Gofman would love hybrids. Where were the regulators then. But now they know better. sure

Hybrid appraisals would have made no difference...this entire fraud scheme took place at a time when all of the appraisals were done either with full interior inspections or with exterior-only 2055's, yet, somehow the fraud scheme went undetected for years and not until at leadt 453 transactions occurred, so it is not like a so-called full appraisal stop any othe fraud.

 

[Meandering]

U.S. Department of Justice
Federal Bureau of Investigation

FY 2018 Authorization and Budget Request to Congress

financial institution fraud, continues to absorb considerable FBI resources. As long as houses are bought and sold and banks lend to consumers, mortgage fraud will continue. The majority of FBI Mortgage Fraud cases are broken into three types of schemes:
o Loan Origination Schemes. Borrowers and real estate insiders provide false financial information and documentation as part of the loan application package and false appraisals.
o Illegal property-flipping occurs when a property is resold for a profit at an artificially inflated price shortly after being acquired by the seller. The key to this scheme is the fraudulent appraisal.
o Builders employ bailout schemes to offset losses and circumvent excessive debt and potential bankruptcy as home sales suffer from escalating foreclosures, rising inventory, and declining demand.

Ghee, I wonder who orders those appraisals???

.

 

[George Hatch]

Fraud is a crime.
Identity theft is a crime.
Conspiracy is a crime
-----------
Appraising is not a crime.
Certifying "did not personally inspect" is also not a crime.