Hybrid

[Meandering]

You should probably start another thread about mortgage fraud because that's a completely different topic that has no bearing in a discussion about the use of hybrid appraisals in mortgage lending.

We disagree.

The opportunity for mortgage fraud with bi-f appraisals is wide open. it's only the signing appraiser that holds the liability. The signing appraiser can not verify the interior condition of the property the lending side is telling the appraiser.

And when the lending side gets caught they cry fraud, pay a fine, change the name and keep it moving.


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[Meandering]

Thanks...
Do you know what got them caught?

Nope, haven't been able to find it.
Maybe someone in Illinois knows.

 

[Carnivore]

You and others argue that hybird appraisals will lead to fraud, yet all of the cases you cite involved mortgages done when there was no such thing as a hybrid appraisal and involved appraisals with supposed full interior inspections or using a 2055 drive-by.

Timd354, Just a little Dark humor! The B-F Appraisal has been around a long time. The Site inspection was performed by unknown people's or marginally (blind Eye)..by appraisers, but hidden by the 1004 reporting format and signed.

Now those same appraisers(yes some are still around) behavior has been mitigated and legitimized. Those Clowns are celebrating over this, because Risk has been greatly diminished for them.

 

[timd354]

We disagree.

The opportunity for mortgage fraud with bi-f appraisals is wide open.

Yet, you keeping citing case after case of mortgage/appraisal fraud that occurred on loans that did not utilize bifurcated appraisals. In fact, a bifurcated appraisal process may actually make it more difficult in some ways to commit appraisal fraud because now you need to make sure that two people are in on the fraud (the property inspector and the appraiser) as opposed to just one person (the appraiser). Additionally, on refinances, a bifurcated appraisal removes the ability of the borrower to communicate the loan amount and/or need value to the appraiser.

The bulk of the major mortgage appraisal fraud schemes that caused the biggest losses involved high LTV loans with property flips (that were often sold to a straw purchaser) and it is very easy to mitigate that risk by simply not allowing bifurcated appraisals to be done on flip transactions or on transactions with >80% LTV.

By the way, neither GSE has rolled out bifurcated appraisals on a broad basis...one of the GSE's is doing several pilots using bifurcated appraisals in order to test and see how they perform before they make it a broad based offering (if it is ever made into a broad based offering)...testing a new product to see how it works before adopting that product is not an unreasonable thing to do.

 

[Meandering]

Timd354, Just a little Dark humor! The B-F Appraisal has been around a long time. The Site inspection was performed by unknown people's or marginally (blind Eye)..by appraisers, but hidden by the 1004 reporting format and signed.

Now those same appraisers(yes some are still around) behavior has been mitigated and legitimized. Those Clowns are celebrating over this, because Risk has been greatly diminished for them.

Consider Wells, Countrywide, Eparaise it, LPS Robo signing, and all the other garbage that went on 2002-2008

Almost makes you wonder how many bi-f appraisals will have the same interior photos of a builders model someplace.



'Cause everyone in the process is honest and knows appraisers trust them to do the right thing.

 

[Meandering]

Future Headlines

Corelogic reports that 90% of residential homes have granite countertops and marble flooring.



Stock in granite and marble processing companies jump as homeowners rush to get in on the trend.



Fannie and Freddie report that 100% of appraisals come in at sale prices. FINALLY!




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[timd354]

Consider Wells, Countrywide, Eparaise it, LPS Robo signing, and all the other garbage that went on 2002-2008

and none of those things had anything to do with bifurcated appraisals

 

[timd354]

Almost makes you wonder how many bi-f appraisals will have the same interior photos of a builders model someplace.


'Cause everyone in the process is honest and knows appraisers trust them to do the right thing.

The bifurcated appraisal interior inspection (including the photos) are not provided by the lender, but by third party inspectors. Could some crooked lenders try to use crooked 3rd party inspectors along with making sure that the appraiser who is doing the birfucated appraisal is also crooked....sure that could happen, but it just as easy, if not easier to just hire a crooked appraiser, which is exactly what happened in all of the examples of appraisal fraud that you have provided in this thread. It is possible that there is an intelligent and logical argument that bifurcated appraisals present a greater opportunity for appraisal fraud, but you certainly have not succeed in making such an argument in this thread.

By the way, when I worked at Freddie I saw many appraisals uncovered by the fraud investigative unit during their investigations of fraud rings in which the appraiser provided interior photos that were not from the subject property and I still see appraisals on a regular basis in which the appraiser does not disclose negative attributes about the subject property, so I simply do not accept the implication of your argument that only appraisers can and will provide an honest property inspection and provide a true and honest description of the subject property (including providing the photos)...given the history of appraisers being involved with mortgage fraud schemes (and you provided numerous examples of that in this thread), your argument that no one else can be trusted to be as honest as appraisers simply does not hold water

 

[Meandering]

Alll the same honest people just working at "different" companies now.

 

[Meandering]

Drive By Appraisals are Dead! Good Riddance!

By Jim Crawford
March 03, 2008 07:04 AM

This afternoons breaking new story is an Agreement with the State of New York and Fannie Mae and Freddie Mac to make major changes to the way they do appraisals! The action was sought from New York Prosecutor Andrew Cuomo who has been investigating mortgage fraud for over appraised home values. The investigation has been ongoing for over the a year. The prosecution was an his attempt to stop massive appraisal fraud! The new changes are adopted immediately. Fannie Mae and Freddie Mac will now only purchase loans that adhere to their strict appraisal guidelines. They will also create the "New Home Valuation Protection Code" which is a Fannie Mae and Freddie Mac $24 million dollar institute to insure compliance and monitor the Code." The new standards are intended reliable appraisals.

• Mortgage brokers are now prohibited from selecting appraisers.
• Cannot use in house appraisers.
• Cannot use appraisal companies they own.

The Grimm Brothers and Walt Disney made fortunes telling the fairy tales of the common man.

Appraisers,
not so much.

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