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Latest Requests to Commit Fraud

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timd354

Thread Starter
Elite Member
Joined
Jan 11, 2008
Professional Status
Certified Residential Appraiser
State
Maryland
As the market has gotten worse and worse, the more desperate mortgage lenders/loan brokers are becoming. I have several requests lately from loan officers, who, until recently, were always honest and ethical in their dealings with me. It is really sad and disappointing to me...the requests made to me were as follows: 1). I appraised a property for an FHA refinance transaction and at the time of the inspection the owners were in the process of constructing a small addition oin the rear of the house and had just gutted the kitchen in order to completely renovate the kitchen. Of course the homeowner failed to tell me or the loan officer this prior to the inspection. I informed the loan officer that I would have to make the appraisal subject to completion of the rear addition and kitchen. The loan officer asked me to ignore these items and make the appraisal report "as is". I told him that I would not do this and even if I wanted to do this, it would never get past underwriting due to the rear picture of the house, which showed an uncompleted addition. The loan officer told that alll I had to do was take a picture of the rear of a neighboring house and use this. Naturally, I told him to go pound sand and I had a sit down with him to tell him that him that what he was trying to do was just not worth the risk. I don't think that he is bad guy and I may have even gotten through to him, since although he was ****ed at me, I still seem to be getting the bulk of his appraisal work (he works for a bank that has a panel of aproved appraisers which is not a huge panel, but there 3-4 other guys he is authorized to use in my area).
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
You're screwed. When a lender does not understand the most fundemental of your ethical requirements...simply stating what is there is there, then you aren't working for an honest lender. He is trying to be expedient, the customer is likely a good one, but he knows your caveats will 'kill' the deal and wants to avoid that. But he also must appreciate the fact that a lie is a lie and an appraiser must state facts as such even if he "spins" the opinion portion of it.
 

Elliott

Elite Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Oregon
tim said, I informed the loan officer that I would have to make the appraisal subject to completion of the rear addition and kitchen. The loan officer asked me to ignore these items and make the appraisal report "as is".

What I do in these situations is say, gee that would be easy, but her's
the problem, FHA (insert Fannie, UW, whoever) does reviews, and if
that review appraiser checks, wow, he'll nail me, and we'll both get
in a lot of trouble. 'You don't want that do you?' I've never had a
decent come back from a MB.
 

hastalavista

Elite Member
Joined
May 16, 2005
Professional Status
Certified General Appraiser
State
California
I don't think that he is bad guy and I may have even gotten through to him, since although he was ****ed at me, I still seem to be getting the bulk of his appraisal work (he works for a bank that has a panel of aproved appraisers which is not a huge panel, but there 3-4 other guys he is authorized to use in my area).
(my bold)

timd354-

Trying to coerce an appraiser to falsify a report is bad no matter who does it. That your contact (who is not your client- your client is the bank) works for a bank makes this situation even more significant.
Given what you say in your post that up to now this person has always acted ethically, I think your action was appropriate (explaining why you couldn't comply with his request and effectively informing him not to ask for or expect such compliance in the future). I think I would chalk this up to a temporary loss of good judgment on my contact's part (per your post, his ethics were in place prior to this). However, if it happened again, I'd be forced to consider going to his supervisor and alerting him or her of the situation.
I hope your conversation with this person put him back onto the ethical path!

Good luck!
 

frozone

Sophomore Member
Joined
Jul 20, 2006
Professional Status
Certified Residential Appraiser
State
New York
I had posted about a similar issue with an FHA job recently. Its sad...these LO's always think that the Appraiser just doesnt want to play ball and is being stubborn. They dont seem get it. Procedure is procedure and thats thats. Do it once...do it right...and sleep well an night. I wouldnt risk my license/career over something that stupid. Stick to your guns tim.:new_2gunsfiring_v1:
 

Tudor

Member
Joined
Aug 15, 2006
Professional Status
Certified Residential Appraiser
State
Arizona
As the market has gotten worse and worse, the more desperate mortgage lenders/loan brokers are becoming. I have several requests lately from loan officers, who, until recently, were always honest and ethical in their dealings with me. It is really sad and disappointing to me...the requests made to me were as follows: 1). I appraised a property for an FHA refinance transaction and at the time of the inspection the owners were in the process of constructing a small addition oin the rear of the house and had just gutted the kitchen in order to completely renovate the kitchen. Of course the homeowner failed to tell me or the loan officer this prior to the inspection. I informed the loan officer that I would have to make the appraisal subject to completion of the rear addition and kitchen. The loan officer asked me to ignore these items and make the appraisal report "as is". I told him that I would not do this and even if I wanted to do this, it would never get past underwriting due to the rear picture of the house, which showed an uncompleted addition. The loan officer told that alll I had to do was take a picture of the rear of a neighboring house and use this. Naturally, I told him to go pound sand and I had a sit down with him to tell him that him that what he was trying to do was just not worth the risk. I don't think that he is bad guy and I may have even gotten through to him, since although he was ****ed at me, I still seem to be getting the bulk of his appraisal work (he works for a bank that has a panel of aproved appraisers which is not a huge panel, but there 3-4 other guys he is authorized to use in my area).

my bold

With that comment, logic tells me this person is a lost cause and there is nothing I can do or say that will turn this person into a respectable client.
 

Karl

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Arizona
The saddest part is they WILL find someone that will do as they want. & not MANY will want to do anything about it except B!+c# on this Forum. & critize those that are fighting this kind of behavior.


No one has destroyed the Appraisal Profession more than Appraisers themselves.
 

Charles Decker

Sophomore Member
Joined
Nov 16, 2006
Professional Status
Certified Residential Appraiser
State
Arizona
Karl, how about turning the volume down on your post's.
While everyone admire's your maverick attitude (I think) to chase the slimeballs out of this profession, to insinuate that just because someone doesn't run to the media or turn into the town cryer everytime something questionable occurs because we don't care is rediculous.
I do not criticize you for trying to improve this profession however I am fairly new to this (under 5 years) and just started my own business one week ago today. With yourself being retirement age and me being in my mid 40's you are in a MUCH different position to address these types of issues than most here.

You have contributed nothing to this thread with your post and I apologize to timd354 for hijacking your thread to address this.
 

Karl

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Arizona
Karl, how about turning the volume down on your post's.
While everyone admire's your maverick attitude (I think) to chase the slimeballs out of this profession, to insinuate that just because someone doesn't run to the media or turn into the town cryer everytime something questionable occurs because we don't care is rediculous.
I do not criticize you for trying to improve this profession however I am fairly new to this (under 5 years) and just started my own business one week ago today. With yourself being retirement age and me being in my mid 40's you are in a MUCH different position to address these types of issues than most here.



You have contributed nothing to this thread with your post and I apologize to timd354 for hijacking your thread to address this.
Oh that hurts!!!

So now that your on your own I'd ASSUME that you'll be at the Board meeting on the 21st to see what you are up against.

And because I am "SUPPOSEDLY" in a better position than you are (your words not mine) . I'd expect you'd want to fill my shoes & fight to restore this to a Profession, so you to could make some money & someday retire.

No one has done more to destroy the Appraisal Profession, Than Appraisers.
 
Last edited:

Mike Kennedy

Elite Member
Joined
Sep 28, 2003
Professional Status
Certified Residential Appraiser
State
New York
As the market has gotten worse and worse, the more desperate mortgage lenders/loan brokers are becoming. I have several requests lately from loan officers, who, until recently, were always honest and ethical in their dealings with me. It is really sad and disappointing to me...the requests made to me were as follows: 1). I appraised a property for an FHA refinance transaction and at the time of the inspection the owners were in the process of constructing a small addition oin the rear of the house and had just gutted the kitchen in order to completely renovate the kitchen. Of course the homeowner failed to tell me or the loan officer this prior to the inspection. I informed the loan officer that I would have to make the appraisal subject to completion of the rear addition and kitchen. The loan officer asked me to ignore these items and make the appraisal report "as is". I told him that I would not do this and even if I wanted to do this, it would never get past underwriting due to the rear picture of the house, which showed an uncompleted addition. The loan officer told that alll I had to do was take a picture of the rear of a neighboring house and use this. Naturally, I told him to go pound sand and I had a sit down with him to tell him that him that what he was trying to do was just not worth the risk. I don't think that he is bad guy and I may have even gotten through to him, since although he was ****ed at me, I still seem to be getting the bulk of his appraisal work (he works for a bank that has a panel of aproved appraisers which is not a huge panel, but there 3-4 other guys he is authorized to use in my area).

"he works for a bank":Eyecrazy: The heart to heart, IN WRITING, should have been with his Superior and/or the Chief Compliance and Chief Appraiser.
 
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