Law firms begin addressing AMC fraud

[Mejappz]

Remember when appraisers used to think small time loan officers were corrupt? That was small time compared to AMCs and the GSEs.

Oh, absolutely Appraisers used to think loan officers were the shady ones, but now we’re all just watching the AMCs and GSEs run the real circus. It's like the loan officers were the opening act, and AMCs came in with the pyrotechnics and confetti cannons.

 

[George Hatch]

Remember, the "corruption" allegation was about appraisers being pressured to overvalue properties on the mass scale. (not about appraisers being underpaid for their work) Getting rid of a portion of the overvaluation corruption doesn't get rid of all of it, but it does get rid of that portion.

WRT cutting off the Mtg-Bkrs, less overvaluation activity > More overvaluation activity.

 

[shrubberyvaluation]

Remember, the "corruption" allegation was about appraisers being pressured to overvalue properties on the mass scale. (not about appraisers being underpaid for their work) Getting rid of a portion of the overvaluation corruption doesn't get rid of all of it, but it does get rid of that portion.

WRT cutting off the Mtg-Bkrs, less overvaluation activity > More overvaluation activity.

Pressured by even more now. Even Biden's administration got involved in pressuring appraisers blaming them for using comps within the same neighborhood and pushing against location as a factor in appraisals. With Trump in there will be less but the bias excuse will remain to pressure appraisers to hit value.

 

[Mejappz]

Pressured by even more now. Even Biden's administration got involved in pressuring appraisers blaming them for using comps within the same neighborhood and pushing against location as a factor in appraisals. With Trump in there will be less but the bias excuse will remain to pressure appraisers to hit value.

Take a look above meet the new boss same as the old boss.

 

[shrubberyvaluation]

Take a look above meet the new boss same as the old boss.

I wouldn't say the same, I can't imagine Trump's administration will continue PAVE and the DOJ probably won't lean in hard on phony appraisal bias cases in court.

 

[George Hatch]

Pressured by even more now. Even Biden's administration got involved in pressuring appraisers blaming them for using comps within the same neighborhood and pushing against location as a factor in appraisals. With Trump in there will be less but the bias excuse will remain to pressure appraisers to hit value.

So there you go. But one difference here is that when the user is doing the pressuring they can't turn around, feign ignorance and then blame it on the outside loan originator. One more layer of plausible deniabilty was taken from them.

"I am shocked and dismayed. I'm the victim here. Fly-By-Night Mortgage LIED to me. I would never have made that deal if I had known they were lying about the income or the employment or the value in the appraisal". (which itself was usually a lie on their part)​

That paper trail Mejappz just posted doesn't guarantee enforcement, but it does guarantee that if/when the govt does go to enforce they won't have any problem documenting the paper trail; right down to the individual who committed that misconduct. That's exactly how eAppraiseIT and WaMu got caught - the paper trail.

Accountable and can-readily-enforce-when-desired doesn't mean it actually will be enforced to specs, but by the same token it's effectively impossible to enforce without such access. Enforcement is a dial which - upon demand - can be turned to either less or more with a mere flick of the wrist.

 

[Surf Cat]

If public realization and awareness makes these users of appraisals straighten out their shady antics.... I'd consider that a win.

However, with lawyers involved.... deals are made and the original problem to be solved is twisted and regurgitated to a "compromise".

Appraisers don't have any representation and public trust isn't really worth that much. It's the ol' he who holds the gold makes the rules thing.

 

[Joe Flacco]

Morgan and Morgan? lol

 

[George Hatch]

Take a look above meet the new boss same as the old boss.

When I read through that exchange I didn't see a violation on the part of the AMC. Maybe I missed it but all I saw was the appraiser saying they were going to withdraw from the assignment because the value was coming in short. And the AMC trying to figure out how to remove that comment from their paper trail.

Perhaps you can point me in the right direction on where exactly is the indication of an AIR violation.

 

[Fernando]

Nothing really changed from past.
Appraiser gets this potential order with a sales price either from mortgage broker or AMC.
Appraiser does a Preresearch (forget that term) to see if he/she can "realistically" hit the number.
No one forcing appraiser to hit the number but if not, there will be "consequences" and pull back in future orders.