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Manufactured Home Fraud Just Will Not Die

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Tim Hicks (Texas)

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
The TALCB finally got around to looking at some of the manufactured home appraisals and reviews I have sent them. It is quite disheartening to see the a two page list of violations and see a board ordered penalty of a $1,500 administrative fee and a required USPAP class. It seems the penalty makes the crime very much worth the risk. Some of these guys made $30,000+ a year just on fraudulent manufactured home appraisals for at least two years before getting slapped on the wrist. The kicker for me was the field review I did last month on a manufactured home that was going through its second foreclosure. I did the review on the first sale ($120,000) that $40,000 high and the second sale was on the foreclosure market at $50,000 with a $115,000 appraisal. This last appraisal somehow failed to mention the foreclosure listing, the previous sale, the pending contract or any the 20+ foreclosure sales in the neighborhood.

Our lending system is set to implode!
 

Tim The Enchanter

Elite Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
This last appraisal somehow failed to mention the foreclosure listing, the previous sale, the pending contract or any the 20+ foreclosure sales in the neighborhood.

Our lending system is set to implode!

If loans are made on such piece of junk appraisals, the lender gets what they deserve cuz they did not review or do due diligence right. :twisted:

Course if I as a tax gougee, uh payer, get stuck with the bill,
That's NG! No Good! :eek:
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
Tim: Are these in the Parker County area by chance? I've been doing a bunch in the area for Freddie Mac and they're all garbage. CMAs show mfg homes selling on 1 acre sites for $20K-$65K, appraised at $105K-$120K, no analyisis of foreclosures and foreclosure rates, functional obsolescence vs. typical stick built homes, etc, unsupportable adjustments.

Roger
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
Tim:

BTW, the TALCB is under probation by the ASB for a lack of funding. They suggested at the NAIFA meeting that we take up a collection but it was considered not a good idea at this time. However, we may bring copy paper for them next month. Yes, it's getting that bad.

Roger
 

Tim Hicks (Texas)

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
Roger, both Parker and Johnson counties. Don't you think that if they increased the fines it might help their funding problems. I actually offered to perform some field reviews for the TALCB for free and they said no thanks.
 

Joe Sloan

Sophomore Member
Joined
Feb 17, 2002
Professional Status
Certified Residential Appraiser
State
Texas
Tim-

February 14, 2003 was when the TALCB finally pulled the license of the guy, I have ranted about for the last 2 years. He had 3 trainees, and 4 non-licensed, and was pulling down about $700,000 a year in appraisal fees in the Houston market. TALCB, FHA, and the FBI were all aware of him, and it took years to bring him down. Most of his business was FHA Manufactured, with some conventional. He made few if any site inspections and the comps, addresses, sale dates and selling prices were mostly fabricated. He is in his mid 70's and likely will not do jail time.

Tough to keep a straight face in the USPAP classes when they tell you you had better make sure and spell check twice or they will get your license in a week.

Joe
 

Bob Burnitt

Freshman Member
Joined
Jan 15, 2002
I too have offered to do some free work for the TALCB with no takers.

When my state representative told me that the TALCB simply didn't have the money to enforce the law, I volunteered to work a few hours per week to help clean up this mess............. no takers.

Been saying it over and over, we have a tremendous amount of crooked competitors around these parts (Johnson, Parker, Ellis, Tarrant, Dallas, Hill Counties.) I see it and hear it everyday.

The TALCB has two investigators for the entire state of Texas. And, get this, both of these "investigators" are PART TIME, ain't that a knee slapper!!!

Folks, nobody is enforcing the law around here. That is the reason if you follow the rules, the "competition" creams you. All I ever hear is "The other appraisers do it, what's the matter with you?"

BB in Ellis County Texas
 
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