Mortgage fraud investigation nets 700

[Vivian Bachner]

http://www.usdoj.gov/opa/pr/2008/June/08-odag-551.html

News Release from the Department of Justice :new_smile-l:

 

[Pa'akai]

Wonder how long it will take to prosecute. I posted a few years ago about the big Lehman fraud case that took place in Los Angeles between 2000-2003. Lehman sued the appraisers, mortgage brokers, and real estate agents in 2004, so the fraud had to have been known close to 2003.

I was called by the Asst. AG in California and other prosecutors in 2004. It appears that one of the appraisers forged my signature on 30 of the appraisals as his supervisor (hand forged, not electronically). At the time I wasn't even living in CA at the time and had let my license go there at the end of 2000. Most of the appraisals took place in 2001 and after. Shows how much quality control the lenders had.

Anyway, FBI contacts me a year ago or so because they are now involved. This is now six or seven years after what happened and 2-3 years after the Lehman suit.

I know some of principals in the case have pled guilty, but as far as I know it hasn't even gone to trial that I know of. It is now going on four years since the fraud was discovered and we are talking $50,000,000 or more in fraud.

I also remembering after talking to the assistant AG and all the other attorneys in 2004 the appraiser that forged my signature was still licensed in good standing in CA and was never sanctioned, not even for the forgeries. His license expired in Dec. 2004.

In all the indictments reported in the news I have never once seen mention that not only had he engaged in appraisal fraud but also forged signatures.

Story:

http://www.forbes.com/wallstreet/forbes/2008/0128/042.html

FBI Press Release:

http://losangeles.fbi.gov/dojpressrel/pressrel07/la080207usa.htm


Be interesting to see how long these will drag on. It will also be interesting to see what type of penalty this appraiser will get.

 

[Mark to market]

Until we can get a Grip that as many BAD Appraisals were used as there were BAD AVMs & other tool's used. Gotta get it thru your heads AVM's were built on Appraisal Data. & a AVM is NOT going to make a good mate for Bubba!!

2nd point Names & faces make the public feel much more warm & fcomforted.

3rd point ,look at where this group of indicments came from. & remember the USA is divided into sections you'll note most these came from 1 section there are more sections out there that haven't processed yet.

4th point&Those indited probablly haven't shut up yet.

5th point IF you think this is over think very hard about the fact of how hard it is to build a solid enough case for prosecution, & the fact that Grand Juries can be as long as 18 months & that is after many months of fact finding, NOT 18 minutes as seen on TV.

6th For those like myself this is going to be a very exciting year.


OH & yet again; I TOLD YOU SO!!

But remember most important thing I've been saying: Go to them before they come to you.

Karl

Don’t get so defensive. I think this is a good start and I applaud all of those who helped it to come about.

My suggestion, however, to look a little further up the food chain is not unreasonable as I feel confident that the losses caused by AVMs far outweigh the losses caused by those in the “sweep”. I am not the first person to suggest this, in fact bank risk managers, Pam and others have been trying for months to get a handle on the losses attributed to AVMs.

A couple small points of rebuttal; AVMs are primarily built on public data bases. There are names and faces behind the AVM curtain who can tighten or loosen the valuation parameters. You could have 20 sections and my guess is that it still would not equal the damage done by loans attributed to AVMs. I do not think it is over, which is why I am suggesting further inquires. I appreciate your May post, however as an FYI we in Albuquerque were told about this in April.

 

[peturner]

Oh and let us just watch this go up the ladder....there should be MANT folks who are VERY nervous about all of this.......hmmm????? There will be more than 3500 who are brought down by this.......hmmmm...who or what helped perpetrate this mortgage fraud across the country. Many of us who have paid attention and worked our A___es off for this are just BEGININNG to feel vindicated. There may be a justice system after all.

 

[Smokey Bear]

Just think of all those appraisal orders with "must have zzz value" on them, that the FBI is sorting through now after seizing all the files from the mortgage brokers. Betcha some appraisers are going to be sweating bullets soon.

 

[Karl]

"I appreciate your May post, however as an FYI we in Albuquerque were told about this in April."

My posting may have been a May post but this was going on long before you knowing about in April.

By the way please note that your & my areas are not in this list of indictments. & since you were told they were coming I'd say that is the best indicator that more are on the way.

Not trying nor do I feel as thou I'm defensive. BUT until we start realizing we were a part of the problem, We aren't going to become a part of fix. We have a chance at showing that we can be a major player in fixing some of the problem. But as long as we attack everything but our selves no one is going to take us seriously.

Lets see!! could bag a couple of AVM inputter or arrest 500 Appraisers which is going to make John Q public feel better?

 

[Workbox]

IF a super loaded H2 Hummer pulls up Decked to the hills with Chrome & every goodie imaginable, be very nervous that is the newest rig they got form a Mortgage Broker here in AZ.

Don't forget them REltor'ss Fleet of Hummers with their faces all over it.

 

[xm4yb7]

http://money.cnn.com/2008/06/19/real_estate/mortgage_fraud/index.htm?cnn=yes

Wow!!!!.......Wondering how many Skippies???

Of the 67 people charged in Illinois, it looks like only 2 were appraisers.

 

[Karl]

P.S. "The most common type of mortgage fraud was misstatement of income or assets, followed by forged documents, inflated appraisals and misrepresentation of a buyer's intent to occupy a property as a primary residence."

Nothing there about AVM's BUT!! I notice INFLATED APPRAISALS & misrepresentatation of buyer intent to occupy in Appraiser terms that would be Owner Occupied Box was checked HHHHHHHMmmmm 2 (TWO) faults to the Appraiser.

Now whom should be more nervous?? the AVM inputter or the Appraiser??

Might sound defensive BUT go to them before they come to you is still my best defensive advise. & now JUST MAYBE some of you might be thinking maybe he's NOT a B.S. Artist. For those of you that think I am, well GOOD LUCK in next few months.

 

[Mark to market]

Karl

I guess sometimes it is hard to see the forest.

The one item most responsible for the current crisis is corporate greed. This can be seen in subprime lending practices and exemplified with stated income loans and loaning on computer valuations. To paraphrase they are not really sure what the borrowers income is and they are not really sure what the home is worth but they will lend on it anyway because they can bundle it and sell it to someone else.

Some may wish to call these practices being remiss and not include them in mortgage fraud, others such as myself might call it criminal.