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Mortgage Fraud Surging In Florida

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Francois K. Gregoire

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This is a column by Shannon Behnken from the Tampa Tribune. She, along with two other real estate reporters, attended the St. Petersburg, Florida Appraisal Fraud Conference.

http://www.tbo.com/news/money/MGBUTV1ILBF.html

Mortgage Fraud Surging In Florida

By SHANNON BEHNKEN The Tampa Tribune
Published: Jan 19, 2008

ST. PETERSBURG - More potential mortgage fraud cases were reported by lenders in Florida in 2007 than in the entire country the previous year, William Stern, a supervisory special agent with the FBI, said Friday.

....
Friday's conference was hosted by Cincinnati-based Allterra Group, an industry group that offers continuing education courses and publishes an appraisal newsletter. Appraisers said they continue to feel pressured by loan officers and real estate agents to value a property at or above the sales price.

Many of those appraisers, who usually earn a few hundred dollars for their work, said they see blatant mortgage fraud deals and they've reported them to investigating authorities, but their complaints have fallen on deaf ears.

"It's frustrating when you know something strange is going on, you try to tell people, and nothing happens," said Jacqueline Green, an appraiser with Green Appraisal Group Inc. in Orlando. ....

.....
Despite all the worries about fraud in Florida, Green, the appraiser, came away from Friday's conference feeling encouraged. She met other real estate professionals who want to fight mortgage fraud and made contacts with law enforcement agencies and lenders to report suspicious cases.

But the most encouraging: a phone call from a lender saying they would look into one of the suspicious deals she reported....

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Mike Kennedy

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Eighty percent of mortgage fraud cases are the for-profit type, Stern said, and those are the ones the FBI is going after.
"Robert Johnson, senior review appraiser for Morgan Stanley Valuations said he's combing through appraisals to check for accuracy and the company "isn't buying many loans right now."

"Most of you have no idea how many times your appraisal is looked at," he said. "I think we're all still shell shocked by what's happened in our industry."


It's about Time.
 

Carnivore

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Yes this is almost laughable!

"Robert Johnson, senior review appraiser for Morgan Stanley Valuations said he's combing through appraisals to check for accuracy and the company "isn't buying many loans right now."


Penny wise and pound foolish!! This is typical QLC.


"Most of you have no idea how many times your appraisal is looked at," he said. "I think we're all still shell shocked by what's happened in our industry."

The horse is already out of the barn!


I, like most of you, could have completed desktop reviews and put a stop to most of it. Then add in limited driveby reviews and bingo! Skippy, VIC and mortgage fraudsters would have been stopped dead in there tracks.
 
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Couch Potato

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Employment Security.

Yes this is almost laughable!

"Robert Johnson, senior review appraiser for Morgan Stanley Valuations said he's combing through appraisals to check for accuracy and the company "isn't buying many loans right now."


Penny wise and pound foolish!! This is typical QLC.


"Most of you have no idea how many times your appraisal is looked at," he said. "I think we're all still shell shocked by what's happened in our industry."

The horse is already out of the barn!
Keeping the barn door closed is easier, but a round-up creates more jobs. :new_smile-l:
 

USPAP Compliant

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Most of you have no idea how many times your appraisal is looked at," he said. "I think we're all still shell shocked by what's happened in our industry."

Yeah, the VALUE may get looked at numerous times.....and very little else.
 

Francois K. Gregoire

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Florida
Most of you have no idea how many times your appraisal is looked at," he said. "I think we're all still shell shocked by what's happened in our industry."

Yeah, the VALUE may get looked at numerous times.....and very little else.

Sorry, but that is not what Robert Johnson said. It may be true that the loan originators limit their examination of the appraisal to the value, but the lenders and investors (according to Mr. Johnson) are paying attention to all kinds of information in the appraisal report.

Other attendees of the conference may wish to elaborate.
 

Hal Mann

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Someone's Finally Paying Attention

Mortgage Fraud Surging In Florida
By SHANNON BEHNKEN The Tampa Tribune
Published: Jan 19, 2008

ST. PETERSBURG - She ... made contacts with law enforcement agencies and lenders to report suspicious cases.
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Seeing support from enforcement agencies and lenders will certainly help some who are feeling pressure to do the right thing.

We've seen this reporter quoted here before.
 

NC Appraising

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If your bored and in need of some entertainment, go over to Zillow, and go to discussions tab. Under the financing section, there are several appraisal threads currently running.

One is called "appraisal nightmare"

"I have been trying to refinance a second mortgage in NJ for a few weeks now with no luck becasue of the nasty APPRAISAL. It seems like a few months ago they were willing to appraise my house at 1/2 a million and now I can't even get 440,000. This and this fact only is preventing the banks from helping me refi my second and consolidate some debt. Our credit scores are great and our inome level is as well but the appraisal process is killing me. What can I do? "

This MB suggests this:

"Contact Suntrust Bank and find out if they lend in NJ. They do not require appraisals for their 2nd mortggaes. They will however do what they call an AVM, which is basically a computerized appraisal. It costs nothing so why not? "
 

Dale Smalley

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Florida
All I can show is that my review business has steadly decreased over the past 3 years. That run ended in the 1st quarter of 07 only 2 retrospectives in the summer and zero since them. So from my desk I see no reviews and read about more fraud. Hmmmmmmm....
 
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