Mortgage Fraud Watch List.

[Kevin Mc]

I have been fairly diligent about posting what I suspect are potential problem "deals" on the list. I appraised a unit in a HOA several months back. Order came in including a 6% seller's concession. I appraised the unit for market value($15K shy of what was on the contract w/ the concession). Everyone involved was furious. I informed them all that there existed 5 sales in the complex that were within pennies of my value. There were NO sales in the subject complex or surrounding complexes that supported the contract price. I was informed by the MB he would not pay me for the appraisal (he did after I threatened him) and he was ordering another from a "better" appraiser who would find an extra $15K. The sale just posted to public records, he did find a "better" appraiser. I posted this address immediately to the MFWL so the lender involved(I believe it went to Option One) would know what was up. They either ignored it or just did the deal anyway. This business can be a disgrace at times.

 

[Joyce Potts]

It's never going to change, IMO. Too many billions in profits vs. current foreclosure losses that are minuscule by comparison.

Do the math. The lending industry will continue to exploit and utilize the 'liberal' minded appraiser. The current state of the market is a but a mere bump in the road.

 

[Roscoeman]

Kevin,

Had one just like it about 9 months ago. Alot of sales concessions and the lender was furious when I appraised it! Did not make value.

Kept a watch on it and they got another appraiser to appraise it for what they needed. Watched MLS and county records and sure enough it closed.

The subject was located near by and I walk that neighborhood all the time. Sure enough just about 6 months later, the buyers walked and took all the new furniture that was included in the sale.

Makes me crazy!

 

[Beth Stevens]

I've been there, too! And still am! Maybe I'll start using my spare time to develop a new continuing education course. I'll call it, "Anger Management when ethics and integrity don't cut it!" Anyone wanna sign up?

 

[Caligirl]

I've been there, too! And still am! Maybe I'll start using my spare time to develop a new continuing education course. I'll call it, "Anger Management when ethics and integrity don't cut it!" Anyone wanna sign up?

I used to be a really nice person. Maybe I should take that class.

 

[Doug Trites]

Kevin,

Had one just like it about 9 months ago. Alot of sales concessions and the lender was furious when I appraised it! Did not make value.

Kept a watch on it and they got another appraiser to appraise it for what they needed. Watched MLS and county records and sure enough it closed.

The subject was located near by and I walk that neighborhood all the time. Sure enough just about 6 months later, the buyers walked and took all the new furniture that was included in the sale.

Makes me crazy!

How about next time you go for the walk and see the new owners. Ask them if they were aware that two appraisals were done and only the high one that made the value was used. See if they knew and what they say?

 

[Pamela Crowley (Florida)]

Many of the funding lenders are not registered to get the reports. The GSEs and many others that purchase the loans ARE registered to get the report. So, Option One closed it, but who did they find to purchase that loan???

 

[Bearslide]

Many of the funding lenders are not registered to get the reports. The GSEs and many others that purchase the loans ARE registered to get the report. So, Option One closed it, but who did they find to purchase that loan???

Now the answer to THAT would be interesting. While many lenders continue to support inflated appraisals, I wonder if the ultimate investors are happy about losses. Wonder if that investor would be interested in knowing the facts - 2 appraisals ordered by a MB with Option One winking and nodding - if not directly, through their rep.

 

[Workbox]

Now the answer to THAT would be interesting. While many lenders continue to support inflated appraisals, I wonder if the ultimate investors are happy about losses. Wonder if that investor would be interested in knowing the facts - 2 appraisals ordered by a MB with Option One winking and nodding - if not directly, through their rep.

Yes, they are extremly PO'd, to bad the media just calls it a "Credit Crunch".

 

[Todd Ruhl]

We all need to share these stories with the local media. After all, mortgage fraud is THE "story du jour". I bet your local reporter would love some "insider" information.