Rocket Mortgage Sued

[TerryRohrer]

As I suspected, nothing to do with discrimination. It was about fraudulent appraisals. Multiple people filling the forms probably part of the reason for the discrepency between reports, not discrimination.

But the takeaway will be the coming settlement with HUD to end the bleeding, which will require a guilty plea. It is not about getting to the truth, it is about advancing the narrative, facts be damned.

 

[CGinMN]

Ignorance is not a defense. There is a reason why it is very easy to get on AMC panels and very difficult to get on direct engagement panels. DE lenders generally vet their appraisers, interview them, understand their business models, their history and background in the field, how many employees, how many trainees, etc. The big AMCs don’t do any of this, which is why they are culpable here. Had they been providing the oversight function they are hired for, they would have never put this guy on in CO.

 

[shrubberyvaluation]

Ignorance is not a defense. There is a reason why it is very easy to get on AMC panels and very difficult to get on direct engagement panels. DE lenders generally vet their appraisers, interview them, understand their business models, their history and background in the field, how many employees, how many trainees, etc. The big AMCs don’t do any of this, which is why they are culpable here. Had they been providing the oversight function they are hired for, they would have never put this guy on in CO.

The incentive structure is different. As long as an AMC gets paid a lump sum and profits based on how little they can pay an appraiser they will go for the cheapest one they can get away with. Speed helps too, after they shop it for a week or two they need an appraiser who can turntime it 24 hours.

 

[Sadie]

I'm sure there were no warnings signs at all. I don't buy the ignorance defense. Could of been ignorant of forging signatures, but written by people out of the country, and this guy slammin em out for probably pennies, had to be sloppy reports. Using runners and written by people out the country, I doubt these were great USPAP compliant reports...

I am sure there were warning signs and either the AMC was too clueless to figure it out or they did the AMC two step and avoided responsibility. "Look our engagement letter says the appraiser must produce USPAP compliant reports. We didn't know."

 

[shrubberyvaluation]

I am sure there were warning signs and either the AMC was too clueless to figure it out or they did the AMC two step and avoided responsibility. "Look our engagement letter says the appraiser must produce USPAP compliant reports. We didn't know."

I'd go with didn't care cause they were making good money off of that guy. The incentive structure of AMCs to use these types of people is insane.

 

[alebrewer]

One more time and with a different link:

• When complete the participant is eligible for up to 100% of experience credit for Licensed and Certified Residential credentials.

PAREA

appraisalfoundation.org

It's a losing battle, bro...