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Securities Exchange Investigates Rental Bonds

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Terrel L. Shields

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Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
So your hedge fund buys REOs for pennies on the dollar, then you get a BPO to show that they are "worth" three times as much, then borrow that amount from Fannie Mae...so when do you default? Next week, next year, or when?

http://www.housingwire.com/articles/40077-sec-investigates-single-family-rental-bonds

the agency has been looking at whether BPOs, broker price opinions, were wrongly inflated, potentially serving as a starting point for an industrywide probe.​
 
D

Deleted member 134708

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Lot of realtors gonna be calling up their E/O companies for some representation in the next few months. All for $25 BPO.

Suck realtors, E/O dry and musical chairs continues...
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
If an investor wants to rely upon a BPO, so be it. But when they ask a government owned entity to back their little arbitrage, I have a not so good feeling about it.
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
If the BPOs are questionable, it is on the buying entity to use due diligence and to to rely on such questionable representations. Tis is the same sort of stuff that got Fannie in trouble over AltA loans.
 

jay trotta

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Feb 8, 2004
Professional Status
Certified Residential Appraiser
State
Connecticut
Years ago, we peeked at a BPO set up for Agents, it was a comingling of an appraisal report for the Fast & the Furious, it looked like trouble back then and still does today. It would appear to be a monopoly (the game) driven plan. Somewhere along the line, I believe someone noted it was a $50 Billion industry...that's a lot of smoke and mirror activity.
 
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