Should I report an obvious fraud?

[Reelestate]

I did a review appraisal 10/2007 on a condo appraisal dated 07/2007.

1: Original appraisal used comps from summer 2006 with a value of $2.45M
2: My review with sales within 6 months indicated a value of $1.6M
3: I reported that the original appraisal was full of errors.
4: I believed that I shot it down, but it sold in November for $2.45M
5: Records show that a mortgage for $1.6M was issued at closing.
6: A Lis Pendens was just filed.
7: The lender was not my client.


My question is:

Should I inform this defrauded lender of the contents of my report done for a different client?

 

[Darrel Clark]

Wouldn't you then be in violation of the confidentiality section of USPAP?

 

[Reelestate]

That's the problem. I'm sure I could report it to the Florida Appraisal authorities without violating USPAP.

But this is what sucks about this situation.

1: Ethically, I should report it
2: Business wise, I should not get involved
3: How many unpaid hours of involvement will it cost me to do what's right?

 

[Restrain]

Couple of things. First, be sure to file with state board. Second, a letter to the lender filing suit might be appropriate, but do not disclose the contents of the review other than that you did a review of the file. If they want to proceed, they can order a new review from you.

 

[Kevin Mc]

Couple of things. First, be sure to file with state board. Second, a letter to the lender filing suit might be appropriate, but do not disclose the contents of the review other than that you did a review of the file. If they want to proceed, they can order a new review from you.

Perfect...

 

[sammiboii]

If you can actually figure out how to report fraudulent appraisers in the State Of Florida, I wish you very good luck. I was on the phone for an hour and 45 minutes trying to get information on how to do just that. It seems to me that in FL they want fraudulent appraisers to continue, business as usual. I have heard the same thing from other appraisers. And by the way, here is something else that I have heard. The old company I used to work for in Fort Myers does a lot of reviews. They did a review appraisal on blatant lies. The subject was on a no access, freshwater canal and they used all direct access canals to get value. When he called the state and finally got someone, they told him that he could not turn in that appraisal based on shoddy comps because its "An opinion of market value, which could differ from one appraiser to another". The only way he could turn it in is if there was something else that was a blatant violation. Lucky for my ex-supervisor (who is a very good appraiser) he had already noticed this appraisal was done by a trainee whose supervisor held a license in Tampa and couldn't appraise that far south. But that was the only reason he was able to turn it in.

I definitely wish you good luck and hope you can report it. I wish all the idiots would get out of our business and start flipping burgers or selling used cars.

Sam

 

[c w d]

Does confidentiality agreements protect criminal activity?

 

[Michael Tipton]

I'd post the address on the Mortgage Fraud web site, file a complaint with FREAB and consider contacting the local State Attorney's office. Florida has a Mortgage Fraud Statute (visit the attached link).

http://www.mortgagefraudwatchlist.org/

http://www.leg.state.fl.us/statutes.../SEC545.HTM&Title=->2007->Ch0817->Section+545

 

[Dale Smalley]

Go back to your client and show them the value of a good review. I bet at the time they were ****ed you killed the deal. That is how it is supposed to work. Good job.

 

[Lee Lansford]

I did a review appraisal 10/2007 on a condo appraisal dated 07/2007.
1: Original appraisal used comps from summer 2006 with a value of $2.45M
2: My review with sales within 6 months indicated a value of $1.6M
3: I reported that the original appraisal was full of errors.
4: I believed that I shot it down, but it sold in November for $2.45M
5: Records show that a mortgage for $1.6M was issued at closing.
6: A Lis Pendens was just filed.
7: The lender was not my client.

My question is:

Should I inform this defrauded lender of the contents of my report done for a different client?

Two suggestions:

#1...Forward what you are aware of to your state's appraiser regulatory agency.

#2...You need not concern yourself with the lender who filed the Lis Pendens.
Before it is all said and done, that lender will become aware of the events that led to the making of the loan.