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State, mortgage broker settle suit

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RSW

Elite Member
Joined
Feb 18, 2002
Professional Status
Certified Residential Appraiser
State
Tennessee
Well, it is about time! If we get states to inforce the laws already on the books and take care of the comp checkers, then we may have a chance. It's a good start.
 

xmmcsmielr

Junior Member
Joined
Feb 4, 2002
Just A Fine

Look. A $30,000 fine is nothing to sneeze at, but BIG DEAL!

This lender is still in business. So what if they're not putting target values on their apprisal orders?

And, the government gets the money, NOT the borrowers who bore the brunt of the predatory lending practices of this lender or the honest appraisers who were cut off from work.

An effective sanction would have been revocation of the lender's license and restitution for all financial damages that this lender caused to home owners, as well as appraisers who were cut off for doing honest work.

I suspect that $30,000 is a mere drop in the bucket, if this lender did any kind of volume. How much did this lender make in total fees from predatory loans? Just $30,000? Or was it considerably more? How many honest appraisers lost income due to this lender refusing to give more work to them? Were any homes foreclosed on due to the predatory lending practices? If so, what were those losses costs to individuals.

Way too often prosecutors agree to slap-on-the-wrist penalties that do not come close to detering predatory lending, particularly when the company is allowed to continue lending.
 

Michigan CG

Moderator
Staff member
Moderator
Joined
Nov 1, 2006
Professional Status
Certified General Appraiser
State
Michigan
Ohio is serious about their predatory lending law. Get your state to pass that law.
 

Mike Kennedy

Elite Member
Joined
Sep 28, 2003
Professional Status
Certified Residential Appraiser
State
New York
Ace Mortgage Funding committed unconscionable acts in violation of Ohio's predatory lending laws. The state alleged it improperly attempted to influence the outcome of the appraisals needed to finance mortgages for residential homes.


a. Unconscionable = $30000. in Ohio. { should have been 10x that PLUS revocation of business license }

b. Really Unconscionable = ???

c. It is a start..............

d. next is providing ANY advance Price estimate or CONTRACT PRICE to a supposedly "totally independent and objective" Appraiser.
 

Smokey Bear

Elite Member
Joined
Dec 8, 2004
Professional Status
Certified Residential Appraiser
State
California
BUT - it's a start. I agree, they should have had a bigger fine and been put out of business, but at least it's notice that you CAN be disciplined. I'll settle for anything at this point.
 

xmtpedprl

Senior Member
Joined
Dec 6, 2005
Professional Status
General Public
State
Florida
Ohio *is* serious. Others need to be just as, and then they *all* need to take it up a notch more.

Dave...
 

Lobo Fan

Elite Member
Joined
Nov 28, 2004
Professional Status
Certified Residential Appraiser
State
New Mexico
It is nice to see but the fine was pathetic. $25,000 is about 3 deals. The office manager probably spends more than that on greens fees. It should have been $100,000 and all business suspended for 6 months. That would get their attention. What about their lap puppy appraisers?
 

Michigan CG

Moderator
Staff member
Moderator
Joined
Nov 1, 2006
Professional Status
Certified General Appraiser
State
Michigan
.....What about their lap puppy appraisers?

In Ohio it is illegal to put an estimated value or a sale price on an order. They are enforcing it as can be seen here.
 

Oh No Not Him

Member
Joined
Jun 21, 2006
Professional Status
Certified Residential Appraiser
State
Maine
Seems like the story is alcking something more..i mean wasnt there like more evidence of inflating values or lender pressure, etc?
 
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