- Jan 13, 2002
- Professional Status
- Retired Appraiser
I asked him if I could post this on the forum and he answered:
Original email this was about:Absolutely.
Several appraiser have been convicted and a few more in Washington, California, Florida and Arizona are about to be indicted using this very law.
I've been going over the appraisal process and where appraisers go wrong. The FBI is licking their chops on this one.
A little law I just ran across during some research on an appraisers conviction.
If an appraiser values a property for more than it's worth (Federal definition of "Market Value") then this would apply:
18 U.S.C. § 1014: makes illegal the making of “any false statement or report, or willfully overvalue[ing] any land, property or security, for the purpose of influencing in any way the action of” the United States, federal agencies, and Section 20 financial institutions in connection with a mortgage loan. The punishment for a violation is a fine of not more than $1 million and/or imprisonment of not more than 30 years.
An appraisal is not "just an opinion of value." An appraisal must be created following specific Federal/State laws and guidelines.
The value conclusion must also be based on Federal Law. Failure is not an option.