| 20 years of this .. appraisal business. How did I get connected with such a fraudulant business. I actually realize now this is standard operating procedure to getting money in this scam bus. This is 2X I am forced out of business in past 10 years. I opted out last time cause only the most fraudulant survive. Yesterday, I was in a brokers office when he talked to the appraiser on speaker phone, and asked for a third time value increase and the guy says send it over again to look at. And he got the appraisal the first time for being the highest. For these appraisers it's back to survival time again. Anything goes out there. After all, these guys figure if I can't make any money with the license might as well not have it right. |
|
| Above Posted By:
disgusted
| Sat, 26 Apr 2008 03:14:39 EST |
| 40 year real estate broker and appraiser write:
blame our government, for alowing bad financing, fact, americans live on plastic, builders need to sell homes, high demand, high prices,=overbuild, in order to boost economy, decrease qualifying standards, put out sub-standard loans=sub standard mortgages, real estate is booming on a false economy created by the lending institutions and the stupid homebuyers who will buy anything if it's nothing down.
1. R.E. sales agent informs buyer how to skirt liabilities. 2 the loan officer lies on the the appication, Every-one is on commission except the appraiser. some are pressured into falsifying appraisals. loans are packaged and sold, more bad loans than good. in Va. 86% of the foreclousres are "arm" mortgages less than 2 years old. Yet mortgage co.'s continue to make them. qualifying the buyer on the lower payment instead of the jumbo payment to come. People don't get a 5-600 per month raise in a 2-3 year period. Why should our tax $ help bail these crooks out?
C-span senate hearing on large mortgage co.s More lies were told during that session than at a liars club meeting. Minority-claiming no minority loans made in some county in Ga. LIE! our government has so many sub-prime loan available to qualify low income people. Low income families scream because there are no below prime give away mortgages. I have done foreclosure appraisals on 400m+ homes with 2 new cars in the driveway, $15,000+ entertainment centers and their combined take home income is less than $60,000
the 3 kids rooms had nothing but a mattress on the floor. Home equity being used a debit card. houses refinanced every 2 years in 6 years a 300,000 home has to appraise for $550,000 to cover pay off penalties and closing costs which amount to approx. $45,000+ on the 3 refinances. 45,000 paid out to mortgage co.s for penalties and closing costs.VA buyers move in a new $300,000 home -0- down seller pays closing costs 2 years later the houselooks like its 15 years old owner moves out. lost nothing Tax payers pick up his tab. |
|
| Above Posted By:
william
| Tue, 11 Mar 2008 16:56:29 EST |
| If value is not an issue why order an appraisal. Appraisals are meant to safe guard the lender from making a bad loan. It is a added benifit to the buyer. Over inflated real estate hurts everyone. There is to much influence about who does the appraisal. It should be ordered by someone who does not benifit from the outcome. |
|
| Above Posted By:
lynn
| Fri, 9 Nov 2007 06:47:31 EST |
| My husband and I believe we have been victims of appraisal fraud. We have recently inquired into selling our home and discovered that it was appraised several thousand dollars over the homes that have sold in our subdivision in the last 5 years. The appraisal came in at at exactly what we needed to refinance, and we are stuck in an interest-only loan for 18 more months. Even after that, I don't see how we can sell and pay off the loan. Do we have any recourse? |
|
| Above Posted By:
Laura
| Tue, 23 Oct 2007 19:34:12 EST |
| After reading this article, can anyone tell me how it is that in October of 2004 my home appraised for 94000, then ten, yes, ten months later it appraised for 104000. Sound like manipulation to anyone else???? angry in ohio |
|
| Above Posted By:
Jessica
| Tue, 16 Oct 2007 19:13:32 EST |
| Let's look at the truth of it all. Some of us refuse to "hit the mark" and we are starving for work we're "hard to work with." Many of us make less than minimum wage while those the loan originators love are living high. Follow the rules and you can starve, hit the mark and fraud pays. Hitting the mark is fraud against the buyer, the lender, and the government backed mortgage buyers. Yet hitting the mark is what the L.O. below and others want us to do, I refuse to commit fraud. |
|
| Above Posted By:
Reality Check
| Tue, 16 Oct 2007 15:07:51 EST |
| Re: suffering. You could have a forensic appraisal done, review the original to determine accuracy. then, proceed. As for "catoutofthebag", there is a long distinguished history to the business. Licensing un-did many of the safe guards it was supposed to instill. Until lenders take a more active an informed approach to dealing with appraisals, there will be problems. think of this, certified appraisers in florida with only 2-3 years experience! YOWZA! and lenders still call these idiots! S&Lx2 |
|
| Above Posted By:
valueman
| Tue, 18 Sep 2007 08:52:46 EST |
| On May 7, 2005, a reader named Roberto made a comment indicating that perhaps the laws governing appraiser should be repealed because no one follows them. The fact is the government in all levels has failed to implement a regulatory agency to enforce the laws and prosecute those who engaged in fraudulent practices involving real estate agents, loan officers and appraisers. |
|
| Above Posted By:
Jose
| Mon, 17 Sep 2007 23:44:52 EST |
| An ethical question: I live in a small town in Texas. Here, one of the local appraisers is married to a realtor, and is the brother of a local builder.
Many sellers who have attempted a "for sale by owner" have been appraised significantly lower than others selling a comparable house next door with a selling agent.
Who should we bring up our concerns to? |
|
| Above Posted By:
Anonymous
| Mon, 17 Sep 2007 14:40:08 EST |
| Is there any recourse for homeowners that receive over inflated appraisals? What if they have been paying on these loans for awhile. Can they go back to the appraiser or the bank? |
|
| Above Posted By:
SUFFERING
| Sat, 15 Sep 2007 06:08:25 EST |
| Just a note to say there is a article in the Spring edition of
Working RE Magazine about blacklisting appraisers and what you can do to get removed from the list. |
|
| Above Posted By:
mike pritchard
| Sat, 14 Jul 2007 22:17:53 EST |
| I am a commercial appraiser w/22 years experience and I'm well aware of the damage some appraisers have caused our reputation. The topic here is dead-on w/my complaints about quick-buck appraisers, who jumped in and out of the business during the boom, but it is important to note that reduced values and potential lack of equity or even negative equity can also be the result of market value corrections in recent months. Remember the appraisal is as of a certain date. We don't guarantee the future. |
|
| Above Posted By:
Integrity
| Tue, 10 Jul 2007 12:22:08 EST |
| I am transitioning out of Appraising after 14 years due to ever present pressure & calls from tire kickers for comp checks. I purposely took less work during the boom & feel great that my fingerprints are NOT on those trainwrecks. I thought things would get better post boom, but this has proven untrue. Things are now much worse. Most calls now involve properties bought 'at the wrong time' or were likely victims of an inflated appraisal. No one wants the truth anymore. The new crisis is upon us ! |
|
| Above Posted By:
Miami Appraiser pulling the ripcord
| Tue, 10 Jul 2007 10:32:35 EST |
| Here is my question. Did you make money on your house? The appraisal is an estimate of value. It should be within 5% of the value. You cash in value when you go through the process of marketing and sell your house. No one knows for sure what the value of any piece of real estate is worth until it sells. |
|
| Above Posted By:
Appraiser/Private
| Wed, 20 Jun 2007 13:28:25 EST |
| What recourse does the home owner have in these situations. I did a refinance to fix up my house to get it ready to sell. It turns out the appraisal put the house at a grossly inflated price and after the fix up the house brought over $10,00.00 less than the loan amount. Now after all this i have no equity out to put down on a new place. Is there any legal recourse for us as the end consumer. |
|
| Above Posted By:
Scott
| Tue, 1 May 2007 05:56:00 EST |
| I have the solution to the problem of the Mortgage/Lender pressure, however not many seem to want to listen. Simply put, Appraisals are ordered to protect the interests of the bank. The underwriter is the entity in mortgage lending that wants to protect the interests of the bank the most, so why is the underwriter not the person who orders the appraisal? This may not be a perfect method, but may protect the interests (and the bank) of more people than a loan officer. |
|
| Above Posted By:
Owner
| Fri, 27 Apr 2007 13:43:13 EST |
| I am tired of not getting paid for the work I spend hours working on & complete (My firm does comp checks on ALL properties prior to inspection). We are hired to valuate a property, not to push a sale or value through so the L.O can get the commision. If you order a meal and don't eat it do you still not pay? Why is an appraisal that is "usless" (as posted by a L.O below) for the purposes of a specific loan not held to the same standard.
Where is the appraisers "black list" for banks?
|
|
| Above Posted By:
Kathy
| Mon, 23 Apr 2007 11:48:38 EST |
| Appraisal fraud is simple. Reward for enabling a sale or finance of a property which includes commisions for all versus punishment for those who gave an honest opinion of value and no one gets paid. The honest opinion of value is being punished on a daily basis by economic sanctions. Economic sanctions are levied against appraisers who call it like they see it. After all, our nation uses ecomonic sanctions to bend whole nations to our will. Economic sanctions are very effective tools. |
|
| Above Posted By:
Anonymous
| Wed, 28 Mar 2007 13:23:23 EST |
| As an appraiser for over 20 years, what else can be done to stop inflated appraisals? The authorities in Washington DC have had a signed petition sent to them signed by over 8,500 appraisers. It gives a very accurate account of some of the pressures. The police of this business has been told of the crime and nothing has been done. As for these lenders who say an honest appraisals waste their clients money, the whole point is the appraisal prevented too much money from being loaned. |
|
| Above Posted By:
Anonymous
| Wed, 28 Mar 2007 13:14:24 EST |
| Does anyone know of any legal recourse I as an appraiser has against lenders who have blacklisted me simply because a person with the same name as mine was convicted of a major mortgage fraud case in my area? This was not me yet I am feeling severe repurcussions from this well-publicized case. I have been an appraiser in good standing for over 17 years and now I am in fear of losing my business. |
|
| Above Posted By:
john
| Tue, 13 Mar 2007 14:30:58 EST |
| Does anyone have any information about the legal remedies against lendings who blackball appraisers? With todays trend of bank and mortgage company acquistions and mergers, i.e. HSBA and WMC (GE) there should be a form of procedural and justice process before you are blacklisted, especially, in today's environment of appraisal identifty theft. |
|
| Above Posted By:
SBC
| Wed, 28 Feb 2007 08:28:24 EST |
| Here we go again. We have been complaining about pressure to "hit" value for quite some time. But, how do you compete with a 24 hour shop full of trainees? I know of a "shake & bake" school where the graduates are put right to work. Imagine that, a trainee one day on the job appraising a $3,000,000 home in Naples, FL! Like having a dental tech doing jaw surgery. Fees should be based on time required, and no way can you jam out a report that would comply with USPAP in 24 hrs on a regular basis! |
|
| Above Posted By:
bill
| Sat, 17 Feb 2007 09:04:03 EST |
| Does anyone know of any juurisdiction Federal or State that investigates Mortgage Companies that place appraisers on black lists for not playing ball (Not hiting Value.)? |
|
| Above Posted By:
Richard Private
| Wed, 13 Dec 2006 21:42:11 EST |
| One person's subjective opinion which determines the value of a home is an irresponsible and obsolete method of valuation. An appraiser has the power to make make or break a family's nest egg which is based -not to mention biased- on their opinion of the home's value. This is not only unfair but is unjust and deserves the attention of our Federal Government and our Senators. Appraisals seem to be based on make-believe and fuzzy math. Unfortunately, the homeowner is left holding an empty bag. |
|
| Above Posted By:
Cats Outta the Bag
| Sat, 2 Dec 2006 07:32:29 EST |
I am a loan officer, and I do get comp checks before I order a report, with my client's MONEY. Why are there such wide values from appriaser to appraiser? Laziness? Corruption? Or maybe appraisers need competition just like any other business.
Why do appraisers say a value is reasonable, then the report is grossly high/low? But the appraiser still has $400 for the unusable report.
And why don't appraisers stop doing reports for companies that pressure them? That would stop the pressure. |
|
| Above Posted By:
Anonymous
| Tue, 25 Apr 2006 15:49:02 EST |
| I also am interested in accumulating some reliable statistics on real estate fraud. I'm not going to offer a course, but I want to become involved in some effort to put a stop to this. |
|
| Above Posted By:
Edd
| Sat, 10 Dec 2005 11:17:16 EST |
| I have investigated over 50 million if real estate fraud since the mid 80's in Florida. I am a ex-police officer and I am a certified appraiser in OH. I would be interested in hearing some statistics in real estate fraud. I am writing a course and would always love to hear from vetrans in the business. |
|
| Above Posted By:
Bob Rebera
| Fri, 4 Nov 2005 17:47:31 EST |
| I am always pleased to see articles like this. Lender and realtor pressure, appraisal fraud and total disreguard for USPAP is rampant. State regulators are totally helpless and worthless at regulating appraisers. A state licence is in reality a business licence. I have an SRA and a BBA in Real Estate with 25 years of appraisal experience. I can't compete with new trainees the first day on the job. Mortgage lenders see trainees and veterian appraisers as equal. |
|
| Above Posted By:
Critter
| Sun, 28 Aug 2005 19:45:36 EST |
| This problem will only be fixed when serious enforcement of the existing standards weed out these unethical appraisers who seem to dominate this business these days, as well as eliminating the lender selection of appraisers. There also needs to be more comprehensive oversight among appraisers themselves of lenders in their area who pressure them and of those dishonest appraisers who oblige these lenders by reporting them to the appropriate authorities. |
|
| Above Posted By:
Bryan
| Fri, 12 Aug 2005 16:07:02 EST |
| The Appraiser should not know what the estimated or worse, needed value is. Let us play detective. A Comp Check is an APPRAISAL!! Shopping for value is a plague. I could go on and on. Somehow it should be required that we be left in the dark regarding some out of the so called estimates and benchmarks.
|
|
| Above Posted By:
Joe Booth
| Tue, 12 Jul 2005 18:20:03 EST |
| The value always is what it is. The Bad people stop using you. The Good people always find you. The bad appraisers fade away , the good appraisers stay and continue to get nickled and dimed to death by fees. |
|
| Above Posted By:
jt
| Sun, 19 Jun 2005 23:20:21 EST |
| Remove the connection between appraiser and loan officer for starters. A disinterested party/department/company should order and review appraisals. |
|
| Above Posted By:
Mike
| Thu, 9 Jun 2005 19:47:09 EST |
| I have purchased homes that are NOT worth half the appraisal! Am I stuck with this situation, or is there something I can do?
Thanks! ty |
|
| Above Posted By:
Tyler Durham
| Fri, 3 Jun 2005 13:06:17 EST |
| If any appraiser (or appraisal company) has been doing the bulk of the work for ANY single mortgage company for a number of years--you can just about bet a good number of these appraisal reports are inflated. It is the bad luck of the draw AND guaranteed to happen for any appraiser to receive two appraisal assignments in a row that do not meet the value needed for the Loan Officer to get their commission. Once this happens these Loan Officers will never give that appraiser work again. |
|
| Above Posted By:
Steve K
| Thu, 12 May 2005 20:46:16 EST |
| In Utah the number of appraisers went from 2000 to under 1000. One half of Utah appraisers lost their authority to appraise. Much of the loss came from revocations, surrender of license, or appraisers who did not renew because of investigations. Utah regulates mortgage brokers. Utah can revoke a mortgage license for influencing the appraiser, ie no pay if the appraisal is not at the proposed sales price.
|
|
| Above Posted By:
Dave Jones
| Wed, 11 May 2005 09:25:07 EST |
| As a managing broker of a major real estate firm, we face this problem on a daily basis. Our Realtors do Market Evaluations of each propert. We find that appraisers coming from outside the immediate area, do not have a clue as to the value of the homes. The appraisers refuse to take into consideration the appreciation rate of certain areas of specific villages. If all these factors were taken into consideration I really believe that fewer appraisals would be called into question. |
|
| Above Posted By:
Karen
| Tue, 10 May 2005 15:56:35 EST |
| You will never correct the problem until lenders and realestate brokers stop informing and giving the Purchase and Sale agreements to the appraisers. I am in the realestate profession and I think buyers are really being taken advantage of. This is a huge problem to try and regulate lenders as well as accurate Market Ananlysis. We all do it unfortunately if we want to stay in business, we tend to overprice because a seller wants to. |
|
| Above Posted By:
Susan
| Mon, 9 May 2005 10:32:28 EST |
| Very sad to say, but the Real Estate field as a whole is largly based on some sort of FRAUD. I have been a Funder/Loan closer since the mid 70s and cant stress enough the comments I hear and/or loan files Ive seen that clearly scream Fraud. I only hope that this is the beginning of the end of a very sad situation. WTG appraisers, dont let them bullie you, it really isnt worth the consequences. |
|
| Above Posted By:
stephanie
| Sun, 8 May 2005 11:41:22 EST |
| While important, appraisal fraud, like its close cousin stock analyst fraud, is a tip of the iceberg. We may look back at the investment banks, analysts, regulators, energy traders and politicians who enabled Enrons executives to pump and dump stock shares (remember them?) as relatively minor figures relative to the players underwriting the housing bubble. Pumping and Dumping the American Dream is far more serious. The whole world is watching its portfolios of mortgage backed securities. . . |
|
| Above Posted By:
Eric
| Sun, 8 May 2005 09:05:58 EST |
| Frankly, they might as well repeal the laws. Nobody follows them anyway!! |
|
| Above Posted By:
Roberto
| Sat, 7 May 2005 18:36:46 EST |
| When I go to appraiser a run-down shack in the ghetto and the comparables are selling for 6-800k, I know this market is way out of control. The question is, whos minding the store? |
|
| Above Posted By:
Stephen
| Sat, 7 May 2005 18:32:08 EST |
| After years of trying to be an ethical appraiser, I gave up and sent the license back. What they teach you in the shopping center schools does not apply to the real world of appraising. |
|
| Above Posted By:
Anonymous
| Sat, 7 May 2005 18:26:14 EST |
| TALK, TALK, TALK. Why dont the state regulators & the appraiser watch dogs fix the problem simply; Make all Realtors take Appraisal education classes. If the Realtors knew how to price a home (& walk away when an owner wants to overprice), there would be no appraiser presure. Dont blame the educated Appraisers. Blame the ignorant Realtors & lenders. Or is it just possible the National Association of Realtors is just to powerful of a trade association to mess with? |
|
| Above Posted By:
Ron
| Sat, 7 May 2005 18:08:02 EST |
| If Appraisers are so ethical, why do they accept requests for valuations from those bad lenders?
If all Appraisers declined to be influenced by threats, Lenders demands would evaporate. Why do Appraisers ask others to enforce discipline on Lenders? Rather, our enforcement action actions should be aimed at Appraisers that accept appraisal assignments under threats.
Appraisers must stop blaming Lenders and shore up the ethical practices of their colleagues.
|
|
| Above Posted By:
Clif
| Sat, 7 May 2005 06:50:58 EST |
| I have general question for appraisal experts: Is there any benefit of lowering an original appraisal value if one were a part of a property flipping fraud ring? I am interested in understanding the dynamics of appraisal fraud for my position as a risk analyst. |
|
| Above Posted By:
DM
| Fri, 6 May 2005 17:40:50 EST |
| The appraisal should be tied to the property address for the life of the appraisal ( 6 months) no matter what type of loan. It is the sellers home and the asking price is set by them or their agent. If it does not appraise for the asking price then the seller can make the decision to lower the price, do required repairs or not sell the house. Why should the buyer be out money if a property does not appraise?. |
|
| Above Posted By:
Jan
| Fri, 6 May 2005 10:41:09 EST |
| I have witnessed this type of undue pressure by various lenders over 29 years. This practice appears to be most prevalent with mortgage brokers or realtors with a commission involved. These same people shop values with different appraisers, solicit newly licensed appraisers and expect 1985 fees. Additionally, the term MY APPRAISER or GOOD APPRAISER usually refers to the end result. The light at the end of the tunnel is there are professional appraisers and most survive. |
|
| Above Posted By:
John Saggio, ASA
| Thu, 5 May 2005 17:01:49 EST |
| The average home in San Diego is not worth $550,000. Not when median combined household income for the area is $45k and the schools are so poor. San Diego home prices are trying to compete with areas that have better educational system and nearly 2x the median income. My opinion, San Diego is a high risk speculative real estate market that will crash hard.
People are throwing huge amounts of money on something they think can’t lose? It is reminiscent of the late 90’s Dot Com bust. |
|
| Above Posted By:
Mr. R of San Diego
| Thu, 5 May 2005 14:11:17 EST |
| Joetta:
You are right The buyer should hire the appraiser. However, dont lose sight of the fact that the buyer would then want to influence the appraisers opinion of value towards the lower end of valuation. This itch could however be contained if there is a built-in buffer such that the buyer does not know, talk to, or meet the appraiser of the property. An independent internediary organization could assign appraisers, and subsequently forward reports to the lenders. |
|
| Above Posted By:
jayeti
| Thu, 5 May 2005 13:30:45 EST |
| Bravo!! Are we finally being listened to? Along with this, one of the others that really gets to appraisers I have discussed this with-is,you are not on our approved list. And if you are not one of the favored people, you do not get on the list. How about, get me a pencil value and if it hits the numbers Ill give you the assignment. Talk about TARGET SHOOTING!! |
|
| Above Posted By:
Bob
| Thu, 5 May 2005 13:05:14 EST |
| I lost my residential business because I would not cave in to pressure. Each time I appraised a property for less than the stated amount, I lost the companies business. I now appraise commercial property. PART OF THE PROBLEM: NEAR THE FRONT OF THIS ARTICLE IS AN ADVERTIZEMENT: BECOME AN APPRAISER LEARN REAL ESTATE APPRAISAL AT HOME. GET INFROMATION FAST-EASY. We legitimate appraisers do not need any more of these. This is a big part of the problems!!!!
Editors Note: Advertising Is Contextual Based, meaning it is based on the content of the page. |
|
| Above Posted By:
Alex
| Thu, 5 May 2005 10:31:37 EST |
| The answer seem obvious - since the buyer is the one hurt by these practices, and the buyer is the one who pays for the appraisal, let the buyer hire the appraisor! If Im missing something as to why this wont work, Id love to see an article addressing it. |
|
| Above Posted By:
Joetta
| Thu, 5 May 2005 10:22:14 EST |
| ITS ABOUT TIME!!! I quit doing conventional residential appraisal work in 1993 because of the pressure of the lenders and loan brokers. I could name several high ranking officers of mortgage companies that have flat told me hit the number or you will never get another appraisal from us. I now am going to work as a review appraiser with my 30 years of appraisal experience. I can not make a living as a real estate appraiser any more. |
|
| Above Posted By:
Chuck
| Thu, 5 May 2005 09:53:10 EST |
| When lenders made their orginators go to straight commission in lieu of a salary, and demanded X amount of business per month, the whole industry went to the dogs. I have been appraising single family residences for 17 years, and have been pressured to inflate values many times. Needless to say due to my honesty, my income has suffered. It is my opinion that about 60% + of the paper ( mortgage notes ) that is sold in this country is JUNK. |
|
| Above Posted By:
Stanley L. Reaney
| Thu, 5 May 2005 08:56:57 EST |
| As an AQB certified national USPAP instructor I can attest to the accuracy of the article. I refuse to provide anything other than Independent, Impartial and Objective Appraisals. I am without question black listed by most of the local lenders. I am very thankful I have the instructing side of my business to keep revenue coming in. |
|
| Above Posted By:
Don White
| Thu, 5 May 2005 07:55:46 EST |
| This is an every day practice in Miami, Florida. I was told in advance that a condo that I was trying to purchase would not appraise at the selling price which by the way could not be negociated any lower therefore I had to withdraw from the deal. They sale as is no repairs or sellers contributions towards closing cost. They are taken advantage of everyone but there is no one in the regulatory agencies interested in putting an stop to this.
|
|
| Above Posted By:
Edith
| Thu, 5 May 2005 00:06:56 EST |
| Was this the whole article? It barely states the problem(s). From what the author said I guess more articles are in the works. But like the multi level of problems, solutions are also multi leveled. The first step should be the mandatory licensing of all loan officers. |
|
| Above Posted By:
Sandi Kanakis
| Wed, 4 May 2005 21:03:10 EST |
| When it comes to business, corruption is the name of the game. So, dont expect the polititians to fix it, because theyre fixed themselves. Appraisers are waiting for values to drop, so we can say I told you so, then the taxpayers will again have to pay for the losses, through lower revenues from lenders who have over extended their portfolios. So, be a good stooge, and pay your taxes, and love your government, theyre quietly allowing this all to happen. |
|
| Above Posted By:
Anonymous
| Wed, 4 May 2005 20:34:25 EST |
| What about appraisers who dont even bother to visit the property, and then come in low? They dont help the cause of accurate valuation and/or loan underwriting one bit! Just happened to us as seller/agents.
p.s. The LTV does not change for someone putting 20% down, no matter what the appraised value, i.e. LTV is still 80% by definition. If the 20% is of the contract price, a reduced appraisal REDUCES LTV, which is good for the lender. |
|
| Above Posted By:
PTK123
| Wed, 4 May 2005 19:15:58 EST |
| I volunteer for a consumer org, hadd.com and see the complaints about seriously defective construction in new homes every day. Increasingly, were seeing complaints that include lending irregularities, and inflated appraisals. Many dont meet building code minimum standards. The code is rarely enforced. What will happen to all these overpriced disposable houses and the people that invested so much into them!? |
|
| Above Posted By:
Cindy
| Tue, 26 Apr 2005 20:06:05 EST |
| The article is a good, if abreviated, statement of the problem. The traditional relationships that existed between lenders and appraisers (as well as other service providers) have been seriously eroded in a lending environment that views loans as a commodity and values loan volume above the quality of the underlying security. |
|
| Above Posted By:
Peter LeQuire
| Tue, 26 Apr 2005 15:22:29 EST |
| This continues unabated after the S+L debacle of the 1980s. It requires both perpetrators (lenders) and willing accomplices (appraisers). State regulators were purportedly established, in part, to control both. It hasnt and will not happen. Take Illinois for example: 2002 - 36 appraiser disciplines; 2003 - same number. Then, new governor and political assignments. 2004 - 18 disciplines. First quarter 2005 - 1 discipline. The wolves are on the sheep with no shepherd in sight. |
|
| Above Posted By:
Forum Jim
| Tue, 26 Apr 2005 13:36:07 EST |
| I thank you for your bringing this to light in the article, although it only barely skims across the top of the problem. Until such time as the ordering of appraisals is removed from someone who is getting a commission there will continue to be dishonest people putting pressure on honest appraisers to become as dishonest as the ones who ordered the appraisals in the first place. I hope that you do not let this die a fast death, as is typical whenever an article such as this comes out.. |
|
| Above Posted By:
Otis Key
| Tue, 26 Apr 2005 12:50:19 EST |
| Bless you for drawing attention to this problem and the honest appraisers efforts!!! I often look at this fight as being similar to the so called War on Drugs. Do you combat the supply (appraisers will to bend the rules) or the demand (lenders/agents/homeowners demanding the appraiser comply with thier requests)? |
|
| Above Posted By:
Caterina
| Tue, 26 Apr 2005 10:52:16 EST |
| Amen. I have been pressured so much by mortgage brokers I now refuse to work for them. I am doing more commercial mineral appraising and less residential appraising. I even have an anti-mortgage broker statement on my website. Feel free to quote me from there.
Terry |
|
| Above Posted By:
Terrel Shields
| Mon, 25 Apr 2005 20:53:26 EST |
| This was a good article, albeit brief, about some of the problems appraisers face daily.
Appraisal inflation, and its root cause - lender pressure - are a scandal that has been under wraps for a long time ever since the Appraisers Petition was composed in 1999. Now the complaints of honest appraisers are seeing the light of day, thanks to several articles that have been coming out in recent months, including yours. |
|
| Above Posted By:
Tawfik Ahdab
| Mon, 25 Apr 2005 19:19:33 EST |
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