Appraisal News For Real Estate Professionals

2006/03/11

Appraisal Fraud In Depth - Kansas City

Kansas City newspaper in depth story on appraisal fraud. Full Story . . . A long, balanced article on the ravages of mortgage fraud in the Kansas City area and the role of bogus appraisals appeared February 26. Click here for a Web version. Some of the appraisers interviewed for the piece had candid remarks like these: "If you don't hit the right number, it can kill a deal. I've had mortgage brokers flat out say, 'Can you bring in this house at this or another number?' If you say no, the'll call someone else. They'll just keep calling until they get someone who will give them that number." "We don't get selected because we do a great job. We get selected because we do what they want. We're the only profession where you are begged to be dishonest." Brian J. Davis, RAA said "Most of the time, mortgage fraud involves identity theft or fraud, making a borrower appear to be somebody else, with a better job, more income or fewer debts. Somebody more creditworthy." "But some mortgage fraud involves a broker or loan officer telling the mortgagee, the lender, and the borrower that the house is worth more than it is. This way, they can close a larger loan and make a bigger commission." "Sometimes, fraud like this can be accomplished without an appraiser involved. Appraisal reports are simply altered, or appraisers' signatures are forged (appraiser identity theft). " "But in reality, a complicitous appraiser often makes it easier to perpetrate mortgage fraud." "At the same time, appraisers are also homeowners', lenders' and the economy's best defense against mortgage fraud." Brian Davis said. A little closer to home, there's been a recent expose story written on the HOW mortgage and appraisal fraud works in the Chicago area. Full story . . . From the OurAppraisal.com web site you can find several pages on how Brian Davis is on the front lines against appraisal fraud, why "Comp Checks" are NOT a good business practice, and where clients and consumers can report unethical mortgage professionals.

0 Comments:

Post a Comment

<< Home