Appraisal Fraud is up 46% From Same Time Last Year

Mortgage and Lending with NMLS 291249

For those of you who missed Think Big, Work Small this morning... according to InterThinx, the mortgage fraud specialists, appraisal fraud is up 46% from the same time in 2008.  InterThinx 

But wait, who would be the perpetrators, has not HVCC made us safe?  Thanks to HVCC, Mortgage brokers, those evil, underhanded, self-serving scourges of real estate and sole cause of the mortgage crisis have not been able to order appraisals (except FHA) or even talk to appraisers in the third quarter of 2009.

OMG, that leaves (choke) the innocent victims of wicked mortgage brokers, Banks.  There must be some mistake because we all know that banks would never do anything underhanded. 

I am sure we will soon learn, probably from a trusted politician, that, possibly, the cause was appraisers still tainted by previous mortgage broker contact.  These appraisers will certainly be sent to rehab at taxpayer expense. 

Soon, thank god, due to vigilent efforts of our trusted banks and politicians, the world will be a better place.  Mortgage brokers will have disappeared, banks will make all home loans unfettered by pesky competitors and politicians will be provided will deserved taxpayer paid Cayman Island vacations to visit their secret bank accounts.

Is that the happy ending what you want?

Your FHA GuruYour Fha Guru

Bill Ladewig
800.664.SAVE (7283)



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Comments (47)

Dee Nofziger
|Key Realty | Maumee Toledo Real Estate Blog - Toledo, OH
Maumee Real Estate, Toledo Homes, Key Realty

Sarcasm is my friend - and I see it is also yours!

Nov 02, 2009 11:47 AM
Lori Mode
The Mode Real Estate Group - Elk Grove, CA
Real Estate Made Simple

Bill - boy, I would think that anyone involved in fraud now would be insane in our current environment...can't say I have seen any problems over the past year. 

Nov 02, 2009 11:50 AM
Sharon Alters
Coldwell Banker Vanguard Realty - 904-673-2308 - Fleming Island, FL
Realtor - Homes for Sale Fleming Island FL

Fraud? How can it be? Didn't the government fix the problems with HVCC? That's what we were told....

Nov 02, 2009 01:19 PM
Oregon Mountain Real Estate - Cave Junction, OR

Bill- I don't think there is more fraud-just more enforcement. It's like setting up Highway Patrol with a radar gun on a section of rural highway that didn't receive much enforcement in the past.  Speeding tickets go way up but no one knows how much speeding went on previously. 

Nov 02, 2009 01:31 PM
Roland Woodworth
eXp Realty - Clarksville, TN
eXp Realty

WoW.. what a high rate of Fraud ! This is unbelievable to say the least

Nov 02, 2009 02:33 PM
Marcelo Da Silva
Homesmart - Phoenix, AZ

Every time the markets pick up, the same things happen again. In the end, banks are under pressure to perform and show number to their investors. It doesn't matter how they come up with them.

Nov 02, 2009 04:27 PM
Harry F. D'Elia III
RentVest - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

We have only seen tip of the iceberg in my opinion. Follow the money and those people need to go to jail.

Nov 02, 2009 04:49 PM
Dan Tabit
Keller Williams Bellevue - Sammamish, WA

Some people just insist on doing things the dishonest way, no matter how many rules we put in place for them.

Nov 02, 2009 05:27 PM
Stephen Arnold
HomeSmart Elite Group - Scottsdale, AZ

Hello Bill~  Jaw-dropping post!! and this topic definitely deserves a touch of sarcasm!!  All the best this holiday season!!

Nov 03, 2009 12:12 AM
Steve, Joel & Steve A. Chain
Chain Real Estate Investments & Mortgage, Steve & Joel Chain - Cottonwood, CA

Bill, Small independent business is the salt in the market place.  Look at gas stations for instance.  You find the best service and prices at independent gas stations.  Where there are only Oil Company Owned stations you find the highest prices.  And who posts the highest corporate profits? Oil Companies and... I'm not against big business. I just don't believe big business should be the ONLY BUSINESS.

Nov 03, 2009 12:55 AM
Tim Ludemann
Ochopee, FL

I guess I'm surprised by the number but then again banks need to produce or they lose investors.

Nov 03, 2009 01:26 AM
Kyle Jan
Scottsdale, AZ
Phoenix AZ Homes for Sale

I saw TBWS yesterday and laughed.  How do they pin this one on the brokers?  I know, brokers are now transitioning to correspondent relationships and are able to form their own AMC in certain instances (like the big banks) and those AMC's are the ones with the high levels of fraud.  It is just another way those pesky brokers are beat ting the system.  One of these days the truth will come out and the banks real role in this crisis will be exposed.  This will happen when all of us scapegoats are out of the business, then there will be no-one to blame but themselves!

Nov 03, 2009 01:46 AM
Karen Cooper
Karen Cooper | Sr Mortgage Loan Originator ! NMLS # 223305 | First Federal Bank of Florida, Ocala, FL - The Villages, FL
Helping Homeowners w/Home Loans in 27 US States

The results of a hurried change, throwing the baby out with the bathwater. Thank God HVCC is on its last legs. Hopefully We The People will stand up and pay attention to these fast flowing regulatory changes and let our elected officials know they are accountable for their vote! Then maybe the mortgage brokers will have the money to pay their own lobbyists. One of the above comments references the increase in FHA loans which brokers used to still be able to order the appraisal on. I doubt it was simply the HVCC avoidance that led to this rapid increase, rather the demise of Fannie/Freddie loans with PMI as a viable tool for the buyers in the market.

Nov 03, 2009 03:59 AM
France and Mark Clausen
Realty Austin - Dripping Springs, TX

This too in time shall pass. This is another case of over correction and congress looking for some one to blame for their incompetence.

Nov 03, 2009 05:03 AM
Kent Neumann
Waterstone Mortgage- An Integrity based mortgage bank - Bend, OR
Mortgage Banker

HVCC was created as a result of WAMU's appraisal management company and a compromise with Sen. Schumer.  The brokers are getting the blame for what the banks did....the problem is brokers don't have the lobby power to buy the congressional votes....So, I became a mortgage bank.  If you can't beat them, join them.

Nov 03, 2009 05:11 AM
Shelly Whitworth - Carmel, CA

Thank-you!! HVCC is yet another example of government OVER regulation AFTER the fact, too late. This was a failure from day one. Thank god it's going away because it did no good, just made out of towners appraise on the cheap and undervalue homes killing deals.

HA I just read France and Mark's comment, yes, it IS over correction, when will they learn, over reaction & over regulation after the fact always ends badly too?!


Shelly Whitworth

Nov 03, 2009 06:40 AM
Kathryn Acciari
Arc Home LLC - Shrewsbury, MA
Mortgage Loan Originator

This is just nuts.  Will we ever return to normal?  I don't think I'd recognize normal if I saw it, it's  been so long since a normal market existed.  Craziness!

Nov 03, 2009 07:02 AM
Edward Bachman
Your Kingwood TX Realtor

Yet another shattered dream.....who would think that the banks would be involved...gag gag!!!

Nov 03, 2009 03:19 PM
Vickie Nagy
Coldwell Banker Residential Real Estate - Palm Springs, CA
Vickie Jean the Palm Springs Condo Queen

I can't see how appraisal fraud could possibly be on the rise! But then again we do have HVCC, LOL!

Nov 03, 2009 04:35 PM
1~Judi Barrett
Integrity Real Estate Services 116 SE AVE N, Idabel, OK 74745 - Idabel, OK
BS Ed, Integrity Real Estate Services -IDABEL OK

Bill, These are amazing stats.. and if 46% is the known fraud, the numbers are probably pretty high for actual fraud.

That's terrible.!!!

Nov 03, 2009 11:35 PM