The highly touted and much patting on the back until it bruised (Thanks NY AG of NY Cuomo) occurred when loan originators were lectured about how badly they behaved. After all it was the loan originator that put pressure on the appraiser to pull values out of their 'pockets'.
What do you know....a bizarre and simply unbelievable report has just come out stating that since the inception of HVCC (started in the 2nd qtr or 2009) the number of 'inflated value appraisal fraud" is up 46% compared to a year ago? Really?
How can this be? The big banks as you recall were for this 'reform'. WHY? Because they (Banks) formed another entity under their umbrella called it an AMC (appraisal management corporation) to separate loan originators from appraisers generating more income for themselves (at expense of consumer) what a dealio! While this is going on appraisers were given stricter parameters in what can only be categorized as a bizarre market on many levels to begin with.
Add to the above the fact banks instituted these electronic measuring systems designed to "review" (dumb down) the values or 'scrub' the appraisal work after it had been scrutinized by their own underwriters.... how redundant can you get on what is a subjective process anyway.
HOW COULD APPRAISAL FRAUD BE UP 46%? WELL IT ISN'T BECAUSE OF THE LOAN ORIGINATOR...AND FRANKLY I DON'T BELIEVE IT.... Who could be putting this out there? Here is the link scroll down and the name Interthinx pops up. A "risk mitigation" firm benefiting from the HVCC regulation thing publishes this information the same time an amendment is being proposed to kill the HVCC. You be the judge.
http://brokeruniverse.com/news/#1256918407
http://www.interthinx.com/overview/fraud_reports.php
By their admission Interthinx states the sheer size and population of California has a significant impact on the national fraud trend numbers. Ok so why the headline then? Is that food for the BANK lobbyists to keep HVCC alive? You be the judge.
Based upon my experience since the inception of HVCC I cannot see how fraud could have increased. Honestly. The appraisers task is monumental and their work is scrutinized in an abnormal market place. It is ridiculous out there and our government continues to make it worse. Unbelievable. Just unbelievable.
By the way - more garbage on the airways from the media pundits or guests proclaiming small community banks are handing out businesses loans.... really...which ones and ask the businesses that never missed a payment why their credit was pulled or canceled.
http://www.fdic.gov/bank/individual/failed/banklist.html
Hokey Smokes Bullwinkle....I wish us all well.
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