Mortgage Servicing Fraud
occurs post loan origination when mortgage servicers use false statements and book-keeping entries, fabricated assignments, forged signatures and utter counterfeit intangible Notes to take a homeowner's property and equity.
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arkygirl

Bloomberg News reported on Wednesday that Fannie Mae is proposing to ban the use of appraisals by a lender's employees or those arranged by mortgage brokers.

The proposal was contained in what Bloomberg referred to as a "talking points" memo distributed to lenders this week and was in response to an investigation of the mortgage industry by New York Attorney General Andrew Cuomo. In November the AG filed suit against First American, parent company of one of the country's largest appraisal management companies, charging them with folding under pressure from Washington Mutual, a major client, to use only those appraisers that provided property values acceptable to WaMu.

WaMu was not included in the original suit but Cuomo demanded that Freddie Mac and Fannie Mae each appoint an Independent Examiner to review mortgages and the underlying appraisals that the two GSEs have purchased with particular emphasis on those purchased from WaMu.

According to the Bloomberg article, the memo was part of an on-going effort by Fannie Mae to cooperate in the Cuomo probe.

The proposed change would mean that Fannie Mae would no longer authorize its lending partners to use appraisers employed by a wholly owned subsidiary and, while we have not seen the memo, apparently it contains reference to the eventual establishment of an appraisal clearinghouse which we assume would assign appraisers to a project.

Bloomberg quotes Jonathan Miller of a New York appraisal company Miller Samuel, Inc. as saying that about three quarters of residential mortgage appraisals are arranged through brokers who only get paid if a loan closes. Miller called the practice "laughable" because it creates a financial incentive for mortgage brokers to push appraisers toward higher valuations. Higher appraisals also mean more homeowners qualify to refinance their homes and take cash out, he said.

The appraisers themselves have long urged that appraisers be required to keep arms-length from the lenders. Many complain that honest appraisers who refuse to match the values that the lenders want soon find them selves without work and that they are frequently pressured by the loan officers who assigned them to a project to raise their values.

The proposed restrictions would apply to loans acquired after Sept. 1, according to the memo.

http://www.mortgagenewsdaily.com/2282008_Lender_Appraisals.asp
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Stephen

Now we're getting to the core of the problem.

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Ohio
everyone involved in providing settlement services...title companies, surveyors, home inspectors, termite inspectors etc., are bullied by the lenders AND the realtors. The coercive tactics they use have no limits. At least the appraisers are getting recognized as being a target of these bastards who want nothing to screw up their closing.

Lenders will refuse to pay appraisers and inspectors...can they collect their bills when faced with being blackballed? I know cause I've dealt with this crap for nearly two decades.....

The corruption is diffuse among ALL entities that get a piece of the homebuyers pie.

Buying a house??
1. Hire your OWN appraiser even if the bank hires theirs.
2. Hire your own inspectors....DO NOT ASK FOR REFERRALS FROM ANYONE THAT STANDS TO PROFIT SO MUCH AS ONE DIME FROM YOUR PURCHASE.
3. DO NOT USE THE SELLERS REALTOR!!!!!!!!!!!!!!!!!!!!! As a matter of fact don't use ANY realtor. Hire an attorney to handle the purchase!

We are a nation FULL of LAZY, disconnected, unconcerned, starry eyed instant gratification seeking, selectively ignorant home buyers and it is time buyers take a PROACTIVE position in their lives rather than always a reactive one.

Some things...like MSF are exceptions. True MSF victims had no way to prevent what happened but there are too many circumstances relayed in some of these posts that are absolutely the direct cause of borrowers who did not bother to learn anything about the buying process prior to jumping in with both feet.

They let the realtors and the lenders run the show and they sat back and let themselves be railroaded. These are the same people who can never put up the proof to nail one of these bastards. Acquiring proof takes effort...I don't see a whole lot of that anymore.

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