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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Meghan
Here's an article about an appraiser who faced federal court for wire fraud after inflating an appraisal and emailing it. Maybe we need to check our appraisals and add wire fraud if the value greatly exceeded the sales price. Values might have been inflated for the 80/20 piggyback loan, particularly.

http://mortgagefraudblog.com/perp-walk/item/14699-former-appraiser-admits-inflating-value

Calling all legal minds: Would inflated appraisals prove fraud in the inducement?

Now for the poll (for those who don't mind participating):

Did your appraisal exceed the sales price of your home?

If so, please post the amount the appraised value exceeded the sales price. I'll go first:

$85K




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George Burns
Add wire fraud to what?

Are you implying that any of us could charge our appraiser with wire fraud? Read the article and note who did the investigation and who brought the charges.
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Floridapathy
I believe I read the statute of limitation was 1-2 years to sue an appraiser here in FL.

But the "inducement?" How about,

80/20 I/O, 70%+ DTI, appraised 24k higher than neighboring unit "attached" that was sold two months earlier (but completely ignored by appraiser).

Lender had a new (3rd) TIL HUD prepared to be signed day of closing that "removed" the "seller paid closing costs, interest rate lock, required higher down payment, and increased life of loan interest."

BTW, the realtor recommended the lender/broker, but the realtor also did not mention the prior two neighboring unit sales.

17 months later, refi new lender, 5/10 I/O Neg-option arm, could not qualify for "30yr fixed!" Was not allowed to reveiw entire closing package, did not receive the closing package 3 days before closing. The appraisal required amount was 20%. Appraisal amount came at exactly 44k higher then amount owed to original lender. 3k cashout at closing, refinance with escrow and PMI cost 17k. DTI I believe was around 62% (guestimate).

Currently worth 56% less than balance owed.

"Inducement?"



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Inflated appraisals, in my opinion, played a huge part in the foreclosure crisis, and is one of the reasons why many people have lost their homes.
Many of you probably have in your possession an inflated appraisal, and/or a flat out fraudulent appraisal that has a lot of made up information in it.
I've seen many many bad/inflated/fraudulent appraisal reports.
The last one i saw was a doublewide manufactured home that had been stuccoed over and appraised as a site built home. This inflated the appraised value greatly.
Many appraisers were bribed and coerced by mortgage brokers to hit certain numbers. The reward was more work from them of they did, the punishment was being blacklisted if they didn't.
If you think you may be in reciept of a bad appraisal that was used to finance your home, have a local ethical appraiser do a review of the report. Its not free, but you may be suprised at what you find.

I am a State Licensed Private Investigator and a State Certified Appraiser


Dean 
865 389 3261
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I am a former appraiser who threw his license in the trash and went straight to the FBI.  Real Estate appraisal is a scam, period!!

The FBI states:  "Appraisal is the linchpin of mortgage fraud"
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