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Authorities Cannot Shut Down 'Fake Appraiser Operations' in Chicago


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2006 Jun 8, 4:17am   12,047 views  229 comments

by HARM   ➕follow (0)   💰tip   ignore  

Chicago appraisers

We've discussed garden variety "hit the numbers" appraisal (and mortgage) fraud here in numerous threads. I'm also well aware that appraisers didn't CAUSE the bubble, nor are they even on the top 10 list of bubble causes --see "Housing Bubble Pre-Flight Checklist" thread. Even so, this article (thanks to Ben Jones for first posting it) has to take the cake for most egregious, "in your face" fraud I've seen to date.

Apparently, you don't need to have appraiser credentials of any kind in Illinois, nor can you even be prosecuted for practising without a license or committing fraud. Wow.

Appraisals Part of All Fraud Loans
by Lew Sichelman

"...Emblematic of the scope of the mortgage fraud problem throughout the country is what's going on in Illinois, where three out of ten appraisals are found to be forged, according to Robert Gorman, an East Hazel Crest, Ill., appraiser. "That's a significant number," he told the meeting. "And that's only the ones we know of. Who knows what we don't know?"

Gorman said in some cases, appraisers who have had their licenses lifted continue to make valuations using someone else's identification. They swipe the names from class rosters, loan files, and even industry websites, he said.

In other instances, he also said, the "appraisers" were never licensed at all, and are part of a larger scheme to fleece lenders.

Gorman told of one crew of 13 fake appraisers who are working out of a factory on Chicago's South side. The authorities would like to shut down this appraisal factory, he said, but they can't. "They're not licensed, so there's nothing we can do," he said. "So they are still there."

Discuss, enjoy...
HARM

#housing

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209   DinOR   2006 Jun 12, 3:55am  

HARM,

I think in my case the "strategic leak" that was bound to find my ears is done so to let you know you're not supposed to "go after" that person any more. Kind of like "Safety" when were kids playing tag. These people are real good at getting in some cheap shots when it would be totally inappropriate to give them the response they so richly deserve by claiming "Safety" just when you're about to let 'em have both barrels.

Oh, sure I did some mean and hidious things to you in "former life" but I've found God (or whatever) so it would be inappropriate for to knock my teeth out one at a time with a tack hammer b/c I'm not "that person" anymore. I'm a "new person" totally unassociated with that "former person".

Well guess what sister, after having you for a fucking neighbor I now have NO FEAR of hell! I've already spent my time there and after you get what you got coming to you the satisfaction will be worth the eternal weenie roast!

210   DinOR   2006 Jun 12, 4:00am  

newsfreak,

Yeah, I saw her the other day at my youngest daughter's HS graduation. It's not so much the "stink eye" that she gives me but more the "I've already been through hell so you don't need to chase me with a tack hammer" look. I don't know what I could possibly do to her that life hasn't already. One decent kid out of five from THREE different husbands and she lives in a "double wide" on a dirt road! Case closed.

211   surfer-x   2006 Jun 12, 4:04am  

DinOR, I am your Father, embrace the anger, welcome to the darkside. Good Good.

212   DinOR   2006 Jun 12, 4:08am  

Oh Yeah! I was talking to a friend this morning (cynical attorney) that told me when it comes to neighbors it just seems like there are "different flavors of bad". I told him he just killed the last little part of me that WASN'T a cynic. Thanks pal! Actually it's just when you have ONE bad neighbor for every 10 decent ones they feel like they have to "fill the void" by being asshat enough to make up for the rest. I get this sick impression that they feel by making others feel self-concious about their every waking move they are "doing their civic duty" to make everyone else as miserable as they are!

213   DinOR   2006 Jun 12, 4:13am  

Surfer X,

"embrace the anger"

Uh yeah, (sorry about that). I saw asshat #2 when were on the back deck yesterday for daughter's grad. party and she gives me this "perturbed look" b/c our music on low and casual conversation "broke her tranquility". What a caffone. What an asshat.

214   DinOR   2006 Jun 12, 4:17am  

Jon,

Yeah, sorry about that. Surfer X has helped me to embrace my anger so I can move on now. It's just that after 9 years in the U.S Navy you really develop an appreciation for the need to get along. When I see neighbors that go out of their way to let you know that they don't care if you are upset or insulted it kind of gets to a guy, you know?

215   FRIFY   2006 Jun 12, 4:33am  

mlslistings.com summer climb...

June 8th, 2006
San Mateo (all price ranges): 1363
San Jose (all price ranges): 3669

June 12th, 2006
San Mateo (all price ranges): 1428
San Jose (all price ranges): 3709

65 homes/week -> 2300 San Mateo homes by the end of September?

216   DinOR   2006 Jun 12, 4:55am  

newsfreak,

Exactly, we have always gone out of our way to be ideal neighbors where and whenever possible. If there are chioces we are presented with we'll almost always go with the one that would be the most considerate of others. It really gives me pause for reflection when we stop to think about what our "post bubble" home and lifestyle will look like? What good is a "high end, up-scale" home if your neighbors are asshats?

217   Different Sean   2006 Jun 12, 4:58am  

I just said being an alarmist and a complete ASS doesnt solve anything.

Thanks for proving a point.

no, thank you

218   Peter P   2006 Jun 12, 5:01am  

Some neighbors think the world revolves around them.

What revolves around what? It does not matter. It is all relative.

But if we get that wrong, things will be in retrograde from time to time.

219   DinOR   2006 Jun 12, 5:06am  

newsfreak,

Uh I don't think I'm going to show this person a damn thing. It's just that incidents like this do give us cause to question what other people in the neighborhood would do if you let your folks park their motor home while visiting or set up a baseball diamond for your kids? What would it take to have someone who's been a good friend and a good neighbor to turn on you over the slightest issue. It's just too much of a "tight rope" much of the time. I think what amplifies the out of doors issues for Oregonians is that we have so precious few nice days and we spend like 10 months out of the year fantasizing about them and how we will spend them that it gets "touchy" real quick. I suppose if we lived in an area where nice days are a dime a dozen it wouldn't be nearly the issue it's become.

Yes I know it's a nice day and your son has been well behaved so he can ride his ratty sounding dirt bike but we had plans for a quiet afternoon with friends!

It seems like people get more edgy the closer we get to having a "day without rain". Hell it can be overcast and cool if it just stops raining for one damn day! Must be that much worse in Seattle!

220   DinOR   2006 Jun 12, 5:24am  

Thanks to everyone for their support and concern!

LILLL, I think you hit the nail on the head with your comment about people that seem to have energy to burn when it comes to ticking you off. Please notice that they were all fired up wether it's tearing down a fence (or just making a mess in general) but are suddenly depleted when it comes time to clean it up! Our old neighbor is dealing with the flipper from hell. Looks like about 1/2 way through the guy either ran out money, ran out of time or just plain gave up! Everything is being "worked on" but nothing is complete (and it's been half done for OVER a year!) What a great thing to wake up to everyday!

221   DinOR   2006 Jun 12, 5:28am  

Peter P, SQT,

We do see that to some degree in Oregon but where it does occur it's a mess. Even after people have moved out, on or wherever you can see it's the kind of wear and tear that won't "fix" with a coat of paint.

222   surfer-x   2006 Jun 12, 5:50am  

And they cannot sue. Ha Ha.

Does this mean they are out 160K total compensation?

223   Peter P   2006 Jun 12, 5:51am  

Does this mean they are out 160K total compensation?

Huh?

224   Peter P   2006 Jun 12, 5:59am  

New thread: Dream home architecture

225   Red Whine   2006 Jun 12, 6:04am  

I think Peter meant "And they cannot sue for one HaHa." $160k is a lot to pay for a parking infraction -- but rules are rules!

226   Peter P   2006 Jun 12, 6:05am  

Actually, Ha Ha refers to my laugh. :)

227   Red Whine   2006 Jun 12, 6:23am  

Sorry Peter,

Using HaHa to indicate laughter around here is like going to Polk Street and calling someone "gay" to describe their happy demeanor. You're simply inviting confusion.

228   Peter P   2006 Jun 12, 6:32am  

Using HaHa to indicate laughter around here is like going to Polk Street and calling someone “gay” to describe their happy demeanor. You’re simply inviting confusion.

Confusion is my specialty. :)

229   Jimbo   2006 Jun 14, 3:40am  

Jon,

I am not an investment advisor either, just an IT guy, but I have done reasonably well in the stock market, so I am going to give you the standard "advice": Keep diversified and don't try to time the market.

What are you short and mid-term financial goals? To buy a home? To pay for school? That money should not be in a volatile instrument. Put that money in investment grade bonds, or a bond fund or a CD, like you have been.

The rest of your money belongs in the stock market or other investments. Any money you plan on retiring with belongs in the stock market. I am assuming you are at least 20 years from retirement here. Where exactly you should put your money is the sticky part. Right now my retirement money is 1/4 in an S&P 500 fund, 1/4 in large cap US stocks, 1/4 in Europe and Japan and the rest in cash. Here is where I have to admit not following my own boilerplate advice and tell you that this: 1/4 was in emerging markets until about three weeks ago, when it almost all hit its "stop loss" level and put me in cash. Right now I am just waiting out the correction so I can put it back to work.

My family believes in investing in real estate: my brother has two rentals in Paso Robles (where they are building a new State Hospital) and one in Idaho along with his office in Atascadero, my father owns three rentals in Joshua Tree and my father-in-law four in the Sacramento area. I think they are all making the rookie mistake of over concentration in one asset class.

I am one of the most optimistic people on this blog though and I am also one of the only homeowners, so take that into consideration. Almost everyone here is full of doom and gloom about the US economy, the housing market, the Bay Area, California and life in general.

I am not sure what you should do if you agree with them. One gentlemen suggested stockpiling ammunition. Perhaps you should go the whole nine yards and get a survival shelter full of C rations, gold bars and AK-47s. Just don't forget the arsenic pill in case you get overrun ;-)

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