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Authorities Cannot Shut Down 'Fake Appraiser Operations' in Chicago


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2006 Jun 8, 4:17am   12,103 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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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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