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Authorities Cannot Shut Down 'Fake Appraiser Operations' in Chicago


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2006 Jun 8, 4:17am   12,102 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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81   HARM   2006 Jun 9, 6:37am  

@Robert Coté,

I'm sure your "yard ape's" are welcome at Mr. X's. They'll give Joe Schmoe's kids someone to play with.

82   HARM   2006 Jun 9, 7:14am  

My kids are radioactive I wouldn’t want to expose them to others without releases. Example; despite being members of that breakawy sect known as Catholics they perform an annual play of the Plagues of Egypt at our friends’ Passover observance. It may be unfair to let them out in the general population without more controls.

:lol: thanks for the precaution

83   FormerAptBroker   2006 Jun 9, 7:55am  

Robert Coté Says:

> Did you know that BART paid $22m for electricty last year and
> is paying $40m this year?

Did you know that BART has a "marketing team" that all make close to a Ha Ha a year for maybe 30 hours a week work...

84   surfer-x   2006 Jun 9, 8:41am  

What if I’m a jerk or worse drink all the good beer which may be the same thing?

Sorry that job is already taken, I am a jerk who drinks all the good beer and then hits on all the women. Finally I pass out to dreams of 30% in the bag returns, HaHa Fake P Face Realty and I cuddled and I wake contented.

85   surfer-x   2006 Jun 9, 8:48am  

(Alexandra 15), rug rat’s (Lauren 12) and ankle biter’s (Julia 6)

For the love of god Sir please tell me you at least have a male dog or cat.

86   skibum   2006 Jun 9, 9:59am  

Okay, the anal intrusion jokes aside, the point I was trying to make many, many posts ago on this thread was that yes, there are forces likely to keep BA prices from crashing as hard as, say SD, FLA, or Vegas, but there are also countering forces that make this place more vulnerable, including the huge portion of recent buyers with non-traditional mortgages, the reliance of the job market in this area on a sector that is outsourcing in a big way, and the mere fact that with most every other downturn, the BA has dropped along with everyone else.

87   Peter P   2006 Jun 9, 10:19am  

My wet dream would be the same as HARM’s, but with an added nipple-twist: “Retroactively”. i.e. you booked it, then you’re stuck with the liability even if you peddled it to a sucker…

My wet dream: all-you-can-eat lobsters, good lobsters.

88   surfer-x   2006 Jun 9, 10:38am  

If you hate hippies and move to Asheville, you’ll hate it also

I hate hippies, go i guess Asheville is out for me.

to quote Cartman, "hippies want to change the world but all they do is smell bad and annoy people".

89   Allah   2006 Jun 9, 10:39am  

Patrick is a little paranoid about this net neutrality thing. He thinks bing companies like verizon are going to take over and his site going to be kick off the internet! There are just too many people that won't let that happen! What do you people think? Perhaps another thread is needed.

90   surfer-x   2006 Jun 9, 10:40am  

Whoops, cartman miss quote

should be

I hate hippies they say they want to save the planet, but all they do is smoke pot and smell bad

91   skibum   2006 Jun 9, 10:42am  

Peter P Says:

My wet dream: all-you-can-eat lobsters, good lobsters.

Too bad you weren't born a Yankee in the 1800's who got sent to jail - you'd be stuffed with lobsters so much b/c they were ultra cheap, that they eventually had to pass a law forcing prisons to serve prisoners other foods.

92   skibum   2006 Jun 9, 10:45am  

SFWoman Says:

Oh, we have recruiting Jews here. The Jews for Jesus have an airplane with lights on the bottom of the wings that spell out ‘Jews for Jesus’ that they fly around SF at night.

Have you seen that storefront on Clement in the Richmond for "Jews for Jesus"? I've been wondering what the heck that was for years now. Thanks for the enlightenment. Talk about a bizarre subculture.

93   surfer-x   2006 Jun 9, 10:51am  

Oh i loves me some Jeebus, fuck come to think of it, a 2000 year old cult is a perfectly valid way to lead one's life. The thing is most "christians" i've met are the biggest hypocrates. Go figure.

But love Jeebus nevertheless.

tinyurl.com/2a5vv

94   HARM   2006 Jun 9, 10:52am  

@SP, SFWoman & LILLL,

Yes, we've had a number of discussions in the past about the Bible-belt/obnoxious proselytizers "thing", and I've personally had a few with the wife as well.

I agree that it's a valid concern for us Godless west coast fornicating L-I-B-E-R-A-L-S (meaning anyone culturally to the left of James Dobson) IF you're thinking of moving to a rural area in the deep-deep South (banjos anyone?). However, as someone who has actually lived in the South and has the bulk of my family there, I can reassure you that they don't pillory and/or roast socially progressive-thinking CA transplants in the town square (usually). :-)

WW2 can probably explain it to you better than I, but living in a major city in the South (Atlanta, Raleigh, Nashville, Richmond, etc.) is a lot like living in a big city anywhere else in the U.S. Yes, the overall culture/political make-up trends markedly more conservative/religious, but even so, it's no problem finding a community of transplants and/or Southern social progressives like yourself. You will adapt, go to work, socialize and spend time with your family just like like you do here. Oh, and most of the big cities have theaters, operas, arts, coffee houses and live music too.

Don't be too scared by the ghosts with the pointy hats they always show on tv! :-)

95   FormerAptBroker   2006 Jun 9, 10:55am  

SFWoman Says:

> Oh, we have recruiting Jews here. The Jews for
> Jesus have an airplane with lights on the bottom
> of the wings that spell out ‘Jews for Jesus’ that
> they fly around SF at night.

Jews for Jesus are not really "Jews" they are Jewish people that hate their Jewish parents. I know two kids from the peninsula that are involved with J4J and both of them hate their parents in a big way (one even changed his Jewish first and last name)...

P.S. I've seen the Jews 4 Jesus van, but I've never seen the plane...

96   HARM   2006 Jun 9, 12:19pm  

The amazing thing is…they’re originally from Kalifornica. Figures. A$$holes.

This does not suprise me one iota. Probably trustafarian Boomers too.

97   surfer-x   2006 Jun 9, 1:52pm  

note? sure.

LILLL, LILLL, LILLL, As if life isn’t hard enough trying to feed my little family. Put a roof over their heads. Your point is well taken, but I don't think you're headed to the soup lines quite yet.

98   HARM   2006 Jun 9, 1:52pm  

He?

I think he was referring to your son.

99   Randy H   2006 Jun 9, 2:27pm  

DinOR,

Yea, our last home I think is typical of the unevenness of how the bubble will deflate. Anyone familiar with Belmont will know the general area. The not-Hallmark, not McMansion cluster enclave in the hills off Ralston before 92/280. The McMansions are still appreciating, as are the slightly older homes in swankier Hallmark. But all those streets with 1950s/60s homes are dropping pretty quickly right now. I know that one of my old neighbors is seriously bummed. He wanted to sell when he thought he could get about $1.2M but he was talked out of it. He tells me now that their realtor doesn't want to list it for more than the high 900Ks. I zillowed him and it shows a range from low 800s to mid 900s and falling fast.

Like I said, Zillow is pretty flawed in how it extrapolates trend. It over-exaggerates volatility.

100   Randy H   2006 Jun 9, 2:41pm  

LILLL,

People come and just MAKE trouble! Why? We’re all in the same bowl of soup and they keep poisoning it!
QUIT POISONING THE D@MN SOUP PEOPLE!
A little respect for your fellow man. (woman)
Perhaps I’ll never understand people.

I think the contemplative answer is tragedy of the commons. I think the economic answer is unaccounted for externalities. I think the cynical answer is Ayn Rand was right. I think my answer is that people suck

101   Different Sean   2006 Jun 9, 2:49pm  

John Haverty Says:
He can never be a politician, a lawyer, a realtor, a judge, a sheriff, a general contractor or a management consultant then.

I've come to realise this is all too true in this life. (You forgot salesman and middle or senior management.) It's 'survival of the fakest' in the new social Darwinist world. It's as though there's a gene for dissembling that only some of us get. Altho Robert Ardrey, or was it Konrad Lorenz, points out that deception is an inherent part of nature for survival, come to think of it - to protect territory, food and offspring. (Need to check my yellowing acid paper books from the flea market...)

102   HARM   2006 Jun 9, 2:56pm  

Like I said, Zillow is pretty flawed in how it extrapolates trend. It over-exaggerates volatility.

Interesting. So Zillow's price algorithm is basically Reflexivity on steroids. But now the setting on the RE feedback loop has changed from "up up up" to "down down down".

Nice.

103   Randy H   2006 Jun 9, 3:01pm  

HARM,

I think it's just that as some areas are actually starting to trend down now we can see how Zillow is flawed. Vacillate wildly, apologies to Morrissey.

104   HARM   2006 Jun 9, 3:05pm  

This is OT, but apparently Ha Ha has made a movie:

HA HA HA America

I can't say it lifts my spirits, though... :-(

105   Randy H   2006 Jun 9, 3:06pm  

LiLLL

All that matters in the end is that you are leading the life you believe is ethical and just. I know that norms are normative, but that doesn't mean they are virtuous.

Straying from the herd can be perilous, but it can also save your life at times.

106   Different Sean   2006 Jun 9, 3:09pm  

And worst of all, housing has begun the slow process of falling into oblivion. What follows will likely be the worst depression in many generations, a world-wide depression. Depending on how this unfolds, it may be a time of many revolutions and utter chaos. Sort of like the Great Depression on roids, with a twist. Get some guns, because you may need them.

right, will do...

107   Randy H   2006 Jun 9, 3:24pm  

Sort of like the Great Depression on roids, with a twist. Get some guns, because you may need them.

I'm just going to buy a couple of fiddles and some Belgian ale, and invite DS over to help provide the soundtrack to Armageddon.

108   Randy H   2006 Jun 9, 3:33pm  

...comments stuck in moderation have been approved.

109   Different Sean   2006 Jun 9, 3:34pm  

i was going to suggest drinking as the obvious solution, too ;)

I'll bring my copy of 'Eleven - A very loud compilation from JJJ-FM' and the combined works of Tool...

110   Randy H   2006 Jun 9, 3:40pm  

I think we'd get on well in RL despite our disagreements in the blogosphere, DS. I'll bring some Rammstein and Einstürzende Neubauten for good measure...

111   Randy H   2006 Jun 9, 3:48pm  

Randy H going to Ohio

I'll be paying homage to my roots for the next week. For those denizens of the Bay Area who've never visited the Heartland or been anywhere in the flyover states beside the airport, I highly recommend a semidecadal visit to Ohio. I promise it will anchor your perspective in ways you cannot imagine.

Be well everyone.

112   surfer-x   2006 Jun 9, 3:52pm  

Randy H, I recommend San Sebastian Grand Cru, amazing. So good you don't know if you should drink it or rub it on your self.

113   Unalloyed   2006 Jun 9, 4:11pm  

So far in this thread, my favorite is Haverty's rant about the hippies. Sat here laughing. Way to go dude.

114   Different Sean   2006 Jun 9, 4:11pm  

i'm aware it's 10.30 pm on friday night and lager frenzy time, whereas it's sat morning grumpy hangover time for me :(

but i was going to suggest an audioconference in the interests of trans-pacific harmony more than once...

i'm not the wry, cynical, permanently regressed cool geek i pretend to be here, you know...

oh, re the blogspot hijacking query, you'll have to pull my e-mail from here and send a note, i haven't geared up with thread management permissions yet...

115   Different Sean   2006 Jun 9, 4:18pm  

John Haverty Says:
By the way, I have told people time and time again pay a premium for non-China (PRC) product! I want to buy made in USA/Japan/Swiss/Germany/South Korea - even Taiwan!

Feeding the PRC was a very bad idea, its like transferring power from one superpower to another.

woops, just bought an LCD widescreen TV, digital tuner and HDD recorder/DVD burner from PRC, for about 3/5 regular price. sorry about that...

a speaker at politics in the pub the other week simply said 'in 10 years, China will be THE superpower, no question'. good thing Oz gets on with 'em -- we're all set up to be their entrepot clearing house, not to mention exporting mountains of iron ore ;)

116   Different Sean   2006 Jun 9, 4:38pm  

James Squire brews are highly recommended, particularly amber ale and golden ale - and the indian ale comes in at 5-6%!

http://www.malt-shovel.com.au/frames.asp?page=brewery.asp

hmm, keep meaning to tour their brewery...

117   surfer-x   2006 Jun 9, 5:15pm  

St. Sebastian Grand Cru?

Yup that's the stuff, amazing.

I don't buy Chinese, PRC items.

118   Peter P   2006 Jun 9, 5:20pm  

I don’t buy Chinese, PRC items.

I do not care where things come from, so long as they are legal.

119   StuckInBA   2006 Jun 9, 6:00pm  

I wish I could have responded to Face Reality and Fake P during the exchanges. But I am busy doing more important stuff, like following that small itsy bitsy, tiny sporting event happening in Germany.

Evergreen in San Jose was a hot area, I mean real HOT. Fully supported by Techie Indo-Chinese people, buying newly constructed McMansions. The house prices almost doubled from 02-03 to 2005. One can make arguments on both sides about that area's desirability.

The inventory, per ZipRealty has jumped from around 150 in the begining of the year to around 350 !

One particular street in this area seems to be having problem. I have not been there. All this info is from ZipRealty.

Here goes. 4 houses on the same street, with drastic price reductions, and on the market almost forever.

----- Listing 1 MLS #: 620710
1398 THORNBURY LN, San Jose - Evergreen, CA 95138
Price Reduced: 06/09/06 -- $1,350,000 to $1,250,000
Days on Market: 58

----- Listing 2 MLS #: 618033
1199 THORNBURY LN, San Jose - Evergreen, CA 95138
Price Reduced: 04/12/06 -- $1,161,900 to $1,100,000
Days on Market: 70

----- Listing 3 MLS #: 611550
1267 THORNBURY LN, San Jose - Evergreen, CA 95138
Price Reduced: 04/06/06 -- $1,185,000 to $1,149,900
Price Reduced: 06/09/06 -- $1,149,900 to $1,079,888
Days on Market: 101

----- Listing 4 MLS #: 608331
1357 THORNBURY LN, San Jose - Evergreen, CA 95138
Price Reduced: 03/06/06 -- $1,235,000 to $1,195,000
Price Reduced: 04/07/06 -- $1,195,000 to $1,155,000
Price Reduced: 06/06/06 -- $1,155,000 to $1,050,000
Days on Market: 115

Do I need to say anything more ?

120   Different Sean   2006 Jun 9, 6:05pm  

oops, made the mistake of only reading the last 50 posts to catch up... sorry to hear about your situation, LILLL - and I was blithely musing on the biological roots of dishonesty. Maybe the small claims court system? Apart from SCC, under the Dept of Fair Trading here, you can complain about a registered business and, if the problem remains unresolved, get a hearing for only $10 resulting in an order to pay if you're found to be in the right - most businesses don't even bother showing up, cos they know they're going to get their asses kicked. is there anything like that there? only probs might be interstate jurisdictions... cost of lawyers is insane in US too, tho you can probably represent yourself in SCC -- which are meant to be short and sweet hearings and over and done with; perhaps showing the intent to get on with it by starting a process will frighten the company, as they probably operate under the ppl that most people will write the money off and not follow through on their scam...

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