Appraisal Fraud - Most Cases Not Investigated

Realty Times author Lew Sichelman reports in his article "Most Fraud Charges Not Investigated": "A lack of enforcement at the state level is a major reason appraisals remain at the root of mortgage fraud, said panelists at a symposium sponsored by the Appraisal Foundation earlier this month."

Included in the story are comments from Mark Simpson of Fannie Mae; Douglas Vincent, executive VP and chief collateral officer at Countrywide Bank; Richard Powers, president of the Appraisal Institute; Santa Rosa, Calif., attorney Rachel Dollar; and John Arterberry, executive deputy chief of the fraud section in the Treasury Department's criminal division.

Of course each of the participants have their own perspective on the issue of appraisal fraud and the best ways to solve the problem.  Some solutions include:

1. Referring complaints to state agencies by lenders and 3rd party investors
2. Creating one regulatory agency to "police" the appraisal business
3. Increased punishment ("more than just slaps on the wrist") for appraisers
4. Legislation (H.R. 1295, Responsible Lending Act) prohibiting coercion.
5. Enhanced professional organization standards