Tagged: foreclosure

Appraiser Bias Allegations Unmask Nonbank Lenders Debt Traps 10

Appraiser Bias Allegations Unmask Debt Traps

Claims of tainted appraisal unmask something else… the renewed “churning” of mortgages by nonbank lenders. Convinced racism torpedoed valuations in their home refinancings, the owners of three properties in the San Francisco Bay Area told their stories to Julian Glover, a reporter who covers the race, culture and social justice beat for ABC’s San Francisco affiliate. Similar claims of tainted appraisals have surfaced in Philadelphia, Chicago and, more recently, Maryland. A civil lawsuit was filed in one of the cases in a federal district court. A claim was dismissed Wednesday based on a flaw unrelated to the case’s core allegation...

Only Blacks Need Apply... in the Spirit of Equity 39

Only Blacks Need Apply… In the Spirit of Equity

Fannie makes its subsidies for blacks explicit, but they don’t appear to extend to other racial groups such as Hispanics and Asians. Low-income white borrowers are also excluded. Last week, Fannie Mae & Freddie Mac announced actions that aim to make it easier to buy a home and close the racial homeownership gap. Their Equitable Housing Finance Plan for 2022-2024 outlines a range of pilot programs that remove barriers blacks face when buying or renting, and keeping homeowners and renters at home: Valuation Modernization aims to support an equitable appraisal process for Black households and communities of color Expand Appraiser...

First Known Racial Bias Court Case Against Appraiser 22

First Known Racial Bias Court Case Against Appraiser

It may mean that this will turn out to be the bellwether test case for other similar lawsuits against appraisers… Folks, a San Francisco, CA US District Court Judge has ruled that the bias suit against an appraiser can proceed. This link has the story: Judge finds plausible race discrimination in Black couple’s lawsuit over lowball appraisal | Courthouse News Service Appraiser Janette Miller with Miller and Perotti Real Estate Appraisers was hired by appraisal services company AMC Links to do the inspection in January 2020. The Austins’ lawsuit, filed this past December, claims Miller valued their home at $995,500...

Open Letter to Mortgage Lenders - Your Appraisal Management Company 22

Open Letter to Mortgage Lenders

How much vetting have you done on the appraisal management company? How involved are you as the lender in the day to day activities of the appraisal management company?… The world has changed and most everything in our lives involves technology. The technologies available to each of us are tools. They are not a more reliable means, merely more convenient. Human thought and analysis is still required in every aspect of life. When the Final Rules of the Dodd Frank Legislation went into effect, many lenders chose to use appraisal management companies with the false idea they had no liability for...

7 Myths of the Great Financial Crisis & the Elite Fraud Schemes 4

7 Myths of the Great Financial Crisis

1. Fraud is a distraction Elite fraud and predation drove the Great Financial Crisis (GFC). By 2006, about 40% of all the mortgage loans made that year were “liar’s” loans – loans that did not verify the borrower’s income. The mortgage industry’s own anti-fraud experts (MARI) warned that the fraud incidence in these loans was 90%. In response, the industry rapidly increased its liar’s loans. In 2006, the industry made over one million fraudulent liar’s loans. Thomas Herndon’s 2017 study found those loans produced 70% of the mortgage losses. Liar’s loans hyper-inflated the bubble, increasing over 800% from 2003-2006. State...

The Honest Appraisers Warnings Should Have Prevented the Global Financial Crisis 4

Honest Appraisers Who Risked Their Careers

Meet the Honest Appraisers Whose Warnings Should Have Prevented the Great Financial Crisis The honest appraisers’ warning was ideal. It was timely, blunt, courageous, and unambiguous. If the regulators had acted on the warning, there would have been no Great Financial Crisis (GFC). Unfortunately, the Presidents Clinton and Bush (II) appointed financial regulators because they were anti-regulators, so they ignored the appraisers’ warning. From 2000 to 2007, a coalition of appraisal organizations … delivered to Washington officials a public petition; signed by 11,000 appraisers… [I]t charged that lenders were pressuring appraisers to place artificially high prices on properties [and] “blacklisting...

The Con, We Were All Sold a LIE 11

The Con, We Were All Sold a LIE

The Con, a 5 part docu-series premiering August 5, 2020 at 8pm EDT, is an in-depth investigation into the 2008 financial crisis nine years in the making. Through interviews with regulators, former officials, foreclosure victims, industry whistleblowers, and journalists, THE CON connects the dots to what America used to be and where we’re headed in 2020, as nearly 40 million Americans are currently claiming unemployment. Stay tuned for a live conversation with the filmmakers and voices from THE CON after the screening. William Black: “Most things viewers “know” about the Great Financial Crisis (GFC) are false…. The GFC was not...

CFPB Wants to Eliminate the Debt to Income Requirement - Not AGAIN 5

Playing Fast and Loose With Credit?

CFPB is moving forward with proposing to eliminate the Debt to Income requirement… Appraisers, prepare yourself for what we are about to share. The short sighted proposal is simply nonsensical from every angle. The Consumer Financial Protection Bureau wants to eliminate the Debt to Income requirement on Qualified Mortgages. You may recall this was proposed a while back and most of the profession objected strongly. Letters, emails and phone calls were made and this absurdity went away. Earlier today CFPB Director, Kathy Kraninger announced the CFPB is moving forward with proposing to eliminate the Debt to Income (DTI) requirement and...

Sharestates Seeks to Overturn NY Appraiser-friendly Statute of Limitations 15

Lender Seeks to Overturn NY Appraiser-Friendly Statute of Limitations Law

Sharestates operates a crowdfunding platform that provides alternative mortgage lending secured by both residential and commercial real estate. Over the last 10 years, it has reported average annual returns for loan investors ranging from 9.24% to 11.02%. With returns like these, there is likely some loan risk – and Sharestates reports a current foreclosure rate of 2.44%. Following several of its foreclosures, Sharestates has filed professional negligence cases against about a dozen defendant appraisers, appraisal firms and appraisal management companies, blaming the loan losses on inflated appraisals. Last year, it lost one of those cases in a Nassau County, New...

War on the Appraisal Industry. Another Great Real Estate Depression 11

The Collective Rot

Over 11,000 appraisers signed that petition… The US Congress completely ignored it and, as a result, The Great Real Estate Depression followed. Déjà vu: Or is it Déjà Poo (I’ve heard this crap before)? The Collective Rot Growing Within the Shadows of the Great Real Estate Depression We are just 11 years past the beginning of the Great Recession. Some estimate the US suffered a $14 trillion loss in wealth. Others estimated the loss as high as $21 trillion. This event is more commonly referred to as The Great Real Estate Depression by those of us who are or were in the real estate industry...

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