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|User Info||Ratings Extortion? Maybe - And Yet More Fraud; entered at 2008-04-28 22:11:47|
Registered: 2007-07-28 If it moves TAX IT!
Reading about the rating agencies being paid to perform is no different then when I was a loan originator. If the first appraiser couldn't get the value I thanked him and faxed him a cancelation on the order. Usually the second one would come through for me but sometimes, once or twice I had to use a third. No difference here. At the end of the day it was all about getting the deal done!|
No right or wrong here. Some appraisers were just better at getting value, perhaps knew the product (the surrounding area) better then others and was able to make comparable adjustments to get the value where it was needed, all the while staying within the appraisal guidelines for adjustments set by the lender - FNMA.
Did I tell the lender I had to go to three different appraisers to get it done. Hell no, they have their own in-house review and if they didn't like something in the appraisal they would have me have my appraiser add another comparable or make a comment.
None of this was considered FRAUD it was just doing business. If you are paid on commission (like most Wall-Street) you just getter done...period!
BTW, realtors seldom order the appraisal around here as the order has to come from the originator - lender. A realtor might "know" an appraiser that is good or can help but most originators have their own list whom the know and trust to be able to either get the value or tell me straight up there is no chance in hell of getting the value. Hence, shred the file and move on...NEXT!
Last modified: 2008-04-28 22:21:01 by dkane