Homeowners had no control over inflated appraisals – they were induced by the imaginary equity created by the banksters that controlled the appraisers. Banks treated homeowner equity like stocks. Sell some off some of the equity and pay your credit cards, buy a new car, buy a second home… They knew it was inflated. Just ask any mortgage broker. They just didn’t tell you.
And how ’bout that $85 million Fifth Third settlement last month involving an appraiser that ratted out, uh, blew the whistle on, his former employer? (It isn’t a stretch to forecast that tattle-tales, uh, whistleblowers, are a likely threat to those who remain in MSAs.) Snide comments aside, many believe that this type of activity levels the playing field for companies above reproach. Dave Gallegos sent along this story from Isaac Peck. “In what many see as a win for appraisers, as well as those lenders and appraisal management companies (AMCs) that do follow the law, Fifth Third Bank has agreed to pay nearly $85 million as part of a settlement with the U.S. Department of Justice (DOJ). The case deals primarily with fraudulent appraisal practices. The lead whistleblower in the case is George Mann, Fifth Third’s former chief appraiser.
“The settlement is the latest in…
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