NEWS in the
UM3ER5
–˙
FOUL PLAY
Fraud study shows importance of competence and ethics
Economic and
market data
DISCIPLINARY ACTIONS AGAINST APPRAISERS
2005
2006 0
2007 0
2008 0
2009
A NEW STUDY INDICATING THAT REPORTS OF MORTGAGE
FRAUD in the United States increased 7 percent from 2008 to 2009
shows why lenders need to hire competent, ethical appraisers, Appraisal
Institute President Leslie Sellers, MAI, SRA, said.
“These results are further evidence that lenders need to reconsider who
they engage to perform appraisal assignments,” Sellers said. “The best way to
mitigate real estate valuation fraud is to hire a competent, ethical appraiser.”
Sellers was reacting to the 12th Periodic Mortgage Fraud Case Report by
Mortgage Asset Research Institute, a LexisNexis® service, issued April 26 at
the Mortgage Bankers Association’s annual National Fraud Issues Confer-
ence in Chicago.
The Appraisal Institute’s own research has found that disciplinary actions
against appraisers, as reported by the Appraisal Subcommittee, have
increased each year since 2005. There were 2. 6 times as many disciplinary
actions from Jan. 1, 2005, to April 1, 2010, as in the previous five-year period.
The Appraisal Institute’s research is based on an analysis of data found in
the Appraisal Subcommittee National Appraiser Registry.
For the full fraud case report, visit www.lexisnexis.com/risk/
downloads/literature/MortgageFraudReport-12thEdition.pdf.
