On the front lines against mortgage fraud
Mortgage fraud has made headlines locally and nationally. Most of the
time, mortgage fraud involves identity theft or fraud — making a
borrower appear to be somebody else, with a better job, more income
or fewer debts. Somebody more creditworthy.
But some mortgage fraud involves a broker or loan officer telling the
mortgagee — the lender — and the borrower that the house is worth
more than it is. This way, they can close a larger loan and make a
bigger commission. Since real estate agents also usually make a
percentage of the sale as commission, sometimes they can be
involved.
In reality, most loan officers, mortgage brokers and real estate
salespeople are ethical and would never think of engaging in
mortgage fraud. But mortgage fraud of this type always originates with
one of the parties who makes a commission on a closed sale.
Sometimes, fraud like this can be accomplished without an appraiser
involved. Honest, professional appraisal reports are simply altered, or
honest, professional appraisers' signatures forged. But in reality, a
complicitous appraiser often makes it easier to perpetrate mortgage
fraud. At the same time, appraisers are also homeowners', lenders'
and the economy's best defense against mortgage fraud.
Appraisers are paid a set fee for their work whether a deal is closed or
not. Appraisers are hired by and work for the lender that is considering
loaning the money to buy a house. That lender is interested in an
objective, third party, professional opinion of the true value of the home.
The lender needs to know that if the borrower defaults, the collateral
used to secure the loan — the house — is valuable enough to cover
their loss.
Mortgage fraud has made headlines locally and nationally. Most of the
time, mortgage fraud involves identity theft or fraud — making a
borrower appear to be somebody else, with a better job, more income
or fewer debts. Somebody more creditworthy.
But some mortgage fraud involves a broker or loan officer telling the
mortgagee — the lender — and the borrower that the house is worth
more than it is. This way, they can close a larger loan and make a
bigger commission. Since real estate agents also usually make a
percentage of the sale as commission, sometimes they can be
involved.
In reality, most loan officers, mortgage brokers and real estate
salespeople are ethical and would never think of engaging in
mortgage fraud. But mortgage fraud of this type always originates with
one of the parties who makes a commission on a closed sale.
Sometimes, fraud like this can be accomplished without an appraiser
involved. Honest, professional appraisal reports are simply altered, or
honest, professional appraisers' signatures forged. But in reality, a
complicitous appraiser often makes it easier to perpetrate mortgage
fraud. At the same time, appraisers are also homeowners', lenders'
and the economy's best defense against mortgage fraud.
Appraisers are paid a set fee for their work whether a deal is closed or
not. Appraisers are hired by and work for the lender that is considering
loaning the money to buy a house. That lender is interested in an
objective, third party, professional opinion of the true value of the home.
The lender needs to know that if the borrower defaults, the collateral
used to secure the loan — the house — is valuable enough to cover
their loss.
We're On Your Side
Appraisers do not work for individual, commissioned loan officers, mortgage
brokers or real estate agents. If they did, there would be too much pressure
to "make the deal work," rather than arrive at a professional, considered
opinion of the market value of the property. Appraisers also do not work for
borrowers, at least in the context of a mortgage loan. But borrowers work
closely with mortgage brokers, loan officers and real estate agents, and
benefit the most from a third party, objective valuation of the home they want
to buy.
If something catastrophic happens, such as a job loss, illness, divorce or
death, and a borrower can no longer make payments on the home they've
mortgaged, they will need to be able to sell the home for enough money to
cover the balance of their mortgage. So, nobody benefits more from an
appraiser's professional opinion of value on a home than the new
homeowner, even though there is no direct client relationship.
Like some mortgage brokers, loan officers and real estate salespeople,
some appraisers are "bad apples" and will agree to go along with a scheme
to defraud lenders and homebuyers so bigger commissions can be had.
Not us, and not the vast majority of appraisers. Again, the appraiser is paid a
set fee whether the loan closes or not, and does not work for any of the
commissioned parties to the transaction. Appraisers are therefore a
homeowner's, and a lender's, best front line defense against mortgage
fraud.
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| Mass Appraisals 11 Meadowview Road, Foxboro MA 02035 Phone (617)620-6061 Fax (775)587)0091 Email info@massappraisalonline.com |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
We are the best place to order a real estate appraisal from a certified real estate appraiser in the Massachusetts area. For a real estate appraisal in massachusetts or from a real estate
appraiser massachusetts or a real estate appraisal boston from a real estate appraiser boston call us. If you want to know what your property or estate is worth a real estate appraisal of
your home in MA, we will give you the best estimate of value for your home. Whether you need a land appraisal or a home appriasal to determine the value of your house in
Massachusetts we can help. Realtors don't always give you the most accurate value estimate of your property. Real estate appraisers know how to value your home and take into account
the current real estate market conditions. Mortgage companies, banks, homeowners who are in the Massachusetts area use our appraisal services, including Norfolk, Worcester, Suffolk,
Plymouth, Bristol, Hamden, Middlesex, Essex, Barnstable, Berkshire, Hampshire, and Franklin counties.
appraiser massachusetts or a real estate appraisal boston from a real estate appraiser boston call us. If you want to know what your property or estate is worth a real estate appraisal of
your home in MA, we will give you the best estimate of value for your home. Whether you need a land appraisal or a home appriasal to determine the value of your house in
Massachusetts we can help. Realtors don't always give you the most accurate value estimate of your property. Real estate appraisers know how to value your home and take into account
the current real estate market conditions. Mortgage companies, banks, homeowners who are in the Massachusetts area use our appraisal services, including Norfolk, Worcester, Suffolk,
Plymouth, Bristol, Hamden, Middlesex, Essex, Barnstable, Berkshire, Hampshire, and Franklin counties.