Complaints against Illinois appraisers on the rise (& probably elsewhere)

[NVMojo]

and we wonder how things got so out of control ...


August 13, 2006

Appraisers are taking the heat in Illinois and nationwide for what some see as a bloating in real estate valuations.

A rising number of complaints against residential appraisers by Illinois consumers and financial institutions has spurred state regulators to ask for greater authority to crack down on abuses.

The charges include over-inflated appraisals, underestimates and criminal fraud, according to Daniel E. Bluthardt, director of the Illinois Division of Professional Regulation.

snip...

"What we have seen is a trend lately to outright fraud," he said. "Some is being conducted by people who are not licensed, but are using the names and license numbers of legitimate appraisers."

Five or six of these criminal cases are under investigation by the state, he said. When information of criminal fraud is developed, it is turned over to the local state's attorney. Federal authorities, such as the FBI, might also be involved, he said.

The Secret Service arrested a Wilmette licensed appraiser and a Highland Park man in May for a scheme that involved the inflated appraisal of a decrepit house, which had been legitimately appraised at $105,000. The inflated appraisal was for $257,800 and stated that rehab work had been done, which had not, according to Russell Collett, assistant special agent in charge of the Secret Service's Chicago office. The plan allegedly was to involve default on a mortgage for the higher amount by an unnamed accomplice who was to make a few payments and then disappear, according to authorities.

more...

http://www.suntimes.com/output/hlife/hos-news-appraise13.html