THE DEFINITION
The act of enabling banks to profit through falsified appraisal fees at the expense of the borrower. Created when Andrew Cuomo literally blackmailed both FNMA & Freddie Mac and sold it to the public under the guise of “consumer protection”.
THE SCAM
Your appraisal is bid out to the cheapest appraiser based upon the highest profit to the bank rather than locating the appraiser with the most experience. The borrower is billed $500 yet in reality the appraiser was only paid $200.
The lender lies to the consumer on the HUD-1 closing statement about the appraisal fee stating that the cost was $500.
The bank owned AMC (appraisal management company) pockets $300 in profit for it’s parent company.
The homeowner or buyer becomes the beneficiary of an appraisal completed by one of the least competent appraisers in their area yet they were billed nearly 50% more than the going rate for a good appraisal.
“Current federal disclosure forms don’t tell you where that money [your appraisal fee] is really going. There is just a single line item for appraisal charges on the standard HUD-1 settlement statement. Say you’re charged $550. There is no hint that the appraiser may be getting $250, with the rest going to the management company and the lender.
Ken Harney ~ Syndicated columnist of “The Nations Housing” in The Washington Post “
Question For Andrew Cuomo: Was putting “the truth” back into the “Truth In Lending Laws” ever a consideration when you forced FNMA & Freddie Mac to sign off on HVCC?
Likely Answer: Not really. Truth in lending laws were meant to give the the consumer the illusion of a fairness. In reality the laws are similar to the Pirate’s Code in the movie Pirates Of The Caribbean; more of a guideline than a law.
“The lender is able to outsource a significant responsibility” — the selection of an appraiser — “to an affiliated subsidiary, and profit from that task by making the consumer and the appraiser pay for the privilege. [This] business arrangement is concealed from the consumer/borrower, and the charge is misrepresented as an ‘appraisal fee’ on the HUD-1. This is dishonest, deceitful and unfair.
Frank Gregoire ~ Past Chairman Of Florida State Appraisal Board”
MEDIA COVERAGE ON “THE CRIME OF THE CENTURY”
Are You Paying $500 For A $200 Home Appraisal? ~ Fox Business News
New Crime So Profitable That Bankrupt Subprime Lenders Are Fighting Banks For A Seat At The Table ~ MSN
Are You Getting Your Money’s Worth With Appraisal? ~ Los Angeles Times
Why It’s Good To Be Apprised Of Where Appraisal Fees Go? ~ Washington Post
Did Andrew Cuomo Make A Sweetheart Deal At The Expense Of Consumers?
Bank AMCs Immediately Flipped Middle Finger At Congress And Consumers…”
NAIHP Files Complaint Over Blackmailing Of FNMA & Freddie Mac By New York Attorney General
FIGHTING BACK
Forward a link to this site to homeowners that you care about. Ask them to sign the petition.
Mention the site on your favorite blogs or social media pages.
Create a post on Topix Forum for your city to help guide your fellow sheep away from the slaughter. By taking 5 minutes of your time you can easily lead 10 to 1,000 angry homeowners into the fold who are willing to fight back.
Email your local, regional, or national media agencies and ask why they refuse to cover this crime against homeowners.
Disclaimer: Our web site is opinion based upon the evidence that we are providing. We have spent four years researching the facts before presenting you with the articles & videos found on this site. We invite you to do your own research before deciding whether or not consumers as well as the entire real estate industry were transformed into victims. We believe that your research will lead you to understand that greed rather than consumer protection was the only motive behind this crime. The primary goal of this web page is to educate homeowners on one of the most unbelievable schemes devised by lenders to defraud homeowners. The site also provides homeowners with a petition to voice their outrage.