Friday, June 8, 2007

Ohio A.G. Cracking Down On Appraisal Inflation

The state of Ohio has filed suit against ten mortgage brokers and lenders for causing undue influence on appraisers.

From the Ohio Attorney General's Office: “Attorney General says appraisal inflation is the nasty truth of mortgage fraud

“The complaints state that these companies have committed unconscionable acts or practices in violation of the Consumer Sales Practices Act by knowingly compensating, instructing, inducing, coercing, or intimidating appraisers for the purpose of improperly influencing the independent process.”

This undue influence results in the consumer owing more money on their mortgage than their house is actually worth, which prevents the consumer from refinancing the house when their loan interest rate increases or mortgage rates drop. The homeowner is then trapped in a loan they cannot refinance and a house with a sale value less than the outstanding balance of the loan.”

“‘Predatory lending is driving Ohio’s shameful home foreclosure rate. Today’s crackdown on appraisal fraud will help protect consumers and move us one step closer to driving unscrupulous lenders out of our communities,’ said Ohio Attorney General Marc Dann.”

The Ohio Attorney General's Office Press release can be found here.


ACE MORTGAGE FUNDING, LLC - Cincinnati, Ohio (Suit filed in Hamilton county)

PREMIERE SERVICE MORTGAGE – West Chester, Ohio (Suit filed in Butler county)

ISLAND FINANCIAL, LLC – Twinsburg, Ohio (Suit filed in Franklin county)

SAGE CREDIT COMPANY, LLC – Irvine, California (Suit filed in Franklin county)

WALL STREET MORTGAGE BANKERS – East Rockaway, New York (Suit filed in
Franklin county)

ALL LINE APPRAISALS – Phoenix, Arizona (Suit filed in Franklin county)

APEX MORTGAGE SERVICES, LLC – Columbus, Ohio (Suit filed in Belmont county)

AMERICAN HOME BROKERAGE, CORP.- Garden Grove, California (Suit filed in
Franklin county)

filed in Belmont county)

FIRST OHIO BANC & LENDING, INC. – Independence, Ohio (Suit filed in Belmont

Update: Video available courtesy of Bubble News Network.

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