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BrokerCA
2396 Posts |
 Posted - 07/25/2008 : 1:37:16 PM
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The chief commercial appraiser for Indy Mac in 2001 and 2002 details his experiences. He was terminated for failing to look the other way or actively engage in fraud.
It is a bit long but worth the read as it details
Fraud:
• Underwriting loans based on appraised values well above purchase prices;
• Fabricating rent rolls for commercial properties to be appraised;
• Over-stating Construction work as 80% complete versus 15% in actuality;
• Attempting to change discounted cash flow models for subdivisions in order to increase appraised value;
Criminality:
• Attempted intimidation of Appraisers;
• Providing false information to appraisers;
Conflict of interests:
• Appraising a development where the land was being purchasing from David Loeb, IndyMac’s Chairman of the Board;
• On one transaction, the CEO's father and father-in-law were commercial construction inspectors for the firm; the loan officer was the CEO's brother (a former police officer with no loan experience);
http://appraisersforum.com/showthread.php?t=141764 |
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VVance
2282 Posts |
Posted - 07/25/2008 : 5:31:51 PM
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I was reading this earlier. I'm not surprised by it from some of my experiences with their retail.
Odd how this story got little play in the media. |
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ritabradley01
2901 Posts |
Posted - 07/25/2008 : 7:33:58 PM
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| I think I posted this a few days ago but definitly worth another post. |
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