Ohio Suing 10 Mortgage Companies Over Pressuring Appraisers
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The State of Ohio has declared war on improper appraisals in the attempt to stabilize it’s difficult housing market. Ohio’s Attorney General accuses 10 company’s for setting a specific estimated value on properties and then communicating that value to the appraiser as the target to hit. The act of influencing an appraiser is illegal in Ohio.
With foreclosures rising quickly in the state, they were up 135 percent in April, Ohio is trying to stop inflated appraisals from putting homeowners deeper in a hole. If the home is mortgaged for more than the market will bear, the homeowner typically will not be able to sell if financial difficulties occur and the home will be forced into foreclosure.
The lawsuits seek 25,000 from each of the defendants, 7 mortgage brokers, 2 lenders, and an appraiser. They are:
- Ace Mortgage Funding LLC in Cincinnati
- American Home Brokerage Corp. of Garden Grove
- Apex Mortgage Services LLC in Columbus
- First Ohio Banc & Lending Inc. of Independence, Ohio
- Island Financial LLC of Twinsburg, Ohio
- Premiere Service Mortgage Corp. of West Chester, Ohio
- Robert C. Roach, president of The Valley Mortgage Group of Austintown, Ohio.
- Sage Credit Company LLC, Irvine, California
- Wall Street Mortgage Bankers Ltd. East Rockaway, New York.
- All-Line Appraisals of Phoenix, which arranges property valuations for lenders and other clients, was also sued.
via the OC Register
While this is no surprise to those in the trenches, there is going to be a backlash on appraisals that are made to hit the target dollar amount. Honestly in the appraisal business is important for the market to work. You are not doing a favor to the homeowner by appraising a property over the true value in a stagnant market. If difficulties befall the homeowner, they will not be able to sell will be forced into foreclosure.
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Thanks for the value! 
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Comment by Mrs. Crawford on 9 December 2007:
I think that the suspects and I mean suspects should be charged criminally and civil courts as what they have done has caused alot of harm to homeowners just trying to increase their income potential by purchasing homes. It is truly a crime and will come back on them in many ways. Not to wish anyone harm, but when you do wrong it will haunt you until you make it right, and after the damage is done, there is no turning back. People who play with the fate of someones future has blood on their hands. Those purposely taking away the future of poor people will be devastaated over their own suffering, so you that have done the crime don’t be supprised if you begin to experience issues that are out of your control.
Comment by Layla on 11 July 2008:
I’m glad to see Ohio is getting serious over mortgage companies over-stepping their bounds.