You have probably heard about RoboSigners in the news….the
foreclosure mills that had people signing hundreds of foreclosure
papers every day.
Well now Robo-Appraisers have come home to roost….
Automated Values (AVs) or E-Appraisals were all the rage at the height
of the market.
An AV is a statical model value like Zillow only supposedly more sophisticated.
If your house met Electronic Values for a loan you didn’t have to get
Banks loved them… Why pay a person to appraise the house when a
computer can do it!
But that meant no one really looked at the house with a critical
eye… They have the same issues as Zillow’s Zestimate.
Who knows if the subject property has a new roof or is it falling
down, is it a new house or eaten by termites, is it on a golf course
or does it back to a main road, are the kitchen counters stone or
Formica? There is just no way a computer can know information that is
not in a data base.
No surprise that they were ripe for fraud.
Now the FDIC has filed suit against two companies that managed AV
units… Core Logic and Lender Processing Services.
Funny that they were allowing these loans- even encouraging them when
the market was going up every week.
Now they want someone else to be accountable….. Read more here:
Barry Bevis, Broker/Realtor
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