Examples of such concerns include: "Failure to obtain current appraisals or perform adequate appraisal reviews"; "Bank frequently relied on stale appraisals"; "Inadequate control of the lending function, including appraisals"; and "Poorly explained upward adjustments to the appraisal values
SEATTLE, April 14 /PRNewswire/ -- Today two real-estate appraisers filed a proposed class-action lawsuit against Wells Fargo and Rels Valuation, an appraisal management service, claiming the two organizations pressured and intimidated appraisers to deliver artificially inflated home appraisal values
to help close loans and increase profits.
City Engineer Robert Newman said initial offerings to property owners were based largely on appraisal values
for raw land, but settlement negotiations have and will take into account the landowners' claims of financial hardships.
have also risen, and banks have in turn responded.
After calculating the value of the business, this number should be examined closely for the following items: appraisal values
that depend on the buyer making large down payments; and valuations based on apparently unreasonable projections of future growth in cash flow, since it depends on reduced expenditures or increased revenues.
Based on reports, HBSS believes Richmond American Homes artificially inflated the home appraisal values
of new homes with Countrywide, driving up home sale prices and pushing unsuspecting homeowners into dangerous loans.
Such forward-looking statements include, but are not limited to, statements regarding appraisal values
and prices of featured products, the ability of customers to purchase items at discounts to appraisal values
, and such other risks as identified in our Form 10-K for the year ended December 31, 2004, and all our subsequent filings with the Securities and Exchange Commission, which contain and identify important factors that could cause the actual results to differ materially from those contained in our projections or forward-looking statements.
The lawsuit, which comes against 22 defendants, ranging from appraisers and banks to mortgage companies and builders, alleges deceptive lending practices including inflated appraisal values
by 35 to 45 percent.
One of the problems affecting the real estate business -- and the economy -- has been appraisal values
Recent appraisal values
of the properties indicate significant losses are likely upon liquidation.
Lenders also can use Appraiser Assisted Collateral Market Value to help combat inflated appraisal values
by checking the accuracy of the appraisals used on incoming loans as well as for portfolio reviews or to verify the collateral's value on a delinquent account in the loss mitigation process.
Included in 1993 results were provisions for losses aggregating $1,263,000 which included $584,000 in write downs on real estate owned by the company to reflect reduced appraisal values
and $665,000 in write downs for an improved ranch property that is currently under contract to sell.