Appraisal Fraud Prevention

The inflated and misleading appraisal report has become the center of attention as the housing market began to cool and loan losses began to mount.

Some of the most liberal lenders have begun suing appraisers, turning them into the OREA, to the DA, DOJ or FBI.

How does an appraiser protect themselves from inadvertently playing into dangerous transactions that could lead to criminal liability?

What types of transactions can create criminal liability?

What types of clients are the most likely to be involved in criminal activity?

What type of appraisal actions lead to inflated or misleading reports?

These questions and more will be answered during the course of today’s presentation.

The following references to articles include a range of current concerns appraisers are facing. They are presented as a starting point for each to work on awareness of the breadth of the issues. Appraisers are no longer invisible. We may become more of a target.

Article References and Summaries

Do Not Use List, Article 2 FNMA Article 2 Declining Markets 2

Home Price Declines 2 Neighborhood Trends 2 Housing Market Cycle 3

FNMA Overstating Value 3 Lender takes Hard Line 4 Appraisal Fraud Articles 4

FBI Financial Crimes Pubs. 5 District Attorney Info 7 Mortgage Fraud articles 8

Appraiser Independence 13 Appraisal Fraud News 13 Sample Lawsuit against 15 Action Center Broker/Appraiser

Appraisal Due Diligence 19 How to Protect Yourself 20 Appraisal Foundation 21 Form against Fraud Charges October 2007 Q & A The Chapter Leadership List is the last page of this handout. Send an email or call them to thank them if you got some value out of this program. Appraisal Fraud Prevention Seminar 11-2-07 co-sponsored by HUD Santa Ana and the www.SCCAI.org 1 The following articles were published in www.AppraisalScoop.com. For the complete article, go there and search by Title.

Countrywide - Fannie Mae Develop Appraiser "Do Not Use" Lists http://appraisalnewsonline.typepad.com/appraisal_news_for_real_e/2007/08/runt-rants---le.html

Underwriting: Fannie Mae and The Backward Bible Many appraisers misunderstand the place Fannie Mae has in our work, and that misunderstanding helps create misleading appraisals. Declining Markets - Do you WANT me to lie!?

While cleaning out the garage on Sunday, and moving some books, one fell out and opened to a page that had this as the opening:

Truth Of Intercourse “Among sayings that have a currency in spite of being wholly false upon the face of them for the sake of a half-truth upon another subject which is accidentally combined with error, one of the grossest and broadest conveys the monstrous proposition that it is easy to tell the truth and hard to tell a lie. I wish heartily it were...... “ Countrywide: "Home price depreciation at levels not seen since the Great Depression". . . .

Supporting the "Neighborhood Trend" analysis - It's just an opinion - Right?! Little known to a large majority of currently practicing appraisers, the use and expectations of those seemingly impertinent little boxes in the neighborhood section of a FNMA/FHLMC form are now creating liabilities of an untold magnitude.

• What is inventory and supply? • What are housing prices really doing?

Appraisal Fraud Prevention Seminar 11-2-07 co-sponsored by HUD Santa Ana and the www.SCCAI.org 2 • How long is the marketing period for the average home?

After years of misuse and general neglect, the importance of fields that state conclusions pertaining to supply, demand and pricing were often overlooked during the recent period of rapid appreciation in home values and required little or no thought or support. Now, the housing market has changed and the importance of this data has recently become a major topic that is now bringing into question the competence of the average residential appraiser. Too long has the argument been made that “these fields are subjective and open to interpretation – after all, it’s only an opinion, right?” . . . . The Housing Market Cycle - Analyzing the peaks and valleys This morning I responded to a post on the Inland CA Appraisers Forum, about the Fed's statements on the Housing Markets and the Subprime melt down. The following is my take on the current cycle we are in. See if you can use this as a model in your markets to test where you are in terms of housing affordability.

When a market tanks, in this case the housing market, it is a cyle of events. Once the peak is reached, there is a slope that takes us to the bottom. The steepness of the slope increases, then slows as we reach the valley or trough. The width of the valley is dependent in any given area on the amount of over-supply and micro economic factors as well as macro economic factors, which can be impacted by the Feds. . . . Fannie Mae Announcement 07-11: Overstating Property Values In Declining Markets "An accurate value for the property securing a mortgage loan is important in all markets, but the value becomes more difficult to evaluate when the subject real estate market is experiencing a decline in property values ("declining market"). Recent trends indicate that certain markets are experiencing a decline in property values. One of the potential problems in a declining market is the overstatement of property values in appraisal reports. This may result in the borrower not having an accurate property valuation, and overvaluation of a property could increase loan losses should the mortgage loan subsequently default.". . .

Appraisal Fraud Prevention Seminar 11-2-07 co-sponsored by HUD Santa Ana and the www.SCCAI.org 3 Lender Takes Harder Line with Brokers on Fraud American Banker author Kate Berry reported today ( click here ) that Kamran Khosravi, the president of American Guardian Financial Group Inc., says his alternative-A and subprime lender has recovered $2 million this year from mortgage brokers who originated fraudulent loans. . . .

If you do a News search in any of the major search engines for “Appraisal Fraud” you will see numerous articles appearing in papers and magazines nationwide. Here are a few with links:

• Appraisers say they're pressured to inflate their estimates. - ... (CNN/Money) – Anyone who's ever bought or refinanced a home knows the sense of relief ... Appraisal fraud: your home at risk: Appraisers say they're being pressured by lenders to inflate money.cnn.com/2005/05/23/real_estate/financing/appraisalfraud/index.htm o • Appraisal Fraud - Mortgage Lenders and Real Estate Agents Appraisers have taken the lead in asking for relief from pressures that some say may be leading to a ... Appraisal Fraud: A Need To Sort Out The Victims From The Perps? 22256 www.mortgagenewsdaily.com/4252005_Appraisal_Fraud.asp o • Demos Report on Appraisal Fraud and Affect On Real Estate Market Demos, a private research firm, has issued a stunning report on mortgage appraisal fraud; the ... Demos (with a slash over the e which I could not seem to replicate) is a research institute based ... www.mortgagenewsdaily.com/4272005_Demos_Appraisal_Fraud.asp

• The Appraisal Foundation - Valuation Fraud Request a Speaker. Have a Board Member of The Appraisal Foundation speak to your group. Learn More... o www.appraisalfoundation.org/s_appraisal/sec.asp?CID=316&DID=903 • Realty Times - Real Estate News and Advice Appraisal fraud, caused by pressure on appraisers and by criminal activity, is ... appraisal industry can only be described as engineered to facilitate ...realtytimes.com/rtcpages/20050415_appraisalfraud.htm Appraisal Fraud Prevention Seminar 11-2-07 co-sponsored by HUD Santa Ana and the www.SCCAI.org 4

Appraisal fraud: Public pays high cost of 'victimless' crime Jul 18 1:24 PM About a year ago Ricardo Small received a fax asking him to appraise a house in Marana, a daily event in the life of a real estate appraiser. Like always Small grabbed his pen and pad and headed out to the property. • • How appraisal fraud costs you money MSNBC - Jul 15 8:09 PM This week, Jon in Florida is steamed at the high price of real estate, and he wants to know: where do they come up with these prices? Esther in Nevada is looking for her husband's long-lost pension. And Susan in Michigan is trying to figure out how much student debt is too much. Answer Desk, by MSNBC.com's John W. Schoen. •

• Mortgage fraud can ensnare legitimate buyers and sellers Pittsburgh Post-Gazette - Jul 13

Appraisal Fraud Database Mitigate appraisal fraud database. Free demo www.MARI-Inc.com

When FBI Comes Calling www.federalcrimes.com Fight Mortgage Fraud Crimes Charges 100% Federal Criminal Defense Firm.

AppraisalFraud.com Appraisal fraud is a site with resources for lenders, consumbers, and for appraisers with concerns about appraisals and appraisers. This site includes links ...www.appraisalfraud.com/

Since 9/11 FBI resources have been shifted away from the Housing Fraud cases, but there is still some 20,000+ cases being investigated. At their web site there are Press Releases. FBI and DOJ District Offices issue their own Press Releases:

Federal Bureau of Investigations - Publications - Financial Crimes ...

MORTGAGE FRAUD INDICATORS. Inflated Appraisals Exclusive use of one appraiser. Increased Commissions/Bonuses - Brokers and Appraisers ... www.fbi.gov/publications/financial/fcs U. S. Department of Justice Federal Bureau of Investigation

Federal Bureau of Investigation Miami Field Division Press ... US Department of Justice ... NEWS RELEASE. APPRAISER AND STRAW BUYER CONVICTED. Marcos Daniel ...

Federal Bureau of Investigation - Kansas City Field Division ... MAY 14, 2007. Lee & Summit APPRAISER PLEADS GUILTY TO MORTGAGE FRAUD CONSPIRACY. ... Federal Bureau of Investigation - Washington Field Division - ...... has sentenced a Virginia man who pretended to be a licensed real estate appraiser to 46 months in prison following the defendant’s guilty plea in March ... washingtondc.fbi.gov/dojpressrel/pressrel

Federal Bureau of Investigation - Salt Lake City Field ...... On August 24, 1999, Seymour, on behalf of the Airport, hired an appraiser to perform an appraisal of the HALL/LEFLER property. According to the appraiser ... saltlakecity.fbi.gov/dojpressrel/pressrel06/bribery070606.htm - 20k

Appraisal Fraud Prevention Seminar 11-2-07 co-sponsored by HUD Santa Ana and the www.SCCAI.org 5 Federal Bureau of Investigation - Press Room - Headline ...... the property was illegally "flipped" , bought, falsely appraised at a much higher price, and quickly by a crooked appraiser who's now in jail. ...

TWO DEFENDANTS SENTENCED IN MORTGAGE FRAUD .. Their fraud was part of a larger scheme that involved nearly 300 fraudulent ... Snodgrass, 40, of Independence, who operated a real estate appraisal business in ... USAO-SDTX-070504-Butler ... Monopoly; Patricia Lennon, 42, the operator of Ameristar Residential Appraisal Services, and ... 10, 2007and charged with conspiracy to commit mail fraud and wire ... www.usdoj.gov/usao/txs/releases/May2007/

NEWS RELEASE ... The specific count of wire fraud contained in the information charges ... an electronic fund transfer, entering the account information for Appraisal Associate’s ... DEARBORN MAN PLEADS GUILTY IN $20 MILLION MORTGAGE FRAUD ... borrower=s employment (W-2 Forms, check stubs) were bogus; the appraisal was inflated ... Khalil and Hamad used most of the fraud proceeds to buy and sell stocks

Bel Air Man Pleads Guilty to Insurance Fraud, Gun Charge and ...... Beginning as early as January 2002, Horner developed a fraud scheme where he ... the insurance company received the claim and completed the appraisal, the company ... www.usdoj.gov/usao/md/press_releases/press06/Bel%20Air%20Man%20Pleads%20Guilty%20to%20 Insurance%20Fraud,%20Gun%20Charge%20and%20Making%20a%20False%20Statement%20in%2 0a%20Passport%20Application.html - 9k - 2006-12-19 - Cached

DEARBORN MAN PLEADS GUILTY IN $20 MILLION MORTGAGE FRAUD ... borrower=s employment (W-2 Forms, check stubs) were bogus; the appraisal was inflated ... Khalil and Hamad used most of the fraud proceeds to buy and sell stocks ... www.usdoj.gov/usao/mie/press/2007/2007-5-9_kkalil.pdf - 2007-05-11 - Text Version

Suggestions to Buyers of Real Property ... the purchase price for the property? 5. Does the appraisal appear to be excessively high for the property or the area in which it is located? ...

www.usdoj.gov/usao/ins/tips.pdf - 2007-05-21 - Text Version

Federal Bureau of Investigation - Mortgage Fraud ... an as-needed basis to conduct home repairs or to pay bills, but fraud perpetrators may ... As such, many lenders do not demand a full property appraisal or a full ... www.fbi.gov/publications/fraud/mortgage_fraud06.htm - 43k - Cached

Federal Bureau of Investigation - Cincinnati Division - Department ...... A typical mortgage fraud scheme employs various professionals such as ... set of falsified loan application documents, including an inflated appraisal, is prepared ... cincinnati.fbi.gov/doj/pressrel/2005/ci102705.htm - 10k - Cached

NEWS RELEASE ... a Kansas City magnet school, also pleaded guilty to four counts of wire fraud. ... Plagman provided an inflated appraisal of $1.2 million for the property at 5034 ...

LADA Elder Abuse Unit - Crimes Against the Elderly ... collisions. REAL ESTATE FRAUD Most seniors ’ primary asset is their home. When seniors are victimized through mortgage loan fraud or when caretakers and others defraud them out of title to property, elders risk losing their home or California Prosecutors Announce Ameriquest Settlement Giving State’s Borrowers Up to $50 Million in Restitution ... state Department of Corporations, announced the filing of a judgment in Alameda County Superior Court today against Ameriquest Mortgage Co. The settlement resolves a multi-year investigation into suspected “ predatory lending ” practices by the largest sub-prime lender in ...

In California, the District Attorneys offices in 15 Counties have Real Estate Fraud Units or Major Fraud Units that investigate and prosecute cases that involve Appraisal Fraud Prevention Seminar 11-2-07 co-sponsored by HUD Santa Ana and the www.SCCAI.org 6 everything from Identity Theft to Mortgage Fraud. Mortgage Fraud cases often include inflated or misleading Appraisals. Often, Identity Theft cases are also Mortgage Fraud cases.

Fraud & Corruption Like other crimes, fraud and corruption can harm individuals and tear at the very fiber of society Schemes that defraud the government and businesses cost County residents millions in taxes, higher insurance premiums, and higher retail prices. Unscrupulous business practices erode consumer trust. Environmental crimes poison our most valuable natural resources and endange the community. Crimes by judicial officers, law enforcement personnel, elected officials, or others operating within the public trust violate individual rights and undermine the very foundation of our democracy.

Highlighted here are prosecution units in the District Attorney’s Office committed to addressing these pernicious crimes. Specially trained prosecutors and investigators are assigned to these units and prosecute cases involving fraud, corruption, law enforcement and official misconduct, and environmental crimes. Each is dedicated to ensuring that the integrity of our financial, publi and law enforcement sectors is maintained.

Real Estate Fraud 201 North Figueroa Suite 1600 Los Angeles CA 90012 (213) (213) (Attorneys) Street 580-3200 975-9743

Nearly Half-Million-Dollar Fine in D.A. Real Estate Fraud Case Goes Into County Coffer The Los Angeles County General Fund has been paid more than $499,000 in fines from a real estate fraud prosecution against a mother-daughter-son team working in the San Fernando and Santa Clarita valleys, the District Attorney's Real Estate Fraud Unit announced today.

Books are now being written for consumers to help them understand the issues. Following are summaries of the type of cases found when “Mortgage Fraud” is searched. These are a representative sample of the range of cases that exist. Some are local, some are not.

Mortgage Fraud cases include inflated or misleading Appraisals.

Appraisal Fraud Prevention Seminar 11-2-07 co-sponsored by HUD Santa Ana and the www.SCCAI.org 7

4 Indicted in Los Angeles Property-Flipping Scheme Joseph Babajian, 54, West Los Angeles, Kyle Grasso, 36, Santa Monica, Lila Rizk, 40, Trabuco Canyon { 2/9/2005 - Stipulated Settlement effective 2/09/05, $2,500 fine, $2,500 enforcement costs, 15 hrs. USPAP, 20 hrs. basic education, public reproval. Alleged violations of USPAP S.R. 1&2, Conduct Section of Ethics Rule: failure to disclose a current listing of the subject property; commission of a series of errors in the Sales Comparison Approach including the selection of inappropriate sales comparables and the omission of sales comparables with a greater degree of comparability resulting in an overvaluation. } and Scott Robinson, 44, Dana Point, all of California, were charged in an 85-page indictment...

10 Indicted in Sophisticated Mortgage Fraud Scheme Ten defendants were indictment in a sophisticated mortgage fraud scheme: Michael Lock, Mortgage Broker; Jerhonda McCray, Mortgage Broker; Chianti Clay, Mortgage Broker; Monique Dunlap, Loan Originator; Marcus Leonard, Document Forger; Ruben Fields, Appraiser; Nicole Brown, Owner & Operator of Day Care House; Lisa Colella, Closing Agent; and Krista Jeray, Loan Originator, all of Milwaukee, Wisconsin; and Kevin Slamann, Muskego, Wisconsin, Closing Agent.

New York Developers Arrested on $78M Mortgage Fraud Charges Michael Hershkowitz, 51, and Ivy Woolf-Turk, 51, both developers with the Kingsland Group in Manhattan, New York, were arrested on charges of orchestrating a mortgage fraud scheme that cost investors...

Class Action Initiated Against 14 Maryland Defendants for Fraud A class action was initiated for an alleged foreclosure rescue scam against: Metropolitan Money Store Corp., Lanham, Maryland; Fordham and Fordham Investment Group, LTD, Lanham, Maryland; RTE Title and Escrow, LLC, Largo, Maryland; Sussex Title, LLC f/k/a CAP Title, LLC, Rockville, Maryland; Diane Linda Jones, Capitol Heights, Maryland- Straw Borrower; Leticia Nicholls, Takoma Park, Maryland- Straw Borrower; Jamie Armand Clark, Bownie, Maryland- Straw Borrower; Joy Jenis Jackson, Fort Washington, Maryland; Kurt Fordham, Beltsville, …

Accepting assignments with a predetermined value is a primary way appraisers get into trouble. The following articles include and word Appraiser in the text, these come from www.mortgagefraudblog a web site by lawyer Rachael Dollar who works on mortgage fraud cases. Title Excerpt Date Kansas Mortgage Fraud and Conspiracy Trial in the case against F. Jeffrey Miller has 10/30/07 Trial Postponed been… Promoter and Underwriter Convicted in William Roosevelt Cloud and Juderita 10/23/07 Mortgage Scam Russell were convicted by a… Illinois Filling Scheme Cracked Open Radostina Todorova, acting as real estate 10/22/07 broker and engaged at… Guilty Plea in Massive Georgia Fraud Kevin G. Wiggins, 41, Ellenwood, Georgia 10/18/07 Scheme pled guilty in federal… Appraisal Fraud Prevention Seminar 11-2-07 co-sponsored by HUD Santa Ana and the www.SCCAI.org 8 Texas Appraiser Convicted of Mortgage Gandhi Ben Morka, 52, Arlington, Texas, 10/17/07 Fraud was convicted following a… Eleven Arrested in Mortgage Fraud The first round of arrests warrants for 10/10/07 Crack-Down criminals dealing in… Vermont Appraiser Pleads Guilty To Gerald Mullaney, 60, East Greenbush, New 10/04/07 Mortgage Fraud York, pleaded guilty in… Florida Real Estate Developer Pleads Richard Layfield pled guilty on June 11, 10/02/07 Guilty to Bank Fraud 2007 to bank… 15 Indicted in Wide-Ranging Florida Henry Quintero-Lopez and Lazaro Villalba 10/01/07 Mortgage Scheme were among 13 others indicted… 3 Michigan Men Charged With Deed Nelson Sumpter, 42, Pittsfield Township, 09/27/07 Fraud Michigan, Omar Sumpter, 35, Sterling… 2 Plead Guilt in Florida Fraud Scheme Justin D. Barker, 31, and Robert W. Hulbert, 09/26/07 Jr., 45,… Georgia Attorney Pleads Guilty In James F. Stovall III, 56, Roswell, Georgia, 09/24/07 Mortgage Fraud Scheme pleaded guilty in… Organizer Of Massive Mortgage Fraud Phillip E. Hill, 51, Sumatra, Florida, was 09/24/07 Scheme Sentenced sentenced to serve… Texas Residential Mortgage Fraud Task Texas Attorney General Greg Abbott and 09/06/07 Force Convened key officials from state… Florida Man Pleads Guilty in Mortgage Leandro Obenauer, 38, Osceola County, 09/05/07 Fraud Scheme Florida, pled guilty to multiple… Former Ohio Title Agent Indicted for Lemmon Perkins, 43, Granville, Ohio, was 08/30/07 Mortgage-Related Crimes indicted on multiple counts… Nine Charged in Ohio Mortgage Fraud A federal grand jury here has returned a 68- 08/28/07 Conspiracy count indictment… Mortgage Fraud Ring Leader Sentenced Nathan Parker, 49, Philadelphia, 08/28/07 Pennsylvania, the ringleader of a $4… Appraiser Pleads Guilty in $50 Million William Page, 37, Old Bridge, New Jersey, 08/27/07 Real Estate Investor Fraud pled guilty before… Loan Officer Indicted for $25M Missouri Judy Brumble, loan officer and ostensible 08/16/07 Fraud Scheme real estate agent, was… 4 Indicted in Los Angeles Property- Joseph Babajian, 54, West Los Angeles, 08/06/07 Flipping Scheme Kyle Grasso, 36, Santa… 10 Indicted in Sophisticated Mortgage Ten defendants were indictment in a 08/03/07 Fraud Scheme sophisticated mortgage fraud scheme:…

The next group of articles represents the range of things being written nationally. Predatory Lending cases include inflated and misleading appraisals for the most part. Try a Google News or Yahoo News search for Appraisal+Fraud and Mortgage+Fraud and see what news articles come up, there may be some in your local area.

Appraisal Fraud Prevention Seminar 11-2-07 co-sponsored by HUD Santa Ana and the www.SCCAI.org 9 How appraisal fraud costs you money MSNBC - Jul 15: This week, Jon in Florida is steamed at the high price of real estate, and he wants to know: where do they come up with these prices? Esther in Nevada is looking for her husband's long-lost pension. And Susan in Michigan is trying to figure out how much student debt is too much. Answer Desk, by MSNBC.com's John W. Schoen.

IN THE SPOTLIGHT Real Estate News - Jul 19 1:09 PM Here’s a look at what’s new in real-estate markets across the U.S. from around the Web.

Home appraisal fraud is costing you money MSNBC - Jul 15, 2007: Last month, Ohio Attorney Genera companies for appraisal fraud. In some cases, Dann got his hands on copies of faxed “order forms” used ...

Mortgage fraud can ensnare legitimate buyers and sellers Pittsburgh Post-Gazette - Jul 13 9

Appraisal Fraud Database Mitigate appraisal fraud database. www.MARI-Inc.com

The MARI database is used by Clients to search names common to loan files, like the Loan Broker, Agent, Processor, Underwriter, Appraiser. It is a risk management tool that did not exist as recent as 1999.

Lawyer Battles Rip-Off Charges, New Haven Independent, USA 7/25/07 And here's the kicker, according to the state: Olmer's HUD-1 form used an

New Haven appraisal of the property prepared by a company called Autumn Appraisal -- a Independent ...

Real estate appraisers face mounting pressure Pueblo Business Journal, Jul 19, 2007 In a recent survey conducted by October Research and underwritten b country’s largest appraisal company, Forsythe Appraisal LLC, more than 900 ...

Pueblo Business Journal FBI inquiry involves area home sales, Federal agents received court permission earlier this year to search the offices of a real estate appraisal firm and a real estate brokerage in Montgomery ...

Southern California Appraisers have received up to 57-months in Federal Prison and over $2,000,000 in Fines and Restitution Orders for their roles in Mortgage Fraud Schemes.

WHAT IS PREDATORY APPRAISING? www.ncrc.org

According to the National Community Reinvestment Coalition, "A predatory appraisal occurs when the value of a property is falsely overstated during a new purchase or during the refinancing process." It is often used to produce loans that borrowers cannot repay and property values that cannot be reclaimed all in the name of providing the loan officer or broker with higher commissions and fees. Often pressure is applied on the appraisers to provide higher appraisal values.

Appraisal Fraud Prevention Seminar 11-2-07 co-sponsored by HUD Santa Ana and the www.SCCAI.org 10 Lying lenders and appraisers have turned the American Dream into a real life nightmare for millions of homeowners… Robert Massi is a Nevada attorney with first hand knowledge of the real harm that is being done to many sheepish homeowners who have naively associated with decidedly wolfish lenders and appraisers.

Appraisers can burst your bubble by inflating the value of your home By Michael D. Larson • Bankrate.com How much is your home worth? Better find out before heading to the lender's office or you

might end up with a mortgage you can't afford. The problem stems from the way the industry calculates property values. Loan originators, many paid on commission, sometimes pressure appraisers to fudge their numbers to make mortgages work, experts say.

Appraiser Daniel D. Thompson has been arrested in connection with issuing false appraisals and charged with multiple counts of mortgage fraud, forgery and identity fraud . . . ..

Figure 1: Illegal Property Flipping Scheme

The FBI 2006 Mortgage Fraud Report at www.fbi.gov

Combating mortgage fraud effectively requires the cooperation of law enforcement and industry entities. No single regulatory agency is charged with monitoring this crime. The FBI, Department of Housing and Urban Development-Office of Inspector General (HUD-OIG), Internal Revenue Service, Postal Inspection Service, and state and local agencies are among those investigating mortgage fraud.

What is MortgageFraudWatchList.org? MFWL is a database of addresses, submitted by real estate professionals from all 50 states, where a sale or refinance transaction has suspicious activity. Mortgage transactions involving these addresses should be scrutinized to insure the accuracy and honesty of all data submitted as part of the loan process. MFWL will direct all potential fraud reports from our members and non members to proper authorities for investigation

Appraisal Fraud Prevention Seminar 11-2-07 co-sponsored by HUD Santa Ana and the www.SCCAI.org 11 Examples of what is being reported

• Sales found where the contract/sold price is significantly higher than the listing price. • Situations where persons involved in the transaction process have pressured, coerced, attempt bribing the real estate professional to consider doing something that might be illegal or unethical. • Builder, developer, seller HIDDEN incentives cash back deals, or concessions. • Properties where there appears to be a concerted effort to ‘shop for value’. • Suspicious investor activity regarding condominium and subdivision developments. • Attempts by intermediaries to get real estate professionals to violate their binding rules and ethics standards. • Articles and reports regarding recent fraudulent activity.

APPRAISER INDEPENDENCE at www.appraisalinstutute.org Resources to help you combat client pressure

Click here for The Appraiser Independence Action Center Click here to learn more about Appraiser Independence issues Click here to download a copy of the Interagency Statement on Independent Appraisal and Evaluation Functions

Appraisal Fraud Prevention Seminar 11-2-07 co-sponsored by HUD Santa Ana and the www.SCCAI.org 12

Anyone can Go to www.appraisalinstitute.org, Government Affairs tab, then go to

Appraiser Independence Action Center: Resources to help you combat client pressure

Do you have a complaint against a lender, mortgage broker, realty agent or appraiser? We can help you contact the appropriate authority. What kind of entity is your complaint against? • - Federally regulated financial institution - State regulated residential mortgage lender or broker - Realty agent • For complaints involving individual appraisers: - Appraisal Institute Members - Appraisers – Nonmembers of the Appraisal Institute • Issues involving fraud or misrepresentation can also be sent to the Federal Bureau of Investigation. Click here to download contact information for the FBI Mortgage Fraud Supervisor nearest you.

From the links at the AI web site, anyone with an interest in filing a Complaint, can find the proper source, depending upon the type of activity.

Since putting this page on the web page, Suspicious Activity Reports (SAR’s) have soared. You do not need to be a member of the AI to use these links.

Following are some news articles found in a search this week. Do you own with your favorite search engine and see what comes up. 1. Realty Times - Real Estate News and Advice Appraisal fraud, caused by pressure on appraisers and by criminal activity, is ... appraisal industry can only be described as engineered to facilitate ... realtytimes.com/rtcpages/20050415_appraisalfraud.htm - 35k - Cached The Appraisal Crisis And The FBI Realty Times, TX - Oct 12, 2007 "When I described my frustration about lender pressure and the appraisal fraud I was seeing, the instructor looked me squarely in the eye and told me forget ... 2. On the front lines against mortgage fraud. How appraisers are on the front lines of fighting mortgage fraud. Selecting an appraiser,Ordering an appraisal, Accepting a transferred appraisal, Reviewing ... www.ourappraisal.com/MortgageFraud - 17k - Cached 3. APPRAISAL FRAUD (PDF) Appraisal fraud happens in a number of ways. A common scenario would go ... Consumers who are the victims of appraisal/mortgage fraud often pay more ... www.mirealtors.com/documents/MiCREAbrochure06.pdf - 613k - View as html Appraisal Fraud Prevention Seminar 11-2-07 co-sponsored by HUD Santa Ana and the www.SCCAI.org 13 4. Demos - A Network for Ideas & Action - Home Insecurity Appraisal fraud can lead homeowners to borrow more money than their homes are ... targeting minority and sub- prime borrowers often involves appraisal fraud. ... www.demos.org/pub485.cfm - 5k - Cached 5. APPRAISAL FRAUD (PDF) How can you deal with appraisal/mortgage. fraud that has already happened? ... How prevalent is appraisal fraud in Michigan? ... www.mirealtors.com/documents/app_brochureupdated_002.pdf - 494k - View as html 6. Realty Times - Agent News and Advice ... about lender pressure and the appraisal fraud I was seeing, the instructor ... these 17 fraud reports, I was warned by a prominent Appraisal Institute member ... realtytimes.com/rtapages/20050202_appraisalcrisis.htm - 43k - Cached 7. Dan Grant Appraisal Fraud ... Grant Freedom+Appraisal Christopher+Stiebler mortgage appraisal fraud short+sale ... fraud / Aaron+Huebner / Dan+Grant / Daniel+A+Grant / Freedom+Appraisal ... www.elizabeth-butler-cr00001772.com/appraisals/dan_grant/dan_grant.htm - 38k - Cached 8. The Appraisal Foundation - Valuation Fraud Symposium Appraisal industry shines spotlight on fraud in D.C. - Valuation Review ... s Appraisal related warning signs recognized as common fraud indicators ... www.appraisalfoundation.org/s_appraisal/doc.asp?CID=4&DID=884 - 39k - Cached 9. Appraisal Scoop: Mortgage Fraud Providing real estate professionals with an online destination for appraisal news, knowledge, technology solutions and entertainment. appraisalnewsonline.typepad.com/appraisal_news_for_real_e/... - 457k - Cached Feds need to bail on mortgage bailout plan Bakersfield Californian (subscription), CA - Oct 27, 2007 While many of Frank's other fixes are reasonable, such as licensing mortgage brokers and bank loan officers and clamping down on appraisal fraud, ...

Following is an actual law suit against a lender and their fee appraiser that went to trial in Santa Ana, CA last year.

It is an interesting document to read in terms of the various causes of action.

Appraisal Fraud Prevention Seminar 11-2-07 co-sponsored by HUD Santa Ana and the www.SCCAI.org 14

Lawsuit Against Mortgage a Broker and their Appraiser Names are omitted Xxxxxxx Xxxxxxx, Attorney at Law – State Bar No. xxxxxxxxx XXXXXXXXXXXXXXXXXX Xxxx Xxxxxxx Xxxxxxx XXXXXX, California Telephone: (xxx) xxx-xxxx Facsimile: (xxx) xxx-xxxx

Attorney(s) for Plaintiff(s): XXXXXX and XXXXXXXXX

SUPERIOR COURT FOR THE STATE OF CALIFORNIA

FOR THE COUNTY OF XXXXXXXX XXXXXXX, XXXXXXX, ) Case No. Plaintiffs, ) vs. ) XXXXXXXXX HOME LOANS, ) COMPLAINT FOR BREACH OF XXXXXXX, APPRAISER, DOES 1 through ) CONTRACT; FRAUD; NEGLIGENT 20, INCLUSIVE, ) MISREPRESENTATION; NEGLIGENCE ) Defendants

Plaintiffs allege: FIRST CAUSE OF ACTION: BREACH OF CONTRACT (Against XXXXXXXX Home Loans and XXXXXXX Appraiser) 1. Defendant XXXXXXXX Home Loans is, and at all times mentioned was a corporation, organized and existing under the State of XXXXXXX and doing business in the State of California. 2. Defendant, XXXXXXXX, is an individual who resides in the State of California, County of Orange. 3. All of the contracts obligations pleaded herein were entered into in the County of Orange, State of California. The real property that secured the obligation alleged to have been breached is located in the County of Orange, State of California. 4. Plaintiffs are informed and believe and thereon allege that each of the defendants is the agent of the other and responsible in some manner for the actions of the other as herein alleged, and that plaintiff's damages as herein alleged were proximately caused by their conduct. 5. The appraiser, XXXXXXXXXX is the agent of XXXXXXX Home Loans. 6. Plaintiffs are ignorant of the true names and capacities of defendants sued as DOES 1 through 20, inclusive, and therefore sue these defendants by such fictitious names. Plaintiffs will amend this complaint to allege their true names and capacities when ascertained. Plaintiffs are informed and believes and thereon

Appraisal Fraud Prevention Seminar 11-2-07 co-sponsored by HUD Santa Ana and the www.SCCAI.org 15 alleges that each of the fictitiously named defendants is responsible in some manner for the occurrences herein alleged, and that plaintiff's damages as herein alleged were proximately caused by their conduct. 7. On or about XXXXXX xx, xxxx at xxxxxx, Orange County, California, plaintiffs and XXXXXXX entered into a written agreement, whereby XXXXXXX was to lend plaintiffs the sum of xxxx hundred xxxxx thousand dollars ($XXX,XXX.00) for the purchase of a residence at xxxxx Xxxxxx Xxxxxx in Xxxx, California. Said loan was to be secured by a trust deed on the real property described herein. Part of the written contract was a provision of the trust deed which stated that: “Borrower shall be in default if, during the Loan application process, the borrower (plaintiff) or any persons acting at the direction of the Borrower (Plaintiff) or with the Borrower’s knowledge or consent gave materially false, misleading or inaccurate information or statements to the lender (or failed to provide the lender with material information) in connection with the Loan.” This provision is applicable to both the plaintiffs and XXXXXX under the theory of mutuality of obligation and would be applied to both plaintiffs and XXXXXXX under the duty of good faith and fair dealing. Thus XXXXXXXX had the contractual obligation to inform the plaintiffs of any materially false, misleading or inaccurate information or statements in connection with the Loan. 8. Plaintiffs have performed all conditions, covenants, and promises required on their part to be performed in accordance with the terms and conditions of the contract. 9. On or about Xxxxx xx, xxxx, Defendant breached this contract as follows: i. The purchase agreement between the Plaintiffs and the seller stated that the sale was contingent upon appraising the property at no less than the sales price; and ii. XXXXXXX maintains the right under the terms of the contract to appoint, and did appoint its own appraiser knowing that the purchase agreement between the Plaintiffs and the seller stated that the sale was contingent upon appraising the property at no less than the sales price, and; iii. The terms of the contract, through the principle of mutuality of obligation, prevented either party from making false or inaccurate information during the loan application process, and; iv. XXXXXXXX’s agent, acting within the course and scope of its agency agreement and acting as the agent for XXXXXXXX, made false and inaccurate statements as to the appraised value of the residence in that it was actually worth $XX,XXX.00 less than the stated appraised value. 10. As a result of defendant's breach of the contract, the Plaintiffs purchased the property for $XX,XXX.00 more and paid approximately $X,XXX.00 in excess interest, to their damage in the sum of approximately $XX,XXX.00. 11. In addition, the written contract between XXXXXXXX and Plaintiffs calls for the payment of attorney's fees in the case of a breach of the agreement. Plaintiffs have retained the firm of XXXXXXXXXX whose currently hourly rate is the sum of $XXX.00 plus costs. Plaintiff will request attorney's fees and costs according to actual proof at the time of trial.

Appraisal Fraud Prevention Seminar 11-2-07 co-sponsored by HUD Santa Ana and the www.SCCAI.org 16 SECOND CAUSE OF ACTION FOR FRAUD (Against XXXXXXXX Home Loans and XXXXXXXXX)

12. Plaintiffs incorporate by reference paragraphs 1 through 11 of the first cause of action as though set forth herein in their entirety. 13. Plaintiffs are informed and believes and thereon alleges that defendant, XXXXXXXX, who made the representations herein alleged, is the agent and employee of the defendant XXXXXXXX Home Loans and at the time of the making of the representations herein alleged and at all times herein mentioned was acting within the course and scope of his employment and authority for the defendant XXXXXXXXX Home Loans. 14. On or about Xxxxxxx xx, xxxx, defendant, acting with and on behalf of XXXXXXXX Home Loans represented to plaintiffs that the home, which they were purchasing at xxxx Xxxxxx Xxxxxx in Xxxxx, California was worth $XXX,XXX.000. 15. The representations made by defendant were in fact false. The true facts were that the residence was only worth $XXX,XXX.00. 16. When defendant made these representations, they knew them to be false and made these representations with the intention to assist the seller of xxxx Xxxxxx Xxxxxx, Xxxxx, California to complete the sale for the list price and to induce plaintiffs to purchase the property. Defendants knew or should have known that plaintiff's had a chance to cancel the sale if the property was not worth the agreed upon purchase price and that plaintiff’s were paying interest on based upon the proper valuation. 17. Plaintiffs, at the time these representations were made by defendants and at the time plaintiffs took the actions herein alleged, were ignorant of the falsity of defendant's representations and believed them to be true. In reliance on these representations, plaintiffs were induced to and did accept the appraisal and purchased the property for $XXX,XXX.00. Had plaintiffs known the actual facts, they would not have taken such action. Plaintiff's reliance on defendant's representations was justified because defendant XXXXXXX Home Loans insisted that they chose the appraiser and XXXXXXX Home Loans reputed to be a home loan specialist. 18. As a proximate result of the fraudulent conduct of defendant(s) as herein alleged, plaintiffs were damaged in the sum of $XX,XXX.00. 19. The aforementioned conduct of defendants was an intentional misrepresentation, deceit, or concealment of a material fact known to the defendants with the intention on the part of the defendants of thereby depriving plaintiffs of property or legal rights or otherwise causing injury, and was despicable conduct that subjected plaintiffs to a cruel and unjust hardship in conscious disregard of plaintiffs' rights, so as to justify an award of exemplary and punitive damages. THIRD CAUSE OF ACTION FOR NEGLIGENT MISREPRESENTATION (Against XXXXXXX Home Loans and XXXXXXXXXX) 20. Plaintiffs incorporate by reference paragraphs 1 through 19 as though set forth herein in their entirety. 21. When defendants made these representations, they had no reasonable ground for believing them to be true.

Appraisal Fraud Prevention Seminar 11-2-07 co-sponsored by HUD Santa Ana and the www.SCCAI.org 17 22. Defendants made these representations with the intention of inducing plaintiffs to act in reliance on these representations in the manner hereafter alleged, or with the expectation that plaintiffs would so act.

FOURTH CAUSE OF ACTION FOR NEGLIGENCE (Against XXXXXXXX Home Loans and XXXXXXXXXXX) 23. Plaintiffs incorporate by reference paragraphs 1 through 22 as though set forth herein in their entirety. 24. On or about Xxxxxxx xx, xxxxx at Xxxxxxxx, Orange County, California, plaintiffs and XXXXXXXX entered into a written agreement, whereby XXXXXXXX was to lend plaintiffs the sum of xxxxx hundred xxxxx thousand dollars ($XXX,XXX.00) for the purchase of a residence at xxxx Xxxxxxxx Xxxxxxx in Xxxxxx, California. Said loan was to be secured by a trust deed on the real property described herein. 25. Under the Restatement of Torts, one who, in the course of his or her business, profession or employment, or in any other transaction in which he or she has a pecuniary interest, supplies false information for the guidance of others in their business transactions, is subject to liability for pecuniary loss caused to them by their justifiable reliance upon the information, if he or she fails to exercise reasonable care or competence in obtaining or communicating the information. 26. On or about Xxxxxx xx, xxxx defendants, and each of them, were in the business, of making real estate loans on residential properties and appraising residential property in Southern California and had a pecuniary interest, in such transactions. 27. On or about Xxxxxxx xx, xxxxx the defendants and each of them supplied false information for the guidance of others in their business transactions by appraising the property listed above for $XX,XXX.00 over its true value when they should have known it was worth only $XXX,XXX.00. 28. As a direct and legal result of the negligence of defendants, plaintiffs have been damaged in the amount of $XX,XXX.00. WHEREFORE, plaintiffs pray judgment as follows: 1. For general damages in an amount according to proof. 2. For actual monetary losses in the sum of $XX,XXX.00. 3. For punitive damages in an amount appropriate to punish defendants and deter others from engaging in similar misconduct. 4. For attorney's fees according to proof. 5. For costs of suit incurred herein. DATED: Xxxxxxx ____, xxxxx XXXXXXXXXXXXXXXX

By:______Xxxxxxxxx Xxxxxxxxx Attorney for Plaintiffs

Appraisal Fraud Prevention Seminar 11-2-07 co-sponsored by HUD Santa Ana and the www.SCCAI.org 18 Appraiser Due Diligence Form Prepared by Steven R. Smith, MSREA, MAI, SRA, AG 2123

I am an appraiser working in the area. I am conducting an appraisal on a property located on XXXX and your prior { } Closed Sale, { } Pending, { } Listing, { } Expired Listing on xxxxxxxxx, is a possible comparable from what I can tell.

A major part of the Appraisers’ Due Diligence is to Verify the Motivations of the Buyer and Seller, find out the Terms, Personal Property involved if any, Concessions, Cash Back if any; and to make sure that the Transaction is Bonified, before we use it in a report for the reliance of others.

I was hoping for a few minutes of your time to verify some information. The questions I have are intended to be objective, and unbiased, with a goal of allowing me to make meaningful Adjustments. They are as follows:

• How much activity was there on this listing? { } Showings { } Offers { } Open House Traffic

• Was the Sale/Offer Transaction Bonified { } Yes { } No ______

• Were the Motivations of the Buyer normal { } Yes { } No ______

• Were the Motivations of the Seller normal { } Yes { } No ______

• Were there any factors like major repairs, upgrades or specific amenities s that influenced the Sale/Listing price more than 5%? ______

• Do you have any opinions about what % the following items may add to the average Sales Price?

{ } Remodeled Kitchen { } Remodeled Bath { }Extra Bath { } Pools/Spa { } Guest Apt

• Were there any incentives/concessions/credits given to the buyer? If so would you indicated the Percentage?

1-2% { } 3-5% { } 6-8% { } 9-12% { } 13-16% { } 17-22% { } 23-28% { }

• What is your personal opinion of the current state of the market in the area? { } Over Supplied { } Balanced • If you were to list this property again today do you think you would list if for the same, less or more?

{ } 5% More { } 10% More { } 15% More { } 5% Less { } 10% Less { } 15% Less { }

I know that your time is valuable and do appreciate you taking a few moments to answer these questions. We are trying to do the absolute best to objectify our Adjustment and have more of a market derived approach to them to better serve our clients in this difficult market. When we have completed our Survey, we will compile it and put it on our web site so that you can see what the average response has been. Thank in advance you for your time, we value your opinion and input.

We appreciate you response which enables us to provide the most credible product possible to our client. We can not do it without professional like yourself, which are on the front lines of the transaction’s and the market.

And most important if there is anything my firm can do to assist you in your daily practice, please do not hesitate to send me an email. We are always happy to share our knowledge for the benefit of other professionals.

909 522 4251, email: [email protected], Web Page: http://smithrealtyadvisors.biz

Appraisal Fraud Prevention Seminar 11-2-07 co-sponsored by HUD Santa Ana and the www.SCCAI.org 19 How do you Protect Yourself against Fraud Charges?

Here are some ideas that will help provide protection against both Fraud and Negligence charges:

1. Have a written agreement that includes the Scope of Work, one that specifies the standards of care that will be used, or the lack thereof. If you are going to simply operate based on public record info, get the client to agree to it. If you are not going to verify data, get the client to agree before hand. Keep in mind, that a Licensed Professional cannot escape the responsibilities than normal due diligence requires. It becomes very important that we each know and understand how our reports will be used, the Stream of Commerce through which they will flow, what USPAP Certifications mean and what FNMA Certification 23 means.

2. Never accept an assignment with a Predetermined Value

3. Always do a property Scope of Work based on the Locational issues and Physical attributes

4. Always check the Supply/Demand levels, research the Inventory and report Over Supplies and Declining Value trends. We have seminars that teach these techniques at www.sccai.org

5. Verify Market Data as described in Valuation Directive 4150.2 Section 8 of the HUD Manuel. Validate the data as being bonified, arm’s-length and find out the Motivations of the Buyer and Seller to see if normal, verifty Terms and Conditions including Concessions or Cash Back, Personal Property, Notes carried, etc. See Real Estate Appraisal Terminology book for another definition of Verification of Market Data

6. Use Market Derived Adjustments including Time, Location, Lot Size, Age/Condition, Imp. Size, etc.

7. Do a Multi Tiered Market Data Analysis that includes Pending’s, recent Closings, discounted Listings, historic Closings, Offers, expired Listings. By checking ALL Tiers, the appraiser cannot be as easily fooled in a Flip or a Stonewood type case.

8. Don’t let Client Pressure dictate business practices. Fee and Time pressures imposed by clients do not relieve the appraiser from USPAP compliance requirements. Use SOW to your advantage, get client to agree to a Non-USPAP report, do as little as they want for as little of a fee as they want to pay, as fast as they want. But do not let yourself be held to a standard you never intended to comply with, could not possibly comply with and give customer service.

9. Learn how to use Extraordinary Assumptions and Hypothetical Conditions.

10. Read “Appraiser Liability, There Ought To Be A Law” at OREA, Spring 1999, The California Appraiser magazine http://www.orea.ca.gov/forms/CAv10n02.pdf

Appraisal Fraud Prevention Seminar 11-2-07 co-sponsored by HUD Santa Ana and the www.SCCAI.org 20

October 2007 USPAP Q&A - Are IM or Text Messages Appraisal Reports? The ASB has just released their October 2007 Q & A. • Client Altering the Report (follow-up) • Are Instant Messages or Text Messages Appraisal Reports? • Checking "Stable" vs. "Declining • Is Compliance with STANDARD 3 Required when Submitting a Complaint The first topic [Client Altering the Report] was previously discussed after the September Q&A: Appraisal Foundation says appraisers are NOT responsible for altered reports! If you recall, the AQB took the position: Once the appraisal report has been transmitted to the client, USPAP does not place further responsibility on the appraiser for the client’s use of that report. The October Q&A attempts to clarify that position as well as: Question: "I perform appraisal assignments for a client who asks to be notified of my final value conclusion via instant message or text message. Is this communication to the client an appraisal report that must comply with USPAP?" Question: "When performing residential appraisal assignments I use “standard” preprinted appraisal software forms. The forms ask me to identify whether neighborhood property values are “increasing,” “stable,” or “declining.” I have been told that lenders won’t accept appraisal reports where “declining” is checked (even when this is an accurate analysis), so I usually check “stable” to accommodate the underwriting process. Is this a violation of USPAP?" Question: "I am a real property appraiser. I want to submit a complaint regarding an appraisal report to my state appraiser regulatory agency. I would like to express my opinions and comments about the quality of the appraisal report in a cover letter. Am I obligated to comply with STANDARD 3 http://www.appraisalfoundation.org/s_appraisal/bin.asp?CID=12&DID=1102&DOC=FILE.PDF

Appraisal Fraud Prevention Seminar 11-2-07 co-sponsored by HUD Santa Ana and the www.SCCAI.org 21 http://www.appraisalfoundation.org/s_appraisal/bin.asp?CID=12&DID=1102&DOC=FILE.PDF

Editorial Comment: “As a point of clarification, if the Data in the report is Cherry Picked, it may not show the Declining Value Trends. It may not reflect the actual Housing Market Conditions in terms of Supply and Demand or Value Trends.

When appraisers are sued, and a Forensic Review is done, we check the Universe of Data in the Data Sources cited in the report, to look at all of it and see how the Trends were, we look to see if the Data used was the most appropriate or out of area, superior locations and properties, etc. If the original research was done objectively, we agree with it, if not, then not.

Willful omission of material information that pertains to the Market Conditions, the Area, the Property or the Market Data, is not an error. It is a willful act. Most appraisers that are indicted in Mortgage Fraud cases, never go to trial. Most end up confessing and cooperating in exchange for a lower jail term and fines.

Appraisers are being sued in large numbers for Negligence in civil cases where money damages are being sought, when in fact, many of the cases are about Fraud, not Negligence.

” Steve Smith, MAI, SRA

Appraisal Fraud Prevention Seminar 11-2-07 co-sponsored by HUD Santa Ana and the www.SCCAI.org 22 The Appraisal Institute has become the leader in Appraiser Advocacy before Congress, Congressional Committees and Agencies of the Federal Government.

Our advanced course work and new seminars can help the appraiser deal with the market dynamics.

If history tells us anything it is that when a downturn occurs, it will take several years to work its way out, depending on how long the run up was. We may be in the 2nd year of a 4- 5 year cycle.

The actions of the AI help all appraisers. For those who are members, take advantage of their on-line resources. The Public Relations Committee was instrumental in getting the above Links put up, which are available to all, not just to their members.

All appraisers owe a debt of gratitude to the Appraisal Institute for their continued efforts.

If you are not affiliated, consider joining and becoming involved as a Volunteer. Our organization depends upon Volunteers to make things run.

The local Chapter is the Southern California Chapter, www.sccai.org Check out the web page, read the Newsletter, check the schedule of events, come to our meetings and bring a friend. Yeah, that’s it, car-pool !

Thanks for coming. Please let the Chapter Leadership know if this program provided new insights, help, knowledge and increased your awareness of professional liability issues. On the next page is a list of our Leaders and their contact information. Please take the time to let them know you appreciated today’s efforts. A simple email will do. Thanks again.

President Carol Lynn Chirpich, SRA,949:458-6579, Mail: (mailto:[email protected]) Vice President Stuart D. DuVall, MAI, 949: 673-6733 (mailto:[email protected]) Treasurer Steven R. Fontes, MAI 951:656-6036 E-mail: (mailto:[email protected]) DIRECTORS CENTRAL COAST BRANCH CHAPTER Chair Joyce Riggs, MAI 805:578-2400 ext. 102 E-Mail: (mailto:[email protected]) Vice Chair Michael DaKroob 805:494-3003 E-Mail: (mailto:[email protected]) Advisor Kerry Leiman, SRA 818: 347-2006 Email: (mailto:[email protected]) EASTERN BRANCH CHAPTER Chair Charley Armstrong 951-270-0475 [email protected]) Vice Chair Steve Smith, MAI SOUTHERN BRANCH CHAPTER Chair Scott Pettifer, MAI 714.836-9961 E-Mail: (mailto:[email protected]) Vice Chair Kent Serviss 562.938-7926 (mailto:[email protected]) Advisor Gil Valdez, MAI 714-842-7880 (mailto:[email protected]) WESTERN BRANCH CHAPTER Chair Sally U. Haft, MAI 310-312-8050 x 6046 (mailto:[email protected]) Vice Chair Rick Orwig 818-593-7200 x 27 (mailto:[email protected]) Advisor Bryan D. Vick, MAI 213-621-7381 (mailto:[email protected])

Appraisal Fraud Prevention Seminar 11-2-07 co-sponsored by HUD Santa Ana and the www.SCCAI.org 23