NY probe into alleged attempts to inflate property values

As part of a New York state investigation into whether mortgage brokers pressure appraisers to inflate property values, First American Corp. (FAF)… A borrower who gets a home loan based on an inflated appraisal and falls behind on payments would have difficulty selling or refinancing for enough to pay off the mortgage… EAppraiseIT, which values up to 15,000 homes a year in NY… appraiser Mitchell, Maxwell & Jackson and broker Manhattan Mortgage Co… were subpoenaed for information about NY appraisals… In a study last year by October Research Corp. of Richfield, Ohio, 90% of appraisers said they felt influenced to write bogus appraisals. Four years ago, that number was 55%. Seventy-one percent said mortgage brokers asked them to do it.

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