CAN REAL ESTATE BROKERS BE BRIBED TO SUBMIT FALSE APPRAISALS?
A storm is brewing between appraisers and broker price opinion (BPO) professionals vying for valuation work for short sales conducted through the Making Home Affordable Foreclosure Alternatives (HAFA) program.
The US Treasury Department is taking the necessary steps to prevent short sale fraud under the Home Affordable Foreclosure Alternatives (HAFA) program, officials told HousingWire in an article they broke today.
The Appraisal Institute recently announced that appraisals are the only acceptable model for short sales, but the Real Estate Valuation Advocacy Association (REVAA) recently made an argument for broker-priced opinions (BPOs) and automated valuation models (AVMs).
In addition to outlining standards for valuation, the Treasury also requires the property to listed with a licensed real estate broker who signs the SSA agreement and can be held accountable if he or she is involved in fraud, Maggiano said. “The servicer may also terminate the SSA at any time if there is evidence of fraud or misrepresentation,” Maggiano said. “This could also be considered a knowing violation of federal law.”