Midstate01;1723706 wrote:I've yet to buy a home and I'm not real privy to understanding a lot of the lingo, but if they just bent some things to make some available for home loans, I don't see a HUGE issue with that. As long as it wasn't something they were doing more often then not.
I'm in the industry, and I find it hard to believe that they could do this over a span of 4-5 years. Audits are conducted at minimum every two years, and appraisals have ordered through a government managed online service. I could see where they (in actuality, more likely the real estate agent) may submit comparables to support a higher value, but that is within the confines of the law. They do such a huge volume that there are bound to be some houses that get foreclosed on quickly and whatnot due to extenuating circumstances, but if this were common practice and was being done a lot, they would've been ousted years ago.
Besides, the FHA (FEDERAL Housing Administration) is obviously a Federal entity. They should be reviewing these files when they come in. Kind of seems like they're just trying to get a chunk of settlement money (from someone who can afford it) to make up for some of their losses.
