|
|
Article: FHA Pilots Appraisal Review Systems to Detect Flipping.
- Article from:
- National Mortgage News
- Article date:
- August 28, 2000
CopyrightCOPYRIGHT 2000 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
The Federal Housing Administration has developed an appraisal review system that can detect signs of inflated values and possible flipping of properties.
FHA is testing the appraisal review system in Baltimore where it has a problem with inflated appraisals and last week it expanded the test sites to other cities where it has instituted moratoriums on FHA foreclosures (see related story).
Once a lender requests an FHA case number, the agency runs the property address through a new database that looks for patterns of repeat sales or inflated values.
"If we see one that is suspicious, we send a notification that says the lender has to submit the ...