See:
Widespread
Mortgage Fraud Threatens America's
Homeowners, New Report Finds by [Demos] Ole Bear, Editor, Commentary
Appraisal Fraud: So What
Else Is New, Pal? Every now and then [like once in a Blue Moon!], some smart guy or gal writes a paper on the real estate valuation gig that is pretty good. Author David Callahan has penned a pretty scathing assessment and reporting of what the Federal Reserve and the GSEs have done to folks on Main Street America through the Fraud of Appraisal Regulation, FIRREA 1989. But, the author has not made the connection that the Federal Reserve and the GSEs are the instigators and perpetuators of realty valuation and mortgage fraud, and that they use the appraisal management companies to cover it up, especially in the review process to make pretty those bundled loans the GSEs peddle all over the world to so-called investors buying mortgage backed securities. Also at the heart of the problem is the Appraisal Foundation and professional realty valuation organizations that have linkages and control by the banking cartel, and these rascals rewrite standards of professional practice every year, charge fees for making appraisers take another 7 hours of crappy USPAP update, when all they are doing is prostituting realty valuation standards at the control of the banking cartel that rules the roost in the industry to begin with. These powers that be have not taught real estate appraisers anything new in the past 20 years, and don't intend to. Realty appraisers don't understand the money system, the Federal Reserve corruption of the money system, the linkage of the definition of market value to a Ponzi Money Scheme, Austrian Economics, Kondratievian Economic Wave Theory, Histories of Markets, or Technical Analysis applied to real estate valuation. Appraisers don't understand how the GSEs operate as second tier central banks creating money out of thin air in the process of mutual fund money market intermediation. Appraisers haven't made the connection that our fraudulent money system is debt backed and so is real estate, and that lethal combination under the likes of Greenspan and His Minions at Monetary Charlatanism is the set up for the greatest real estate calamity in economic history. Appraisers also have not made the connect that heavy metal [Au and Ag] are both fiduciary and commodity money, and that legal tender fiat paper is neither [when it melts down and burns, Baby, burns]. Mention Murray Rothbard or Ludwig Von Mises to a real estate appraiser and you will get a blank look -- "Murray and Ludwig who?" Mention Kondratievian Winter, and 999 out of 1,000 realty appraisers will ask: "Gee, do I get snow with that?" Folks at the professional realty valuation organizations will have blank sheepish looks as well when they realize that Charlie Akerson's J-Factor [an appreciation factor for predicting future property values] will get absolutely nuked in this real estate calamity, his formulas won't hold up, and they will have to find some one with the correct tools to re-write The Appraisal of Real Estate, Twelfth Night Edition, the so-called Bible of real estate valuation, because it is going to get nuked as well -- there is a lot of stuff missing in this erudite text. As far as we are concerned, the greatest real estate calamity actually began under FDR with his unlinking gold from the money system, and was completed by Tricky Dick Nixon when he closed the gold window for balance of foreign payments in the early 1970s. For more on the subject, see: http://www.financialsense.com/editorials/fekete/2005/0325.html for Antal Fekete's The Goldbug, Variations I. Very few realty appraisers have appraised real estate in a micro or macro real estate depression economy or system. Most appraisers have no idea how fast and how low real estate values can plummet when the debt on real estate cannot be serviced. Since I have been there and done that, I will just let our readers know that it is absolutely frightening, and leave it at that. Like Texas real estate valuation guru, Bob Burnitt who is quoted above and no longer in the realty valuation gig, I am not planning on remaining in this industry much longer either -- one guy cannot fight the banking cartel's manipulation and control over the industry -- no one really wants to hear it and know the real deal. Author Callahan's position paper is 12 pages in pdf format, and is well worth the read. For those of you who cannot figure out why real estate mortgage money is still at 40-45 year lows, I suggest you start reading the recent essays of Dr. Fekete at FSO. Real
estate appraisal and mortgage fraud? Yours
Truly, © 2005 Realty Reality |
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