Washington Mutual Implicated In Appraisal Fraud Case

November 2, 2007 at 11:26 am  ·  Category: Business Culture and Current Events, Real Estate, Stocks

I was pressured for 2 weeks to change both my value and the conditions of my appraisal report …. of an appraisal I completed that did not come to their predetermined value for a ‘valued’ Wamu client.”

Appraiser (subscription required) in eAppraiseIT’s appraiser network, in e-mail to eAppraiseIT, April 17, 2007

The Wall Street Journal reported today (subscription required) that New York Attorney General Andrew Cuomo has filed suit against eAppraiseIT, a unit of First American, alleging that it allowed Washington Mutual to use favored appraisers and gave in to pressure from Washington Mutual to increase appraisals in order to allow loans to go through.

Shares of Washington Mutual (WM) are off almost 14% in the last two days on the news, pushing the shares to 7 year lows (WM 10 Year Chart).

This again raises the question: “Is WaMu The Next Countrywide?”

Posted by Greg Feirman  ·  Trackback URL  ·  Link
 
No Responses to “Washington Mutual Implicated In Appraisal Fraud Case”
  • I have received several loans from Wahington Mutual totalling millions of dollars and have found their underwriting policies to be good and followed pretty much to the letter. I purchased a lot of stock and have been surprised buy such a quick downturn. I believe history will show their stock is a great buy here at $23 and change.

    james w tindalljr  ·  Nov 6, 2007 at 12:10 am  ·  Permalink

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