More on the SEC probe into appraisal inflation for Washington Mutual

This is a sad, sad, state of affairs!

The SEC is investigating banking giant WaMu for allegedly having its loan officers pressure their appraisal management company, eAppraiseIT LLC, to increase values on properties that came in too low to make the loan.

An email has surfaced in which eAppraiseIT's president wrote that the company would "roll over" and submit to WaMu demands for higher appraisals. Later, in another email, he stated that the bank was in violation of federal regulations, which prohibit pressuring appraisers for value.

And, do you want to know what the saddest part of this whole mess is? eAppraiseIT LLC only pays $135.00 to the appraiser for a full single family 1004. So, for a third of the normal fee for an appraisal, some of these appraisers broke their own USPAP regulations just to get work in house. Which, sadly, is what sometimes happens when appraisers are desperate for work.

Appraisers have families that need to eat - they have house payments, car payments - children that expect a Christmas, just like everyone else.

Appraisal management companies were formed to put an end to hand picking appraisers and manipulating property values. Well, obviously, the situation has not changed, except that the honest appraiser is either not going to get any work at all, or be paid 1/3 of his entitled fee, while the crooked management company walks off with the rest.

Should be interesting to see how the rest of the story unfolds.....

And, 'til next time, it's all good!