The Securities and Exchange Commission and the Office of Thrift Supervision are looking into allegations that Washington Mutual Inc. originated, securitized and sold mortgages that were made using inflated appraisals. The allegations were made in a lawsuit filed against WaMu's appraiser by New York Attorney General Andrew Cuomo. WaMu said in a statement that it is cooperating fully with SEC and OTS inquiries, although the company has spent "a month and a half investigating these allegations (and) we can say with confidence that there has been no systematic effort by WaMu to inflate home appraisals." The New York attorney general's office filed suit Nov. 1 against First American Corp. and its subsidiary eAppraiseIT, accusing the companies of providing inflated property apprais...
Get Inman via Facebook Messenger
Our top headlines delivered once a day.