David Jarnagin

Fannie Mae and Freddie Mac, both entered into nonprosecution agreements with the commission, each agreeing to accept responsibility for their conduct without admitting or denying liability. What a bunch of BS! This is what is wrong with our oversight, no charges for wrongdoing! Just suing and moving monies...typical government shell game! Great time for the attorneys involved! Our government and entities regulated by our government, knew the risks involved with promoting affordable financing; changing the name of B & C loans to Alt-A, to alter investors opinions. Yet, he we are with virtually no legal responsibility for charges of FRAUD!

BPO's are an opinion of value, as are appraisals; and should be regulated by licensing authorities. If an agent or broker want to submit official value estimates, they should be licensed to practice in accordance with local appraisal boards to provide limited/restricted valuations for this practice. Also, disclosure is the most important issue for agents and brokers that perform these value estimates; they should be prohibited from participating in the respective transactions for which they provided an opinion. This would reduce potential conflicts of interest that appraisers must alway adhere to and would limit potential fraud to the lender/client. Can you imagine if appraisers were compensated by a percentage of the sales price or value estimate? This is why BPO's are inexpensive; there is the potential for the listing and subsequent sale, with significant commission being compensated by a percentage of the sales price! I agree with some of the comments previously posted, that buyers are what drive the market, but interpretation of market data is an art, not just a compilation of data. Not all data available reflect arms-length transactions, especially in our current marketplace.

Is there any Quality Control out there??? This type of problem has become rampant in the real estate and finance industries. There needs to be more focus on lender and title company documentation, regarding notary and affidavit requirements and subsequent liability. There is a large amount of affidavit fraud done at the escrow company prior to funding, particularly in Arizona!