Tag Archives: MARI

Why did the Fed Refuse to Heed the Appraisers, Prosecutors, and Industry’s Fraud Warnings?

By William K. Black

The Appraisers’ Warning of the Lenders’ Fraud Epidemic

Two of my recent columns have explained the effort by a very large number of appraisers to combat the “Gresham’s” dynamic that home lenders and their agents were deliberately generating by extorting appraisers to inflate appraisals.  A “Gresham’s” dynamics perverts market forces.  When cheaters prosper the markets drive honest firms and professionals out of business. Honest appraisers tried to block this dynamic.

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