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A residential mortgage loan borrower alleged that his mortgage broker joined with an appraisal company in an illegal scheme to inflate appraisals in order to induce borrowers to enter into high-cost, adjustable-rate mortgages that they were unable to afford. The borrower also alleged that the broker received a yield spread premium from the mortgage lender as a kickback for securing a loan with a higher interest rate. The lower court dismissed the claims, but a federal appeals court disagreed. 

Last month, ValuTrac Software, a software solutions provider to the appraisal management and mortgage lending industry, and Platinum Data Solutions, provider of collateral valuation and risk assessment technologies, entered into a partnership that would result in integrating ValuTrac’s ValuTrac Pro, a customizable appraisal management system, with Platinum’s RealView, a configurable appraisal data quality verification technology. To find out more about this partnership, Valuation Review sat down with Platinum Data Solutions Chief Executive Officer Phil Huff.

Valuation Review: What prompted the partnership?

Huff: Platinum was in the process of due diligence with three different appraisal management system providers. As it were, ValuTrac was also in the process of investigating ways to meet its customers QC needs. This prompted a meeting between the two CEOs, leading to the partnership.

Miami-area home sales rose above a year earlier for the 11th consecutive month in March amid sizeable gains in mid- to high-end activity and a record level of sales to investors and other absentee buyers. The median price paid for a home rose 14.1 percent from a year ago, marking the 15th month in a row with a year-over-year increase, a real estate information service reported. 

In March, 10,215 new and resale houses and condos closed escrow in the metro area encompassing Miami-Dade, Palm Beach and Broward counties. March sales rose 18.8 percent from the prior month and rose 7.1 percent from a year earlier.

October Research, LLC is pleased to announce that WINDWARD CONSULTING | SOFTWARE, LLC is once again the corporate sponsor of the annual "Make a Child Smile" Bike-Building Charity Event at the National Settlement Services Summit.   

October Research, LLC is pleased to announce it has selected a high-profile mortgage banker and a world-renowned business author to deliver keynotes at the 2013 National Settlement Services Summit, to be held in Cleveland, Ohio, June 10-12 at the Marriott at Key Center.

Available now for immediate free download through the Apple App Store, Landmark Network Inc. announces the release of the first iPhone and iPad application for the valuation management space; providing users the ability to access and manage their appraisal orders on the go.

CoreLogic, a residential property information, analytics and services provider, announced the acquisition of Case-Shiller from Fiserv Inc. in conjunction with first quarter 2013 CoreLogic earnings results on April 24. The acquisition closed on March 20, 2013.

Mobise, developer of enterprise iPad applications, and King County announce iRealProperty, the iPad solution, which manages thousands of properties combined with smart maps, camera, sketching and GPS, providing appraisers with a powerful device to manage property assessments in the field, while staying connected with the office. 

The Appraisal Foundation (TAF) and 11 of its sponsoring organizations have formed a national education partnership, the Alliance for Valuation Education (AVE), an organization dedicated to providing greater availability of consistent, quality valuation education. Valuation Review sat down with David Bunton, President at TAF, for an exclusive interview to find out more about the collaboration and the group’s education vision for the appraisal profession. 

“I’ve been at the Foundation for 23 years, and it’s not often that you get this kind of collaboration,” Bunton explained. “The last time there was collaboration of this magnitude was probably when the Foundation was created 26 years ago. We’re really pleased that all these organizations have agreed to work together and be part of it. I think it’s great for the profession. In addition, it will also expose these organizations to appraisers who are currently not affiliated with a professional society. 

Mortgage applications increased 0.2 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey. The Market Composite Index, a measure of mortgage loan application volume, increased 0.2 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index increased 1 percent compared with the previous week.  The Refinance Index increased 0.3 percent from the previous week.  The seasonally adjusted Purchase Index increased 0.3 percent from one week earlier to the highest level since May 2010. The unadjusted Purchase Index increased 1 percent compared with the previous week and was 18 percent higher than the same week one year ago.

During the housing downturn, different neighborhoods across the United States experienced different levels of distress. The same is true in recovery. As a result, it is important to understand neighborhood-level general and distressed property trends in order to make sound REO-to-Rental investments.

Existing-home sales eased in March from inventory constraints, which continued to pressure home prices, according to the National Association of Realtors (NAR). Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, declined 0.6 percent to a seasonally adjusted annual rate of 4.92 million in March from a downwardly revised 4.95 million in February, but remain 10.3 percent higher than the 4.46 million-unit pace in March 2012.

Global DMS, provider of web-based compliant valuation management software for the mortgage industry, has been named one of five finalists in the state of Pennsylvania’s inaugural “Governor’s Impact Awards” in the category of small business impact within its region. 

ISGN Corp., provider of end-to-end technology solutions and services to the U.S. mortgage industry, partnered with TRUPOINT Partners to offer a comprehensive Consumer Financial Protection Bureau (CFPB) mock audit, ensuring financial institutions and mortgage lenders maintain compliance with the changing regulatory environment, CFPB rules and fair lending requirements.

Following seven consecutive months of gains, the list of improving U.S. housing markets remained virtually unchanged in April, with 273 metros on the National Association of Home Builders (NAHB)/First American Improving Markets Index (IMI). This total reflects a net reduction of one market since March and again includes entrants from all 50 states and the District of Columbia. 

ServiceLink, an end-to-end origination, servicing and default solutions provider for mortgage lenders and servicers, announced that Mike Zwerner has joined the company as senior vice president of corporate development. In this role Zwerner will direct the company’s marketing and communications teams, expand key partner relationships, assist in the development and oversight of corporate business development, and help facilitate divisional strategic synergy and execution.

Bay Area home sales fell below a year earlier for the second consecutive month in March as demand continued to outstrip supply in many markets. While low-end sales fell sharply compared with March 2012, $500,000-plus transactions jumped, helping to push the median sale price up on a year-over-year basis for the 12th consecutive month, a real estate information service reported.

A total of 7,263 new and resale houses and condos sold in the nine-county Bay Area last month. That was up 34.4 percent from 5,404 the month before, and down 6.0 percent from 7,723 in March 2012.

The Appraisal Practices Board released a discussion draft concerning “The Measurement and Application of Market Participant Acquisition Premiums.” Increased interested in identifying and recognizing the fair value of assets and liabilities in financial statements prompted the most recent exposure draft. 

A 34-count indictment was unsealed charging five people with various crimes stemming from their participation in a mortgage fraud scheme between May 2004 and February 2009 that involved fraudulent documents, inflated purchase prices on loan documents for more than 100 Philadelphia properties and resulted in more than $20 million in fraudulent loan proceeds.