The Office of the Inspector General (OIG) of the U.S. Department of Housing and Urban Development has issued an alert on appraiser identity theft. The alert details cases in three states where identity thieves illegally used the signatures and certification numbers of Federal Housing Administration (FHA) roster appraisers.
In Washington, an appraiser's former boss used the appraiser's software PIN to create fraudulent reverse mortgage appraisals. The offender was sentenced to five years' imprisonment, while a mortgage lender who conspired with the offender was sentenced to 90 days in jail. In Illinois, a licensed appraiser illegally used the names and licenses of two other appraisers. The perpetrator, who worked with the victims, pleaded guilty and was sentenced to three years. In California, an appraiser illegally used the name and credentials of an FHA roster appraiser 170 times. The fraudster pretended to be the roster appraiser and presented the roster appraiser's credentials to an appraisal company.
These types of schemes frequently occur when an appraiser gives his or her PIN to a colleague or supervisor to help expedite an appraisal. The colleague or supervisor is then able to fraudulently use the PIN to create appraisals bearing the appraiser's credentials. To avoid these situations, OIG recommends that appraisers never provide their PIN to another person, including a company that requests it as a condition of doing business. The report also recommends that appraisers regularly review their list of appraised properties to detect any appraisals they did not prepare.
