Bulletin 2024-003 Appraiser Identity Theft
Newrez LLC "Newrez" Approved Correspondent Clients: Notice has been received of appraisals completed by unlicensed appraiser within the past two years.
Important Information
Identity theft has been revealed on a large number of appraisals sold to the agencies within the past two years completed by an unlicensed appraiser, who unlawfully used other active licensed appraiser’s identities to complete the appraisal report. After a review of the files, no evidence was established to identify the impacted appraisers with stolen identity were aware or involved with these activities during this time frame.
The following red flags were observed on these reports:
- The unlicensed appraiser’s name and signature are not found in any capacity within the appraisals (or loan files).
- The company name, phone number, and address listed under “contact information” on page six of Form 1004 will be different from that of the licensed appraiser.
- Email contact information reflects a name other than the name of the appraiser who is listed as having performed the appraisal.
- The signatures of the “victim” appraisers appear forged and/or cut and pasted to the identified appraisals.
- Appraisal fees for the appraisals were paid with proceeds going directly to the mailing address of the unlicensed appraiser, not to the address of the licensed appraisers.
While Newrez was not involved with these transactions, the following are recommended actions to mitigate this risk:
- Complete thorough due diligence when retaining servicers or appraisers and other outside vendors.
- Public records and licensing agencies should be accessed to confirm the validity of the third-party documentation in loan files including:
- Business Name
- Business addresses and phone numbers
- Appraiser Name and license number
- Be familiar with your third-party originators/brokers.
- Review and educate staff on fraud control measures.
- Establish a zero-tolerance fraud policy.
- Share information within your organization.
- If a loan doesn’t make sense, don’t do it.
Always report any and all suspicious activity through established channels.