Thursday, November 1, 2007
WaMu, First American Probed for Mortgage Scam
ABC News is reporting that New York state is investigating an apparent fraud scheme by Washington Mutual, the nation's largest savings and loan; mortgage and property services company First American Corporation; and its wholly owned subsidiary, eAppraiseIT. According to court papers said to include internal e-mails, the three entities inflated the value of homes appraised beyond actual market value, to allow the S&L to write an increased amount of loans for more money, inflating its value for investors. Unlucky homeowners caught in the scheme now may owe more than their property is worth if they attempt to sell or refinance their property.