Ohio Sues Real Estate Firms

Ohio, the state with the third highest number of foreclosures, sued 10 real estate companies for improperly pressuring appraisers to inflate home values, Bloomberg News reported Thursday.

The companies, based in Ohio, California, Arizona and New York, set specific estimated values on properties and communicated a desired price to appraisers, according to the lawsuits filed by Attorney General Marc Dann today. In Ohio, it's illegal to influence an appraiser. Those sued include seven mortgage brokers, two lenders and an appraiser, Bloomberg News reported.

According to Bloomberg News, the lawsuits claim brokers and lenders asked for specific home values on properties the appraisers had not yet seen, in one instance saying, "if you foresee a problem with the value, contact me immediately'' and in another case, using the words: "Need aggressive appraiser!''

The mortgage brokers being sued are Ace Mortgage Funding LLC in Cincinnati; American Home Brokerage Corp. of Garden Grove, California; Apex Mortgage Services LLC in Columbus; First Ohio Banc & Lending Inc. of Independence, Ohio; Island Financial LLC of Twinsburg, Ohio; Premiere Service Mortgage Corp. of West Chester, Ohio; and Robert C. Roach, president of The Valley Mortgage Group of Austintown, Ohio, Bloomberg News reported.

The lenders are Sage Credit Company LLC, based in Irvine, California, and Wall Street Mortgage Bankers Ltd. of East Rockaway, New York. All-Line Appraisals of Phoenix, which arranges property valuations for lenders and other clients, was also sued, Bloomberg News reported.-New York State Society of Certified Public Accountants

Comment and add to the story without registration, but keep the comments meaningful please. Links are not accepted.