The Office of Inspector General (OIG) at the U.S. Department of Housing and Urban Development (HUD) uncovered a series of cases of appraiser identity theft. The schemes varied but resulted from someone using the State certification number of a Federal Housing Administration (FHA) roster appraiser. The FHA roster appraiser was unaware of the misuse until it came to light, usually by accident.
“Appraisal fraud, including appraiser identity theft, is a concern to the Appraisal Subcommittee (ASC). In general, appraisal fraud appears to have declined over the past several years. However, the specter and reality of appraisal fraud continues. We applaud the HUD OIG for its continued diligence regarding appraisal fraud which is a potentially significant problem for the US financial system.”
James R. Park