Mortgage Firm Faces "Appraisal Shopping" Allegations In Ohio AG Civil Suit; State Settles Similar Claims Against Three Others For $160K+

From the Office of the Ohio Attorney General:

• In an ongoing effort to hold the mortgage industry accountable for its part in the foreclosure crisis, Ohio Attorney General Richard Cordray [...] filed a lawsuit against Weststar Mortgage, Inc. In the lawsuit, Cordray charges the Washington D.C. area home appraisal company with improperly influencing Ohio appraisals.

• According to the complaint filed in the Court of Common Pleas of Belmont County, Weststar violated Ohio law through a series of actions including using pre-printed “estimated value” forms for appraisals and shopping for a higher appraisal amount on behalf of clients. “Appraisal influence is a damaging practice that often goes undetected until it’s too late,” said Cordray. “With this case, we advance one more step in cleaning up the destructive actions that led to the foreclosure crisis.”(1)

For the Ohio AG press release, see Cordray Holds Home Appraisal Industry Accountable.

(1) In addition to this lawsuit, three other companies accused of attempting to influence Ohio home appraisals have recently settled lawsuits with the state, resulting in a combined total of more than $150,000 in restitution and civil penalties, according to the Ohio AG press release:

• Cordray settled with First Ohio Banc and Lending to resolve a lawsuit alleging the company engaged in unfair and deceptive home appraisal practices including deceptive advertising violations. In the agreed entry, First Ohio agreed to pay the state $52,400, which includes restitution to consumers;
• In another agreement, Fiserv Lending Solutions, based in Connecticut agreed to pay $95,000 to the state, which is the largest undue influence settlement in Ohio to date;
• In September, Cordray entered into a similar agreement with Nations Lending, which agreed to pay the state $15,000 and will keep all appraisal records for three years.