Foreclosure rates are rising, mortgage fraud is rising...unscrupulous lenders and appraisers are to blame!  Industry watchdogs are springing up to try and get a grasp what is going on and several groups are making headway.  

Today AppraisalScoop.com reports that Pamela Crowley, founder of Mortgage Fraud Watch List, which "is a database of addresses, submitted by real estate professionals from all 50 states, where a sale or refinance transaction has suspicious activity" is being sued by eAppraiseIT, an appraisal management company.

According to Brian Davis on AppraisalScoop.com, who has watched as this situation unfolds, "It appears that the controversy centers around a claim by Pamela that eAppraiseIT is unlocking and changing security settings in appraisal reports that pass through them to lender clients".   AppraisalScoop.com has done a spectacular job of compiling the issues, responses, quotes from both side and more, so instead of trying to re-post these large documents, I'm going to suggest you  read the rest of the story at AppraisalScoop.com and decide for yourself what this situation warrants!

For more information about mortgage fraud and how it can affect you and your neighborhood, The Georgia Real Estate Fraud Prevention & Awareness Coalition does an excellent job of educating consumers, lenders agents, and appraisers of how to spot and prevent mortgage fraud.  The Mortgage Fraud Blog also acts a as "clearinghouse for recent mortgage fraud schemes, indictments and prevention".  There is no question that mortgage fraud has affected almost every market.

Do you think an industry watchdog being hounded by an appraisal management company whom she has called out for poor practices is in the real estate consumers best interest?