A "loose network of crooked real estate appraisers" is systematically stealing the identities of legitimate appraisers in the Chicago area and nationwide and using them to engage in multimillion dollar mortgage fraud, the Chicago Tribune reported last week.

The paper reported that Illinois' Department of Financial and Professional Regulation can't keep up with complaints from state appraisers whose signatures and license numbers have been misappropriated in the last two years. The Department's one full time appraiser investigator retired last month.

The paper reports:

[I]n recent years, as identity thieves capitalized on a red-hot home loan market, dishonest appraisers made the crimes more lucrative, jacking up the value of targeted buildings by misrepresenting conditions or inventing comparable properties.

To help cover their tracks, they filed the reports using legitimate appraisers' names. The forged reports often got little scrutiny from lending firms, as falling interest rates and rising home values fueled a go-go real estate market.

States around the country report a lack of resources to investigate and prosecute dishonest appraisers. Sometimes, simple glitches in state law compound the problem. The Tribune reported that unlike, for example, veterinarians and acupuncturists, Illinois doesn't have the statutory power to temporarily revoke the license of an appraiser pending resolution of complaints.

The problem extends beyond scammed home buyers and the appraisers whose identities are misappropriated. Legitimate appraisers everywhere risk being tainted by the actions of a relatively few felons.

An effective advocacy organization for appraisers would be working Washington to ensure that policymakers and their staffs understood the importance of appraisers to the housing economy. No one would win — not homeowners, not lenders, and not appraisers — if a misunderstanding about appraisers' roles led to federal laws or regulations undermining professional appraisal as central to the health of the American economy.

At our second annual Winter Convention in Las Vegas January 16-18, we'll be discussing these issues and more. If you're not among the 1,600 attending, watch this space for important news on the future of appraisal advocacy.

If you're an Aurora user, you already have powerful tools to protect yourself from identity and signature theft. PDF security in WinTOTAL allows you to lock down a report to guard against data being be copied electronically and the report being altered directly. Since these features aren't active by default when you first install Aurora, do these steps, only once per PC, to enable PDF security: Open a report, choose File, Print to PDF, and in the print dialog box that opens, click More Printing Options in the lower right corner of the window. Click the Edit PDF Security link, check all the boxes there and add a password. Save and print.

In addition, state of the art Secure Socket Layer (SSL) technology is used to encrypt your data when you log into your XSite. And your signature is password protected, form data is encrypted in .ZAP files, and the software can only be used by the registered user. Beyond the software side of things, make sure you're careful who you allow access to your signature and identity information in your office, and generally use common sense and caution.

A bill that would pay displaced Louisiana homeowners 60 percent of their equity to help them stave off foreclosure in the wake of Hurricane Katrina was approved by a House committee last week.

The bill, H.R. 4100, would create the Louisiana Recovery Corporation, a government entity appointed by the President and financed by bonds, which would buy a percentage of the equity in homes damaged or destroyed by Katrina. Govexec.com explains how it would work:

The agency would buy properties destroyed by the hurricane from interested original owners at approximately pre-Katrina values. It would then work with local governments to refurbish the land. The original owners would be given the first shot at repurchasing their land - or a property comparable to the one they had owned - after it has been refurbished. If they declined, the property would go to the highest bidder and the proceeds of the sale would be returned to the Treasury.

Many of you recall our fundraising efforts in September where you helped us give more than half a million dollars to the Red Cross for its hurricane relief efforts. Last month, we received a letter which we wanted to share with you, since so many of you were an important part of that effort. It reads:

a la mode, inc.
Oklahoma City, Oklahoma

Dear Friends:

I learned about your generous contributions to help the victims of Hurricane Katrina. I appreciate your efforts, and our whole Nation is grateful for your kindness.

The scenes from Hurricane Katrina have touched our hearts, and our Nation is again showing the world that the greatest challenges bring out the best in America. Together, we will continue to bring new hope to those affected by this tragedy, and the Gulf Coast will emerge better and stronger.

The good works of a la mode demonstrate the character and great strength of our Nation. May God bless all those affected by this storm, and may God continue to bless America.

Sincerely,

/s/ George W. Bush

We also thank you for your generosity, and also your business this year. Merry Christmas and happy holidays to you and yours.