INDIANAPOLIS -- (April 6, 2007) -- Indiana
Attorney General Steve Carter (
http://www.in.gov/attorneygeneral/index.html)
applauds the Indiana House and Senate for passing a measure
that would give permanent status to the Homeowner Protection
Unit (HPU) created nearly two years ago as a test program
administered by the attorney general’s office. The
Unit has filed 211 disciplinary actions against licensed
appraisers and another 76 against licensed real estate agents
& salespersons since its inception in mid-2005. The
Unit is currently investigating another 750 complaints filed
against appraisers and real estate agents and salespersons.
“The benefit of the unit is that it allows the
relationship between appraiser, real estate agent, and
lender to be analyzed in a coordinated way,” Carter
said. “Making this Unit permanent is an important
step for Hoosiers. We’ve made good strides the last
year and a half and want to keep the momentum going. By
raising awareness of the Unit, we hope that more people
will recognize that there is a place to turn to for help
if they believe they have been the victim of, or suspect,
questionable business practices by individuals or companies
in these professions.”
In 2004, the Legislature established the HPU under Indiana
Code §24-9 in an effort to address predatory lending
practices. These practices encompass acts such as inflated
real estate appraisals, mortgage fraud and the offering
of high cost home loans to some of Indiana’s most
economically vulnerable citizens. The Unit is funded from
mortgage filing and license renewal fees and equals approximately
$500,000 per year. This funding was scheduled to end on
June 30, 2007. HB 1210 has unanimously passed the Indiana
House and Senate. It is now awaiting a concurrence (the
House must now agree to minor changes made by the Senate
before the bill would go to the Governor for his signature).
The focus of the Unit in the past two years as been to
address the core of mortgage fraud – inflated real
estate appraisals. Unwitting consumers are sold a home
artificially appraised well above the actual value of
the home. When the consumer attempts to refinance or sell
the home, they discover that the home is tens or even
hundreds of thousands of dollars below the appraised value.
The two hundred eighty seven (287) actions by the attorney
general’s office have been filed with their respective
board housed under Indiana’s Professional Licensing
Agency. The Unit has also filed a civil lawsuit against
a Credit Service Organization that purported to provide
‘foreclosure consultant’ services.
“The permanent status of the HPU is a deterrent
for those who would dare to engage in mortgage fraud,
and is one more tool for Indiana in its fight to reverse
a disturbing mortgage foreclosure trend,” Carter
added.
The attorney general’s office investigates and
pursues disciplinary action against licensed professionals
in Indiana. These actions are taken before the license
holders’ respective board for a final determination
and order to be issued by that Board.
SOURCE: Office of the Indiana Attorney General
