Number
001847
Version
SUBSTITUTE 2
...Reference
Sponsor
ALD. MURPHY
Title
Substitute resolution directing the Department of Administration - Intergovernmental Relations Division to seek introduction and passage of state legislation requiring that all persons performing real estate appraisals be state-licensed or certified and that they report recent sales and assessed values.
Analysis
This resolution directs the Department of Administration - Intergovernmental Relations Division to seek introduction and passage of state legislation requiring all persons performing real estate appraisals in the state of Wisconsin to be state-licensed or certified and that any appraisal report prepared by any state-licensed or certified appraiser contain a statement of any sale of the subject real estate that may have taken place within the last 2 years preceding the effective date of the appraised value as well as a report of the most recent assessed value of the real estate and level of assessment.
Body
Whereas, One of the most common forms of mortgage fraud is the practice known as "property-flipping", which refers to the process by which a group of investors buy and sell real estate at rapidly escalating prices; and
Whereas, This practice is illegal if the property values are artificially inflated to secure mortgage loans, and is a crime of sufficient seriousness to warrant the involvement of various units of government as it often involves mail fraud, bank fraud and conspiracy; and
Whereas, The victims of property-flipping include lenders, who find themselves holding mortgages worth more than what the properties are worth, as well as the ultimate property owners or renters, who overpay for the properties; and
Whereas, The City's revitalization efforts are hampered as entire neighborhoods are harmed as properties go into foreclosure and get boarded up as a result of property-flipping schemes; and
Whereas, Growth in the subprime mortgage market, which caters to consumers who are greater credit risks has been rapid, and lenders in that market are considered especially vulnerable to property-flipping schemes; and
Whereas, It is necessary and in the best interest of the City to require that real estate appraisers (a) be state-licensed or certified to ensure the integrity of the real estate appraisal process in the City of Milwaukee and the rest of the state and to bring appraisers within the administrative disciplinary framework in Wisconsin; and (b) report recent sales values and assessed values; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that the Department of Administration - Intergovernmental Relations Division is directed to seek introduction and passage of state legislation that would require all persons performing real estate appraisals in the state of Wisconsin be state-licensed or certified and that any appraisal report prepared by any state-licensed or certified appraiser contain a statement of any sale of the subject real estate that may have taken place within the last 2 years preceding the effective date of the appraised value, as well as a report of the most recent assessed value of the real estate and level of assessment.
Requestor
Drafter
TWM/cac
LRB 01172-3
5/18/2001