I shouldn’t be shocked but it never ceases to amaze me the low ethics some people and companies exhibit in their businesses.

You’ve probably heard the latest scandal, or more exactly, the latest tip of the iceberg to be exposed through the Washington Mutual scandal. Here is more on the story.

Washington Mutual is being investigated by New York’s Attorney-General Cuomo for pressuring appraisers to inflate their report in order to benefit lenders. Nice way to think about your clients first. Guess where I am going next? A local Credit Union until they get too big Calculated Risk has a god cover on the story that will give you the lowdown. On another post:

““I wish I could say I am shocked by the discoveries made by the Attorney General and his staff. Sadly, what allegedly happened between First American and Washington Mutual is not an isolated incident. Rather, it is symbolic of a problem that has plagued the appraisal industry for years. As the allegations against First American show, the mortgage industry’s dirty secret has been that banks exert tremendous pressure to extort appraisers.”
Terry Dunkin, President of the Appraisal Institute Nov 7, 2007.” I guess kudos for saying it at last, Terry?

I can only imagine what we are not aware of? It’s easy to understand why people have such a distrust for the real estate industry, lenders, appraisers, Realtors, land promoters, etc. With news like this, coupled with decades of growing distrust, how can the consumer feel they can trust us? It’s sad that at least one third of my time spent on trying to make them understand I am an ethical and trustworthy person. It feels like an uphill battle against a few misguided people focused on short term profits.

What will it take for this industry to self-regulate on its ethics? Another forced code of honor? A few more people thrown in jail? A new law? How about doing what Ghandi said best, the change starts within.