Big investors are valuing homes with a method outlawed for everyone else after the housing crash — and the SEC is asking questions
|01/27/2018||Posted by BusinessMediaguide.Com under General World News||
- Large investors are increasingly using so-called broker price opinions to value and purchase thousands of homes on the brink of foreclosure.
- This method is used in place of traditional appraisals, which are done by licensed professionals and usually cost more.
- The Securities and Exchange Commission is investigating whether companies are using BPOs to wrongly inflate property values.
A method of valuing homes that was outlawed for most people after the financial crisis is still popular among large Wall Street investors.