General World News

Big investors are valuing homes with a method outlawed for everyone else after the housing crash — and the SEC is asking questions

abandoned house

  • 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.

According to The Wall Street Journal, investors including Blackstone Group are increasingly turning to so-called broker price opinions, or BPOs, to value tens read more >>>

Source:: BusinessInsider.Com