12/8/2011 1:47 PM (PST)

When Embrace Home Loans arranges to accept an appraisal fee for an application, that fee is refundable if no appraisal service is ever performed. If the appraisal service is performed, the entire fee is paid to the Appraisal Service provider. No part of that fee is retained by Embrace Home Loans. The only way Embrace can earn any revenue from a consumer is if they ultimately accept a loan from us. Anytime we deny an application due to a low appraised value, Embrace only realizes the expense of processing the file. There is no income. Why then would we want to set someone up for an appraisal that did no good for them or us? Embrace discloses verbally and in writing about the appraisal fee before it can be accepted. We certainly understand that people are disappointed when their property value comes in lower than expected, but how can we be blamed for perpetrating a scam, when there is no profit? As an approved government lender for Fannie Mae, Freddie Mac and FHA, we must adhere to the same strict guidelines as all mortgage bankers regarding the ordering of appraisals. You can read and learn about these requirement here in this FAQ: Home Valuation Code of Conduct Frequently Asked Questions (FAQs) https://www.efanniemae.com/sf/guides/ssg/relatedsellinginfo/appcode/pdf/hvccfaqs.pdf

12/9/2011 11:08 AM (PST)

Folks don't listen to this guy. He is part of this scam. I'm telling you, I thought the same thing about the notices I read about Embrace Home Loans. I thought for sure these people were just bitter because their homes weren't valued at what they thought it should be but I should have listened. I would have more Christmas money if I would have just listened to the people who took the time to try and alert the public. Do not fall for their lines. There is definitely something going on under the table between the appraisers and this company.

12/12/2011 5:53 PM (PST)

Blanca Z. unfortunately you have entirely missed the point! It's illegal for anything to go on "under the table" between appraisers and any lender... This may have happened in the distant past with unscrupulous sub prime lenders...but consumer protection and government regulations forbid this kind of activity. Go into your local bank and ask exactly how the process works now...it's the same for all lenders...no loan can be approved until there is an appraisal (this is the basis to offer your home as collateral for the loan to the bank). Most homes have lost value and in many cases, people owe more than their homes are worth with the existing mortgage. Appraisers must be paid for their work even though the lender collects the fee, it's illegal to "mark up" the cost of any "3rd party services" relating to the loan. 100% of the fee that is collected is paid to the appraiser. Why would any lender go through all this trouble to make $50? (and they can't even do that!) Call and ask an appraiser or realtor their explanation of how this works....