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LOCAL EDITION SERVICING management for general agents and insurance programs. AGA Files Statement with House Finance Subcommittee TAPPING THE PRESIDENT OF THE AGA FOR INSIGHT, THE HOUSE FINANCE SUBCOMMITTEE CONTINUES TO GRAPPLE WITH APPRAISAL- RELATED PROPOSALS. MARYLAND // The American Guild of Appraisers has officially filed a statement with congres- sional legislators as part of a recent hearing, titled "Appraisal Oversight: The Regulatory Impact on Consumers and Businesses." Conducted by the Insurance, threatening the reliability of appraisals to the detriment of borrowers and taxpayers and causing large numbers of experienced appraisers to leave the profession. Borrowers and lenders alike in theory rely on the honesty and accuracy of ap- praisals in making lending and borrowing decisions." running a fraudulent mortgage- rescue business. Howard R. Shmuckler of Virginia Beach, Virginia, was sentenced to 90 months in prison followed by three years of supervised release. He was found guilty of running a mortgage- rescue business that received substantial amounts in fees but million from approximately 865 clients who were looking for re- lief on their distressed mortgages. Shmuckler, a disbarred attorney, posed as a licensed lawyer and recruited new clients, telling them the business had restruc- tured hundreds of mortgages and stopped hundreds of foreclosures. In actuality, the business only was able to obtain relief for approxi- mately 4.5 percent of clients. "At a time when homeowners across the nation are struggling to keep their homes, Shmuckler actively targeted the most vulner- able of them with this mortgage modification scam," said Christy Romero, special inspector general for SIGTARP. "Shmuckler exploited home- Housing, and Community Opportunity Committee of the House Finance Subcommittee, the AGA was asked to submit a statement of record to assist the lawmakers as they make proposals directed at improving appraisal regulation, enforcement, and oversight. Peter Vidi, president of the AGA, provided the group's state- ment to the subcommittee, and the document addressed several key issues including customary and reasonable fee structures, the preservation of state registra- tion for appraisal management companies, and the ability of state boards to secure proper en- forcement for reporting USPAP violations. In a release detailing the owners desperately seeking support through federal housing programs such as HAMP by es- sentially guaranteeing the home- owners mortgage modifications in exchange for an upfront fee. Shmuckler performed little if any service in return for the fees, and in many cases, the homeowners' properties fell into foreclosure." Court records also showed that Shmuckler advised clients to terminate their contracts with their mortgage companies and to stop making payments to their lenders. SIGTARP partnered with the FBI's Washington field office and the FDIC-OIG to investigate the case. "Mr. Shmuckler is a cunning AGA's statement submission, the organization said that it is also working with consumer organizations to "ensure that consumers have the benefit and protection of professional ap- praisals, not just a mortgage or- ganization but in circumstances of distress such as a short sale or pre-foreclosure proceeding." Elaborating on the recent developments, Vidi said, "The practices of many appraisal management companies are Sentence Handed Down in 'Mortgage- Rescue' Case A MAN ACCUSED OF RUNNING A FRAUDULENT BUSINESS THAT TOOK ADVANTAGE OF DISTRESSED HOMEOWNERS HAS BEEN BROUGHT TO JUSTICE. VIRGINIA // SIGTARP has announced that a Virginia man was sentenced lately to more than seven years in prison for only modified clients' mortgages in a few cases. Shmuckler pleaded guilty to six counts of wire fraud on April 10. His sentence is to be consecutive to a 75-month federal sentence he received earlier that month for a counterfeit check scheme. According to court records, Shmuckler owned and oper- ated a mortgage-rescue business in Vienna, Virginia, called The Shmuckler Group. From June 2008 through March 2009, his business took in nearly $2.8 criminal who took advantage of distressed homeowners in desperate need of help, U.S. attorney for the Eastern District of Virginia. "Today's sen- tence should send a clear warning to other fraudsters of the heavy price they will pay for preying on vulnerable people looking for help to save their homes. ers that they should be cautious of any guarantee of a mortgage modification, especially if the service promises the modification in exchange for an upfront fee. Advice from federally approved housing counselors is free, as are mortgage modifications under HAMP. SIGTARP reminded homeown- " THE M REPORT | 57 " said Neil MacaBride, ORIGINATION SERVICING ANALYTICS SECONDARY MARKET