1.Appraisal fraud  Occurs when a home’s  value is deliberately overstated or understated. it is overstate so that more money can be obtained by the borrower in the form of a cash-out refinance, by the seller in a purchase transaction, or by the organizers of a for-profit mortgage fraud scheme.it includes cases where the home’s value is deliberately understated to get a lower price on a foreclosed home, or in a fraudulent attempt to induce a lender to decrease the amount owed on the mortgage. When there were multiple people involved in the fraud, the frequency of corruption schemes jumps and the misappropriation of non-cash assets was much more common when collusion was involved.they may work singly or more people can be involved too.2.Many appraisers performing fraudulent work are newly licensed and don’t have traditional internship experience. They are not professionally trained andthey do not subscribe to the high standards of the Code of Professional Ethics of the Appraisal Institute. The combination of data analysis technology and outdated appraisal practices, make deceptive appraisals easier to detect.3.some appraisers give in to pressure because they believe that if they do not give in they will have very little work and pressure from real estate agents for the appraiser to simply endorse the contract price isalways there.4.ways appraiser rationalize their actions are         i)Denial of responsibility        ii)Denial of injury        iii)Everyone else is doing it        iv)Entitlement6.ways of preventing appraisal frauds are by Knowing the parties with whom you are doing business . there should be  Clear directives as to the responsibility of all the employees  and the escalation process when they suspect fraud. there should be  an awareness of the major types of origination and servicing fraud. shpuld be an understanding of underwriting and servicing red flags and their use.  A list of resources available to them to detect and investigate fraud.one should always be alert of all the transactions being done by the appraiser and should be aware of his rights.

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