WaMu accused of appraisal fraud
Lawsuit claims the lender told an appraiser to offer a rosier housing outlook so risky mortgages could get approved. 

It appears that this appraiser attempted to use an “adjustment” for a declining market and WA MU didn’t “appreciate her point of view”.  As mentioned in my October post, appraisers are using closed escrows as comps: In a declining market the appraiser is utilizing sales comparables that are as much as six month’s old (add a 45 day escrow to the 6 months and you realize how old these comparables can be).  Active listings (your competition - what buyers will be comparing your home to) are more important. Pending escrow comparables are also analyzed.”