Bugs, you made an interesting point when you said “I don’t have to worry about the federal banking regulators associating my name with those bad deals.”

As we all know, appraisers were key in making deals happen.

I wonder if lenders are developing risk management systems to better underwrite future loans so they can identify deals from realtors, brokers, appraisers, and mortgage brokers, whose transactions consistently go in default.

We rate our schools, teachers and principals by graduation rates; so why not rate the people who initiate real estate transactions the same way by?

The US government uses software to track down terrorists and you’re guilty by association.

Could the FBI not track down the fraudsters the same way? For example if 90% of a Realtor’s transactions end up in foreclosure, that should immediate raise a red flag. By triangulating, law enforcement could easily identify the people who facilitated fraud and put them jail.

If anything, Banks should develop internal risk management systems so they can avoid writing loans on transactions initated by “at risk” individuals.