DSCR Market Shake Up - Massive Fraud - #287

Jul 24, 2025

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DSCR Market Shake Up - Massive Fraud #287

📉 $50+ Million DSCR Loan Fraud Exposed | Market Shifts, Appraisal Scams, and Lender Fallout

In this explosive episode of the Private Lenders Podcast, Chris and Jason break down one of the biggest fraud cases to hit the DSCR loan market in recent years. A massive $50M+ scheme involving inflated appraisals has rocked the rental property lending space, particularly in the Baltimore market, and is causing ripple effects across the country.

💥 What happened? ✔️ Hundreds of fraudulent DSCR loans tied to inflated property values ✔️ Major lender Apollo and other institutions unknowingly funded deals based on falsified appraisals ✔️ Real estate investors and local lenders left scrambling as LTVs are slashed and financing options disappear

Chris and Jason dive deep into:

The mechanics of the scam (including the infamous $444 appraisal fee trigger)
How one bad actor manipulated appraisers and the DSCR system
The dangerous ripple effect on private lenders, takeout financing, and exit strategies
Lessons for conservative lenders, mortgage brokers, and real estate investors
What this means for Baltimore’s housing market, and potentially, other cities

💬 Has your market been affected? Drop a comment and share your experience.

🎯 Whether you're a private lender, mortgage broker, or real estate investor, this episode is packed with insights on DSCR loan fraud, market risk, and how to protect your capital in shifting times.

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