Andrew Cuomo

New York Republican gubernatorial candidate Carl Paladino knows how to grab headlines, intentionally or not. Today he's in the news because of his habit of sending graphic porn and racist jokes out via mass email. Last week, he aimed and fired at his chief rival for the governor's seat, New York State Attorney General Andrew Cuomo, accusing Cuomo of being the "initiator" of the financial crisis through his role as HUD Secretary under President Bill Clinton.

At HUD, Paladino charged, Cuomo pushed Fannie Mae and Freddie Mac "to lower their standards so every American can enjoy having a house."

Greedy appraisers, who put lofty valuations on properties to please lenders and line their pockets, played a large role in the housing bubble. And the fallout continues: On Jan. 29, a former Beverly Hills real estate appraiser was sentenced to three years in federal prison for her role in a multimillion-dollar scheme to profit from inflated property values. That came on the heels of the arrest of a father and son appraiser team in Laguna Beach, CA charged with altering appraisals to inflate home values by up to $40,000.

In fact, a closer look at the industry and its scandals reveals a "Godfather"-like underbelly, complete with death threats on public officials and sting operations.

The conflicts have led to the increasing use of appraisal management companies -- middlemen that are supposed to act as a firewall between lenders and appraisers. But for millions of homeowners, the issues still linger.