Update on FDIC v. CLGX (CoreLogic – eAppraiseIT): FDIC Reiterates Threat that...
By Peter Christensen The FDIC is now contending that independent contractor appraisers are the legal agents of appraisal management companies (AMCs) in both of its cases against LSI Appraisal and...
View ArticleFDIC Sues 29 Appraisers Over Loans By Downey Savings
By Peter Christensen In the two weeks leading up to Thanksgiving Day, the FDIC sued 29 more individual residential appraisers. All of the appraisers sued in this round reside in California. The FDIC’s...
View ArticleAppraiser Liability Claims – Why Do Claims Get Settled?
By Peter Christensen The article below comes from the most recent Claim Alert published by LIA Administrators & Insurance Services — Why Do Claims Get Settled? This article describes why and how...
View ArticleWhat is the Statute of Limitations for a Lawsuit Against an Appraiser in my...
By Peter Christensen The statute of limitations period for a professional negligence claim against an appraiser ranges from 10 years in one particular New England state down to 1 year in a certain...
View ArticleA Refreshed Warning about Some Risky E&O Sold to Appraisers
We first warned appraisers about this problem almost a year ago, but many appraisers are still falling prey to the marketing for some “no frills” E&O insurance policies and their lack of coverage....
View ArticleThe 8 Biggest Appraiser Liability Cases in the U.S.
I have described below the 8 biggest appraiser liability cases with which I am familiar that are currently pending in the U.S. These are cases that specifically name appraisers, appraisal firms or...
View ArticleWhat is the FDIC Suing Appraisers About? Some Examples of the FDIC’s Specific...
The FDIC continues to sue residential appraisers in connection with origination appraisals and review appraisals performed for failed lenders between 2003-2009 on loans now in default. It may be...
View ArticleThe Mysterious “Notice of Claim” to Appraisers Relating to FDIC Lawsuits
This post is for appraisers who have received a document entitled “Notice of Claim — Appraiser” relating to lawsuits filed by the FDIC (see example below). We have received multiple reports from...
View ArticleShould I Attach My E&O Declarations Page to My Appraisal Report?
Because some AMCs still wrongheadedly insist that appraisers do it, we are asked this question a lot: “should I attach my E&O declarations page to my appraisal report?” The answer is always the...
View ArticleFDIC Diversifies Its Appraiser Targets in Recent Lawsuits
In the last three months, since May 1, 2012, the Federal Deposit Insurance Corporation (FDIC) has sued 45 individual appraisers and appraisal firms in its capacity as receiver for one of the failed...
View ArticleSeven Cases the Defendant Appraisers Won Based on Expiration of the Statute...
I am biased in favor of defendant appraisers. I always root for the defense, even if it’s one appraiser suing another appraiser (as in one case below). Defense is our business. Here, are seven cases...
View ArticleThe Sky is Falling for Appraisers & Home Inspectors
Chicken Little was right – the sky is falling… and landing on both appraisers AND inspectors. Home inspectors often suffer from a general lack of respect, part of which is caused by the fact that they...
View ArticleFannie Mae Issues “Hard Stops” on Appraisal Messaging
As of January 28, 2013, Fannie Mae started placing greater restriction on the data they collect to ensure uniformity. You will now begin seeing a “hard stop” issued by Fannie Mae on messaging. This...
View ArticleYou’re Safe From the MLRG (Unless You Have E&O Insurance)
Since we last wrote about the unusual subpoenas coming from the offices of the FDIC through the law firm called the Mortgage Recovery Law Group (MRLG), we’ve learned some interesting things that you...
View ArticleRevisiting The Fannie Mae/Freddie Mac 2005 URAR Form Ambiguities and Liabilities
It has been eight years since the URAR form was revised. From 2005 to mid-2008, the real estate market experienced a boom and a bust the likes of which we have never seen before, and we are finally...
View ArticleAnother Overtime Class Action Filed Against an AMC
A lawsuit filed last week by a former staff appraiser against LandSafe Appraisal Services, Inc. exemplifies the overtime liability risk faced by many appraisal firms and appraisal management companies....
View ArticleIs Fannie Mae Form 2075 a Ticking Time Bomb for Appraisers?
Fannie Mae Form 2075 (aka the “Desktop Underwriter Property Inspection Report”) seems innocuous enough when you pick it up and look at it. After all, it’s only a single page with just one-half page of...
View ArticleIf They Said It, It Must Be True
New tactic by the NAR and NAHB to get appraisers to “play ball”. Last year they accused appraisers of single-handedly keeping the market from recovering and this year they are patting appraisers on the...
View ArticleOvertime Lawsuits Continue to Spread Among Valuation-Related Companies —...
There is definitely now a small wave of overtime litigation under the federal Fair Labor Standards Act (FLSA) affecting businesses in valuation-related fields. The industry has become an easy target...
View ArticleESA Bankruptcy, Is Chase To Blame Or A Victim?
I find myself offering thoughts about many strange and unusual situations involving appraiser E&O and risk management in general, but today may be the strangest subject of all – why it appears...
View ArticleWhen the FDIC Comes A’ Knockin’
The implosion of the real estate bubble reverberated across the American landscape. Neither residential nor commercial markets were spared. This implosion not only had a very palpable effect on the...
View Article
