This is an update on the new mass litigation phenomenon against appraisers. Llano Financing Group LLC continues to be the front runner in filing lawsuits against appraisers. In all of the recent lawsuit complaints I have reviewed from June-August 2015, Llano Financing is suing appraisers over claims that were purportedly first assigned by Read more…
First Round. Last fall on this blog and also in the Appraisal Institute’s Valuation magazine, I wrote about several entities involved in purchasing foreclosed debt from lenders (or just purchasing legal claims relating to the debt) and then filing lawsuits against appraisers asserting professional liability claims. Those investment entities were Read more…
A consumer class action complaint has been filed against a lender and its AMC relating to the subject matter of a prior CFPB investigation and settlement. Last August, the Consumer Financial Protection Bureau (CFPB) announced that it had taken action against Amerisave Mortgage Corporation, its affiliated AMC Novo Appraisal Management Company, and one Read more…
Mutual First Cases, 5-1-14 to Present Some appraisers are now being targeted in lawsuits by entities named “Mutual First, LLC” and “First Mutual Group LP.” So far, they are behind the filing of about 40 lawsuits within the last year. They are not banks, credit unions or any kind of regular financial institutions. They are investment entities aiming to make money Read more…
Call this one a loss for the FDIC. In May 2011, the Federal Deposition Insurance Corporation filed suit against CoreLogic Valuation Services, formerly known as eAppraiseIT, in connection with appraisal services managed by eAppraiseIT for failed lender Washington Mutual. The FDIC’s lawsuit at that time concerned 194 allegedly flawed appraisals (mainly, Read more…
Many appraisers are now being asked to carry general liability insurance by their clients — in addition to the professional liability insurance that has been a standard requirement for many years. This is partly the result of the OCC’s new Risk Management Guidance for banks under its jurisdiction. The OCC’s Risk Read more…
[Please note the author has no involvement with this case, other than reporting about it here. If you have questions about the case, please direct them to the attorneys representing the plaintiff, for whom contact information from the complaint is provided below.] On December 2, 2013, three law firms in New Read more…
Gorra v. Commissioner, U.S. Tax Court, T.C. Memo 2013-254. On November 12, 2013, the U.S. Tax Court decided a petition challenging the IRS’ disallowance of a tax deduction for a donated conservation/preservation easement. The donated easement was for the ostensible purpose of preserving a building façade and other historical characteristics of Read more…
Updated from an earlier post. On September 5, 2013, in a professional negligence case against two Colorado appraisers by the FDIC, a federal court ruled on an issue concerning USPAP confidentiality. It was a simple issue, but it’s one of the very few court decisions relating to USPAP’s poorly written confidentiality Read more…
Updated on 11/22/13. On November 14 and 18, Navigators Insurance Company sued three more appraisers to enforce “regulatory claims” exclusions in the E&O policies they purchased. These appraisers are in California and Nevada. Like the appraiser sued by Navigators in Florida on November 6, the new appraisers are being sued by the Read more…