Update: Navigators has sued three more appraisers to deny coverage under the same “regulatory claims” exclusion discussed in the post below. The more recent lawsuits are discussed in this later post. Yesterday, appraiser E&O provider Navigators Insurance Company filed a lawsuit in Florida against one of its own insured appraisers. In Read more…
In the last several years, we have seen more negligence claims relating to appraisals performed for tax purposes, especially appraisals for conservation easements, charitable deductions, and estate or gift tax. The IRS is particularly focused at this time on scrutinizing appraisals of conservation and preservation easements submitted for the purpose Read more…
Allegedly “Loose Lips” Cause a Big Claim. A recent and relatively big appraiser liability claim involved a commercial appraiser’s alleged breach of confidentiality. The damages paid to the plaintiff were significant. According to the plaintiff’s complaint (my recounting of the facts here is simplified), a lender had engaged the appraiser to perform Read more…
We see it again and again: AMCs and lenders demanding that appraisers attach E&O insurance information to the back of their appraisal reports. It’s not just a bad idea for the appraiser; it’s a bad idea for the AMCs and lenders themselves because they risk getting themselves dragged into litigation filed by borrowers Read more…
As a direct result of the recent financial failure of appraisal management companies like Evaluation Solutions and ES Appraisal, the State of Washington recently enacted a new law raising the state’s AMC bond requirement from $25,000 to $100,000. As of July 28, 2013, all AMCs registered in Washington will be Read more…
Updated 1-30-13 to add information about subsidiary ES Appraisal Services. $9,349,612.97 + $1,698,799 = $11,048,411.97. That’s how much failed Evaluation Solutions and its subsidiary entity ES Appraisal Services have left in combined unpaid appraisal and BPO fees owed to appraisers and agents/brokers — according to their respective bankruptcy filings Read more…
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 where the defendant appraisers won based on a statute of limitations defense. That means even Read more…
Update: Heritage Pacific Financial filed for bankruptcy in January 2014. For information about a new litigation venture against appraisers by some of its former management, please see this newer post here.These are four of the parties who have been suing the most appraisers in 2011-12. I suspect most appraisers won’t Read more…
The New York Attorney General’s Office has announced reaching a settlement with CoreLogic, as successor to eAppraiseIT, over the 2007 lawsuit filed against eAppraiseIT by then-Attorney General Cuomo. This was the case, of course, that led to the HVCC with Fannie Mae and Freddie Mac. It also put the AMC Read more…
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 banks or lending institutions under its supervision. The appraisers targeted by the FDIC in its recent cases Read more…