Caption of 11-14-11 Order In a November 14 ruling in the FDIC’s lawsuit against CoreLogic and its various subsidiaries, Judge Carter dismissed the FDIC’s gross negligence claim (with leave for the FDIC to amend) based on the economic loss rule for the same reasons he previously dismissed the FDIC’s similar Read more…
Appraisal management companies (AMCs) — and individual appraisers themselves — have avoided the brunt of mortgage-related litigation and losses stemming from the lending crisis. Both AMCs and appraisers have not been forced to defend against 98%+ of the potential liability claims that lenders might have tried to press about allegedly Read more…
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 CoreLogic. Based on this contention, the FDIC asserts that the AMCs should be liable for all damages attributable to the alleged negligence of Read more…
As was first predicted on this blog here, the FDIC, as receiver for failed lender Washington Mutual, sued appraisal management company LSI Appraisal and its corporate parent Lender Processing Services for breach of contract and gross negligence on May 9, 2011. The lawsuit relates to hundreds of thousands of appraisals Read more…
The following article has been published on readimember.org for LIA-insured appraisers and other members of READI. Liability Risks to Appraisers and AMCs Stemming from the Appraisal Provisions of the Dodd-Frank Act “The slides below are from a presentation by Peter Christensen regarding liability risks to appraisers and AMCs stemming from Read more…
(See updates here and here.) In December, we offered 11 predictions for AMC liability risks in 2011. Three of the predictions were: #1 — several AMCs would be sued by the FDIC, #5 — some AMCs would see their “reps and warrants” come back to bite them, and #11 — Read more…
One of the emerging ways that an AMC, or possibly even a lender, can expose itself to potential liability for selling or using an alternative valuation product (i.e., a non-appraiser valuation) is via alleged patent infringement. As reported earlier on this site, CoreLogic filed a patent infringement lawsuit against eight Read more…
I don’t think it should come as a genuine surprise to most people familiar with the field, but yesterday a New York appellate court affirmed the trial court’s decision denying First American Corp. and First American eAppraiseIt’s (now part of CoreLogic) motion to dismiss in the action filed by New Read more…
First American CoreLogic — currently a subsidiary of First American Corp. in Santa Ana, CA but soon to be an independent company under the name CoreLogic — has filed a lawsuit against a number of appraisal management and technology companies: Fiserv, IntelliReal, Interthinx, Lender Processing Services, Precision Appraisal Services, Real Read more…
Many appraisers call and write us with regard to the hardships caused by being blacklisted by a lender. Some appraisers want to know if filing a lawsuit would fix their problem — either with a court order or monetary damages. As an insurance provider, we’re in the defense business, helping Read more…