FDIC

AMC Litigation

Update on FDIC v. LPS (LSI Appraisal): LSI Argues that AMCs Owed No Legal Duties of Care to their Clients and Appraisal Users — FDIC Argues that Appraisers Are the Legal Agents of AMCs

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…

By Peter Christensen, 13 years ago

CLGX

An Update on FDIC Lawsuits Against Appraisers

In 2011, the Federal Deposit Insurance Corporation (FDIC) has continued to file a high number of lawsuits against real estate appraisers blaming them for loan losses of the failed lenders that the FDIC and other agencies supervised during the mortgage bubble years 2004-2008. Most of the FDIC’s recent lawsuits concern Read more…

By Peter Christensen, 13 years ago

AMC Indemnity

FDIC News: FDIC Sues CoreLogic (eAppraiseIT) and Lender Processing Services (LSI Appraisal) over WaMu Appraisals

(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…

By Peter Christensen, 14 years ago

Some Appraiser E&O Policies Now Exclude FDIC or Other Regulatory Agency Claims

Note: this post has been updated since it first appeared. Appraiser E&O policies are changing rapidly in the present litigation environment and an appraiser’s policy terms may change from policy year to year. This may be the first year that some appraisers see an FDIC exclusion in the policies they Read more…

By Peter Christensen, 14 years ago

FDIC

Does the FDIC Sue Supervising Appraisers? Trainees? Review Appraisers?

We are often posed these questions by appraisers at our loss prevention CE seminars: will the FDIC sue an appraiser who “only” signed an appraisal report as a supervisor? Will the FDIC sue a trainee or former trainee? Will the FDIC sue a review appraiser? These are easy questions to Read more…

By Peter Christensen, 14 years ago

Claims

An Early Report on Claims Against Appraisers in 2010

This is an early report about claims against appraisers in 2010. The good news is that the professional liability risk to appraisers remains manageable with prudent loss prevention, despite a large number of claims stemming from the mortgage crisis. The bad news is that claims against appraisers in all forms Read more…

By Peter Christensen, 14 years ago

FDIC

The FDIC Ups the Ante in Its Failed Bank Litigation

The FDIC has now taken over more than 250 failed banks since January 1, 2008. As the receiver for these failed banks, the FDIC has filed over 160 lawsuits against mortgage brokers, title companies, attorneys, appraisers, borrowers and other parties it blames for the banks’ losses. So far, the stakes Read more…

By Peter Christensen, 14 years ago

FDIC

An Update on the Single Biggest Threat to Appraisers: the FDIC

The FDIC continues to prove itself as the biggest current threat to appraisers and appraising. Since January 1, 2010, the FDIC has filed 60 lawsuits as a plaintiff in federal court in connection with its receivership of failed banks. This compares to 76 lawsuits for all of last year. Unfortunately Read more…

By Peter Christensen, 14 years ago