LPS – Valuation Legal Resources

AMC Litigation

WaMu’s Top Officers Pay Pennies on the Dollar to Settle FDIC Claims. What’s the FDIC’s Case Against LSI Appraisal of Lender Processing Services Worth?

In March of this year, the FDIC sued Washington Mutual’s former CEO Kerry Killinger, its former chief operating officer Stephen Rotella and its former head of residential lending David Schneider for $900 million in alleged damages resulting from their “gross negligence” in running WaMu’s residential lending business. The FDIC claimed Read more…

By Peter Christensen, 13 years ago

AMC Litigation

FDIC Files Amended Complaints in Lawsuits Against LSI Appraisal and CoreLogic

In the wake of Judge Carter’s order granting motions to dismiss the FDIC’s gross negligence and alter ego-type claims against LSI Appraisal and CoreLogic Valuation Services, the FDIC has filed first amended complaints against the appraisal management companies in each case. It also has reserved the right to later appeal Read more…

By Peter Christensen, 13 years ago

AMC Litigation

FDIC Suffers Another Setback in Its AMC Litigation — Court Grants CoreLogic’s Motion to Dismiss Gross Negligence Claim (with Leave to Amend)

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…

By Peter Christensen, 13 years ago

CLGX

The FDIC Suffers a Setback in Case Against Lender Processing Services and LSI Appraisal

(Update — Judge Carter granted, in part, CoreLogic’s similar motion to dismiss on 11/14/11. See post here.) As reported in prior posts, 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 Read more…

By Peter Christensen, 13 years ago

AMC Litigation

TCF National Bank Sues AMC Over “Evaluations”

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…

By Peter Christensen, 13 yearsSeptember 26, 2011 ago

AMC Litigation

Update on FDIC v. CLGX (CoreLogic — eAppraiseIT): FDIC Reiterates Threat that Appraisers Are the Legal Agents of AMCs in a Late-Filed Brief

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…

By Peter Christensen, 13 years ago

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

AMC Litigation

AMC v. AMCs: First American CoreLogic sues Fiserv, IntelliReal, et al.

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…

By Peter Christensen, 15 years ago