Thursday, June 10, 2010

CoreLogic Files an Amended Complaint Adding More Defendants to Its AVM Patent Case and Interthinx Files a Counterclaim

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 AMCs and other AVM providers in April. In the lawsuit, CoreLogic alleges that it owns a broad AVM process patent being infringed by the various defendants who sell competing AVMs.

Some of the AVMs that CoreLogic accuses of infringing its patent include CASA®, ValuServ, iAVM™, Clear VALUE®, and LPS AVM Connect. This leads one to wonder if CoreLogic's lawyers . . .


[A complete and updated version of this article is available to LIA insureds and READI members at readimember.org.  READI is the Real Estate Advisors Defense Institute, created by LIA to protect appraisers, advocate on their behalf and provide straightforward information about the legal issues that affect them.  You can read more about READI at readimember.org.]
Click Here to Read Full Post

Wednesday, June 9, 2010

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 for appraisers, so far this year, at least 17 individual appraisers have been named as defendants in the FDIC's lawsuits, and the pace of claims appears to be increasing.  Aside from lawsuits, the FDIC's attorneys also have sent perhaps hundreds of demand letters to appraisers this year, each one another potential lawsuit.

All claims by the FDIC against appraisers -- without exception -- have alleged that the appraisers . . .


[A complete and updated version of this article is available to LIA insureds and READI members at readimember.org.  READI is the Real Estate Advisors Defense Institute, created by LIA to protect appraisers, advocate on their behalf and provide straightforward information about the legal issues that affect them.  You can read more about READI at readimember.org.]
Click Here to Read Full Post

Cuomo v. eAppraiseIt: No Surprise that Appellate Court Affirms Denial of eAppraiseIt's Motion to Dismiss



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 York Attorney General Cuomo against the companies in 2007.

eAppraiseIt's primary argument in the motion was that New York's Attorney General should be preempted by federal banking laws and regulations from pursuing state law claims against the defendants for their alleged appraisal inflation scheme with Washington Mutual.  The denial of that motion and confirmation by the appellate court should not be a surprise legally because, to make a long story very short, the specific case law regarding preemption in the appraisal context persuasively only supports a

Click Here to Read Full Post