Review of LSI Appraisal Independent Contractor Agreement Available to LIA Insured Appraisers and READI Members

The LSI Appraisal Independent Contractor Agreement, as of August 14, 2011, has been reviewed for LIA insured appraisers and READI members.  The review is located in the Risk Reviews section of Resources at readimember.org. 

The following excerpts are from the review:

"LSI’s agreement itself is only three pages and does not contain many of the unreasonable provisions found in other AMC contractor agreements.  However, like most AMC agreements, it does contain an indemnification provision.  While the indemnification clause is not as extreme as found in some other AMC agreements, the provision in LSI’s agreement is still. . ."

"Also, we do have concerns stemming from the FDIC’s civil complaint for negligence and breach contract against LSI Appraisal relating to appraisals performed for WaMu in 2006-2008.  The FDIC has specifically alleged in that case that appraisals supplied by LSI from approximately 200 of its panel appraisers were deficient and has suggested that many additional appraisals beyond the ones specifically identified may become part of the lawsuit.  We will update our appraisers here on readimember.org if we begin to see LSI attempt to shift liability to individual appraisers in that case."