Wednesday, January 19, 2011

Lender Seeks to Overturn Ohio Statute of Limitations Law Favoring Appraisers

On February 1, 2011, the Ohio Supreme Court will hold oral argument on a lender's appeal in a case that it lost against an appraiser in the trial court and then lost again in an Ohio court of appeal.  The appeal relates to whether the lender's claims against the appraiser were properly barred by Ohio's statute of limitations -- the appraisal were performed in 2001 and 2002, but the lender did not file its lawsuit against the appraiser until 2008.

The case is entitled Flagstar Bank, FSB v. Airline Union's Mortgage Company.  The appraiser in the case is now retired.  Flagstar's lawsuit concerns three appraisals performed by this appraiser, who was not insured by LIA, in 2001 and 2002 for three different loans by Airline Union's Mortgage.  Flagstar then purchased the loans from the mortgage company.  It resold two of the loans to secondary investors but the borrowers soon defaulted.  The secondary investors suffered losses when they foreclosed on the properties in 2003 and 2005, and held Flagstar responsible for the deficiencies.   Flagstar held onto the third loan, but the home securing it burned down in 2003 without sufficient insurance coverage, and Flagstar was left with a loss on this loan too.  Flagstar blamed the appraiser for all of these losses along with eight other defendants, including the original lender.  Flagstar's lawyers, however, did not file its lawsuit until 2008 -- seven years after the first appraisal.  Flagstar's lawyers do not explain why they waited as the clock ticked during those years.


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Wednesday, January 5, 2011

LIA Loss Prevention CE Seminars with the Kentucky Real Estate Appraisers Board in Jan-Apr 2011

LIA Administrators & Insurance Services is presenting four CE seminars entitled "Loss Prevention for Real Estate Appraisers” in conjunction with Larry Disney and the Kentucky Real Estate Appraisers Board.   On each date, LIA's representatives will present its loss prevention seminar from 8:30 a.m. to 12:00 p.m., and Larry Disney will then present the latest news and views of the KREAB, including state and federal legislation and regulatory matters from 1:00 p.m. to 4:30 p.m.  We look forward to this joint presentation. 

A total 7.0 hours of KREAB CE credit is approved for each day.  The scheduled dates and cities are:

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