Wednesday, July 13, 2011

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 loans made or purchased by Indymac – that’s probably because the 3-year statute of limitations extension period that the FDIC receives under federal law in which to file negligence claims expired on July 10, 2011 as to Indymac.  So, the FDIC’s attorneys rushed to courthouses to file their cases before the end of that period.  This is not to say that appraisers or other targets of FDIC claims about Indymac loans now have "get out of jail free cards."  For one thing, the extension period for contract claims by the FDIC is 6 years and the FDIC frequently seeks to assert contract claims against professionals.  Also, the FDIC will certainly argue in any future particular Indymac cases that the applicable statutes of limitation have not run based on the facts and circumstances of each case.  (One of the lawsuits the FDIC's attorneys rushed to file was a $600 million complaint against Indymac's former CEO Michael Perry.  That complaint filed on July 6 is available here.)
With respect to appraisers, the FDIC only sues about one thing – that the defendant appraiser

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Wednesday, July 6, 2011

LIA's "Loss Prevention Program" to be Presented at the Association of Texas Appraisers' Conference in Austin, TX, August 5-6

LIA is pleased to be affiliated with the Association of Texas Appraisers (ATA). I will be teaching LIA’s 4-Hour CE seminar "Loss Prevention Program for Real Estate Appraisers" at the ATA’s Annual Meeting and Education Conference in Austin, TX, August 5-6.  The ATA conference offers a total of 11 CE hours at reasonable cost to both members and nonmembers.  I have attached the ATA’s informational sheet for this event [pdf attachment].

Appraisers who are insured by LIA for their E&O become eligible for a one-time discount on their E&O premium of $50 (for a $500K or $1m per claim policy) or $25 (for a $300k per claim policy) per appraiser by completing the Loss Prevention Program at the conference.  This discount may be applied toward any payment due after the seminar.

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