Wednesday, March 14, 2012

LIA Risk Report on Appraisal Management and Lender Services



LIA and I have created a new report focusing on liabilities and risks in the environment of appraisal management and other contractor-provided lender services.  It's entitled the LIA Risk Report -- Appraisal Management and Lender Services and we intend to produce it every other month.  The reason for the new report is that the risk exposure for appraisal and other lender services vendors is evolving rapidly and without widespread awareness in the industry.

In all reports, we'll discuss notable new cases and decisions affecting appraisal management and other lender services in the Case Notes section.  In our first issue, for example, we've reported on a case in which a court found that an AMC potentially could be vicariously liable for its panel appraiser's negligence based on the AMC's detailed direction of how the appraiser performed the appraisal work and reported on another case in which a flood zone certification provider is being sued by two borrowers.  We have also written about a new legal trend affecting AMCs and other lender services contractors -- whistleblower lawsuits. Since our first report is focused on appraisal management, we've included articles about AMC "reps and warrants," the danger posed by risky appraiser "E&O tickets" and a case against an AMC involving non-appraiser "evaluations."


If you or your company would like to receive by email a PDF copy of this issue and future issues of the LIA Risk Report, please send an email entitled "LIA Risk Report" to cara@liability.com and please include your full name/company name in the text of your email.  Beginning next week, LIA's insureds and other fee appraisers who are registered members of READI will have access to all articles published in the LIA Risk Report at www.readimember.org.

-- Peter Christensen