Thursday, August 16, 2012

FDIC Diversifies Its Appraiser Targets in Recent Lawsuits

In the last three months, since May 1, 2012, the Federal Deposit Insurance Corporation (FDIC) has sued 45 individual appraisers and appraisal firms in its capacity as receiver for one of the failed banks or lending institutions under its supervision.  The appraisers targeted by the FDIC in its recent cases are a more diverse group, geographically and professionally, than in earlier cases, but in other respects the FDIC's recent cases represent more of the same familiar story -- suing appraisers to recover money damages for allegedly appraising properties too high for loans extended during the peak of the real estate bubble which are now in default.

Here are the facts regarding the FDIC's recent cases against appraisers:

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Tuesday, August 14, 2012

Webinar about Appraisal Management Liability Hosted by the Appraisal Institute

I mentioned in my prior post about the appraiser defendant class action in West Virginia that I would present a webinar through the Appraisal Institute on September 12 to address the issues presented by that case and similar cases.  The description below is from the Appraisal Institute's webinar and registration page found at this link:
The AMC liability train left the station in 2007 with Andrew Cuomo’s legal action against eAppraiseIT.  Five years later that train is still rolling, picking up new AMCs and appraisers. Its most recent stop has resulted in an alleged defendant class action in West Virginia, in which the plaintiffs not only are suing the AMC but also are seeking to sue a class consisting of panel appraisers of the AMC.

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Monday, August 6, 2012

Class Action Nightmare for an AMC and Its Panel Appraisers in West Virginia

Update note 8/14/12: this case, particularly the plaintiffs' attempt to create a defendant class of appraisers, presents significant new liability issues for appraisal management and appraisers.  I will address the liability issues in this case and in other current AMC litigation (including the FDIC's actions against two national AMCs) in a webinar hosted by the Appraisal Institute on September 12, 2012.  The details and registration information are on the Appraisal Institute's webinar page at this link

West Virginia has been among the riskiest states in which to be a residential appraiser for several years.  Currently, residential appraisers are more likely (per capita) to be sued in West Virginia than in any other state.  A plaintiffs' law firm has elevated that level of risk to a higher level for one particular AMC and its panel appraisers in West Virginia who performed appraisals for certain loans by the AMC's primary client.


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