Thursday, June 26, 2014

FDIC Settles Case Against CoreLogic Valuation Services, fka eAppraiseIT, for Less than 10% of Its Original Demand

Call this one a loss for the FDIC.

In May 2011, the Federal Deposition Insurance Corporation filed suit against CoreLogic Valuation Services, formerly known as eAppraiseIT, in connection with appraisal services managed by eAppraiseIT for failed lender Washington Mutual.  (See post about the initial lawsuit filing here.)  The FDIC's lawsuit at that time concerned 194 allegedly flawed appraisals (mainly, desk reviews), cherry-picked by the FDIC's experts from approximately 260,000 individual appraisal services managed by eAppraiseIT for WaMu in 2006 and 2007.  The FDIC demanded more than $129 million in damages relating to those appraisals and filled its complaint with allegations about "gross negligence." 

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