tag:blogger.com,1999:blog-77536452179871499532012-01-26T09:36:25.003-08:00A blog for appraisers about legal and insurance issues relating to real estate valuationPeter Christensennoreply@blogger.comBlogger1001100tag:blogger.com,1999:blog-7753645217987149953.post-14610427859939143472012-01-25T13:12:00.000-08:002012-01-26T09:36:25.018-08:00

The article below comes from the most recent Claim Alert published by LIA Administrators & Insurance Services -- Why Do Claims Get Settled?  This article describes why and how lawsuits and other claims against appraisers in our E&O insurance program are settled.  Appraisers should take heart in knowing that most claims against appraisers defended in our program do not result in any monetary

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-79879541096226276022012-01-11T11:58:00.000-08:002012-01-12T14:30:42.687-08:00

LIA and READI are pleased to support the North Bay Chapter of the California Real Estate Appraisers Association by presenting their 4-Hour CE seminar "Loss Prevention Program for Real Estate Appraisers" at a meeting of the North Bay Chapter on January 19, 2012, 8:00 a.m. to 12:30 p.m., in Petaluma.  Here is a link to the North Bay Chapter's sign-up page for the seminar.  The North Bay Chapter's

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-5298562779458171952012-01-03T13:26:00.000-08:002012-01-03T13:28:57.003-08:00

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 Rio Grande Valley State Appraisers Conference in McAllen, TX, January 17-18.  The conference offers a total of 11 CE hours at reasonable cost to both members and nonmembers.  Here is a link to the

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-49029888252153294622011-12-22T12:58:00.000-08:002011-12-23T12:30:25.219-08:00

One year ago, we offered 11 Predictions for AMC Liability Risks in 2011.  Being at the end of the year, it's time for self-assessment.  How did we do on our predictions?  It's important because when we do a good job at our company (LIA Administrators & Insurance Services) in understanding where future liability risk will exist and in sharing that knowledge with our insurance clients, then we and

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-30611688410521622012011-12-19T16:44:00.000-08:002011-12-22T09:47:58.584-08:00

In March of this year, the FDIC sued Washington Mutual's former CEO Kerry Killinger, its former chief operating officer Stephen Rotella and its former head of residential lending David Schneider for $900 million in alleged damages resulting from their "gross negligence" in running WaMu's residential lending business.  The FDIC claimed that their negligence caused what is the biggest bank failure

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-69499298339633464262011-12-09T12:32:00.001-08:002011-12-09T12:41:38.021-08:00

This is a reminder about LIA and READI’s free 4-Hour CE seminar on appraiser liability prevention on 12/14/11 in East Brunswick, NJ -- the prior announcement of this class is copied below.  In addition, I am pleased to announce that we’ve added an additional free seminar at the same location on the same day.  The additional class will be taught by Dennis Scardilli, JD, MAI.  He is one of

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-60181641301038427782011-12-02T11:40:00.001-08:002011-12-02T12:28:04.740-08:00

In the wake of Judge Carter's order granting motions to dismiss the FDIC's gross negligence and alter ego-type claims against LSI Appraisal and CoreLogic Valuation Services, the FDIC has filed first amended complaints against the appraisal management companies in each case.  It also has reserved the right to later appeal those rulings. In its amended complaints, the FDIC does not seek to

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-21566875666139550142011-11-25T11:02:00.000-08:002011-12-11T12:46:05.221-08:00

In the two weeks leading up to Thanksgiving Day, the FDIC sued 29 individual residential appraisers and a rafter of mortgage brokers in 12 separate lawsuits.  All of the appraisers sued in this round reside in California -- in the last three years, the FDIC has so far sued a total of over 150 appraisers and appraisal firms about appraisals in AZ, CA, FL, GA, IL, IN, MD, MI, MN, NV,

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-49697828054216538852011-11-22T09:11:00.000-08:002011-11-22T09:51:18.305-08:00

In an opinion published today concerning the 2007 lawsuit filed by then Attorney General Cuomo against First American Corporation and its former appraisal management company eAppraiseIT, New York state's highest court -- its Court of Appeals -- has ruled that the trial court properly denied eAppraiseIT's motion to dismiss.  In a 6-1 majority opinion with one strong dissent, the Court of Appeals

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-28943761177747584852011-11-16T09:34:00.000-08:002011-11-16T22:28:40.565-08:00

Caption of 11-14-11 Order In a November 14 ruling in the FDIC's lawsuit against CoreLogic and its various subsidiaries, Judge Carter dismissed the FDIC's gross negligence claim (with leave for the FDIC to amend) based on the economic loss rule for the same reasons he previously dismissed the FDIC's similar claim against LSI Appraisal (see post about LSI's motion here).  He also granted

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-64715736705098319742011-11-15T14:56:00.000-08:002011-11-15T14:56:11.925-08:00

I will be teaching LIA’s 4-Hour CE seminar "Loss Prevention Program for Real Estate Appraisers" at the Mississippi Coalition of Appraisers’ Annual Meeting on December 6 in Pearl, MS at the Cornerstone Church, 1950 Highway 80 East. The class begins at 9:00 a.m. and the annual meeting begins at 2:00 p.m. LIA is presenting this class to educate appraisers about the current claims environment

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-3269459208865759612011-11-05T11:58:00.000-07:002011-11-06T09:14:41.090-08:00

The National Association of Realtors® has published a short article about indemnification in AMC/appraiser contractor agreements in the November issue of REALTOR Magazine.  I wrote the note.  Appraisers should know that NAR has called for a ban on indemnification clauses in AMC contractor agreements and has written to federal regulators in support of that position. I do not see this as an "

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-74774854813781950742011-11-04T20:54:00.000-07:002011-12-07T15:36:29.035-08:00

The two most common targets of FDIC lawsuits are appraisers who appraised properties for bad loans held by failed lenders and former officers and directors of failed lenders.  They're in the same boat. In this case, a Lloyd's of London syndicate issued $10 million of insurance coverage for the officers and directors of First National Bank of Arizona in June 2008. The very next month, after a

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-70260937883609679522011-11-03T14:21:00.000-07:002011-11-16T11:32:57.898-08:00

(Update -- Judge Carter granted, in part, CoreLogic's similar motion to dismiss on 11/14/11.  See post here.) As reported in prior posts, the FDIC, as receiver for failed lender Washington Mutual, sued appraisal management company LSI Appraisal and its corporate parent Lender Processing Services for breach of contract and gross negligence on May 9, 2011 (see post here), and on July 22

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-61206303467186220782011-10-11T11:57:00.000-07:002011-10-17T08:40:28.089-07:00

Today, four years after New York's then Attorney General Cuomo filed his state's lawsuit against First American eAppraiseIT (now part of CoreLogic), the New York Court of Appeals (the state's highest court) heard eAppraiseIT's appeal of the trial court's denial of its motion to dismiss.  eAppraiseIT's argument on appeal, as it was to the trial court, is that New York is preempted by federal

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-82963932376622753002011-09-29T12:43:00.000-07:002011-10-04T11:20:22.456-07:00

Appraisal management companies (AMCs) are facing an array of new regulatory hurdles under various state AMC laws.  With all the new requirements on AMCs and because of apparent and hidden compliance problems by AMCs which pose liability to their lender clients, we're probably not too far off from seeing some form of "appraisal management company management companies" or "AMCMCs" -- whose

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-32588360422179990072011-09-27T17:06:00.000-07:002011-10-10T10:31:36.716-07:00

READI and LIA are presenting their 4-hour live CE seminar entitled "Loss Prevention Program for Real Estate Appraisers" on December 14, 2011 in East Brunswick, NJ.   The seminar is free to all appraisers who are either registered with READI or insured by LIA.  (LIA is the state-approved provider and the NJ code # is 2011-29500000.  See note below for additional state approvals.) Who sues

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-35196978519238238682011-09-26T11:04:00.000-07:002011-10-18T08:13:34.103-07:00

Appraisal management companies (AMCs) -- and individual appraisers  themselves -- have avoided the brunt of mortgage-related litigation and  losses stemming from the lending crisis.  Both AMCs and appraisers have not been forced to defend against 98%+ of the potential  liability claims that lenders might have tried to press about allegedly faulty appraisal work performed during the mortgage boom

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-28526440561697354572011-09-16T12:50:00.000-07:002011-09-19T14:42:04.980-07:00

The FDIC is now contending that independent contractor appraisers are the legal agents of appraisal management companies (AMCs) in both of its cases against LSI Appraisal and CoreLogic.  Based on this contention, the FDIC asserts that the AMCs should be liable for all damages attributable to the alleged negligence of their panel appraisers.  The FDIC first asserted this argument in a brief filed

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-87586944281482009352011-09-15T12:05:00.000-07:002011-10-18T08:14:13.941-07:00

Appraisal management companies (AMCs) already have the liability specter of the FDIC's direct lawsuits against two large AMCs and FDIC attorneys looking into additional actions of that type.  AMCs also have the FDIC contending that appraisers are the "legal agents" of AMCs and that AMCs are thus fully liable and responsible for damages caused by alleged appraiser negligence "as a matter of

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-86078184638469950492011-09-14T19:10:00.000-07:002011-09-16T07:41:26.617-07:00

As was first predicted on this blog here, the FDIC, as receiver for failed lender Washington Mutual, sued appraisal management company LSI Appraisal and its corporate parent Lender Processing Services for breach of contract and gross negligence on May 9, 2011.  The lawsuit relates to hundreds of thousands of appraisals managed by LSI for WaMU between June 2006 and May 2008.  The FDIC alleges that

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-52098974062470954892011-08-23T17:39:00.000-07:002011-09-28T08:19:49.179-07:00

"Should I sue the appraiser?"  We see hundreds of cases filed against real estate appraisers by borrowers/property owners, variously claiming that an appraisal for a loan was either too high or too low.  This is my observation as lawyer who has seen hundreds of cases filed by borrowers: it is generally a waste of the borrower's time, emotional energy and money to sue an appraiser. 

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-61082622757400990922011-08-21T13:01:00.000-07:002011-09-14T08:31:30.744-07:00

AMC independent contractor agreements are now receiving more attention. A key issue that many appraisers and regulators have focused on is that many AMC contractor agreements use very one-sided indemnification clauses to attempt to shift financial liability for the appraisals the AMCs manage to individual appraisers. NAR recently wrote to federal regulators expressing serious concern that such

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-17595869957719484072011-08-14T13:37:00.000-07:002011-09-06T08:40:04.749-07:00

The LSI Appraisal Independent Contractor Agreement, as of August 14, 2011, has been reviewed for LIA insured appraisers and READI members.  The review is located in the Risk Reviews section of Resources at readimember.org.  The following excerpts are from the review: "LSI’s agreement itself is only three pages and does not contain many of the unreasonable provisions found in other AMC

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-80341389248673278052011-08-04T15:28:00.000-07:002011-09-27T16:57:15.318-07:00

READI and LIA are presenting their 4-hour live CE seminar entitled "Loss Prevention Program for Real Estate Appraisers" on September 21, 2011 in St. Paul, MN.   The seminar is free to all appraisers who are registered with READI or insured by LIA. Who sues the most appraisers? What do they sue for? Which lenders pose the most risk to appraisers? Who is more at risk: residential or

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-10178670127093175812011-07-28T17:17:00.000-07:002011-08-31T22:51:40.621-07:00

READI and LIA are pleased to announce the presentation of their 4-hour live CE seminar entitled "Loss Prevention Program for Real Estate Appraisers" on September 19, 2011 in Columbus, OH (Dept. of Comm. Approval RECE.2011000653).   The seminar is free to all appraisers who are registered with READI or insured by LIA, and it is given as part of READI's mission to work against unfair liability

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-18008885567840544582011-07-13T17:34:00.000-07:002011-09-06T09:05:29.810-07:00

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

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-30696284017205581022011-07-06T16:02:00.000-07:002011-07-06T16:04:45.489-07:00

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

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-87727206479030155882011-06-27T14:35:00.000-07:002011-08-26T10:07:01.073-07:00

Appraisal management companies, and even some traditional appraisal firms required to register as AMCs, must carry surety bonds under the new AMC laws in 10 states.  LIA Administrators & Insurance Services provides bonds in each state.  As of the date of this post, the states with AMC bond requirements are: Arizona ($20,000) Arkansas ($20,000) Georgia ($20,000) Kentucky ($500,000 pursuant to

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-10873610101502562152011-06-14T12:06:00.000-07:002011-06-14T12:26:03.481-07:00

I will be teaching LIA's CE seminar Loss Prevention Program for Real Estate Appraisers on June 16, 2011 in Bakersfield, CA.  The seminar is approved for 4 hours of CE credit in CA (and many other states, including NV, AZ, OR, and WA). LIA is the presenter and provider of the CE class. It is being hosted by the Central California Chapter of the Appraisal Institute. The seminar will take

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-9982443422546606562011-06-10T10:24:00.000-07:002011-06-10T14:31:44.741-07:00

There are just few seats left in this . . . In our further support of the Appraisers Coalition of Washington (ACOW) and its political action for appraisers in WA, READI and LIA Administrators & Insurance Services are pleased to join with the Olympic Peninsula Chapter of NAIFA in offering LIA’s 4-hour live CE seminar entitled "Loss Prevention for Real Estate Appraisers” (WA course #AP544) in

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-54118721148684923562011-06-08T16:58:00.000-07:002011-11-01T09:28:25.213-07:00

In terms of alleged damages, the biggest case pending against any appraisal firm in the United States -- actually, I feel safe writing the biggest case ever -- is the lawsuit filed in federal court in Idaho by a group of property owners in four luxury developments in Idaho, Montana, Nevada and the Bahamas, Gibson, et al. v. Credit Suisse, Cushman & Wakefield, et al..  The property owners

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-75461040008452107312011-05-27T17:23:00.000-07:002011-11-28T19:21:57.749-08:00

Post deleted.

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-88349139459762385212011-05-26T12:58:00.000-07:002011-05-26T15:14:36.516-07:00

The following article has been published on readimember.org for LIA-insured appraisers and other members of READI. Liability Risks to Appraisers and AMCs Stemming from the Appraisal Provisions of the Dodd-Frank Act"The slides below are from a presentation by Peter Christensen regarding liability risks to appraisers and AMCs stemming from the primary appraisal sections of the Dodd-Frank Act. Of

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-24372631273777246432011-05-20T18:30:00.000-07:002011-05-26T16:52:56.193-07:00

On Saturday June 4, 2011, from 8:30 a.m. to 4:30 p.m., on behalf of LIA and READI, I will present our 7-hour appraiser CE seminar Loss Prevention Program for Real Estate Appraisers (AK Appraiser Course No. 9803, also approved for 7 CE hours in WA, OR, TX and WI). The class is free for appraisers meeting the two conditions below and it is the same seminar we gave in Anchorage on March 1, 2011. 

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-91394199044196441122011-05-10T02:17:00.000-07:002011-10-18T14:09:12.045-07:00

(See updates here and here.) In December, we offered 11 predictions for AMC liability risks in 2011.  Three of the predictions were: #1 -- several AMCs would be sued by the FDIC, #5 -- some AMCs would see their "reps and warrants" come back to bite them, and #11 -- the FDIC would continue to be the single biggest source of appraisal-related claims.  See 11 Predictions for AMC Liability Risks in

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-12464887583905401222011-04-28T13:10:00.000-07:002011-05-19T09:00:52.508-07:00

As discussed in an earlier post, Flagstar Bank recently appealed two cases to the Ohio Supreme Court that Flagstar lost against appraisers at the trial court level based on Ohio's statute of limitations.  Under Ohio law, the statute of limitations for most professional liability actions like those against appraisers is four years from -- basically -- the date of the appraisal.  The law on this

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-76533373664095096922011-04-27T10:17:00.000-07:002011-04-27T10:17:02.260-07:00

"We field many questions from appraisers about contractual indemnification clauses. The purpose of this article is to give appraisers an understanding about what indemnification is and how it works. Though indemnification clauses are not new to contracts in the appraisal industry, they have become more widespread in the last several years. As the mortgage crisis has unfolded, businesses in

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-74465237835939186662011-04-08T00:55:00.000-07:002011-09-16T13:40:17.135-07:00

Appraiser E&O policies are changing rapidly in the present litigation environment and an appraiser's policy terms may change from policy year to year.  This may be the first year that some appraisers see an FDIC exclusion in the policies they purchase.  No policies issued by LIA at this time contain FDIC exclusions.  Here are a few examples of what you may find with respect to FDIC exclusions in

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-55166135520760243672011-04-07T16:13:00.000-07:002011-08-23T12:21:35.081-07:00

We are often posed these questions by appraisers at our loss prevention CE seminars:  will the FDIC sue an appraiser who "only" signed an appraisal report as a supervisor?  Will the FDIC sue a trainee or former trainee?  Will the FDIC sue a review appraiser? These are easy questions to answer.  The FDIC has sued and threatens to sue supervising appraisers, trainees and reviewers. The highlights

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-63085252431684710632011-04-05T11:58:00.000-07:002011-08-23T12:15:12.461-07:00

Some new E&O insurance policies being marketed to appraisers pose serious liability risks to appraisers and to the lenders and AMCs that hire them.  No one can deny that appraisers, lenders and AMCs are the subject of record levels of appraisal liability claims.  The most frequent source of claims as a group continues to be financially troubled borrowers, who collectively account for more than

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-79587321388882944372011-04-04T17:28:00.000-07:002011-10-11T13:32:01.829-07:00

 See new update on case here: Cuomo v. eAppraiseIT: New York's Highest Court Hears eAppraiseIT's Appeal "[W]e're trying now, in the context of this litigation, to point a few fingers . . . Something went wrong, very wrong, and how many millions of mortgages are being foreclosed right now?  I dare say quite a few of them were WaMu mortgages that were Eappraiseit appraisals." -- Justice Charles E

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-44142953342773738272011-03-22T08:49:00.000-07:002011-03-22T09:01:28.964-07:00

One of our star trial lawyers Todd Stevens and I will be teaching LIA's CE seminar Loss Prevention Program for Real Estate Appraisers on April 21, 2011 in San Diego.  The host and registered course provider of this seminar is the San Diego Chapter of the Appraisal Institute. The seminar is approved for 4 hours of CE credit in CA -- OREA No. 10754C227.   My co-presenter Todd Stevens of the

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-55585494829990477992011-03-21T10:50:00.000-07:002011-03-22T09:02:08.362-07:00

I am teaching our CE seminar Loss Prevention Program for Real Estate Appraisers on April 12, 2011 in Natick/Boston.  The host of this seminar is the Massachusetts Chapter of the Appraisal Institute.  The seminar is approved for 4 hours of CE credit in MA.  LIA is the provider and the MA course number is 11070001E. CE credit will also be available for appraisers licensed in NH and VT. We

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-71182966742507643052011-03-08T23:59:00.000-08:002011-06-09T09:30:19.094-07:00

This post was updated on April 13, 2011 to reflect a subsequent order by Judge Lodge accepting and rejecting certain of the magistrate judge's recommendations.  See note at the bottom for the update. When I first saw the complaint filed by the plaintiffs in this lawsuit in federal court in Idaho about a year ago, I thought it was most remarkable for its conspiracy theories and the amount of

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-50262669389147583102011-03-08T21:38:00.000-08:002011-03-09T11:31:30.236-08:00

Sometimes a court's opinion does not need any explanation to put it in context.  I've reprinted a recent California Court of Appeal unpublished opinion in full below.  It resolves the appeal of an appraiser who lost a case against Flagstar Bank.  The appraiser filed the lawsuit after being sentenced to a 10-year prison sentence for bank fraud in connection with several loans owned by Flagstar

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-26005171648601314052011-02-25T17:37:00.000-08:002011-03-08T22:09:48.730-08:00

We believe that the Appraisers’ Coalition of Washington (ACOW) is a key to the future success of real estate appraisers and their profession in the State of Washington and that it serves as a great model for other state coalitions. ACOW was instrumental in the passage of Washington's AMC law. To support ACOW and its membership, LIA Administrators & Insurance

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-88372491807856492562011-02-18T00:14:00.000-08:002011-02-28T17:45:31.040-08:00

Mortgage borrowers in default deal with "robo-signed" foreclosure documents.  Residential lending appraisers may soon have to deal with "robo-complaints" to state appraiser boards filed by lenders to comply with Dodd-Frank.  One of the end results may be more appraisers shy about value. We at LIA and READI anticipate and are preparing for an increased volume of future state disciplinary

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-83598829767635427802011-02-08T15:28:00.000-08:002011-03-09T08:24:42.544-08:00

Appraiser Bill King of William King & Associates and attorney Peter Christensen of LIA and READI have teamed up to give two very important CE seminars for Alaska appraisers on back-to-back days in Anchorage. These courses will be held at the Hilton Garden Inn -- Anchorage Airport, 4555 Union Square Dr., Anchorage, AK 99503, hotel phone: (907) 729-7000. 2010

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-25476711403565629152011-02-07T17:24:00.000-08:002011-03-30T10:54:48.215-07:00

To support the grassroots organizing of real estate appraisers in the Rogue Valley and Southern Oregon, LIA Administrators & Insurance Services and READI are pleased to announce the presentation of their 4-hour live CE seminar entitled "Loss Prevention for Real Estate Appraisers” (OR Course Approval No. LIAI-C-0111-1799) in the greater Medford area on April 29, 2011, 8:00 a.m. to 12:00 p.m. 

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-13027140024367744442011-02-07T14:26:00.000-08:002011-02-08T20:13:06.900-08:00

These joint CE events with LIA and the Kentucky Real Estate Appraisers Board have been popular.  116 appraisers attended the first CE event on January 14 in Bowling Green. More than 150 appraisers have signed up for the second event on February 11, 2011 in Louisville, and we look forward to giving the event again on March 11, 2011 in Lexington and April 15, 2011 in Florence.  The presenters of

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-48110823173656365952011-01-19T01:30:00.000-08:002011-08-22T09:45:39.773-07:00

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

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-23568752241607828972011-01-05T16:53:00.000-08:002011-01-05T16:58:36.994-08:00

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

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-78092780116135012722010-12-31T15:12:00.000-08:002011-08-31T09:46:30.727-07:00

Update: more current information about AMC bonds is in a newer post here.     LIA Administrators & Insurance Services is qualified to sell all types of licensing and surety bonds in all 50 states.  Appraisal management companies, and even some true appraisal firms ensnared by AMC regulation, are currently required to carry surety bonds in eight of the 20 states that have enacted AMC

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-1481849486401875972010-12-28T17:36:00.000-08:002011-11-18T15:04:28.987-08:00

Many commercial real estate appraisers are familiar with CoStar Realty Information.  It's an expensive source of commercial real estate sales, lease and property data.  Like many sources of such data these days, CoStar's information is sold and accessed via an internet-based subscription service using IDs and passwords, and access to the service is granted

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-58327249684522116752010-12-28T12:49:00.000-08:002011-09-28T08:18:57.364-07:00

"Should I sue the appraiser?"  We see hundreds of cases filed against real estate appraisers by borrowers/property owners, variously claiming that an appraisal for a loan was either too high or too low.  This is my observation as lawyer who has seen hundreds of cases filed by borrowers: it is generally a waste of the borrower's time, emotional energy and money to sue an appraiser. 

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-79104247291024539942010-12-21T17:13:00.000-08:002011-11-28T12:34:49.459-08:00

We are looking forward to another challenging year in the business of insuring and defending claims in the appraisal industry.  Based on recently filed cases, threatened litigation and emerging issues, these are LIA Administrators & Insurance Services' predictions for the biggest liability risks that we expect for appraisal management companies in 2011: Several AMCs will be sued by the

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-91547511023291530142010-11-11T13:57:00.000-08:002010-11-11T14:02:44.774-08:00

LIA Administrators & Insurance Services and READI have the following CE seminar scheduled.  This CE seminar through READI is free for READI members and LIA insureds.  It also qualifies appraisers insured by LIA for a credit on their E&O premium of up to $50. Greensboro, North Carolina, December 6, 2010, 2:00 p.m. to 6:00 p.m. -- "Loss Prevention for Real Estate Appraisers.” NC Course Approval

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-15976420683698813182010-10-19T09:58:00.000-07:002010-10-19T09:58:09.680-07:00

At ReadiMember.org, we started a new feature in the resources section for members called "Quick Tips."  Every week in Quick Tips, LIA and READI offer pinpoint suggestions on ways for appraisers to reduce their risk and potential liability. These are just the tips – no introduction, no story.  Here is an excerpt from this week's Quick Tip entitled "Include a Reference to Limiting Conditions in

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-90411892738725151632010-10-08T13:33:00.000-07:002010-10-08T10:29:30.301-07:00

4-Hour CE Seminar "Loss Prevention for Real Estate Appraisers" Wednesday, October 20, 2010, 2:00 p.m. - 6:00 p.m. Newport Beach, Californiafree Mexican buffet at the conclusion of the seminar    This seminar is free for LIA insureds and READI members.  Actually, for LIA insureds, the class is potentially cheaper than free because LIA insureds are eligible for a $25 or $50 credit (depending

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-52615797457190939052010-10-07T13:19:00.000-07:002010-10-11T08:53:56.030-07:00

There are three new articles for READI members at readimember.org:A Quick Report on Valuation Pressure in "Forensic" Appraisals"In recent months, we have received confidential reports of some AMC personnel instructing appraisers orally and in writing that they must deliver forensic review appraisals with . . ."Who Is Making the Most Claims Against Appraisers This Year?"In a few cases, it appears

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-32156392358127931112010-10-06T16:08:00.000-07:002011-08-23T12:18:32.589-07:00

This is an early report about claims against appraisers in 2010. The good news is that the professional liability risk to appraisers remains manageable with prudent loss prevention, despite a large number of claims stemming from the mortgage crisis.  The bad news is that claims against appraisers in all forms -- lawsuits, demand letters for money and

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-10964493866662313472010-09-14T15:21:00.000-07:002011-08-23T12:27:10.822-07:00

Agents for major insurance provider Lloyd's have begun giving notice to many appraisers informing them that their E&O policies will not be renewed after mid-November 2010.  According to the notices of non-renewal, the underwriting group at Lloyd's who covered them has decided to stop insuring real estate appraisers.  This turn of events is not unexpected.  Some carriers have sustained very heavy

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-53446787254919547232010-09-12T20:46:00.000-07:002010-09-13T06:56:17.431-07:00

READI members have asked for a review of CoreLogic’s new Independent Contractor Agreement that the company is requiring residential panel appraisers to accept. Please understand that I am not advising READI members whether they should or should not sign agreements such as this one. I am sharing below my legal and insurance concerns about the agreement, but appraisers must weigh for themselves the

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-3151971562794391812010-08-27T05:47:00.000-07:002011-01-18T14:54:24.907-08:00

As this blog has covered for the last two years, real estate appraisers are the target of unprecedented litigation and new forms of regulation.  We are frustrated by the unfair legal and financial challenges being thrown at appraisers.  To respond to the crisis that we are seeing firsthand, the sponsor of this blog LIA Administrators & Insurance Services (LIA) has created the Real Estate

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-70665673181902190302010-08-26T23:04:00.000-07:002010-08-26T23:04:04.851-07:00

READI and LIA are excited about products such as AppraisalWorld’s Collateral Valuation Report.  We hope that appraiser-driven products like this will be a marketable alternative when full traditional appraisals are not desired and that these products will enable appraisers to broaden the appeal of their services, combat BPOs and pure AVMs, and provide a new source of revenue for appraisers. 

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-82997681433554434232010-08-04T15:13:00.000-07:002010-08-26T21:24:40.406-07:00

It's unfortunately gotten so bad with people trying to blame their problems on appraisers that appraisers now even get the blame when the problem relates to a BPO done by a real estate agent. Some evidence of this fact comes from a local headline and article yesterday in a Hudson Valley, New York news source.  The headline reads "Appraiser pockets $8k diamond from Yorktown home, police say." 

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-1127052272647246512010-07-08T15:37:00.000-07:002010-08-26T21:26:37.487-07:00

The FDIC has now taken over more than 250 failed banks since January 1, 2008.  As the receiver for these failed banks, the FDIC has filed over 160 lawsuits against mortgage brokers, title companies, attorneys, appraisers, borrowers and other parties it blames for the banks' losses.  So far, the stakes have been relatively small. What remained to be seen was just how hard the FDIC intended to push

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-57210174960840876192010-06-10T00:03:00.000-07:002011-09-06T08:44:00.060-07:00

One of the emerging ways that an AMC, or possibly even a lender, can expose itself to potential liability for selling or using an alternative valuation product (i.e., a non-appraiser valuation) is via alleged patent infringement.  As reported earlier on this site, CoreLogic filed a patent infringement lawsuit against eight AMCs and other AVM providers in April. In the lawsuit, CoreLogic alleges

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-7342280288110375202010-06-09T19:53:00.000-07:002010-08-26T21:28:54.397-07:00

The FDIC continues to prove itself as the biggest current threat to appraisers and appraising.  Since January 1, 2010, the FDIC has filed 60 lawsuits as a plaintiff in federal court in connection with its receivership of failed banks.  This compares to 76 lawsuits for all of last year.  Unfortunately for appraisers, so far this year, at least 17 individual appraisers have been named as defendants

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-261718983542715882010-06-09T12:13:00.000-07:002011-09-06T08:45:10.180-07:00

I don't think it should come as a genuine surprise to most people familiar with the field, but yesterday a New York appellate court affirmed the trial court's decision denying First American Corp. and First American eAppraiseIt's (now part of CoreLogic) motion to dismiss in the action filed by New York Attorney General Cuomo against the companies in 2007. eAppraiseIt's primary argument in the

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-3582657831907254682010-05-25T11:22:00.000-07:002010-08-26T21:30:15.792-07:00

This is the first of a series of articles that will discuss valuation liability issues which either do not stem from true appraisals or affect parties besides appraisers. Appraisers are by no means the only parties targeted for valuation liability claims.  While appraisers are frequent targets in connection with their own professional work, other parties have much wider scopes of potential

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-8665509103154569072010-04-30T13:13:00.000-07:002011-09-06T08:44:25.144-07:00

First American CoreLogic -- currently a subsidiary of First American Corp. in Santa Ana, CA but soon to be an independent company under the name CoreLogic -- has filed a lawsuit against a number of appraisal management and technology companies: Fiserv, IntelliReal, Interthinx, Lender Processing Services, Precision Appraisal Services, Real Data, Realec Technologies and Zillow.  It's not the kind

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-41703407362400235692010-04-28T11:07:00.000-07:002011-08-23T17:33:39.735-07:00

Here are the main reasons why suing an appraiser is a bad strategy for borrowers, based on my experiences as a lawyer: Most claims by borrowers against appraisers are unsuccessful. The appraiser's opinion of value is usually defensible as of its effective date and an appraisal is not a guarantee of present value or a prediction of future value.  The borrower was almost always not the

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-7439948925900610492010-04-26T10:56:00.000-07:002010-04-27T12:02:59.060-07:00

In some of the professional liability cases filed by the FDIC in connection with failed banks, the records available to the FDIC's attorneys have seemed incomplete. This case may explain part of the reason why. On April 2, the FDIC sued a Utah-based real estate investment company named SK Hart Bayview LLC. In the lawsuit, the FDIC demands that SK Hart be ordered to return thousands of pieces

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-21578760443345584832010-04-20T18:00:00.000-07:002011-08-23T12:19:53.849-07:00

The FDIC has taken over more than 80 failed banks since January 1, 2008. When the FDIC takes over a bank, it starts considering potential claims against parties from whom it may be able to recoup some of the failed bank's losses. The FDIC has retained private law firms for the specific purpose of pursuing such claims. With so many attorneys engaged, the FDIC publishes a handbook for them.

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-52959938270153301692010-04-08T10:14:00.000-07:002010-04-08T10:23:44.533-07:00

On March 31, 2010, Judge Virginia Phillips in the U.S. District Court for the Central District of California dismissed eight homeowner/borrower class actions against home builders and their affiliated mortgage companies.  Filed on the same day by the same group of law firms, the eight lawsuits alleged that the builders and mortgage companies had schemed to inflate the price of homes paid by the

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-43146878472458486502010-04-01T15:56:00.000-07:002010-04-02T08:20:32.503-07:00

We previously reported that MGIC had removed to federal court Bank of America's (technically its subsidiary Countrywide's) lawsuit against MGIC partly regarding rotten review appraisals.  We also reported our view that it was quite likely that MGIC would challenge Bank of America's ability to sue in court on the basis that the allegations in the complaint are subject to mandatory arbitration

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-6641319244492987172010-03-30T09:48:00.000-07:002010-05-12T20:05:47.594-07:00

A law firm press release almost always coincides with the filing of a new class action complaint.  It generally serves as publicity for the law firm and as a way to attract assistance from potential class members and other potential cases.  And, then most times, you don't hear much about the case for a very long time.  When the plaintiffs' class action firm Hagens Berman Sobol Shapiro LLP filed

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-65753944194724108342010-03-25T18:59:00.000-07:002010-06-11T09:00:54.825-07:00

Many appraisers call and write us with regard to the hardships caused by being blacklisted by a lender.  Some appraisers want to know if filing a lawsuit would fix their problem -- either with a court order or monetary damages.  As an insurance provider, we're in the defense business, helping our insureds avoid risk and loss and defending them when they are sued for something covered by their

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-73769432594870458682010-01-25T10:01:00.000-08:002010-08-26T21:38:43.348-07:00

Borrowers are currently the most common source of claims against residential appraisers. Regardless of the fact that they are not the intended users identified in almost all reports, borrowers are filing a majority of the lawsuits and demand letters we see against residential appraisers. This article discusses common borrower claims and suggests new approaches that appraisers might consider on

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-1793587420280381102010-01-22T17:35:00.000-08:002010-01-25T12:02:31.768-08:00

This is an update for those interested in following Bank of America's subsidiaries' lawsuit against Mortgage Guaranty Insurance Corporation (MGIC) relating, in large part, to rotten review appraisals. Bank of America filed the lawsuit in San Francisco County Superior Court (i.e., a state court). MGIC's first filing in the case was to remove the case to federal court. Accordingly, for now, the

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-10523468416957602952010-01-13T15:11:00.000-08:002010-08-26T21:39:50.559-07:00

Commercial appraisers are more likely than residential appraisers to be in the position of considering whether to sue a client for unpaid appraisal fees because their fees for a single engagement are higher, sometimes $10,000 or more. Residential appraisers, however, occasionally also face the decision when unpaid fees have accumulated with a single client. When it's only a single unpaid

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-2097277075010194722010-01-11T15:41:00.000-08:002010-01-14T11:18:30.750-08:00

In November, Appraiser Law Blog reported about "rotten reviews" being used by mortgage insurance companies to deny mortgage insurance claims by lenders. The reason I wrote about the issue was that in some cases, mortgage insurers' and other parties' usage of rotten review appraisals is leading to unjustified claims against individual appraisers. It's a nightmare -- emotionally and

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-19591620299796330862010-01-04T15:23:00.000-08:002011-09-29T08:27:49.571-07:00

We receive a significant number of hits on this blog from mortgage borrowers thinking about suing appraisers. It's usually one of two things: the borrower feels that the appraiser valued a property too low or too high. Borrowers usually start their inquiries with Google or Yahoo searches for something like: "Can I sue the appraiser?"  That's not quite the right question. The more relevant

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-81082301393042845212009-12-04T11:21:00.000-08:002009-12-10T19:21:54.033-08:00

Here is a lender that is doing something right for appraisers (and itself). I wish more lenders would do things like this. As I've written elsewhere on Appraiser Law Blog, more than 50% of claims against appraisers are being filed by property owners and borrowers. These parties are not the clients or intended users of 99% of the appraisal reports that they sue over, and, in my view, most of

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-86864336223357740682009-11-23T18:25:00.000-08:002009-11-24T15:08:33.832-08:00

We see many frivolous claims against appraisers. No matter how accurate or careful an appraiser may be, these sorts of claims will be filed anyway.This particular claim relates to an appraisal for a purchase loan on a single family house in a mid-western state. The home was appraised for the lender at about $60,000. The homeowner has sent a demand letter to the appraiser demanding that the

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-76859538911452134212009-11-17T08:51:00.000-08:002010-08-26T21:41:16.091-07:00

We are asked this question a lot and the answer is . . . [A complete and updated version of this article is available to LIA insureds and READI members at readimember.org.  READI is the Real Estate Advisors Defense Institute, created by LIA to protect appraisers, advocate on their behalf and provide straightforward information about the legal issues that affect them.  You can read more about

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-29637971938687234872009-11-16T09:25:00.000-08:002009-11-17T08:45:23.084-08:00

Appraisal reviews and "forensic" appraisals are hot items at industry conferences. AMCs and other appraisal vendors are selling thousands of reviews and retrospective appraisals to mortgage insurance companies, lender "loss mitigation" departments, the FDIC and even the FBI. Those reviews and retrospective appraisals are then being used, among other things, to make claims against the original

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-90772638891208467752009-11-05T11:43:00.000-08:002010-08-26T21:42:09.085-07:00

In 2009, the volume of claims against appraisers remained at the same record levels experienced in 2007 and 2008. Beyond this continued high level, we've observed several new claim trends affecting residential appraisers in 2009. I'll start with the good news. Most of the claims we see are . . . [A complete and updated version of this article is available to LIA insureds and READI members

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-22344815057243567352009-11-04T12:04:00.000-08:002010-08-26T21:44:11.368-07:00

What should you say when you receive a call about a prior appraisal assignment from an FBI agent or other law enforcement officer?  . . . [A complete and updated version of this article is available to LIA insureds and READI members at readimember.org.  READI is the Real Estate Advisors Defense Institute, created by LIA to protect appraisers, advocate on their behalf and provide straightforward

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-54587262749900621312009-07-24T17:33:00.000-07:002011-08-23T12:27:45.685-07:00

The FDIC has taken over more than 80 failed banks since January 1, 2008. When the FDIC takes over a bank, it starts considering potential claims against parties from whom it may be able to recoup some of the failed bank's losses. The FDIC has retained private law firms for the specific purpose of pursuing such claims. With so many attorneys engaged, the FDIC publishes a handbook for them.

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-7055340916934002822009-06-25T12:57:00.000-07:002009-11-05T14:48:58.043-08:00

Thanks largely to the ill-informed efforts of New York's Attorney General and the HVCC, we are now witnessing more insidious and blatant attempts to manipulate appraisers than we saw during the height of the real estate bubble. Appraisers are being besieged with demands, threats and complaints from borrowers, sellers and real estate agents accusing them of undervaluing subject properties. The

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-38775787562154503012009-04-09T18:23:00.001-07:002009-11-24T10:01:05.014-08:00

I attended the recent conference of the Association of Appraiser Regulatory Officials (AARO) in New Orleans to participate on a panel discussing the need for consistency in appraiser discipline across the states. AARO's membership consists of the board members, appraisers, administrators and attorneys who work for the various boards and agencies regulating appraiser licensing and discipline in

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-41956530619744312842008-11-19T21:56:00.000-08:002010-05-12T20:11:16.669-07:00

We've observed a new pattern by one national lender. "Risk Management" at this lender has been submitting numerous complaints to state boards based only on single review appraisals which merely indicate "potential violations" of USPAP. I think the lender wants to show that it's "getting tough" on appraisers. In general, I don't think the tactic of filing numerous board complaints based on "

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-21564273691416459652008-11-18T11:44:00.000-08:002008-11-18T18:29:14.926-08:00

Our company LIA insures 25,000+ appraisers in the U.S. The claims we receive give us a very good indication of the riskiest states for appraisers in terms of legal claims and disciplinary complaints.Legal Claims. Based on our claims in 2008, the three states with the most legal claims against appraisers (i.e., lawsuits and threatened lawsuits concerning appraisals) are:1. Florida (most legal

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-30870010697861588122008-11-10T12:50:00.000-08:002010-08-26T21:53:07.769-07:00

Most claims against appraisers involve appraisals performed within 3 years of the date the claim is made. However, as real estate values continue to decline in certain areas and as foreclosure rates remain high, we are seeing more claims about . . . [A complete and updated version of this article is available to LIA insureds and READI members at readimember.org.  READI is the Real Estate

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-34827748227326196532008-11-10T12:43:00.000-08:002008-11-11T19:29:14.835-08:00

We previously commented that Nationstar Mortgage is the lender who currently asserts the most claims against appraisers. In the last week, we have observed a new tactic being employed by Nationstar and feel that appraisers need to be aware of it to protect themselves.A typical claim by Nationstar against an appraiser begins with Nationstar’s collection personnel contacting the targeted appraiser

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-15468188105382848952008-11-10T10:08:00.000-08:002008-11-11T19:14:48.613-08:00

The number of legal claims against appraisers – both residential and commercial – has increased about 100% in the last two years. This increase results largely from high foreclosure rates relating to loans made in 2005-2007 combined with lender and borrower decisions to blame appraisers for their losses and to seek compensation by filing claims. For the record: we believe that the vast

Peter Christensennoreply@blogger.comtag:blogger.com,1999:blog-7753645217987149953.post-34161452421172524812008-09-26T14:17:00.000-07:002009-04-10T00:17:53.441-07:00

When I talk to our appraisers about legal matters affecting them, many of them want to know which lenders file the most claims against our appraisers. My current answer for who is No. 1 on that list is easy: Nationstar Mortgage in Dallas, Texas, formerly known as Centex Home Equity, is asserting the most claims. It appears that Nationstar employs a staff whose job function is to make claims

Peter Christensennoreply@blogger.com