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 in the FDIC’s lawsuits, and the pace of claims appears to be increasing. Aside from lawsuits, the FDIC’s attorneys also have sent perhaps hundreds of demand letters to appraisers this year, each one another potential lawsuit.
All claims by the FDIC against appraisers — without exception — have alleged that the appraisers . . .
[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 READI at readimember.org.]