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 that it owns a broad AVM process patent being infringed by the various defendants who sell competing AVMs.
Some of the AVMs that CoreLogic accuses of infringing its patent include CASA®, ValuServ, iAVM™, Clear VALUE®, and LPS AVM Connect. This leads one to wonder if CoreLogic’s lawyers . . .
[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.]