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 and whether its litigation efforts would come to resemble the tactics of the RTC.
The answer is in: it looks like the FDIC will take it to the limit. This answer comes from the lawsuit the FDIC filed on July 2, 2010 in the Central District of California as receiver for failed Indymac Bank.
[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.]