Note: Readers can now find cases, laws and articles relating to appraiser independent contractor classification in the “AB 5 Center.” Appraisal firms and appraisal management companies utilizing independent contractor appraisers in California need to get familiar with Assembly Bill 5 (AB 5) – California’s new “gig worker” law. As was Read more
Thank you to the Appraisal Institute and its team for publishing my book Risk Management for Real Estate Appraisers and Appraisal Firms. The book gives practical guidance about liability risk associated with appraisal work and the operation of appraisal firms. The topics range from appraisal negligence to non-compete agreements, appraiser Read more
This is a common question that I’m asked by because many lawsuits against appraisers are filed years after the appraisal, sometimes 10 or more years later. The reason for this is that the plaintiff suing an appraiser may not have known there was a problem with the appraisal at the Read more
Today, the California Court of Appeal, Third Appellate District certified for publication its recent decision in a case entitled Tindell v. Murphy. The case involved mortgage borrowers who sued a real estate appraiser blaming the appraiser for a purchase they made in 2005 at the peak of the real estate bubble. The trial Read more
Classifying “staff appraisers” as independent contractors, rather than as employees, is a very common business practice among real estate appraisal firms. And, of course, appraisal management companies (AMCs) use a business model that depends entirely on panels of independent contractor appraisers who fulfill orders for appraisals that managed by the Read more
Updated 12/29/15 Here’s a summary of activity in the last several weeks: (1) Impac/Llano lost a case against an appraiser in New Jersey, (2) Savant’s legal counsel is seeking to withdraw from a case in Florida just weeks before trial (as well seeking to withdraw from up to 10 other cases for Read more
Impac – Savant – Llano Lose in Colorado. Earlier this morning, a state court judge in Colorado granted an appraiser’s motion to dismiss a Llano Financing lawsuit alleging negligence claims. Impac Funding – a subsidiary of Impact Mortgage and corporate affiliate of CashCall Mortgage – allegedly had sold the right to sue Read more
Last month, I wrote that Impac/Savant/First Mutual/Llano looked like they were starting to have problems with the attorneys representing them in their mass litigation against appraisers. New signs of such division are appearing. Some of the attorneys and law firms filing the cases seem to have been led into taking the Read more
Impac Funding’s so-called subservicer Llano Financing Group lost another case in Florida on November 6, 2015. This most recent loss came in Santa Rosa County, FL. The losing attorney and law firm for Llano were Eric Krebs and McCalla Raymer LLC. Mr. Krebs and his firm have filed dozens of Impac-related cases across the state. Read more
Before I cover a few positive legal developments with regard to the mass litigation against appraisers being fueled by loans held or serviced Impac Funding (a subsidiary of Impac Mortgage Holdings), I think it is important to reflect on the fact that these lawsuits are not impersonal financial matters — they are Read more