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 Read more…
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 Read more…
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 Read more…
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 Read more…
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 Read more…
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 Read more…
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 Read more…
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 Read more…
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 Read more…
(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 — Read more…