FDIC Sues 29 Appraisers Over Loans By Downey Savings
By Peter Christensen In the two weeks leading up to Thanksgiving Day, the FDIC sued 29 more individual residential appraisers. All of the appraisers sued in this round reside in California. The FDIC’s...
View ArticleAppraiser Liability Claims – Why Do Claims Get Settled?
By Peter Christensen The article below comes from the most recent Claim Alert published by LIA Administrators & Insurance Services — Why Do Claims Get Settled? This article describes why and how...
View ArticleWhat is the Statute of Limitations for a Lawsuit Against an Appraiser in my...
By Peter Christensen The statute of limitations period for a professional negligence claim against an appraiser ranges from 10 years in one particular New England state down to 1 year in a certain...
View ArticleA Refreshed Warning about Some Risky E&O Sold to Appraisers
We first warned appraisers about this problem almost a year ago, but many appraisers are still falling prey to the marketing for some “no frills” E&O insurance policies and their lack of coverage....
View ArticleThe 8 Biggest Appraiser Liability Cases in the U.S.
I have described below the 8 biggest appraiser liability cases with which I am familiar that are currently pending in the U.S. These are cases that specifically name appraisers, appraisal firms or...
View ArticleWhat is the FDIC Suing Appraisers About? Some Examples of the FDIC’s Specific...
The FDIC continues to sue residential appraisers in connection with origination appraisals and review appraisals performed for failed lenders between 2003-2009 on loans now in default. It may be...
View ArticleThe Mysterious “Notice of Claim” to Appraisers Relating to FDIC Lawsuits
This post is for appraisers who have received a document entitled “Notice of Claim — Appraiser” relating to lawsuits filed by the FDIC (see example below). We have received multiple reports from...
View ArticleStatement of Frank Gregoire (NAR) Before Appraisal Oversight Hearing
Frank Gregoire’s written testimony to the United States House of Representatives Committee on Financial Services Subcommittee on Insurance, Housing and Community Opportunity before the Appraisal...
View ArticleShould I Attach My E&O Declarations Page to My Appraisal Report?
Because some AMCs still wrongheadedly insist that appraisers do it, we are asked this question a lot: “should I attach my E&O declarations page to my appraisal report?” The answer is always the...
View ArticleFDIC Diversifies Its Appraiser Targets in Recent Lawsuits
In the last three months, since May 1, 2012, the Federal Deposit Insurance Corporation (FDIC) has sued 45 individual appraisers and appraisal firms in its capacity as receiver for one of the failed...
View ArticleWho Has Been Suing the Most Appraisers? Two Names You Know. Two Names You’ve...
These are four of the parties who have been suing the most appraisers in 2011-12. I suspect most appraisers won’t recognize two of the names, unless the appraisers are defendants in one of their cases....
View ArticleSeven Cases the Defendant Appraisers Won Based on Expiration of the Statute...
I am biased in favor of defendant appraisers. I always root for the defense, even if it’s one appraiser suing another appraiser (as in one case below). Defense is our business. Here, are seven cases...
View ArticleAQB Releases December 2012 Q&As
TJ’s Rant… Almost all of the questions deal with Supervisor – Trainee issues that will change in 2015. If like me, you believe it is difficult enough to find people to become appraisers today, just...
View ArticleThe Sky is Falling for Appraisers & Home Inspectors
Chicken Little was right – the sky is falling… and landing on both appraisers AND inspectors. Home inspectors often suffer from a general lack of respect, part of which is caused by the fact that they...
View ArticleRead That Agreement Before You Sign or Leap
I recently ran across the provision below in a new contractor agreement between an AMC and its panel appraisers, when one of LIA’s insured appraisers asked me to take a look at the agreement. The...
View ArticleErros & Omissions Insurance and Claims Issues for Today’s Appraiser
The significant increase in insurance claims and disciplinary complaints against appraisers over the last few years is directly related to the foreclosure phenomenon and subsequent pattern of appraisal...
View ArticleFannie Mae Issues “Hard Stops” on Appraisal Messaging
As of January 28, 2013, Fannie Mae started placing greater restriction on the data they collect to ensure uniformity. You will now begin seeing a “hard stop” issued by Fannie Mae on messaging. This...
View ArticleYou’re Safe From the MLRG (Unless You Have E&O Insurance)
Since we last wrote about the unusual subpoenas coming from the offices of the FDIC through the law firm called the Mortgage Recovery Law Group (MRLG), we’ve learned some interesting things that you...
View ArticleRevisiting The Fannie Mae/Freddie Mac 2005 URAR Form Ambiguities and Liabilities
It has been eight years since the URAR form was revised. From 2005 to mid-2008, the real estate market experienced a boom and a bust the likes of which we have never seen before, and we are finally...
View ArticleAnother Overtime Class Action Filed Against an AMC
A lawsuit filed last week by a former staff appraiser against LandSafe Appraisal Services, Inc. exemplifies the overtime liability risk faced by many appraisal firms and appraisal management companies....
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