Is Fannie Mae Form 2075 a Ticking Time Bomb for Appraisers?
Fannie Mae Form 2075 (aka the “Desktop Underwriter Property Inspection Report”) seems innocuous enough when you pick it up and look at it. After all, it’s only a single page with just one-half page of...
View ArticleIf They Said It, It Must Be True
New tactic by the NAR and NAHB to get appraisers to “play ball”. Last year they accused appraisers of single-handedly keeping the market from recovering and this year they are patting appraisers on the...
View ArticleOvertime Lawsuits Continue to Spread Among Valuation-Related Companies —...
There is definitely now a small wave of overtime litigation under the federal Fair Labor Standards Act (FLSA) affecting businesses in valuation-related fields. The industry has become an easy target...
View ArticleESA Bankruptcy, Is Chase To Blame Or A Victim?
I find myself offering thoughts about many strange and unusual situations involving appraiser E&O and risk management in general, but today may be the strangest subject of all – why it appears...
View ArticleSuggestions for Real Appraisal Reform
As a risk management firm which has been serving real estate appraisers for over 20 years, we are in a relatively unique position in terms of offering suggestions how to improve the current residential...
View ArticleTax-Related Appraiser Liability Claims
In the last several years, we have seen more negligence claims relating to appraisals performed for tax purposes, especially appraisals for conservation easements, charitable deductions, and estate or...
View ArticleThe Risk of Using One Data Source
With appraisers being asked to do more work for the same amount of money and with lawsuits against appraisers being more prevalent today than ever before, it is increasingly important for real estate...
View ArticleMortgage Takings: The Next Appraisal Frontier or Liability?
According to the Appraisal Institute’s recently published 2013 Real Estate Appraisal Outlook, U.S. appraisers anticipate that litigation valuation/forensic appraisals will be one of the top five areas...
View ArticleThe Statute of Limitations for a Claim Against an Appraiser
Why You Should Keep Your Workfile for 7 to 8 Years In 2013, many lawsuits against both residential and commercial appraisers continue to relate to appraisals performed years ago at the peak of the real...
View ArticleHave You Been Blacklisted?
We often receive calls from appraisers who have been blacklisted by a lender they do no direct appraisal work for. Typically, the story is the same. They are being dropped from an AMC panel that has...
View ArticleFDIC Exclusions in Appraiser E&O Policies
Many appraisers don’t know about or don’t understand the new FDIC and “regulatory agency” exclusions found in many appraiser E&O policies. Why is it relevant to know if your policy has an FDIC or...
View ArticleAppraisal Management Company (AMC) License Bonds. Are They Working?
Current AMC Bond Requirements Eighteen states now require AMCs to carry surety bonds to be properly registered to operate in those states. The required bond amounts vary from $10,000 in New Mexico to...
View ArticleLiar, Liar…Pants on Fire
I recently read a summary of an interview of James Gorman, CEO of Morgan Stanley. When Gorman was asked about the chances of another financial crisis like the one we had 5 years ago occurring, he...
View ArticleFederal Court Rules on USPAP Confidentiality Issue in FDIC Lawsuit Against...
On September 5, 2013, in a professional negligence case against two Colorado appraisers by the FDIC, a federal court ruled on an issue concerning USPAP confidentiality. It was a simple issue, but it’s...
View ArticleAMC Background Checks: Fair or Not?
“I was just asked by an AMC to get a background check. Do I have to comply?” As risk management advisors for Appraisers and Inspectors, this is one of the questions we hear over and over again. Let’s...
View ArticleNavigators Sues More Appraisers to Deny Coverage under “Regulatory Claims”...
Last Thursday, November 14, Navigators Insurance Company sued two more appraisers to enforce “regulatory claims” exclusions in the E&O policies they purchased. These appraisers are in Nevada. Like...
View ArticleSubpoenas and Other Things That Go Bump in the Night
First, it is gratifying to know you are actually reading what we write and release. We know this is true because a little over a year ago, we received very few questions about subpoenas and today,...
View ArticleClass Action Lawsuit Filed Against BPO and AMC Firms for Allegedly Unpaid Fees
On December 2, 2013, three law firms in Florida, Washington and Colorado teamed together to file a class action complaint on behalf of real estate agents and others allegedly owed unpaid fees for...
View ArticleWhat You Say Can and Will Be Used Against You
Does this sound familiar? If so, I hope it’s because you watch a lot of shows like Law & Oder on television and not for any other reason. If this doesn’t sound familiar, it is one part of the...
View ArticleWhat is the Difference Between an Employee, a Subcontractor, and an...
In helping real estate professionals find the right professional liability (E&O) insurance policy, one of the most common issues we come across is whether someone you hire to help with your...
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