Tagged: lawsuit

Appraisal Racism... Fact or Fiction? Where is the Actual Evidence? 10

Appraisal Racism… Fact or Fiction?

Not one single point provides any evidence to the appraiser engaging in a racist act… No appraisal reports or actual evidence of racism has been produced by the accuser… Not one single case has been presented to the appraisal state boards… The real estate community is aware of the recent onslaught of articles going around accusing real estate appraisers of racism and appraising homes for less than what the actual homeowner thinks the home is worth. It started with Abena Horton in Jacksonville, FL Additional accusations were made in Chicago, Denver, and Newark, NJ. Each article written accuses the appraiser...

Bill Prohibiting Discrimination in Appraisals, BPOs & CMAs 15

Bill Prohibiting Discrimination in Appraisals…

A bill to amend Illinois’ appraiser and real estate licensing acts to address discrimination. With increased public attention on the issue, complaints alleging unlawful discrimination are emerging in the courts and before regulators in relation to appraisals. In Illinois, a bill (HB 5862) has been introduced to amend the Illinois Real Estate Appraiser Licensing Act and the Real Estate License Act to expressly prohibit discrimination in appraisals, broker price opinions (BPOs) and comparative market analyses (CMAs) for residential real estate. The bill would amend each licensing act to state that an appraiser or real estate licensee engages in prohibited discrimination...

Are Appraisers Being Sued for Errors Relating to the COVID-19 Pandemic? 1

Appraisers Being Sued for COVID-19 Errors?

The alleged errors in appraisals that parties are suing appraisers over during the pandemic are the same types of errors that appraisers usually get sued over… Wow. I did not go into the basement on my last visit. I’ll explain why an appraiser wrote that in a moment. Are appraisers being sued for errors relating to the COVID-19 pandemic? My short answer is “no” – there’s no pattern of that happening. One of the services that I provide to my legal clients is tracking lawsuits and legislation that relate to valuation services. I locate and follow cases of all types...

Update on FTC’s Price-Fixing Enforcement Action Against LREAB 6

New Appellate Decision – LREAB v FTC

FTC’s price-fixing enforcement action against LREAB… A federal appellate court – the U.S. Court of Appeals for the 5th Circuit – has issued a decision in the long-standing fight between the Louisiana Real Estate Appraisers Board (LREAB) and the U.S. Federal Trade Commission about “customary and reasonable” appraisal fees. I’m venturing here to provide a short, understandable, unbiased summary of the litigation and what this latest court decision means. What did the Court of Appeals decide? Here’s the very short summary: The Federal Trade Commission (FTC) is pursuing an administrative complaint it filed in 2017 against LREAB, contending that LREAB’s “customary and reasonable”...

Sharestates Seeks to Overturn NY Appraiser-friendly Statute of Limitations 13

Lender Seeks to Overturn NY Appraiser-Friendly Statute of Limitations Law

Sharestates operates a crowdfunding platform that provides alternative mortgage lending secured by both residential and commercial real estate. Over the last 10 years, it has reported average annual returns for loan investors ranging from 9.24% to 11.02%. With returns like these, there is likely some loan risk – and Sharestates reports a current foreclosure rate of 2.44%. Following several of its foreclosures, Sharestates has filed professional negligence cases against about a dozen defendant appraisers, appraisal firms and appraisal management companies, blaming the loan losses on inflated appraisals. Last year, it lost one of those cases in a Nassau County, New...

Borrower Class Action Against LandSafe Appraisal Settled for $250 Million 8

Class Action Against LandSafe Settled

…alleged that the lenders conspired with LandSafe to inflate appraisals to increase the size of mortgage loans sold on the secondary mortgage market… Believe it or not, cases are still being litigated in relation to events during the mortgage meltdown years. After nearly seven years of litigation, a settlement (subject to court approval) has been reached in the borrower class action filed in 2013 regarding appraisals managed by defendant LandSafe Appraisal Services between January 1, 2003 and December 31, 2008. The other defendants in the suit include Countrywide Home Loans and Bank of America and various affiliates. The central premise...

AMC Liability for Deficient Appraisals - Can They Be Sued for Negligence? 14

AMC Liability for Deficient Appraisals

…may AMCs be liable for the deficient work of contractor appraisers? Can AMCs be sued for negligence? Can they be sued by borrowers?.. It’s now been a decade since the market relevance of appraisal management companies surged in connection with the procuring of appraisals for residential lending. Since then, interesting recurring legal issues have arisen relating to AMCs’ potential liability for the work of contractor appraisers: when and how may AMCs be liable for the deficient work of contractor appraisers? Can AMCs be sued for negligence? Can they be sued by borrowers? Here’s an overview of the answers to these...

iMortgage, the Dollar Bidding Company, Sues LREAB for Antitrust Violation 7

LREAB Hit With an Antitrust Lawsuit

…everyone knows that iMortgage / Single Source is the “dollar bidding” company. They send out appraisal requests at $1.00 and ask everyone to provide their fee… The Louisiana Real Estate Appraiser Board has been hit with another legal battle. This time, iMortgage, operating under the name Single Source has filed suit against the Louisiana Real Estate Appraisal Board claiming a violation of antitrust laws. This suit mirrors that of the FTC, which is currently paused by the Fifth Circuit Court. In the suit, iMortgage claims rules created by the Louisiana Real Estate Board, which consists of market participants, set appraisal...

Major Threat to Real Estate Agents on Horizon - Appraisers Blogs 6

Major Threat to Real Estate Agents

Appraisers, in case you are not aware, NINE law firms have begun the process to sue real estate agents and brokers across the US about how the commission process works to compensate the SELLING broker. It is believed that three of the best known internet based property purchasing and selling web sites are behind this effort. It’s being done so that they can build their own businesses, while jeopardizing the livelihood of real estate agents and brokers. The suits allege that there is collusion and racketeering among the real estate participants to ‘bake in’ a set commission for the selling agent...

Game Over Coester! Mark Skapinetz Wins & Coester Loses in Court! 13

Coester Loses in Court!

Gosh… I’m really sad to bring you this news (sarcasm). Brian Coester Loses in Court! About 2 years ago, Georgia appraiser Mark Skapinetz, sued CoesterVMS.com, Inc. and Brian Coester for hacking his email account. The Judge ordered a summary judgement in favor of Mark Skapinetz on all counts. Excerpts from the HousingWire article: Coester will likely be forced to cough up damages as a judge ruled against him Monday in a lawsuit brought on by Mark Skapinetz, a subcontracted appraiser who worked for CoesterVMS. …a two-year legal battle between Coester and Skapinetz, who sued alleging violations of the Stored Communications...

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