Fastapp AMC Alleged Violations of AIR
The following court documents in the case Naftali Horowitz v. [xxx], Fastapp AMC founder v. Fastapp AMC president, confirm what appraisers have been saying all along, that if you want high-volume AMC work, you have to lower your fees to 1980’s level, have 24 hour turn times, and, above all, be a number hitter.
Horowitz, Fastapp founder, filed a lawsuit in New York court on January 31, 2022 against defendant to, among other things, remove the defendant as an officer and director of the Company because, when he brought her on as shareholder in 2020, he claimed that she made certain false representations and promises that were never kept. Horowitz is an individual residing in Brooklyn, New York, and is the founder, and, at all relevant times, a 49% shareholder Fastapp. The defendant is an individual residing in Newport Beach, California, and, at all relevant times, a 51% shareholder of Fastapp.
The defendant is no longer the president of Fastapp.
Horowitz claimed that the defendant engaged in conduct constituting potential violations of the Appraiser Independence Requirements under the Dodd-Frank Act of 2010 (“Dodd-Frank Act”), including unlawfully seeking to influence an appraiser to encourage a targeted value to facilitate the making or pricing of the transaction in violation of 15 U.S.C. § 1639e(b)(3). (See copies of emails in Exhibit 3).
In one example of an alleged violation, Horowitz alleged that the defendant had been asked by a loan officer to fix a “low” appraisal: See copy of the email of the loan officer here and the alleged email response from Fastapp.
Horowitz claimed that he discovered other instances of defendant improperly communicating with mortgage brokers and appraisers in an effort to ensure and steering assignments to certain appraisers at the behest of mortgage brokers in clear violation of DoddFrank and AIR.
Defendant in her counterclaims denied Horowitz’ allegations and alleged:
The defendant stated she “recognized that Fastapp’s appraisers should not be trying to ‘hit the number they are looking for’.” She further stated: “Our Company does not condone anyone at Fastapp encouraging appraisers to target a number that brokers or lenders are looking for, and we advised [the appraiser] of the Company’s position in view of his comment.”
She alleged that after she joined Fastapp:
Horowitz denied defendants’s allegations in his reply to the counterclaims. They reached a settlement a month later and the case was dismissed.
We were contacted by Fastapp former president claiming that publishing her name and email is a violation of DMCA, and to remove this article or at minimum remove her name and email. Even though all the information we published in this article are in public court filing, we decided to edit the article. We replaced her name with her former title at Fastapp (president). We also removed all the screenshots of emails but provided direct link to those emails in the exhibits with the court.
A second request was made by the defendant to remove the title “president” “as it insinuates that the current president” of Fastapp AMC did this. We edited the article and replaced “president” with “defendant”. Added the following commentary: “The defendant is no longer the president of Fastapp”. We were also asked to remove the name of the AMC, Fastapp, but decided against doing so.
- Appraisers Pressured to Inflate Values Based on Race - August 16, 2023
- Foregoing Contingencies! But What About Fiduciary Duty? - June 27, 2023
- NAR Concerns & Survey on Property Data Collectors - June 5, 2023