Lender Processing Services - Appraisers Blogs

AMC Liability for Deficient Appraisals

Peter Christensen — Mon, 17 Feb 2020 13:30:52 +0000

…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...

USPAP’s Typical Buyer Standard in the Fair Housing Era The Irreconcilable Conflict Between USPAP's Typical Buyer Standard and the Current Fair Housing Compliance Regime. Retain this document as a…
Is the GSE's "Appraisal Modernization" Really Just… Mass Appraisal tend to exhibit a regressive nature... In the intricate landscape of real estate mortgage financing, the notion of…
It’s Time to Take Out the Junk: AMC Practices Exposed Appraisers have spent years carrying the weight of broken AMC practices, and this article pulls every one of those practices…

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The Evil Octopus

Michael Ford — Wed, 20 Jun 2018 12:30:59 +0000

Appraisers, it’s not paranoia when ‘the bastards’ really are out to get you (end us as a profession). …Find each octopus and how they relate to our jobs. Look at MISMO Directors list… An Open Letter to Appraisers: Residential & Commercial This started as a response to a blog post by a respected appraiser concerning the influence of AMCs. During drafting it was clear that trying to explain AMCs was only part of the bigger struggles we face today. Picture a violent “all in” three-way gang fight among Octopi. Say a dozen on each side. That’s 36 Octopi x 8 tentacles...

Who's to Blame? Looking at who and what MISMO Directors are, is it a surprise that FNMA included language in basic appraisal forms…
My Day as an Appraiser Big Corporations like CoreLogic are like sharks... This morning, as I do every morning, I made some coffee and began…
Form PACE Pro - Appraisal or Evaluation? Frankly this form is so screwed up! To First American Mortgage Solutions...(copy to appraisers around the US): Do you folks…

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Unintended Use & Misleading Appraisal Reports

Michael Ford — Fri, 09 Sep 2016 12:30:16 +0000

Unintended and Potentially Misleading At what point do we ALL say enough? When they insist on unlocked PDF, XML or ENV formats that facilitate recipients in removing portions of appraisal reports they don’t like? Too late. When they blacklist appraisers for refusing to make post effective date contract analysis changes? When they set the fees we charge? When they change the scope of work after assignments are completed? When they LIE to borrowers about how much the ‘appraisal fee’ is? Now we have several that think THEY own MY professional work product? Like HELL they do! Any, repeat, ANY appraiser...

Software Provider Conflict of Interest(s)? ACI software & “restricted appraisals” that suffer from schizophrenia... It’s been awhile since I reviewed or researched influences affecting products…
Uncovering Flaws in FHA Appraisal & Loan Review Process The story of this single mother's harrowing experience with a defective home purchase and HUD's negligent oversight exposes deep flaws…
Fannie Mae Filed a Complaint Against Me An appraiser shared the following with us which was posted on one of the appraisers’ groups. Fannie Mae filed a…

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Computer Generated Value vs Human Brain

Michael Ford — Wed, 20 Jan 2016 13:30:10 +0000

Around 1992, representatives of LSI (long before they became completely useless as an AMC) visited us in California to discuss some way to involve automation (as in AVMs) to eliminate appraisals. When I pointed out that they had JUST THANKED me for saving them from a quarter of a million dollars over valuation as a result of pressure from one of their very influential customers, and that the very same issue had arisen from that customers misapplication of data AND their potential misinterpretation of that data, they understood the connection. A KNOWLEDGEABLE human appraiser was required to resolve the difference....

Chief Appraiser says AVM is an appraisal Appraisers, Maybe I’m too much of an anal retentive type person, or perhaps it’s because I believe it’s important to…
Bank Profits: Eliminate Appraisers Zestimate Gone Wrong. It all comes down to money and profits… Once again the Zestimate has a home-owner up in…
Is That an Appraisal? USPAP Definition Why Isn't that an Appraisal? APPRAISAL: (noun) the act or process of developing an opinion of value; an opinion of…

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LSI Fees – Absolutely Criminal!

Michael Ford — Fri, 28 Aug 2015 12:30:26 +0000

We used to do a lot of work for LSI back when they paid semi decent fees that were only about 10% below the competitive norm back around 1992. I think the norm was around $300 and they were paying $275+/-. In late 1992+/- they cut back to $235. We lost a few people but most stayed. Bear in mind the appraisers were being paid on a fee split. I think they got 50% of the firms fee. I was on salary for QC review and teaching work plus a split fee for field reviews. Back then it was much simpler to...

Promoting False "Racist Appraiser" Narrative Some Lenders promoting false "racist appraiser" narrative to optimize profits via AVMs Like most businesses lenders want to optimize their…
The Illogical Reality of Mortgage Appraisal Reviews Reforming the appraisal review process is essential to maintaining the integrity of the real estate market and protecting consumers and…
Fannie Mae Filed a Complaint Against Me An appraiser shared the following with us which was posted on one of the appraisers’ groups. Fannie Mae filed a…

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REVAA and FAIR Approach for Appraisal Fees

AppraisersBlogs — Wed, 25 Jul 2012 12:30:07 +0000

REVAA and FAIR Call for Market-Driven Approach for Appraisal Fees Washington, DC (PRWEB) July 14, 2011, Donald Kelly, executive director, Real Estate Valuation Advocacy Association (REVAA), appeared today before the House Financial Services Committee, Subcommittee on Insurance, Housing, and Community Opportunity to testify on behalf of REVAA and the Coalition to Facilitate Appraisal Integrity Reform (FAIR) on Mortgage Origination: The Impact of Recent Changes on Homeowners and Businesses. The testimony comes just prior to the Federal Reserve Board transitioning its rulemaking authority to the Consumer Financial Protection Bureau (CFPB). Members of REVAA and FAIR advocate that the Federal Reserve Board,...

The New & Improved Fannie Mae “FRAUDULATOR 2.0” Originally known as Fannie Mae’s Collateral Underwriter (CU), and subsequently Collateral Underwriter 2.0 (CU-2)i this always dubious product of Fannie…
USPAP’s Typical Buyer Standard in the Fair Housing Era The Irreconcilable Conflict Between USPAP's Typical Buyer Standard and the Current Fair Housing Compliance Regime. Retain this document as a…
Dear Representative, FNMA Has Gone Rogue! Dear representative, waiving/eliminating property appraisal for lending purposes is wanton recklessness. Fannie Mae’s decision to waive/eliminate property appraisal for lending…

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FDIC Settles Claims Against WaMu

Peter Christensen — Tue, 20 Dec 2011 19:39:37 +0000

The FDIC Settles Claims Against WaMu’s Top Officers. What’s the FDIC’s Case Against LSI Appraisal Worth? 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 that their negligence caused what it is the biggest bank failure in U.S. history. It also alleged that two of them unlawfully transferred assets to their wives to protect the assets from potential collection efforts. Despite those...

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…
Top DEI Bosses Have a Problem - Diversity The ranks of the new DEI bosses at the financial institutions are no more diverse than the appraisers their institutions…
The Town With No Bank: How Rural America Lost Its… For decades, we’ve been told that the problem is demand. That people don’t want to live in rural America anymore.…

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FDIC Suffers Setback Against LSI

Peter Christensen — Mon, 07 Nov 2011 12:00:29 +0000

The FDIC Suffers a Setback in Case Against Lender Processing Services and LSI Appraisal As reported in prior posts, 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 (see post here), and on July 22, LSI and LPS filed a motion to dismiss. In that motion, LSI argued that the FDIC’s gross negligence claim should be dimissed based on the economic loss rule, that the FDIC’s alter ego claims against LSI’s affiliated corporate entities (including LPS)...

Fannie Mae Filed a Complaint Against Me An appraiser shared the following with us which was posted on one of the appraisers’ groups. Fannie Mae filed a…
The Town With No Bank: How Rural America Lost Its… For decades, we’ve been told that the problem is demand. That people don’t want to live in rural America anymore.…
Limitations for Damages Against Appraisers Why would any damages against an appraiser be more than the actual fee paid to the appraiser? House Bill 53…

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Update on FDIC v. CLGX (CoreLogic – eAppraiseIT)

Peter Christensen — Sun, 18 Sep 2011 22:24:22 +0000

FDIC’s lawsuit against CoreLogic – eAppraiseIT… FDIC Reiterates Threat that Appraisers Are the Legal Agents of AMCs in a Late – Filed Brief CoreLogic, parent of the AMC formerly known as eAppraiseIT…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 their panel appraisers. The FDIC first asserted this argument in a brief filed in its case against Lender Processing...

Limitations for Damages Against Appraisers Why would any damages against an appraiser be more than the actual fee paid to the appraiser? House Bill 53…
USPAP’s Typical Buyer Standard in the Fair Housing Era The Irreconcilable Conflict Between USPAP's Typical Buyer Standard and the Current Fair Housing Compliance Regime. Retain this document as a…
The Great Debate on Appraisal Fees She included several different fee split examples indicating AMCs retained as much as 70 percent of the total appraisal fee…

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Appraisal Institute Warns Appraisers About Liabilities When Working with Some AMCs

AppraisersBlogs — Fri, 13 May 2011 14:10:30 +0000

CHICAGO (May 12, 2011) – The Appraisal Institute today cautioned real estate appraisers about signing agreements imposed by some appraisal management companies that seek to hold residential appraisers responsible for AMCs’ actions. Its president warned that consumers could be the ultimate losers. “Appraisers should be very careful about signing any agreement, especially one that makes them responsible for another party’s actions,” said Appraisal Institute President Joseph C. Magdziarz, MAI, SRA. “While there are some fine AMCs doing business today, many AMCs shift liability onto appraisers. For many professional appraisers, it’s simply not worth the risk.” Magdziarz, as president of the...

The Great Debate on Appraisal Fees She included several different fee split examples indicating AMCs retained as much as 70 percent of the total appraisal fee…
Fannie Mae Filed a Complaint Against Me An appraiser shared the following with us which was posted on one of the appraisers’ groups. Fannie Mae filed a…
Desktop Appraisals: Has The Devil Infiltrated The… Are desktop appraisals with third-party inspectors protecting the public, or are these products about to destroy the very profession I…

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FDIC Files Appraisal Complaint Against LPS and CoreLogic

AppraisersBlogs — Thu, 12 May 2011 02:05:33 +0000

The Federal Deposit Insurance Corp. has filed a complaint against Lender Processing Services and CoreLogic related to appraisals performed for Washington Mutual, HousingWire reported May 11. The FDIC is seeking to recover roughly $283 million in losses allegedly tied to appraisals that an LPS subsidiary and a CoreLogic affiliate conducted for WaMu. The FDIC took WaMu into receivership in 2008 and facilitated its sale to JPMorgan Chase. WaMu had a total of $307 billion in assets at the time. HousingWire reported that regulatory filings by the two companies indicate that the FDIC alleged LPS Appraisal LLC and CoreLogic Valuation Services,...

The Town With No Bank: How Rural America Lost Its… For decades, we’ve been told that the problem is demand. That people don’t want to live in rural America anymore.…
The New & Improved Fannie Mae “FRAUDULATOR 2.0” Originally known as Fannie Mae’s Collateral Underwriter (CU), and subsequently Collateral Underwriter 2.0 (CU-2)i this always dubious product of Fannie…
Top DEI Bosses Have a Problem - Diversity The ranks of the new DEI bosses at the financial institutions are no more diverse than the appraisers their institutions…

The post FDIC Files Appraisal Complaint Against LPS and CoreLogic appeared on Appraisers Blogs.

Lender Processing Services - Appraisers Blogs

AMC Liability for Deficient Appraisals

Related Posts:

The Evil Octopus

Related Posts:

Unintended Use & Misleading Appraisal Reports

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Computer Generated Value vs Human Brain

Related Posts:

LSI Fees – Absolutely Criminal!

Related Posts:

REVAA and FAIR Approach for Appraisal Fees

Related Posts:

FDIC Settles Claims Against WaMu

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FDIC Suffers Setback Against LSI

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Update on FDIC v. CLGX (CoreLogic – eAppraiseIT)

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Appraisal Institute Warns Appraisers About Liabilities When Working with Some AMCs

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FDIC Files Appraisal Complaint Against LPS and CoreLogic

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