Jennifer Wertz, a California Office of Real Estate Appraisers (OREA) licensed real estate appraiser, has filed a 12 count lawsuit against Washington Mutual Bank, First American Corp., eAppraiseIT, Lenders Services (LSI), FNIS, Inc, and Susan Richter.
I've abstrated and edited portions of the lawsuit for ease of reading on this blog. The complete, un-edited document, can be downloaded here: Download WertzPrimarySuit.pdf
Thanks to Pamela Crowley of http://www.MortgageFraudWatchlist.org for the tip!
UPDATE
- 1/17/08: Money Magazine: WaMu Accused Of Appraisal Fraud
- 1/22/08: WaMu Continues To Take Its Lumps on Appraisal Practices
According to the lawsuit, Jennifer Wertz, beginning in 2001, began providing real estate appraisals to WAMU. Jennifer was receiving approximately two to three appraisal orders each day and earned in excess of $100,000 a year from WAMU.
In or about July 2006, WAMU began to outsource the management of their appraisal services to national appraisal management companies. WAMU began outsourcing their appraisal work through LSI and eAppraiselT and Jennifer Wertz accepted their offers of to provide appraisals for WAMU and others, through LSI and eAppraiseIT.
Exhibit 1 of the law suit includes the LSI Independent Contractor Agreement signed by Jeniffer Wertz. Typical of AMC contracts, it contains a hold harmles clause, which causes me to wonder how THAT will come into play?
Jennifer Wertz was considered a preferred real estate vendor which means that Wertz's worked had previously been used and WAMU was familiar with and considered Plaintiff's work to be proven.
Jennifer continued to do real estate appraisals for WAMU through LSI until on or about August 2007 when LSI and WAMU terminated Jennifer Wertz's contract.
According to the suit, Wertz did appraisal reports for WAMU directly, or for WAMU through LSI, for a period of six years. Throughout the six-year period, Jennifer's appraisal reports always met or exceeded industry standards, as well as WAMU standards.
On or about May 21, 2007, Susan Richter (a Sales Manager employed by WAMU) informed Jennifer Wertz that a loan for which Wertz had prepared an appraisal report had been declined because Wertz had indicated in her report "declining" market conditions. Richter insisted that Wertz change her appraisal report to indicate "stable" market conditions so that the loan could be approved.
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