Appraiser Law Blog - "FDIC undoubtedly continues to be the biggest source of appraisal-related liability claims"

Appraiser Law Blog: Source:

In December, we offered 11 predictions for AMC liability risks in 2011. Three of the predictions were:

#1 -- Several AMCs would be sued by the FDIC,

#5 -- Some AMCs would see their "reps and warrants" come back to bite them, and

#11 -- The FDIC would continue to be the single biggest source of appraisal-related claims.

See 11 Predictions for AMC Liability Risks in 2011. These came true in the last two weeks.

The lawsuits described below against CoreLogic and LSI Appraisal will likely also lead #3 to occur: a few AMCs will endure liability aftershocks relating to litigation by the purchasers of mortgage backed securities. Purchasers of WaMu packaged mortgage securities -- and likely MBS from other sources -- will almost certainly pursue their own claims against these AMCs. We may also see consumer class actions attempting to emulate the FDIC actions.

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