Updated 5-1-12 As we first reported on the Appraiser Law Blog, within the last month, the Federal Deposit Insurance Corporation filed its first lawsuit against a commercial appraiser since 2009.  This article is about the full story alleged by the FDIC in that lawsuit and a few important lessons that appraisers might take away from it.  While the alleged appraisal mistake made by the appraiser who prepared the report was simple, there are more far-reaching liability prevention lessons... [More]

This article is from the March 2012 issue of the LIA Risk Report Appraisal Management and Lenders Services.  It is directed to AMCs but may be of interest to appraisers who contract with AMCs. Many lenders are requiring that AMCs provide extensive representations and warranties in appraisal service agreements in order to receive appraisal work. These “reps and warrants” may involve the AMC contractually promising to the lender that appraisals delivered by the AMC’s panel appraisers will co... [More]

This article is from the March 2012 issue of the LIA Risk Report Appraisal Management and Lenders Services.  It is directed to AMCs but may be of interest to appraisers who contract with AMCs. Most of the discussion of liability issues in this LIA Risk Report has concerned appraisals performed by licensed or certified appraisers. Financial losses and liabilities, however, do arise from alternative valuation products and we will cover these risks in future issues. For now, here is one case.... [More]

This article is from the March 2012 issue of the LIA Risk Report Appraisal Management and Lenders Services.  It is directed to AMCs but may be of interest to appraisers who contract with AMCs. Appraisers and the AMCs they contract with are being put at risk by new “no frills” E&O insurance policies sold to appraisers as “E&O tickets.” The central problem is that these policies provide no coverage for most of the claims that appraisers are now facing. While advertisements for this t... [More]

This article is from the March 2012 issue of the LIA Risk Report Appraisal Management and Lenders Services.  It is directed to AMCs but may be of interest to appraisers who contract with AMCs. At this moment, there are law firms directing advertisements to employees, appraisers and other contractors of AMCs and lender services firms about the lucrative rewards available to them as “whistleblowers” if they have information about false claims made to the U.S. government in connec... [More]