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Real Estate Advisors Defense Institute

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FDIC Reporter

The FDIC is rapidly proving itself to be the biggest single threat to appraisers and appraising. Just in 2010, the FDIC has sued more than 30 individual appraisers in lawsuits arising from failed banks, and the pace of claims appears to be increasing. Aside from lawsuits, the FDIC's attorneys also have sent hundreds of demand letters to appraisers this year, each one another potential lawsuit. The articles in this section are written by READI's director Peter Christensen and cover new FDIC litigation developments pertaining to appraisers and appraising.

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]
In 2011, the Federal Deposit Insurance Corporation (FDIC) has continued to file a high number of lawsuits against real estate appraisers blaming them for loan losses of the failed lenders that the FDIC and other agencies supervised during the mortgage bubble years 2004-2008.  Most of the FDIC’s recent lawsuits concern loans made or purchased by Indymac – that’s because the 3-year statute of limitations extension that the FDIC receives under federal law in which to file neg... [More]
The FDIC continues to prove itself as the biggest current threat to appraisers and appraising.  Since January 1, 2010, the FDIC has filed 60 lawsuits as a plaintiff in federal court in connection with its receivership of failed banks.  This compares to 76 lawsuits for all of last year.  Unfortunately for appraisers, so far this year, at least 17 individual appraisers have been named as defendants in the FDIC's lawsuits, and the pace of claims appears to be increasing.  Aside... [More]
The FDIC has now taken over more than 250 failed banks since January 1, 2008.  As the receiver for these failed banks, the FDIC has filed over 160 lawsuits against mortgage brokers, title companies, attorneys, appraisers, borrowers and other parties it blames for the banks' losses.  So far, the stakes have been relatively small. What remained to be seen was just how hard the FDIC intended to push and whether its litigation efforts would come to resemble the tactics of the RTC. The an... [More]
In some of the professional liability cases filed by the FDIC in connection with failed banks, the records available to the FDIC's attorneys have seemed incomplete. This case may explain part of the reason why. On April 2, the FDIC sued a Utah-based real estate investment company named SK Hart Bayview LLC. In the lawsuit, the FDIC demands that SK Hart be ordered to return thousands of pieces of computer equipment that the FDIC sold to SK Hart in 2009. The equipment and data on it formerly belo... [More]