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Real Estate Advisors Defense Institute

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General Legal

In these articles, READI's director Peter Christensen and other contributors report on general legal and insurance issues affecting appraisers and the appraisal industry.

One of the emerging ways that an AMC, or possibly even a lender, can expose itself to potential liability for selling or using an alternative valuation product (i.e., a non-appraiser valuation) is via alleged patent infringement.  As reported earlier on this site, CoreLogic filed a patent infringement lawsuit against eight AMCs and other AVM providers in April. In the lawsuit, CoreLogic alleges that it owns a broad AVM process patent being infringed by the various defendants who sell compet... [More]
I don't think it should come as a genuine surprise to most people familiar with the field, but yesterday a New York appellate court affirmed the trial court's decision denying First American Corp. and First American eAppraiseIt's (now part of CoreLogic) motion to dismiss in the action filed by New York Attorney General Cuomo against the companies in 2007. eAppraiseIt's primary argument in the failed motion was that New York's Attorney General should be preempted by federal banking laws and regu... [More]
First American CoreLogic -- currently a subsidiary of First American Corp. in Santa Ana, CA but soon to be an independent company under the name CoreLogic -- has filed a lawsuit against a number of appraisal management and technology companies: Fiserv, IntelliReal, Interthinx, Lender Processing Services, Precision Appraisal Services, Real Data, Realec Technologies and Zillow.  It's not the kind of case you might expect about real estate valuation issues. Filed on April 16 in the U.S. Dis... [More]
On March 31, 2010, Judge Virginia Phillips in the U.S. District Court for the Central District of California dismissed eight homeowner/borrower class actions against home builders and their affiliated mortgage companies.  Filed on the same day by the same group of law firms, the eight lawsuits alleged that the builders and mortgage companies had schemed to inflate the price of homes paid by the homeowners at the peak of the housing bubble in 2004-2006.  The homeowners alleged that the ... [More]
We previously reported that MGIC had removed to federal court Bank of America's (technically its subsidiary Countrywide's) lawsuit against MGIC partly regarding rotten review appraisals.  We also reported our view that it was quite likely that MGIC would challenge Bank of America's ability to sue in court on the basis that the allegations in the complaint are subject to mandatory arbitration under the parties' insurance contracts. Here's an update.  After the case landed in federal co... [More]