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Real Estate Advisors Defense Institute

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Risk Reviews

In this section, READI's advisors evaluate various contracts, products and services pertaining to appraisers and provide frank information about the potential liability risks that appraisers may face. Our team has evaluated hundreds of appraiser contracts, AMC agreements and new valuation products over the last two decades. We look forward to sharing that expertise with READI members.

READI members have asked for a review of CoreLogic’s new Independent Contractor Agreement that the company is requiring residential panel appraisers to accept. Please understand that I am not advising READI members whether they should or should not sign agreements such as this one. I am sharing below my legal and insurance concerns about the agreement, but appraisers must weigh for themselves the costs, benefits and risks of doing business under an agreement like this.

My review is of the version of CoreLogic’s Independent Contractor Agreement that existed on August 16, 2010. I found the agreement publicly available on the internet. CoreLogic may edit or revise the agreement over time. I anticipate that CoreLogic will probably make some changes because there are problems with the agreement that could lead to regulatory scrutiny. Regardless, a review of the present agreement is instructive for READI members considering this or similar agreements or who are involved in appraisal management.

In sum, my impressions are that the agreement is poorly drafted, may violate several [More]
We have reviewed AppraisalWorld’s Collateral Valuation Report for the purpose of assessing potential liability risks and insurance issues for LIA insured appraisers and READI members.  We do hope that appraiser-driven products like this will be a marketable alternative when full traditional appraisals are not required in a particular situation and that these products will enable appraisers to broaden the appeal of their services, combat BPOs and pure AVMs, and provide a new source of ... [More]