Posted in the Think Tank you will find a fascinating lawsuit filed by the FDIC.
The Federal Deposit Insurance Corp. has accused Lender Processing Services Inc. of Jacksonville, Fla., and CoreLogic Inc. of Santa Ana, Calif., of causing $283.5 million of damages to the former Washington Mutual Inc. for failing to provide oversight of appraisal.
Below you will find the 118-page filing of the lawsuit that was commenced against LPS for $154.5 million. It states 220 appraisals performed between 2006 and 2008 contained “multiple egregious violations” of industry standards.
Less than 4%of LPS’s appraisals conformed with professional appraisal standards.
The FDIC filed a separate suit seeking $129 million from CoreLogic, claiming it found negligence in Corelogic’s eAppraiseIT unit after a review of 194 appraisals performed in 2006 and 2007.
CoreLogic’s defense? 85% of the loans involved “desk reviews” — no interior or exterior inspection. Perhaps someone in Corelogic’s crack legal team can explain how on earth that qualifies as an appraisal?