Back in May, RE-Insider wrote about the lawsuit brought against Fidelity and its appraisal arm and asked, “Who’s Next?” Well, last week we got our answer
Last Wednesday, the Federal Deposit Insurance Corp. (FDIC), in its role as receiver for Washington Mutual, filed suit against First American’s eAppraiseIT, citing sloppy appraisals that led to losses of at least several hundred million dollars for WaMu.
The FDIC has now charged divisions of both First American and Fidelity, the two largest title appraisors in the country with grossly overstating the value of certain properties. The FDIC claims that more than 75% of the appraisals that they investigated performed by the two AMCs contained multiple violations of industry standards.
Click here to read more about the FDIC suit and as always, stay tuned to RE-Insider for more details on the lawsuit.