You get a copy of agent agreements????
Otherwise, if they are not agents, they are not responsible via regulation. If there were agency agreements, AMCs could not get away with owing appraisers money while lenders continue to operate.
Implied Warranty of Authority
Whenever an agent signs a contract with a third party, there is an implied warranty of authority. Consequently, a lawsuit may be filed against an agent that does not have the actual authority to enter into the agreement, whether that means the agent had no authority or that he acted beyond the scope of the authority the principal provided.
If, however, the agent states that he does not make a warranty of authority or the third party knows that the agent does not have the necessary authority, there is no warranty of authority, and so the agent is not subject to any lawsuit arising from violating that warranty.
Agent Liability to Third Party
The issue of agent liability to third parties is important. Because agents would often rather not be held liable for commitments they make on behalf of another person, it is important for agents—and principals and third parties—to understand when agent liability attaches.
- See more at:
[url]http://www.garrettham.com/blog/agent-liability-to-third-party/#sthash.iMBIgCfZ.dpuf[/URL]
FDIC IAEG PG 19
"An institution is accountable for ensuring that any services performed by a third party, both affiliated and unaffiliated entities,
comply with applicable laws and regulations and are consistent with supervisory guidance.32 Therefore, an institution should have the resources and expertise necessary for performing
ongoing oversight of third party arrangements.
An institution should have internal controls for identifying, monitoring, and managing the risks associated with using a third party arrangement for valuation services, including
compliance, legal, reputational, and operational risks. While the arrangement may allow an institution to achieve specific business objectives, such as gaining access to expertise that is not available internally, the reduced operational control over outsourced activities poses additional risk.
Consistent with safe and sound practices, an institution should have a written contract that clearly defines the expectations and obligations of both the financial institution and the third party, including that the third party will perform its services in compliance with the Agencies’ appraisal regulations and consistent with supervisory guidance."
A written contract - is discoverable. As are letters, correspondence, emails, phone logs etc.
