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Investors are going after lenders

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Lloyd Bonafide

Senior Member
Joined
Jan 15, 2006
Professional Status
Certified Residential Appraiser
State
California
http://online.wsj.com/article/SB121193306681924605.html

Buyers Seek to Force Repurchase by Banks; Potential Liability Could Reach Billions

Already burned by bad mortgages on their books, lenders now are feeling rising heat from loans they sold to investors.

Unhappy buyers of subprime mortgages, home-equity loans and other real-estate loans are trying to force banks and mortgage companies to repurchase a growing pile of troubled loans. The pressure is the result of provisions in many loan sales that require lenders to take back loans that default unusually fast or contained mistakes or fraud.

This should keep plenty of attorneys busy...
 

Joyce Potts

Elite Member
Supporting Member
Joined
Feb 6, 2005
Professional Status
Certified Residential Appraiser
State
Florida
http://online.wsj.com/article/SB121193306681924605.html

Buyers Seek to Force Repurchase by Banks; Potential Liability Could Reach Billions



This should keep plenty of attorneys busy...

I find this entertaining at best. So do we have the foxes chasing the wolves, or the wolves chasing the foxes?

I liken it to those lenders who sought out the skippies and used them over the more honest, realistic appraisers who are no looking to the skippie's E&O carriers for their losses.

Spare me.
 

Michigan CG

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Joined
Nov 1, 2006
Professional Status
Certified General Appraiser
State
Michigan
Joyce,

You can bet your last apple that if the buyers of these loans are successful the Banks will be trying to go after Skippy and his E & O (if he has it). Might be a good time to be a review appraiser.
 

Lloyd Bonafide

Senior Member
Joined
Jan 15, 2006
Professional Status
Certified Residential Appraiser
State
California
It's not going to take very many bad loans to deplete Skippy's E&O coverage. Then one more bad loan will take all of Skippy's net worth.

:new_microwave:
 

Michigan CG

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Staff member
Moderator
Joined
Nov 1, 2006
Professional Status
Certified General Appraiser
State
Michigan
It's not going to take very many bad loans to deplete Skippy's E&O coverage. Then one more bad loan will take all of Skippy's net worth.

:new_microwave:

Lloyd,

Do you think most appraisers, yet alone Skippy has E & O? I think they do because it is a requirement by some clients. I know it costs me $1,200 a year for E & O, but am not sure how much it would be if were not for the commercial license.

One or two complaints and no one will cover them, then the third they are toast (complete with butter and jelly).
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
Must be time for me to market to those tort attornies whose clients used any lenders that used AMCs that unlocked and altered the appraisal reports... then sold them with that guarantee that they had no knowledge that the appraisal had been tampered with, even though they did know.
 

Michael Tipton

Senior Member
Joined
Sep 25, 2005
Professional Status
Certified Residential Appraiser
State
Florida
Must be time for me to market to those tort attornies whose clients used any lenders that used AMCs that unlocked and altered the appraisal reports... then sold them with that guarantee that they had no knowledge that the appraisal had been tampered with, even though they did know.

I know a few hungry appraisers that would like to assist.
 

Austin

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified General Appraiser
State
Virginia
My nephew just finished his second year of law school. This kid is sharp. He won the law school moot court competition, then the regional law school moot court competition and came in second in the SE regional moot court competition of all law schools in the SE region. He carried the law school to the highest level in this competition it has ever achieved.
As you would expect his services are in demand. He is working this summer for a large law firm at a salary you would not believe. He was home this weekend and came out to visit. I asked him what kind of law work he was doing. He said legal research. I asked legal research on what? He said he just researched whether or not it was legal for stockholders to sue a member of the board of directors of a corporation? He says it can be done. Ghee! Wonder why he was researching that area of the law I thought?
I then asked him how long it would be before people started suing lenders and shareholders in these real estate securities deals suing security dealers. He smiled and said: "You never can tell."
 
Joined
Mar 30, 2004
Professional Status
Certified Residential Appraiser
State
Arkansas
Joyce,

You can bet your last apple that if the buyers of these loans are successful the Banks will be trying to go after Skippy and his E & O (if he has it). Might be a good time to be a review appraiser.
Remember the E in E&O stands for Error. How many True Errors did Skippy make?
Just how many of the "errors" he made will his E&O fall for?

Me thinks not many.
 
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