NY, FirstAM & WaMu article

[Tawfik Ahdab]

http://www.reuters.com/article/bondsNews/idUSN0143151620071101

NEW YORK, Nov 1 (Reuters) - New York Attorney General Andrew Cuomo said on Thursday that he has sued First American Corp (FAF.N: Quote, Profile, Research) and one of its units for allegedly colluding with Washington Mutual Inc (WM.N: Quote, Profile, Research) to inflate the appraisal values of homes, helping trigger the mortgage market meltdown.

The lawsuit was filed in New York Supreme Court, Cuomo said in a news release. Washington Mutual was not named as a defendant in the case, according to the attorney general's statement.

First American subsidiary eAppraiseIT "caved to pressure" from Washington Mutual to use a list of preferred appraisers who provided inflated home appraisals, Cuomo's statement said.

Through this, "First American helped set the current mortgage crisis in motion," he said.

 

[Kevin Mc]

First American

http://www.bloomberg.com/apps/news?pid=20601087&sid=ayO8AMw7nMPc&refer=home

 

[Workbox]

Well, Well, ....................I will surely enjoy my day. To all appraisers and those in the industry. The puzzle is starting to make sense now isn't it? DUH!

 

[Michael Tipton]

``The independence of the appraiser is essential to maintaining the integrity of the mortgage industry,'' Cuomo said in the statement. ``First American and eAppraiseIT violated that independence when Washington Mutual strong-armed them into a system designed to rip off homeowners and investors alike.''

http://www.bloomberg.com/apps/news?pid=20601206&sid=auHkVFi4TAJ4&refer=realestate



http://www.reuters.com/article/bankingfinancial-SP/idUSN0142631520071101

 

[Hamlet]

This is great, but I have to wonder why WaMu isn't also named as a defendant?

 

[Tawfik Ahdab]

Michael, I posted the same news in General Discussion.

It can truly be said this time that the more the merrier!

Today is a good day.

 

[icisic7]

Same thing I was wondering, unless they plan to see how this one goes, and then file a separate suit if they win.

 

[Vegan702]

I don't see why eAppraiseIT would inflate the appraisals or how, besides altering the appraisals after they were submitted by the appraiser. I haven't done a lot of appraisals for E, probably less then 100 and never has anyone come back to me for any value issues. In fact the only AMC that has ever asked me for a value reconsideration was RELS and that only happened 1 time so far.

Are there people on this forum that have actually had E or another AMC pressure them to increase their values?

 

[Tom Barclay]

That truly is good news when this type of collusion is brought to light. I do hope it helps Pam in her struggle.

 

[Vegan702]

It said WaMu was out of his jurisdiction.