NY, FirstAM & WaMu article

[robert higgins]

I agree Renee, the reference to eAppraiseIt as "an appraiser" or an "appraisal company" is misleading to the public. To me the suite is no different then any other situation we encounter everyday, only differences is eAppraiseit does XX,000 appraisals making $X,000,000 a month. While other lenders use Independent Appraisers doing 20 appraisals making $X,000 a month, but if you times that by 15,000 appraisal firms, you can reach $zzz,000,000 a month, hmm 3 times what E has done.

 

[Ray Miller]

I still say Cuomo's strategy is to leave WaMu to the tender mercies of the damaged parties. How long until Bear Stearns, Merrill Lynch, et al file suits against WaMu?

After those boys are done with WaMu, what's left of it will probably be merged into some other healthier bank.
********************

Just heard on one of the fininical reports again that Wall Street Investors are going to look into the Big Banks and there appraisal pratice. It was all over the news last night and first shot a 5 a.m. this morning on ABC.

This is going to be a melt down of some large lenders on why the subprime went south. I think it will touch some A paper as well as some commercial banks.

I also think the Goverment will step in with something like the RTC again when this can of worms is fully open up.

I also think it should be made public knowledge of every appraiser who was on the approved list the last 18 months be made public and sent to each state board for action.

 

[Ms. Janet]

I also think it should be made public knowledge of every appraiser who was on the approved list the last 18 months be made public and sent to each state board for action.

Geez Ray, why would you do that? There are a lot of appproved apppraisers with AMC's (eAppraiseit included) who do fine work.

 

[robert higgins]

Well I'm guessing if E goes down, we will see what come of all those "Hold Harmless" clauses people signed.

 

[moh malekpour]

In announcing the complaint, Mr Cuomo said: “The blatant actions of First American and eAppraiseIT have contributed to the growing foreclosure crisis and turmoil in the housing market. By allowing Washington Mutual to hand-pick appraisers who inflated values, First American helped set the current mortgage crisis in motion.”

Mr. Cuomo says that EappraiseiT have contributed to the growing foreclosure crisis and turmoil in the housing market by using WAMU preferred appraisers to inflate value for the benefit of WAMU. I suppose he has some solid evidence to prove his case as he is the attorney general of the state of NY not a disgruntled home buyer who wants to blame his or her loss on the appraiser. There has to be reviews on some of those suspicious appraisal reports and testimonies from some appraisers in the court and the result could be a trigger and reason for secondary lenders and investors who are paying for those bad loans right now to go after other AMCs like Landsafe for countrywide and other lenders who have used EappraiseiT or other AMCs.

 

[Lost Cause]

First Salvo?

"SEATTLE, Nov 01, 2007 /PRNewswire via COMTEX/ -- Hagens Berman Sobol Shapiro (HBSS) is investigating claims that Washington Mutual (WM:Washington Mutual Inc, the country's largest savings and loans institution, conspired with First American Corporation to artificially inflate housing appraisals."

http://www.marketwatch.com/news/sto...C-45DB-8664-DCFCC1865683}&dist=TQP_Mod_pressN

Looks like a potential class action suit to benefit homeowner/borrowers. Sic the lawyers on 'em!

 

[Tawfik Ahdab]

Thanks for the link JH

The tort sharks are smelling blood.

"The attorneys at HBSS would like to hear from consumers who took out a home loan from Washington Mutual and had the home appraised by First American since 2006. You can reach HBSS at 206-623-7292 or e-mail info@hbsslaw.com.
About Hagens Berman Sobol Shapiro
Hagens Berman Sobol Shapiro is based in Seattle with offices in Chicago, Cambridge, Los Angeles, Phoenix and San Francisco. Since 1993, it has developed a nationally recognized practice in class-action and complex litigation. Among recent successes, HBSS has negotiated a $300 million settlement in the DRAM memory antitrust litigation, one of the largest anti-trust settlements in history; a $340 million recovery on behalf of Enron employees; a $150 million settlement involving charges of illegally inflated charges for the drug Lupron, and served as co-counsel on the Visa/Mastercard litigation which resulted in a $3 billion settlement, the largest anti-trust settlement to date. HBSS served as counsel in a $850 million Washington Public Power Supply settlement and represented Washington and 12 other states against the tobacco industry that resulted in the largest settlement in history. For a complete listing of HBSS cases, visit http://www.hbsslaw.com. "

 

[Carnivore]

The idea might be to work the weakest link and offer a plea bargain in exchange for cooperating with the bigger fish.

A large AMC works with multiple lenders.

George,

I think you are on to something. The AMC's have their own organization!
I know you have heard of the Sherman Aniti-trust Act. RICO is looking better and better.

 

[Ms. Janet]

Well, I certainly hope they all pick experienced reviewers to review the appraisal reports. I hope they are all wise enough not to pick reviewers with a predetermined mindset that simply because the report went thru E for WAMU that it is inflated.

I really really hope we get a quick revision to USPAP defining the length of time a reviewer can consider sales that occurred AFTER the effective date of an appraisal before this turns into a free for all against every appraiser in the country.

 

[Craig in Oregon]

So now. . .

there will be some attention paid -- finally -- at higher levels to the Appraiser's Petition and also the letter to NAMB (2002?) both of which can be located on this forum.

The idea of contacting your legislators is very good and very timely, this is a real opportunity to have pertinent laws actually written to be enforced.

Personally, I don't believe the legal action in NY or anywhere else is, in the end, much good for any part of the "lending industry". Perhaps in the long run. Recall how much of this was driven by Wall Street demand for CDO's
in the past few years.

Seems like one more windstorm in a world of cyclones.

"Cursed to live in interesting times"

Craig