Monday, May 16, 2011

FDIC v LPS, CoreLogic

The FDIC has accused Lender Processing Services Inc. of Jacksonville, Fla., and CoreLogic Inc. of Santa Ana, Calif., of causing $283.5 million of damages to the former Washington Mutual Inc. for failing to provide oversight of appraisal.

The 118-page filing of the lawsuit states 220 appraisals performed between 2006 and 2008 contained “multiple egregious violations” of industry standards.

Less than 4% of LPS appraisals conformed with professional appraisal standards.

The FDIC filed a separate suit seeking $129 million from CoreLogic, claiming it found negligence in Corelogic’s eAppraiseIT unit after a review of 194 appraisals performed in 2006 and 2007.

CoreLogic’s defense? 85% of the loans involved “desk reviews” — no interior or exterior inspection.


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