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.
Source
Showing posts with label FDIC suits. Show all posts
Showing posts with label FDIC suits. Show all posts
Monday, May 16, 2011
Friday, November 19, 2010
FDIC Brings Second Action
FDIC brings second action against directors or officers of failed banks
Thomas P. Vartanian, Robert H. Ledig and Lawrence K. Nesbitt
Industry observers have been waiting to see when bank failures arising out of the recent financial crisis would produce a wave of Federal Deposit Insurance Corporation (“FDIC”) litigation similar to that seen in the early 1990s after the savings and loan crisis. With its second suit in recent months, the FDIC has shown that it will aggressively pursue claims against directors and officers in connection with failed depository institutions.
The FDIC has significantly increased its legal staff in the last few years and has engaged outside law firms to perform professional liability investigations and to conduct litigation in connection with recently failed institutions. Moreover, an FDIC spokesman recently stated that the FDIC has authorized legal actions against seventy former directors and officers of failed banking institutions in an effort to recoup more than $2 billion in losses...
The S&L crisis in the late 1980s brought into sharp focus the potential liability of directors and officers when an insured depository institution fails. The FDIC has stated that it and the Resolution Trust Corporation recovered approximately $6.1 billion from professional liability claims and brought claims against directors and officers in approximately 25% of all bank failures during the S&L crisis period.
Source (via Dave Towne)
Thomas P. Vartanian, Robert H. Ledig and Lawrence K. Nesbitt
Industry observers have been waiting to see when bank failures arising out of the recent financial crisis would produce a wave of Federal Deposit Insurance Corporation (“FDIC”) litigation similar to that seen in the early 1990s after the savings and loan crisis. With its second suit in recent months, the FDIC has shown that it will aggressively pursue claims against directors and officers in connection with failed depository institutions.
The FDIC has significantly increased its legal staff in the last few years and has engaged outside law firms to perform professional liability investigations and to conduct litigation in connection with recently failed institutions. Moreover, an FDIC spokesman recently stated that the FDIC has authorized legal actions against seventy former directors and officers of failed banking institutions in an effort to recoup more than $2 billion in losses...
The S&L crisis in the late 1980s brought into sharp focus the potential liability of directors and officers when an insured depository institution fails. The FDIC has stated that it and the Resolution Trust Corporation recovered approximately $6.1 billion from professional liability claims and brought claims against directors and officers in approximately 25% of all bank failures during the S&L crisis period.
Source (via Dave Towne)
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