home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map

twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

Appraisal News | AMC Directory
Appraisal industry news coverage, including stories about independence requirements, AVMs and appraiser fraud.

Appraisers Sue AVM Co.

Group claims misled about data usage

June 6, 2007

WASHINGTON correspondent for MortgageDaily.com

Claiming they were duped into providing information that will put them out of business, residential real estate appraisers in three states have sued a company marketing a nationwide database of appraisals.

The company, FNC Inc., has denounced the lawsuit as without merit and said it will vigorously defend against the claims.

"FNC was very disappointed and disturbed to hear of this complaint," an FNC spokeswoman wrote in a statement e-mailed to MortgageDaily.com. "It tries to attack FNC's core commitment of protecting the information we transmit between the appraiser and the lender. As a result, we believe it is entirely without merit and will defend it vigorously."

Appraisers in Maryland, Virginia and Oklahoma filed the class action lawsuit in the U.S. District Court for the District of Maryland.

FNC is a Mississippi-based company that provides services to banks and lending institutions related to obtaining and analyzing information about residential and commercial real estate.

FNC also provides services to appraisers through Web-based AppraisalPort. Appraisers register with the Web site and pay $6.00 for each appraisal transmitted to the requesting lending institution. Lending institutions choose from a list of appraisers closest to the property that needs to be valued.

The system enables mortgage lenders to order real estate appraisals, allows the appraiser to confirm acceptance of the order and then provides for the digital transmission of the completed appraisal.

The appraisers have accused FNC in court of reneging on promises made on its Web site and in promotional materials that AppraisalPort serves only as a "secure pipe" for transmission of data and that FNC does not have access to the reports or that it would use the appraisals to build a database.

They claim FNC has built a national database using the information they provided through AppraisalPort.

In the lawsuit, the appraisers said FNC chief executive officer Bill Rayburn announced in a 2005 interview that the company had developed a "National Collateral Database" of residential real properties.

The appraisers claim information obtained from AppraisalPort is a significant element of the database. They say FNC downloads data they provide into FNC's database and then markets access to the data to lending institutions and other third parties.

"When an appraisal is transmitted to the lender, we are able to pop it open and suck all the data out," the appraisers claim Rayburn said in the interview.

"Thus, not only does FNC collect fees from appraisers based on misrepresenting the service it is providing, it collects additional profits from others based on the very same data and the work of the appraisers it dupes into using its service," the lawsuit alleges.

FNC's database reduces the need for new or additional appraisals for real estate, harming their commercial interest to the tune of millions of dollars, the appraisers claim.

In a 16-page complaint, they have accused FNC of false advertising under federal law and fraud, negligent and intentional misrepresentation.

Lisa D. Burden is a legal analyst for MortgageDaily.com and holds a law degree from the University of Maryland. She is currently a freelance journalist who previously wrote for Institutional Investor publications and the Baltimore Daily Record.

e-mail Lisa at: [email protected]

Mortgage Lawsuits News | Mortgage Litigation Index
Mortgage industry lawsuit news and mortgage litigation coverage. Stories about legal settlements, judgments and mortgage class actions.

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders