Editor's Note: Hundreds,
possibly thousands of appraisers are left with unpaid invoices as a result of
AppraiserLoft shutting its doors; now one major lender is stepping up and paying
The argument is unsettled to what degree lenders are responsible for the agents they hire to administrate valuation services- appraisal management companies (AMCs). The case of the AMC AppraiserLoft kicked off the debate when it closed its doors leaving an estimated three million dollars or more in unpaid appraiser fees.
meantime, one major lender, Metlife Bank, is saying it will make good on the bad
debt created when its agent, AppraiserLoft, shut its doors.
In the wake of the shutdown, Working RE reported that many appraisers believe lenders are responsible under federal law for bad debt left by their agents. (see story in Working RE: AMC Bad Debt-Lenders Responsible?)
follow-up story reported some appraisers actively pursuing the banks that
hired AppraiserLoft in an effort to
recover their lost fees.
Potteiger, Chief Appraiser at MetLife Bank, told Working RE, “We're doing this
because we made the decision to work with AppraiserLoft. We did our due
diligence on this vendor and engaged them to provide appraisal reports to
mortgage brokers that we directed to them.”
Potteiger explained that MetLife’s stance is a product of “a pretty straight forward philosophy - treat people with respect and keep your word.”
are an appraiser who did work for AppraiserLoft on behalf of MetLife, you can
contact MetLife Bank to recover your unpaid fees through March 30, 2012. Provide
them with a copy of your engagement letter, an invoice or record of your payment
relationship, and any other documentation you have that shows you did work on
behalf of MetLife, such as copies of the appraisal reports, emails between you
and the broker, and any other communication that shows the client was MetLife.
Send inquiries to
HTML Comment Box is loading comments...
ATTENTION: You are receiving WRE Online News because you opted in at WorkingRE.com or purchased E&O insurance from OREP. WRE Online News Edition provides news-oriented content twice a month. The content for WRE Special Offer Editions is provided by paid sponsors. If you no longer wish to receive these emails from Working RE, please use the link found at the bottom of this newsletter to be removed from our mailing list.