The Federal Deposit Insurance Corporation has sued both CoreLogic, Inc. and Lender Processing Services, Inc. (LPS) for a combined total of approximately $283 million, according to AgentGenius.
The $129 million lawsuit with Corelogic seeks to reimburse unnecessary loans which Washington Mutual Bank (WaMU) made in response to allegedly “inflated appraisals.”
The suit accuses the company’s eAppraiseIT unit of gross negligence, demonstrated in 194 sampled faulty appraisals from 2006 and 2007, as well as “repeated breaches of contractual provisions.”
An additional $154.5 million suit has been filed against LPS, also citing incidents of gross negligence and breaches of contract. FDIC believes the company is directly responsible for WaMu’s losses, which FDIC has since become responsible for due to the sale of WaMu to JPMorgan Chase bank in 2008.
They should be going after the folks who originated those loans.
Are the Realtors who wrote the contracts next, since they negotiated the inflated prices in the first place?
This is so unreal, everyone but the BANK that made the loans, the committee members who approved them have some culpability according to the FDIC.