Jul
20

Here We Go….FDIC Files First D&O Suit of Current Failed Bank Wave

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On July 2, 2010, the FDIC filed a lawsuit against former directors and officers of IndyMac’s Homebuilder Division. While I have not read the entire document, I did do a search for the word “appraisal.” Excerpts from the document include:

– “negligently approving loans with inadequate appraisals”

– “The function of credit officers was not separate from the function of production groups, and appraisals were not being properly obtained”

– “Causing or allowing a loan to be made, renewed, and/or extended with inadequate or problematic appraisals”

Obviously, IndyMac was not in compliance with Part 323 FDIC Laws and Regulations. If you are a banker, or bank director, that has concerns about Part 323 compliance, give me a call. Our appraisal process management division was designed to address appraisal independence issues that lending institutions are experiencing.

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Michael B. Dodds, MAI, CCIM, MRICS

COMPLETE DOCUMENT HERE

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