In many divorces, neither party wishes to keep the marital home or neither can afford to cash the other party out. In those cases, the parties normally each get an appraisal from a certified real estate appraiser. Depending upon the size, location, and value of the real estate, an appraisal can cost about $400 or it can cost far more.
Recently, another option has become available. You've probably seen pop-up ads or received what I would normally consider to be SPAM from Internet-based appraisal serves offering low-cost appraisals. I wondered how they could offer appraisals for so little money. The answer became clear today.
The Boston Globe reports on June 2, 2007 that, in pending class action lawsuits, a group of professional appraisers is suing a major mortgage technology firm, FNC. These lawsuits allege that FNC, which has wooed appraisers nationwide with sophisicated online appraisal processing systems, have been systematically appropriating the certified appraisers' report information at teh time FNC converts the information to digital format.
Once FNC has converted the reports, they are sent over the Internet to mortgage lenders. The lawsuits allege that FNC is stripping the information, storing it, and re-marketing it. The plaintiffs claim that FNC is selling data that it promised never to collect to lenders and also to compaines who are developing electronic substitutes for traditional appraisals.
The suit was filed last month by appraisers in Maryland, Virginia and Oklahoma against FNC of Oxford, Miss. FNC markets a high-tech system that converts traditional appraisals into electronic formats, then sends them to mortgage lender customers. FNC says it processes about 400,000 appraisals a month and deals primarily with the 45 to 50 largest mortgage lenders in the country.
The appraisers are seeking a minimum of $25 million plus punitive damages.
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