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.