Monday, July 19, 2010

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


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, e-mail me at mdodds@irr.com. Our appraisal process management division was designed to address appraisal independence issues that lending institutions are experiencing.

Michael B. Dodds, MAI, CCIM, MRICS

COMPLETE DOCUMENT HERE

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