Countrywide and Landsafe Class Action Lawsuit

I wonder how much of this is still occurring?  I deal with banks, including Countrywide, daily negotiating short sales.  I have had Countrywide order 3 appraisals for the subject property - all with in 5 days of each other.  I don't recall having the appraiser ever show up, but I know the cost of those appraisals has been tacked on to the balance of the loan.  Hmmmmm.............

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SEATTLE - A group of Washington homeowners this week filed a lawsuit against Countrywide, a wholly owned subsidiary of Bank of America (NYSE: BAC) and the nation's largest mortgage company, claiming the mortgage giant illegally rigged the appraisal process in a scheme to boost profits at the expense of homeowners and independent appraisers.

Filed under the Racketeering Influenced and Corrupt Practices Act (RICO), the suit claims that Countrywide forces homeowners to use its wholly owned subsidiary LandSafe, for appraisals. The company then turns around and subcontracts the work to independent appraisers while charging homeowners as much as 200 percent of the actual cost of the appraisal. Download Hagens_Berman_ClassAction

The suit also contends that if independent appraisers do not accept Countrywide's fee structure or appraisal guidelines, they stand the risk of being blacklisted for further work by the industry giant.

The lawsuit, filed in U.S. District Court in Seattle, seeks to represent all homeowners who purchased or refinanced their home through Countrywide and LandSafe, and asks the court to award plaintiffs damages.

According to the suit, LandSafe turns the appraisal work to a third-party, demands they follow the developed fee structure and if they refuse, adds them to a field review list that identifies appraisers Countrywide will not work with.

The lawsuit claims LandSafe subcontracts much if its appraisal work to a network of independent appraisers, but offers them rates as low as $140 per appraisal. The company then marks the costs of the appraisal back as high as $410 when invoicing homeowners.

Plaintiffs claim the practice is damaging to homeowners who pay the inflated fee and appraisers, who are forced to work below market standards or risk losing work in the future.

If you purchased or refinanced your home through Countrywide and LandSafe you can join this suit. You can also contact attorneys at (206) 623-7292.

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Yalda Alawi

Phoenix Real Estate