Judge Tosses Appraisal Suit Against IndyMac, FDIC

Law360, New York (August 27, 2008, 12:00 AM EDT) -- A federal judge in New York on Tuesday dismissed a lawsuit against bankrupt IndyMac Bancorp Inc. and the Federal Deposit Insurance Corp., claiming IndyMac Bank hired appraisers that intentionally inflated home values so the bank could charge higher interest rates on home equity loans.

Judge John G. Koeltl of the U.S. District Court for the Southern District of New York ruled that a feedback loop where IndyMac awarded appraisal contracts to a firm called Supreme Appraisals in return for inflated estimates did not constitute a kickback...
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