First American, WaMu Inflated Home Appraisals: AG

Law360, New York (November 1, 2007, 12:00 AM EDT) -- New York Attorney General Andrew M. Cuomo has slapped First American Corp. with a lawsuit for allegedly colluding with Washington Mutual Inc. to inflate the appraisal value of homes.

In a complaint filed Thursday with the New York Supreme Court in Manhattan, Cuomo accused First American and its real estate appraisal management unit, eAppraiseIT, of caving into pressure from Washington Mutual to use a list of “proven appraisers” known for providing inflated results.

Executives at eAppraiseIT knew their actions were illegal, but they intentionally violated the...
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