Judge in FDIC case dismisses appraisal negligence claims against LPS
A federal judge dismissed appraisal negligence claims the Federal Deposit Insurance Corp. brought against Lender Processing Services (LPS) for allegedly mishandled appraisals done for Washington Mutual Bank. But the firm is still on the hook for breach of contract allegations. LPS maintains in court that it would only be liable for $10,000 per claim. In May, the FDIC filed a complaint against LPS and CoreLogic (CLGX) to recover a combined $283 million in losses allegedly tied to mortgages written by WaMu, which had $307 billion in assets when it failed. The FDIC took WaMu into receivership in 2008 and facilitated its sale to JPMorgan Chase (JPM). The FDIC is looking to recover alleged losses from LPS totaling $154 million. The FDIC cites 220 residential appraisals performed by the LPS appraisal management company between June 2006 and May 2008 as the source of the damages and 194 appraisals by the CoreLogic affiliate between 2006 and 2007. "The company is confident that it will ultimately prevail on any remaining breach of contract claim," LPS said in a filing Thursday. CoreLogic filed for dismissal of negligence claims weeks after LPS did. The U.S District Court for the Central District of California has not taken up the dismissal filing from CoreLogic. Write to Jon Prior. Follow him on Twitter @JonAPrior.