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U.S. District Court dismisses FDIC claims against CoreLogic and eAppraiseIT.

On Nov. 14, the U.S. District Court for the Central District of California dismissed four of the six claims alleged by the Federal Deposit Insurance Corporation (FDIC) against CoreLogic Valuation Services LLC, eAppraiseIT and several of its current and former affiliates, including CoreLogic Inc. The disclosure was made in a Form 8-K filed by CoreLogic.

The matter arose in relation to the FDIC's actions as receiver for Washington Mutual Bank (WaMu). FDIC filed its compliant on May 9, 2011, in which it alleged that eAppraiseIT was grossly negligent and breached its contract with WaMu in providing appraisal services in 2006 and 2007 with respect to 194 residential mortgage loans. The 8-K noted that FDIC was seeking to recover $129 million in purported losses that WaMu allegedly suffered on those loans. FDIC's complaint also asserted claims against eAppraiseIT's parent corporations, including CoreLogic, pursuant to alter ego, single-business enterprise and joint-venture theories of liability.

On Aug. 1, 2011, all the defendants filed a motion to dismiss the complaint in its entirety. The court granted the defendants' motion to dismiss the FDIC's gross negligence, alter ego, single-business enterprise and joint-venture claims, and a portion of the breach of contract claim. CoreLogic said in its 8-K that it "continues to believe that the remaining breach of contract claims are flawed, both factually and legally, and is confident in the strength of its defenses."

The claims were dismissed by the court without prejudice. FDIC has until Dec. 5, 2011, to file an amended complaint, according to CoreLogic's 8-K filing.
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Title Annotation:Briefing Book
Comment:U.S. District Court dismisses FDIC claims against CoreLogic and eAppraiseIT.(Briefing Book)
Publication:Mortgage Banking
Date:Dec 1, 2011
Words:255
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