Cuomo’s suit against home appraiser proceeds

June 09, 2010 09:00AM

Andrew Cuomo

Attorney General Andrew Cuomo can proceed with his lawsuit accusing First American of inflating home values under pressure from Washington Mutual, a state appeals court ruled, according to Bloomberg news. Neither federal law nor rules of the Office of Thrift Supervision bar Cuomo from suing First American and its eAppraiseIT unit, which provides appraisals for the mortgage lending and servicing industries, the Manhattan appeals court said. “We conclude that neither federal statutes, nor the regulations and guidelines implemented by the OTS, preclude the Attorney General of the State of New York from pursuing litigation,” Judge Luis Gonzalez wrote in the unanimous decision. EAppraiseIT gave in to demands for higher appraisals to secure more of Washington Mutual’s business, Cuomo said, when he sued in 2007. A First American spokesperson disputed Cuomo’s allegation at the time. First American reincorporated June 1 under the name CoreLogic, as part of the separation of First American Financial and CoreLogic into independent, publicly traded companies, according to a company statement. [Bloomberg]