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Appraisers File Law Suit against Wells Fargo Alleging Appraisal Pressure
 

FROM THE APPRAISAL INSTITUTE

Two real estate appraisers filed a lawsuit against Wells Fargo and its appraisal subsidiary, Rels Valuation, claiming the two organizations pressured them to submit inflated home values in an effort to increase profits. Filed under the Racketeering Influenced and Corrupt Practices Act, the lawsuit alleges that plaintiffs Don Pearsall and Timothy Savage were pressured by Wells Fargo to inflate appraisal values. After refusing, the suit claims that Rels blacklisted both from its approved list of appraisers.

“We plan to show Rels effectively tells the appraisers what they want to see in the valuation, and if they don’t deliver, they are locked out of future work,” said Steve Berman of Hagens Berman Sobol Shapiro, the attorney representing the plaintiffs. The firm is involved in other lawsuits against Wells Fargo and Rels.

According to Berman, Rels Valuation provides appraisers with predetermined figures called Borrower Estimated Values and expects appraisal reports to contain values exceeding the supplied figure. In addition, the complaint alleges that the two companies have compromised appraiser independence by providing valuers with predetermined comparable properties when performing appraisals.

“We’ve heard from appraisers across the country sharing similar stories—bullied into inflating prices and blacklisted when refusing,” Berman added. “Apparently the treatment that both Tim and Don experienced is the same for hundreds, if not thousands of appraisers.” The lawsuit seeks to represent all state-licensed and state-approved appraisers nationwide who have been removed from Wells Fargo or Rels Valuation’s approved appraiser list.