Countrywide Appraisal Class Action Settlement

UPDATE 2: On Oct. 10, 2020, Top Class Actions viewers started receiving checks in the mail from the Countrywide class action settlement worth as much as $127. Congratulations to everyone who filed a claim and got PAID!

UPDATE: The Countrywide Appraisal Class Action Settlement was granted final approval on July 16, 2020. Let Top Class Actions know when you receive a check in the comments section below or on our Facebook page.

A $250 million Countrywide appraisal class action settlement has been reached to resolve claims that consumers were charged fees for fake appraisals.

The settlement benefits individuals who filed a Countrywide loan application between Jan. 1, 2003 and Dec. 31, 2008 and had a LandSafe appraisal done. Class Members will identified using the defendant’s records.

Plaintiff Barbara Waldrup filed her Countrywide appraisal class action lawsuit in November 2013. In June 2016, plaintiffs Elizabeth Williams, Beckie Reaster and Rebecca Murphy filed a similar class action lawsuit. All of the plaintiffs reportedly applied for mortgage loans from Countrywide and paid appraisal fees to have appraisals done by LandSafe Appraisal Services.

According to the Countrywide appraisal class action lawsuits, the appraisals were unlawful because they failed to comply with standards such as the Uniform Standards of Professional Appraisal Practice (USPAP).

Under the USPAP, appraisals must be conducted in an independent and competent manner. Similarly, the standards require that appraisal results be reported in a truthful and non-misleading manner.

The defendant allegedly violated these standards by charging significant fees, ranging between $300 and $500, to loan applicants but never actually completed the appraisals in question.

This scheme reportedly ensured that Countrywide could close as many loans as possible while still maintaining “heavy profit margins.”

“Because the legally-mandated USPAP appraisal had the potential to delay or terminate a prospective loan transaction and, thus, limit Countrywide’s ability to securitize and sell such loans to Wall Street, Countrywide opted for a different course of action,” claimed the Countrywide appraisal class action lawsuit.

“Countrywide and LandSafe agreed to knowingly, fraudulently, systematically and uniformly produce phony so-called USPAP ‘appraisals’ on home loans originated by Countrywide which were not performed in accordance with required USPAP standards.”

A Class of similarly affected consumers was certified by the court in the consolidated class action lawsuits. Shortly after, the plaintiffs and defendants reportedly started settlement negotiation – resulting in a settlement of $250 million.

The defendants have not admitted to any wrongdoing by agreeing to the Countrywide appraisal class action settlement. Instead, the deal allows all parties to resolve the claims and secure compensation while also avoiding the cost of continued litigation.

Under the settlement, Class Members will be given an estimated 22 percent reimbursement of the Countrywide appraisal fees they paid. For example, if a Class Member paid $500 in fees, they will receive a payment of $110 if the estimated percentage of 22 percent is used. The actual percentage used may be higher or lower, according to the settlement documents.

If there isn’t enough information about the appraisal fee charged to a consumer, the Countrywide appraisal settlement payment will be $25.

The settlement will also provide up to $62.5 million – or 25 percent of the settlement fund – for class counsel’s attorneys’ fees. Each named plaintiff will receive up to $15,000 in service awards for the work they did. Settlement administration costs will take up to $2.5 million from the settlement fund.

No claim form is required for Class Members to benefit from the settlement. Instead, eligible consumers have the option to exclude themselves or object to the settlement by June 15, 2020. Excluding oneself will reject any payment from the settlement, but Class Members will be able to retain their legal rights to take similar action against Countrywide. Objecting to the settlement allows Class Members to voice any problems they have with the settlement terms.

The Countrywide appraisal class action settlement has a final approval hearing scheduled for July 13, 2020. During this hearing, the court will review any objections and make a final ruling about the settlement’s fairness.

Who’s Eligible

Individuals who filed a Countrywide loan application between Jan. 1, 2003 and Dec. 31, 2008 and had a LandSafe appraisal done.

Potential Award

An estimated 22 percent reimbursement of the Countrywide appraisal fees they paid.

For example, if a Class Member paid $500 in fees, they will receive a payment of $110 if the estimated percentage of 22 percent is used. The actual percentage used may be higher or lower, according to the settlement documents.

If there isn’t enough information about the appraisal fee charged to a consumer, the Countrywide appraisal settlement payment will be $25.

Proof of Purchase

N/A

Claim Form

There is no Claim Form for this settlement. Class Members with further questions can click here for more information.

If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Exclusion Deadline

6/15/2020

Case Name

Barbara Waldrup v. Countrywide Financial Corporation, Case No. 2:13-cv-08833-CAS-AGR, and Beckie Reaster, et al. v. Countrywide Financial Corporation, Case No. 2:16-cv-04166-CAS-AGR, both in the U.S. District Court for the Central District of California

Final Hearing

7/13/2020

Settlement Website

WaldrupWilliamsAppraisalLawsuit.com

Claims Administrator

Waldrup v. Countrywide Settlement
c/o Epiq
P.O. Box 3727
Portland, OR 97208-3727
1-877-835-0768

Class Counsel

Daniel Alberstone
Roland Tellis
Mark Pifko
Evan Zucker
BARON & BUDD PC

Steve W. Berman
Christoper Pitoun
HAGENS BERMAN SOBOL SHAPIRO LLP

Defense Counsel

Thomas M. Hefferon
Brooks R. Brown
GOODWIN PROCTER LLP

Douglas A. Thompson
BRYAN CAVE LEIGHTON PAISNER LLP

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