Bank of America (BAC) sold its appraisal management company LandSafe to CoreLogic (CLGX) for $70 million, according to industry sources. LandSafe employees were notified this week about the sale.
The sale answers industry rumors that first broke out in May, with top names like Solutionstar, Fidelity and Solidifi in the running to buy the company.
LandSafe Closing Services companies are affiliated with Bank of America to provide closing services, including appraisal, credit report and verification. Only the appraisal company of LandSafe was sold.
In the wake of the financial meltdown, the government sought to reform the appraisal process with the adoption of the Home Valuation Code of Conduct and by introducing appraisal management companies to ensure “arms-length” transactions.
[Read more about the industry in the February 2015 HousingWire Magazine in-depth feature “Appraisal Disruption.”]
On LandSafe’s website, it emphasizes that the issue of appraiser independence is taken very seriously at the company.
“As a company, we are firmly committed to ensuring our operational environment enables you to make an independent judgment of value for every property you are assigned to appraise, absent undue influence,” the site said.
AMCs provide appraisal management services to lenders, underwriters or other principles in the secondary mortgage markets, including contracting with licensed and certified appraisers to perform appraisal assignments.
Bank of America did not comment at the time of publication. CoreLogic declined to comment.
