Santa Ana-based title insurer First American Corp. has asked a federal court to throw out a lawsuit brought against it by the New York attorney general, according to Reuters.
First American is arguing the state doesn’t have the authority to sue the company for allegedly colluding with Washington Mutual Inc. to inflate the appraisal values of homes.
Washington Mutual hasn’t been named in the case.
New York Attorney General Andrew Cuomo sued First American on Nov. 1.
In a court filing, First American argued that the federal Office of Thrift Supervision is responsible for enforcing federal regulations “governing all aspects of federal savings and loan activities.”
The New York lawsuit alleges that First American’s eAppraiseIT unit violated appraiser independence laws by working with Washington Mutual to inflate appraisals.
