According to an article in the Appraisal Institute’s Valuation magazine, litigation regarding appraisal reviews has been increasing. One possible explanation cited in the article is that there are simply more appraisal reviews. It also states that some review appraisers lack the necessary competency to perform the work.
One of the major categories of claims is for those used in loan origination/purchasing. In essence, appraiser reviewers have the same potential liability as those who actually perform the appraisal. The second major category is defamation claims. In these cases, the appraiser whose work is reviewed may be offended or injured by a negative review.