Cuomo Charges Crush WaMu

"The blatant action of First American and eAppraiseIT have contributed to the growing foreclosure crisis and turmoil in the housing market," Cuomo said. "By allowing Washington Mutual to hand-pick appraisers who inflated values, First American helped set the current mortgage crisis in motion."

This year signs of strain appeared as home prices began falling and subprime borrowers increasingly fell behind on their loans.

Inflating the appraisal value hurts homebuyers by increasing their payments, making them more likely to default.

Shares of First American were up 96 cents to $31.08.

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