Lee Kennedy has found a way to bring his technical savvy to the courtroom, helping defend lenders in the aftermath of the financial crisis – and launching a second career as an expert witness. His Simi Valley company AVMetrics specializes in testing and validating automated valuation models, or AVMs, which are computer programs used to appraise residential real estate. When purchasing a home, a lender or owner typically hires an appraiser to assess the property’s value. But in some cases, an appraiser might cost too much, so the lender could use an AVM to assign value to the property at a fraction of the cost. Kennedy and his staff examine various AVM programs, test them for accuracy and report the results in a quarterly review that is provided to clients, which are mostly lending companies and AVM developers. According to Kennedy, his company is the only independent tester of AVMs, which is what prompted his career in the courtroom. Kennedy is hired by defense attorneys who represent lenders to show that AVMs are not appropriate to appraise property deals in the past because the time lapse along with other factors affect AVMs’ accuracy. He has worked on dozens of cases worth billions of dollars, providing reports and depositions regarding AVMs. Kennedy is currently working on 10 lawsuits and has cases lined up until 2017. He charges $350 an hour for his services. In the court cases stemming from the 2007 financial crisis, the Federal Housing Administration, the Federal Deposit Insurance Corp. along with other institutions that securitize mortgages have brought lawsuits against lenders for originating risky mortgages and misrepresenting their quality when selling off the loans. As part of the prosecution, attorneys representing these institutions have tried to use AVMs to retrospectively value property in an attempt to prove that lenders, such as Bank of America and Chase, had overstated real estate values, leading to improper loans. Kennedy’s job is to refute that methodology. As a result of his thriving expert witness business, he has doubled the staff at AVMetrics, bringing the total to 12 employees. Locally, Kennedy has been retained by the legal team behind a class-action lawsuit against Southern California Gas Co. on behalf of residents forced to temporarily evacuate their homes because of the Aliso Canyon gas leak. In this case, AVMetrics will assign value to properties that have depreciated due to the leak. “We’ve moved out into building valuation models for diminution of property values, much like Porter Ranch, where those properties are going to be affected by the gas leak,” said Kennedy. Motorcycle Lawyer California Legal Group, a law firm representing motorcycle accident victims, has opened a satellite office in Agoura Hills. Barry Zlotowicz, an attorney at the Northern California firm, said the Agoura Hills location is a meeting place for local clients. It is located at 30101 Agoura Court. “While we often have to meet with clients at their homes due to the injuries they’ve sustained in an accident, we are happy to provide them with the option to meet with us in this satellite office,” he said in a statement. The firm handles motorcycle injuries, insurance claims, litigation and settlements. Immigration Uptick NNA Services, parent company and operator of membership-based trade group National Notary Association in Chatsworth, has acquired Latinos Unidos Event LLC, a national training and support firm for immigration consultants. NNA Services purchased Latinos Unidos in light of a growing need for immigration services, which could spike over the summer if the Supreme Court upholds the Obama administration’s immigration plan to protect up to 5 million illegal immigrants from deportation. If this scenario happens, there will be a high demand for nonlawyer immigration consultants. Later this year, NNA plans to launch the American Association of Immigration Consultants to provide training and advocacy for the industry. “It is going to be the place for immigration consultants to interact with each other, get training and support,” Phillip Browne, director of communications for the National Notary Association, told the Business Journal. Unlike immigration attorneys, immigration consultants are not allowed to give legal advice and can be prosecuted if they do. The American Association of Immigration Consultants will aim to alleviate this issue with proper education. “We will use this acquisition to help immigration consultants ensure their practices and procedures are legal and in strict compliance with current laws and regulations,” Tom Heymann, chief executive of NNA Services, said in a statement. Just last month, the city of Los Angeles filed charges against Gloria Dora Saucedo and her Panorama City immigration consulting business Hermandad Mexicana Transnacional Inc. for violating the Immigration Consultants Act and practicing law without a license. Staff Reporter Stephanie Henkel can be reached at (818) 316-3130 or [email protected].
