The Maryland law firm of Shapiro Sher Guinot & Sandler PA sent a letter November 14th to the appraiser clients of one of the nation’s largest appraisal management companies, CoesterVMS.
This letter marked the beginning of tough times ahead for owner Brian Coester.
In it were claims that the law firm represented FVC Bank, according to a nearly illegible copy of the letter that has since made the rounds in the appraiser blogsphere. The letter states that FVC Bank is shutting down a $700,000 line of credit to CoesterVMS, which would seemingly indicate financial troubles for the AMC.
Responding via text, Coester said, “We are not out of business,” and that he was in the process of getting “what the bank did corrected.”
Coester later told HousingWire that FVC Bank recently took overColombo Bank‘s assets, which held hundreds of thousands of Coester’s money in an account, and wanted the line of credit moved. Coester said they were in the process of finding an new home for the AMCs’ financials when FVC suddenly pulled the plug.
“In the middle of the night, they closed the line. It caused a huge disaster, but now we got all the money back,” Coester told HousingWire Tuesday. Coester said they are reissuing checks to appraisers and said the bank contacting his clients was “a disaster.” As a result, CoesterVMS business was cut by two-thirds, but Coester added: “The blizzard and holiday didn’t help, but we’re getting back to normal.”
…continue reading the rest of this post: Warning: Coester VMS orders
