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Underwriters share insight on new regulatory realities
Posted Date: Friday, March 28, 2014
Increased regulatory scrutiny of title insurance rates and a shift to strict liability standards were some of the hot topics of conversation before a panel of underwriter counsel at the recent American Land Title Association (ALTA) Business Strategies Conference. During the discussion, panelists from national underwriters dialogued about a wide range of issues, from the impact of the National Association of Insurance Commissioners (NAIC) to changes in market conduct examinations and a shift to strict liability standards.
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DOJ-OIG audit exposes mortgage fraud enforcement shortcomings
Posted Date: Monday, March 17, 2014
The Department of Justice Office of the Inspector General released findings of its audit to assess the department’s approach and enforcement efforts in addressing mortgage fraud between fiscal years 2009 and 2011. The audit found that the department did not uniformly ensure that mortgage fraud was prioritized and provided recommendations to help the department improve its understanding, coordination and reporting of its efforts to address mortgage fraud.
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Can title insurer recover directly from agent’s E&O provider?
Posted Date: Thursday, February 27, 2014
Two national title insurers sued a title agency, its principal and its professional liability insurance provider after discovering the agency’s negligent acts. As the case moved forward, the professional liability insurance provider moved to dismiss the case because the title insurers are non-parties who have no standing to bring a claim for damages directly against it. Read on for the U.S. District Court for the Eastern District of New York’s decision on the issue.
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Title insurers, homeowners dispute compensation for mineral rights claim
Posted Date: Tuesday, February 25, 2014
Insured homeowners sued their title insurer for breach of contract and breach of duty of good faith and fair dealing, arguing that the title insurer offered insufficient compensation for mineral interests in which prior landowners had reserved one-half undivided interest. Following a jury trial, the district court determined the insurer did not breach duty of good faith and fair dealing, but found the insurer to be in breach of the title insurance contract. The homeowners appealed and the insurer cross-appealed. Read on for more details.
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4th Circuit says E&O provider had duty to defend title co
Posted Date: Tuesday, February 25, 2014
After the Maryland attorney general sued a title agency for alleged fraudulent actions, the agency sought coverage from its professional liability insurer. The insurer denied the claim, arguing that the attorney general’s suit fell within several policy exclusions. The district court agreed, but on appeal, the 4th U.S. Circuit Court of Appeals held that the insurer did have a duty to defend. Read on for the court’s reasoning.
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South Carolina considers new mortgage satisfaction procedures
Posted Date: Tuesday, March 11, 2014
The South Carolina General Assembly is considering a bill that would allow mortgagees, note holders, trustees or their legal representatives to execute a mortgage satisfaction or deed of trust release, as well as providing a procedure and form for doing so. Read on for more details.
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Idaho considers closing protection bill
Posted Date: Thursday, March 13, 2014
The Idaho legislature is considering a bill that would make issuing closing protection part of the business of title insurance. It would permit title insurers to issue closing or settlement protection and provides specific requirements. Read on for more details.
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Wells Fargo announces support for Best Practices
Posted Date: Tuesday, March 11, 2014
Wells Fargo endorsed the American Land Title Association’s Best Practices in its latest Settlement Agent Communications. It said they were guidelines for sound business practices and said settlement service providers should ideally already have these in place.
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FTC finalizes consent order on Fidelity’s acquisition of LPS
Posted Date: Tuesday, March 11, 2014
Following a public comment period, the Federal Trade Commission has approved a final consent order settling charges that Fidelity National Financial’s acquisition of Lender Processing Services was anticompetitive.
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WFG introduces technology to aid in compliance
Posted Date: Tuesday, March 11, 2014
WFG National Title Insurance Co. introduced a compliance management system to enable title agents to implement key compliance safeguards. This technology will help demonstrate to agents’ clients that they have implemented these safeguards.
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Congress passes flood insurance bill
Posted Date: Wednesday, March 19, 2014
Congress has passed legislation to address what industry associations call the unintended consequences of the Biggert-Waters Flood Insurance Reform Act, including premium spikes and the negative impact on the sale and construction of homes across the country. The associations applauded the bill’s passage, saying it brings certainty to homeowners and financial stability to the National Flood Insurance Program.
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Title agency owner pleads guilty to stealing from title insurers
Posted Date: Monday, March 17, 2014
Nassau County District Attorney Kathleen Rice announced that a Rockville Centre man pleaded guilty to stealing nearly $1 million from two title insurance companies, a Great Neck couple, and the New York State Department of Labor. He was initially arrested in September 2012 and charged with two counts of grand larceny in the 2nd degree for stealing $870,000 meant for the recording of deeds and mortgages, and recording fees and taxes. He was arrested again on Feb. 6 and charged with two counts of grand larceny in the 3rd degree for stealing $37,504 placed in trust on behalf of two homeowners to pay property taxes, and for receiving $33,615 in unemployment benefits based on knowingly incomplete and false testimony.
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Colo. votes for mineral rights disclosure
Posted Date: Friday, March 28, 2014
Mineral rights have become a tricky issue for title industry members and consumers. States have tackled the issue in different ways, and Colorado has come up with another one. The Colorado General Assembly voted to adopt a bill requiring the disclosure of possible separate ownership of mineral estates during the sale of real property. It outlines the disclosure that would be given to each buyer and outlines other requirements. The bill awaits the governor’s signature.
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Tenth man pleads guilty to $40.8M mortgage fraud conspiracy
Posted Date: Wednesday, March 19, 2014
An Ocean County, N.J., man admitted his role in a $40.8 million mortgage fraud conspiracy in which he used his position as a loan officer of Wells Fargo Home Mortgage Inc. to get the company to release more than $4.6 million based on fraudulent mortgage loan applications. Read on for more details.
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Colorado General Assembly votes for mineral rights disclosure
Posted Date: Wednesday, March 19, 2014
The Colorado General Assembly has voted to adopt a bill requiring the disclosure of possible separate ownership of mineral estates during the sale of real property. It outlines the disclosure that would be given to each buyer and outlines other requirements. The bill awaits the governor’s signature.
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Ohio title agent sentenced for forgery, theft
Posted Date: Wednesday, March 19, 2014
A former Ohio title agent was sentenced to time in prison and community service for forgery and theft. She was also ordered to repay her employer and had previously surrendered her insurance license. Read on for more details.
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New homebuyers’ bill of rights introduced in N.J. legislature
Posted Date: Monday, March 17, 2014
The New Jersey legislature is considering a bill that would establish a “New Homebuyers’ Bill of Rights,” designed to protect buyers of new homes against inequitable practices and contractual provisions established by builders in the state. The bill would require every purchase contract to list those rights guaranteed homebuyers under state law. Read on for more details.
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Utah considers Uniform Real Property Electronic Recording Act
Posted Date: Monday, March 17, 2014
The Utah State Legislature is considering a bill that would enact provisions of the Uniform Real Property Electronic Recording Act. The proposed law defines the standards under which electronic documents and electronic signatures would satisfy state recording requirements. Read on for more details.
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Webinar to offer solutions to QM/ATR implementation issues
Posted Date: Monday, March 17, 2014
New mortgage rules effective in January are significantly impacting the mortgage, real estate and settlement services industries. In particular, the Qualified Mortgage/Ability-to-Repay Final Rule is causing a stir. To help ease the compliance burden, Dodd Frank Update is offering an exclusive webinar on March 26, from 2-3:15 p.m. ET, to provide mortgage lending and real estate professionals instruction on implementation best practices, various implications from the rule and overcoming sticky issues arising from adhering to the new regulations.
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1031 exchange facilitator indicted for mishandling exchange funds
Posted Date: Thursday, March 13, 2014
A Connecticut man who victimized exchangors in Massachusetts was sentenced for his role in a mail and wire fraud scheme involving a tax free property exchange business. He lost client money after using it to trade in high-risk stock options. Read on for more details.
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CFPB announces three key hires
Posted Date: Thursday, March 13, 2014
The Consumer Financial Protection Bureau announced that three experts have been named to senior positions within the bureau. These positions are: the assistant director for the Office of Research; the assistant director for the Office of Financial Empowerment; and the assistant director for the Office of Installment and Liquidity Lending Markets.
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Escrow company president indicted for misappropriation of funds
Posted Date: Tuesday, March 11, 2014
The co-founder and president of a defunct mortgage escrow company was indicted on federal fraud charges for allegedly misappropriating more than $500,000 of customer funds for his own personal use, as well as to pay operating expenses of two other businesses. A former employee of his company was indicted in February. Read on for more details.
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Iowa recording bill sent to governor
Posted Date: Tuesday, March 11, 2014
The General Assembly of Iowa has enrolled a bill to amend the state’s recording statute. Read on to find out more about the bill.
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Title professionals urged to plan now for new mortgage forms
Posted Date: Tuesday, March 11, 2014
The title insurance and mortgage lending industry will begin to feel the sting of implementing the newly integrated mortgage disclosure forms soon enough. And while challenges always present themselves when dealing with new regulations, planning ahead and following the advice of industry experts can lead companies to a smooth transition and successful implementation. But title companies are urged to start now in order to manage pressure points and reduce the disruption in business operations when it comes time to comply. So what should you be doing? The Title Report and sponsor WFG National Title Insurance Co. are offering an exclusive webinar on March 19, from 2-3:30 p.m. ET, to provide title companies instruction on implementing the Consumer Financial Protection Bureau’s mandated mortgage disclosure forms.
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