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NAIC moves forward on title shopping guide
Posted Date: Monday, March 17, 2014
During the last several months, the National Association of Insurance Commissioners’ (NAIC) Title Consumer Shopping Tools Working Group has been hard at work crafting a guide to help consumers shop for title insurance and going through the real estate closing process. It unveiled its initial draft of the consumer shopping guide earlier this year and held a conference call on Feb. 26 to review the draft.
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Colo. title agencies sued for alleged mishandling of escrow funds
Posted Date: Tuesday, February 25, 2014
A routine audit of two Colorado title agencies’ escrow accounts prompted their underwriter to take a deeper look into the companies’ financials. The underwriter discovered a large negative balance to the agencies’ trust accounts during an on-site audit and alerted the Colorado Division of Insurance, which is conducting an investigation of the companies. The insurer also filed suit against the companies in order to assist with loan closings to mitigate the harm that real property sellers, buyers, brokers or lenders may suffer.
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Sixth Circuit determines insurer’s coverage for CPL
Posted Date: Thursday, February 13, 2014
A title insurer brought a breach of contract action against its professional liability insurer, after the insurer refused to cover the misappropriation of escrow funds from the title insurer’s policyholders by the insured’s limited purpose agent. The U.S. District Court for the Northern District of Ohio granted summary judgment for the professional liability insurer. The title insurer appealed.
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Title insurer sues owners for negligent misrepresentation, breach of contract
Posted Date: Thursday, February 20, 2014
In connection with securing a construction loan, the owners of the property issued an owner’s affidavit indicating that there was no encumbrance on the subject property, when in actuality there was a $4 million deed of trust encumbering it. When the borrowers defaulted on the loan, the title insurer who relied on that affidavit satisfied the original deed of trust and sued its agent and the owners for breach of contract and negligent misrepresentation.
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Court rules on Calif. anti-SLAPP claim against title insurer
Posted Date: Tuesday, February 11, 2014
A California appeals court affirmed a lower court’s ruling on an anti-SLAPP motion in a case that originally started with a homeowner who was the alleged victim of identity theft and underwent foreclosure. In a court case involving numerous parties, several amended complaints and a cross-complaint, a trial court granted a cross-defendants’ anti-SLAPP motion as to the abuse of process cause of action, but denied it as to the malicious prosecution cause of action. Read on for a look inside a homeowner’s loss due to alleged fraud and to learn why the appeals court sided with the trial court.
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Texas attorney sentenced for concealing improper release of funds
Posted Date: Thursday, February 27, 2014
An Allen, Texas, man, who pleaded guilty in April 2013 to one count of a misprision of a felony stemming from his involvement in a loan fraud scheme, was sentenced by U.S. District Judge David Godbey. Read on for more details.
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Alaska appoints new insurance director
Posted Date: Wednesday, March 5, 2014
The Alaska Department of Commerce, Community and Economic Development appointed a new director of the Division of Insurance. Read on for more about the new hire.
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Texas escrow officer pleads guilty to $3.7M mortgage fraud scheme
Posted Date: Wednesday, March 5, 2014
An escrow officer from Edinburg, Texas, pleaded guilty to her role in a mortgage fraud scheme that involved creating fraudulent HUD-1 documents for several transactions, leading to the loss to lending institutions of approximately $3.7 million. Read on for more details.
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Illinois considers changes to Mechanics Lien Act
Posted Date: Thursday, February 27, 2014
The Illinois General Assembly is considering a bill that would amend the Mechanics Lien Act by providing that the act would not apply unless there is a written and executed contract to improve the lot or tract of land or for the purpose of improving the tract of land or to manage a structure under construction thereon. Read on for more details.
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Rhode Island weighs closing protection amendments
Posted Date: Monday, March 17, 2014
States are concerned about making sure that consumers are protected at the closing table. This can take many forms, including allowing title insurers to offer closing protection in addition to the title insurance policies they issue. For instance, the Rhode Island General Assembly is considering amendments to the state’s law permitting title insurers to issue closing protection.
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Fidelity National Title Group returns as Summit presenting sponsor
Posted Date: Wednesday, March 5, 2014
Erica Meyer, chief executive officer and publisher of October Research, LLC, announced that Fidelity National Title Group has signed on as the presenting sponsor for the 10th Annual National Settlement Services Summit, making this the third consecutive year the company has taken on this central role.
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Q4 Mortgage Fraud Risk Report reveals risk associated with multi-unit properties
Posted Date: Wednesday, March 5, 2014
Interthinx, a provider of comprehensive risk mitigation solutions for the financial services industry, has released its quarterly interactive Mortgage Fraud Risk Report, covering data collected in the fourth quarter of 2013. This quarter’s findings show that loans associated with multi-unit properties have a much higher fraud risk than loans associated with other property types.
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Confusion over property taxes leads to title insurance dispute
Posted Date: Wednesday, March 5, 2014
After the purchaser of property in Mount Prospect, Ill., received notice of sale and redemption rights stating the property had been sold at tax sale for delinquent property taxes from years in which the seller had owned the property, the purchaser sued the seller for unjust enrichment and seeking declaratory judgment that the seller was responsible to pay all future costs the purchaser would incur to clear title. After the trial court granted the seller’s motion to dismiss, the purchaser appealed.
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Father, son indicted for $30M mortgage fraud scheme
Posted Date: Thursday, February 27, 2014
A father and son from Bakersfield, Calif., were sentenced to time in prison for charges stemming from a long-term mortgage fraud scheme that caused losses of approximately $30 million. Read on for more details.
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Tenn. title agent sentenced for straw buyer scheme
Posted Date: Tuesday, February 25, 2014
A Memphis, Tenn., title agent was sentenced to time in prison following her guilty plea to one count of mail fraud and one count of money laundering as part of mortgage fraud scheme that utilized straw buyers. Read on for more details.
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