Cuomo announces regulations to crackdown on title insurance kickbacks
New York Gov. Andrew Cuomo announced new regulations to crack down on kickbacks and other improper expenditures (such as excessive meal and entertainment expenses) in the title insurance industry. He states the regulations will reduce title insurance closing costs by up to 20 percent for new home purchases and up to 60 percent for refinancing transactions. The regulations are based on a Department of Financial Services investigation which uncovered that these practices significantly inflate title insurance premiums. Read on for more details.
Can a CPL breach be brought independent of title insurance?
Can a party bring a breach of a closing protection letter after it has given up its rights under the title insurance policy? This is a question a national underwriter wants the U.S. Supreme Court to answer, according to its petition for writ of certiorari. The underwriter argues that the 6th U.S. Circuit Court of appeals was wrong when it held that the prudential standing principles barred First American from raising the assignment from the Federal Deposit Insurance Corp. to a successor bank. Read on for more details.
Does insurer owe coverage of unauthorized settlement?
After a title insurer paid out millions in claims regarding a real estate fraud claim, it got into a dispute with the owners of property allegedly bought with proceeds from a fraudulent sale it insured. It sought coverage from its liability insurer, but rejected its insurer’s defense because it came with a reservation of rights. The parties to the dispute entered into a settlement enforceable against the liability insurer on the title insurer’s behalf. The liability insurer then filed suit against all parties to the agreement.
Title insurance bill introduced in Congress
A bill regarding the cost of title insurance has been introduced in Congress. The bill amends RESPA to address what the sponsor calls conflicted referral advice, which he says will ensure that homebuyers are not overcharged when purchasing title insurance. Read on for more details.
LandAmerica settles retirement plan dispute
After LandAmerica Financial Group and its 1031 exchange subsidiary filed for bankruptcy in 2008, employees filed suit under the Employee Retirement Income Security Act, alleging several of the company’s directors and officers violated their fiduciary duties by allowing investment of LandAmerica Financial Group Employee Savings and Stock Ownership Plan assets in LandAmerica stock when they knew those investments would lose money. After a lengthy court process and settlement negotiations, the parties have reached a settlement.
Title insurers dispute responsibilities under reinsurance agreement
Two national title insurers entered into a reinsurance agreement after one of them provided an owner and a lender title insurance policies to finance the acquisition of property and the construction of a power plant on that property. Later the buyer and lender made claims under the title policies because mechanic’s liens recorded against the property had priority over their interests in the property. The title insurer who provided the policies entered a settlement with the parties and sought repayment from the other insurer for the insurer’s proportionate share of the sum.