State issues to tackle in preparation for the new disclosures
Everyone may be working hard to implement the new integrated mortgage disclosure rule and addressing the requirements of this federal rule. However, the federal rule is not the only thing agents will need to consider. They also will have to consider how these rules are impacted by state laws and regulations surrounding consumer disclosures and the real estate closing process.
Michigan Supreme Court grants appeal of CPL dispute
The Michigan Supreme Court agreed to hear a dispute between a bank, its title insurer and the title agent that conducted the closing, seeking to determine whether a separate contract between the lender and closing agent exists outside of a closing protection letter and whether the full credit bid rule applies. Read on for more details.
Developing Story: Wells Fargo provides Q&A on Closing Disclosures
Wells Fargo is addressing questions from title agents and other settlement services professionals about their plans for the Closing Disclosure, after the lender announced in September that it would deliver the Closing Disclosure to borrowers when the new rules take effect Aug. 1, 2015.
Lender, title insurer dispute terms, duty to defend
After both parties were sued by a non-party warehouse lender who was defrauded by a mortgage company and title agency, a lender sued its title insurer for failing to defend it in the underlying complaint.
Company, title insurer dispute coverage of condominium dispute
A company sued its title insurer and escrow agent to recover damages it sustained in connection with the sale of a condominium unit. The case eventually went before the First District Court of Appeals of Texas on the company’s claims of negligence, breach of contract, failure to ensure good title. Read on for more details.
Complaint management: What to ignore, what not to ignore and how to handle them
Industry News, Regulatory Updates
In this day and age, reputation is everything to companies in any sphere. One bad blog post or tweet and a company’s reputation can be tarnished forever. For those in the financial services sector, reputational risk increases because the Consumer Financial Protection Bureau (CFPB) wants to make sure consumers’ complaints are heard and has developed a consumer complaint database for consumers to share their experiences. It monitors this database regularly and takes action where it feels it needs to. Many times the title or settlement agent is the last person the consumer sees before their transaction is complete. Although an independent third-party, the CFPB is holding the lender accountable for all actions of their third-party vendors. A poor experience at the closing could reflect badly on the lender, and both parties could end up under fire by the CFPB and public opinion.