LandCastle bought out; sues former CEO for embezzlement
On Aug. 25, LandCastle Title LLC made two significant moves. It sent a letter to partners informing them that Fidelity National Title Group (FNTG) had purchased a 70 percent ownership of the company. It also filed suit against its former CEO for alleged embezzlement.
Company sues title agency for negligence in 1031 exchange
After a partial failure of a 1031 exchange, a medical supply distributor sued a South Dakota title agency for negligence and negligent misrepresentation. The trial court held that the title agency was negligent in assisting the distributor with the exchange, and the title agency appealed. The case then went before the Supreme Court of the State of South Dakota.
Indiana title agents indicted for embezzlement
Josh Minkler, the acting U.S. attorney, announced that Adam Mears, 41 of Carmel, Ind., and Patrick Hayden, 37 of Greensburg, Ind., were indicted in separate investigations for embezzling money from their clients. Both face five counts of wire fraud.
Governor sends foreclosure bill back, requests amendment
Massachusetts Gov. Deval Patrick sent back a bill that was passed by the state legislature to clarify the rights of third-party purchasers of previously foreclosed homes in the state. He said that certainty of title should not “come at the expense of wrongly displaced homeowners,” at least not at this time.
Lien priority dispute arises after foreclosure proceedings
The mortgagee for a property in Shrewbury, Mass., received first lien position when it provided a mortgage for the homebuyers. The note and mortgage were assigned to a few different mortgage servicers through MERS. In the meantime, the homeowners used the property as collateral for a business improvement loan. When the latest assignee went to foreclose on the property, it discovered the business loan creditor and filed suit for equitable subrogation. The creditor moved for summary judgment, arguing that the assignee’s title insurance should cover any losses.
FDIC sues title insurer, agency for inducing fraudulent mortgage purchases
The Federal Deposit Insurance Corp., in its role as receiver for Washington Mutual Bank, sued a title insurer, title agency and title agency owner, for inducing Washington Mutual to purchase three fraudulent mortgages, resulting in more than $1.24 million in losses to Washington Mutual. The case went before the U.S. District Court for the Eastern District of New York on the insurer’s motion to dismiss.