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The Legal Description Edition
May 12, 2014
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Sixth Circuit addresses FDIC’s rights under CPL
Posted Date: Monday, April 28, 2014
The 6th U.S. Circuit Court of Appeals addressed the FDIC’s rights under a closing protection letter when a title insurer appealed a final judgment entered in favor of the FDIC for $2.3 million. The insurer argued that the district court erred by granting summary judgment to the FDIC on the issue of liability for breach of a closing protection letter and upholding the jury’s verdict over its objections.
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Is title company liable for notary’s negligence?
Posted Date: Wednesday, April 2, 2014
After being the victim of identity theft in the course of a mortgage fraud scheme, the victim and his wife sued the perpetrators, the notary who unwittingly helped them, and the title agency on whose behalf the notary was closing loans. A Minnesota district court held that the title agency was liable for the negligent acts of the notary because the notary was an agent of the company. The title agency appealed.
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Court rejects decertification of escrow officers’ class action
Posted Date: Monday, March 24, 2014
California escrow officers sued their former employer, alleging the company engaged in unfair business practices when it failed to provide meal and rest breaks and overtime pay to escrow officers it employed in the state. The case moved forward and a class was certified. The company then tried to decertify the class. Read on to find out what the Court of Appeal of California, Fifth Appellate District had to say when it addressed the certification issue.
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Insured sues for indemnification
Posted Date: Tuesday, April 8, 2014
After being sued and having a cross-claim filed against them, an insured sought indemnification by several insurers, including its title insurer. Each insurer denied the claim. The insured then filed suit against its insurers, claiming breach of contract, breach of good faith and fair dealing, and seeking declaratory relief. The insurers moved to dismiss the claims against them.
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CFPB releases disclosure guide
Posted Date: Thursday, April 24, 2014
The Consumer Financial Protection Bureau recently released its Guide to Completing TILA-RESPA Integrated Disclosure Forms.
The guide provides instructions for completing the Loan Estimate and Closing Disclosure and also highlights common situations that may arise when completing the forms. It may also be helpful to settlement service providers, software providers and other firms that serve as business partners to creditors. The 96-page report goes through each disclosure page-by-page, explaining each section of the forms.
The guide is a companion to the Small Entity Compliance Guide it released.
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Loan Estimate creators receive top ClearMark award
Posted Date: Thursday, April 24, 2014
For changing long, complicated forms that help people when they are shopping for home loans into shorter, more easily understood forms, the Consumer Financial Protection Bureau's (CPFB) Loan Estimate Form was honored with the Center for Plain Language's Grand ClearMark Award as the best example of clear, concise communication. The award was presented at the Center for Plain Language's fifth annual national ClearMark Awards, April 22, at the National Press Club in Washington, D.C.
Graves Fowler Creative and its partner Kleimann Communication Group won top honors in the 2014 ClearMark Award Program for their work on the integrated loan estimate form for the CFPB. The Grand ClearMark is the top recognition given by an international panel of judges.
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Louisiana seeks expansion of required use provision
Posted Date: Monday, April 21, 2014
The Louisiana State Legislature is considering a bill that would prohibit the required use of settlement service providers in residential real estate transactions. This would expand RESPA’s required use prohibition in the state. The bill, SB 426, was introduced by Sen. Eric LaFleaur, D-Ville Platte.
The proposed law would provide that no contract to sell or purchase residential real estate executed in Louisiana could contain any provision requiring the purchaser, as a condition of sale, to use a specific provider of settlement services.
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South Dakota adopts uniform recording act
Posted Date: Tuesday, April 15, 2014
South Dakota Gov. Dennis Daugaard signed a bill adopting the uniform real property electronic recording act.
Under SB 68, if a law requires, as a condition for recording, that a document be an original, be on paper or another tangible medium, or be in writing, the requirement is now satisfied by an electronic document satisfying the provisions of this act. If a law requires or refers to something related to tangible media, the requirement or reference is satisfied by an electronic document.
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Wisconsin title agent guilty of racketeering, theft, bail jumping
Posted Date: Monday, April 28, 2014
Wisconsin Attorney General J.B. Van Hollen announced that Marathon County Judge Gregory Huber found Jay Fischer guilty of a million dollar mortgage fraud scheme. Fischer pleaded no contest to racketeering, theft, fraudulent writings, securities fraud, bail jumping, failure to file an individual tax return and failure to file a corporate tax return. The convictions resolve two criminal cases against Fischer from Marathon and Waupaca counties.
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The Fund appoints new president, CEO
Posted Date: Monday, April 28, 2014
The Fund, Florida’s premier bar-related title services provider is pleased to announce the appointment of John Simmons as president and chief executive officer of Attorneys’ Title Insurance Fund Inc. John had been serving as interim president and chief executive officer since March, 2013.
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Protecting yourself, your customers and your office with a compliant escrow office
Posted Date: Monday, April 28, 2014
It seems like every time you turn around, you hear about a new threat to your escrow accounts, or another escrow agency owner discovering that their trusted employee has been stealing escrow funds from behind their back. These threats are real and regulators and legislators are standing up and taking notice. In this environment, it’s more critical than ever to make sure you are operating a compliant escrow operation. At the 2014 National Settlement Services Summit, industry members and a seasoned regulator will provide the tools you need to protect your most valuable asset.
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Mass. closing attorney sentenced for mortgage fraud
Posted Date: Monday, April 21, 2014
A former attorney practicing in Boston was sentenced for his involvement in a mortgage fraud scheme that resulted in more than $2.5 million in losses.
Charles R. Sammon, 37, of West Pittston, Pa., was sentenced by U.S. District Court Judge Richard Stearns to 33 months in prison, 36 months of supervised release and $977,042 in restitution to defrauded lenders. In November 2013, Sammon pleaded guilty to wire fraud, mail fraud and unlawful monetary transactions.
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Start gearing up now for disclosure changes
Posted Date: Tuesday, May 13, 2014
Next year, business practices will change dramatically and lenders and title agents will have to work even closer together to close real estate transactions. This is all because in August, they will be required to issue new Loan Estimate forms and Closing Dsclosure forms.
While Aug. 1, 2015, may seem a long way off, there are numerous things title industry members can — and should — begin doing to prepare for the changes. At recent industry events, industry experts not only walked through the new forms, but discussed some of those steps agents can take now to be ready for them.
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Protecting yourself, your customers and your office with a compliant escrow office
Posted Date: Wednesday, April 30, 2014
It seems like every time you turn around, you hear about a new threat to your escrow accounts, or another escrow agency owner discovering that their trusted employee has been stealing escrow funds from behind their back. These threats are real and regulators and legislators are standing up and taking notice. In this environment, it’s more critical than ever to make sure you are operating a compliant escrow operation. At the 2014 National Settlement Services Summit (NS3), industry members and a seasoned regulator will provide the tools you need to protect your most valuable asset.
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Missouri allows for regulatory reporting online
Posted Date: Monday, April 28, 2014
The Missouri Department of Insurance announced it has created online reporting to allow title insurers to electronically submit regulatory reporting. Title insurers may now submit their T-6A and T-6B forms online. The T-6A form is the "Missouri Title Insurer's Onsite Review Report"; the T-6B form is the "Missouri Title Insurer's Onsite Review Sampling Methods Report." Additionally, on May 1 the department will begin accepting electronic funds transfer (EFT) from all insurance companies for fees associated with filings submitted via the System for Electronic Rate and Form Filings (SERFF).
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Loan officer, corrections officer convicted of mortgage fraud
Posted Date: Thursday, April 24, 2014
A federal jury has convicted two men for their roles in an extensive mortgage fraud scheme arising from the fraudulent purchases of more than 40 properties in New Haven, U.S. Attorney Paul Fishman, District of New Jersey, announced.
Andrew Constantinou, of Unionville, Conn., and Jacques Kelly, of Poughkeepsie, N.Y., were convicted on April 18, of all counts charged in the indictment following a three-week trial before Chief U.S. District Judge Janet Hall. The jury found both men guilty of conspiracy to commit mail, wire and bank fraud. The jury also found Kelly guilty of one count of wire fraud and one count of making a false statement to a financial institution.
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Insured seeks indemnification, defense in suits over fraudulent transfers
Posted Date: Thursday, April 24, 2014
An insured became entangled in a series of lawsuits regarding a piece of property in California. While working through those court cases, the insured sought defense or indemnification from its title insurer. The title insurer denied its claim and the insured sued the title insurer over its failure to provide a defense or indemnification in the various cases.
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CFPB focuses on eClosing initiative - UPDATED
Posted Date: Wednesday, April 23, 2014
The Consumer Financial Protection Bureau (CFPB) met with the public Wednesday to discuss the mortgage closing process. The agency announced that it will launch a new electronic closing (eClosing) pilot program in order to explore new avenues to make closings less complex for consumers.
“As part of our Know Before You Owe initiative, we are making a commitment to work with the various stakeholders to use technology in order to improve the mortgage closing experience for consumers,” CFPB Director Richard Cordray said in his opening comments. “We strongly believe that electronic closing solutions — known as eClosings — can lead to more knowledgeable consumers and a much better process for everyone involved.”
Developing a more streamlined and efficient closing process is the next phase in the CFPB’s Know Before You Owe initiative that began in May 2011, when the bureau released its initial RESPA/Truth in Lending Act integrated mortgage disclosure prototypes.
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CFPB to hold forum on mortgage closing process
Posted Date: Monday, April 21, 2014
The mortgage closing process will be the subject of a public forum this week at Consumer Financial Protection Bureau (CFPB) headquarters in Washington, D.C. The event will feature remarks from Director Richard Cordray, as well as a discussion with consumer groups, industry representatives and members of the public.
The forum is scheduled for April 23 at 2:30 p.m. EDT.
The Legal Description will provide live coverage from the event, as well as insights from industry insiders.
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