News By Edition

The First U.S. Circuit Court of Appeals recently heard a case brought by a developer against its title insurer for breach of coverage after the insurer denied coverage of the loss or damage to developer’s right, title and interest in property In Newport, R.I., as a result of the Rhode Island Supreme Court’s decision in a related case.

The original owners of property in Montgomery County, Texas, filed a suit to quiet title after it was discovered someone fraudulently transferred the property into a fraudster’s name and took out a mortgage on the house. The fraudster went into default, his loan was foreclosed and the property was sold at foreclosure sale. The buyer at that foreclosure sale appealed a state trial court’s decision in the case.

The California Privacy Protection Agency wrote a letter to U.S. House leadership voicing its opposition to H.R. 8152, the American Data Privacy and Protection Act (ADPPA), arguing it will remove protections and weaken the privacy Californians currently have under the California Consumer Privacy Act (CCPA).

In one of several cases in Nevada in which a bank is suing its title insurer for failing to defend it in a quiet title suit between the lender and a homeowner association that foreclosed on homes with delinquent HOA assessments, federal court in Nevada remanded a case to state court. The title insurer had removed the case before any defendant could be served with process.

In its Selling Guide Announcement SEL-2022-06, Fannie Mae added requirements for sellers/servicers to comply with states’ address confidentiality programs.

U.S. Small Business Administration (SBA) Administrator Isabella Casillas Guzman announced nearly $3 million in new funding for three state delegates to help emerging small businesses develop cybersecurity infrastructure. Arkansas, Maryland and South Dakota representatives are receiving grants that will help deliver cybersecurity assistance to nascent and startup business owners as part of the SBA’s Cybersecurity for Small Business Pilot Program.

Arizona Attorney General Mark Brnovich warned residents about the disturbing trend over the past couple years involving deed fraud.

An insured sued his insurer and insurer’s affiliate, alleging they breached their fiduciary duty and engaged in deceptive business practices under New York General Business Law Section 349 by funding the defense of an adversary in a state court quiet title action.

A 1965 deed to a Lake Arrowhead, Calif., residential property prohibits owners from cutting down living trees unless the cutting is approved by an architectural committee. The owners argued this restriction is unenforceable under the Marketable Title Act.

Maryland Insurance Commissioner Kathleen Birrane adopted amendments to Regulation .03 under COMAR 31.03.02 Insurance Producers—Continuing Education Requirements.

The Illinois General Assembly adopted legislation to amend the Conveyances Act to provide that special warranty deeds may be made in a specified form. In addition, it provides that every deed in substance in the specified form will be deemed and held a conveyance in fee simple, to the grantee, his or her heirs and assigns, with specified covenants on the part of the grantor.

The Louisiana insurance commissioner issued a notice to Louisiana Senate and House leadership, notifying them of the repeal of Rule 9—Prelicensing Education, as required by Act 273, which was adopted during the 2022 legislative session.

A husband-and-wife Realtor team from Wise, Va., were sentenced on federal wire fraud charges related to a scheme to create fake residential sales contracts in order to obtain advance sales commissions to which they were not entitled.

A couple filed suit against parties seeking to confirm a purported arbitration award. The parties then moved to vacate what they called a sham arbitration award.

The California General Assembly is considering legislation that would require an attempt to be made to sell property via a multiple-listing service before the property could be foreclosed in certain instances.

A couple sued the holder of a mortgage seeking to discharge the 1989 mortgage and quiet title to the New Fairfield, Conn., property. They argue that collection of the loan proceeds secured by the mortgage is barred by General Statutes Section 42a-3-118(a).

The Ohio Board of Professional Conduct issued Opinion 2022-07 regarding whether a lawyer can accept and hold cryptocurrency in escrow.

The U.S. District Court for the District of Nevada has many cases in front of it seeking to determine whether a title insurance claim involving a homeowners’ association assessment lien, and subsequent foreclosure sale, was covered by a lender’s title insurance policy.

The National Association of Insurance Commissioners Financial Regulation Standards and Accreditation (F) Committee voted to accredit the Alaska, Iowa, Minnesota, and Ohio departments of insurance at the NAIC Summer National Meeting.

A bank acquired title at a sheriff’s sale after the mortgage foreclosure to property subject to a homeowners’ association (HOA) declaration of covenants. When the bank later sold the property, the HOA billed the bank for assessments for the period the bank held title to the property. The bank refused to pay and filed suit to divest the land from the HOA covenants and vacate the fees.

The Consumer Financial Protection Bureau (CFPB) confirmed in a circular that financial companies may violate federal consumer financial protection law when they fail to safeguard consumer data. The circular provides guidance to consumer protection enforcers, including examples of when firms can be held liable for lax data security protocols.

In one of several cases before the U.S. District Court for the District of Nevada, a title insurer sought an extension of stay in a case seeking to determine whether a title insurance claim involving a homeowners’ association assessment lien, and subsequent foreclosure sale, was covered by the corresponding title insurance policy.

The American Land Title Association announced revisions to the ALTA Best Practices are out for comment. The public can submit comments until Sept. 1.

Acting Comptroller of the Currency Michael Hsu discussed cybersecurity risks and resilience during a joint meeting of the Financial and Banking Information Infrastructure Committee and the Financial Services Sector Coordinating Council.

The Utah Department of Insurance is proposing an amendment to R590-160-8, Agency Review, to remove a reference to a state law allowing an agency to reconsider an agency review. The department is receiving comments until Oct. 3, 2022.