News By Edition

On Oct. 9, the New York State Department of Financial Services (NYSDFS) and the New York State Land Title Association (NYSLTA) went before the New York Appellate Court, First Judicial District for oral arguments in NYSDFS’ appeal of state supreme court Judge Eileen Rakower’s decision in favor of the New York State Land Title Association annulling Insurance Regulation 208. Read on for more details.

After a woman with property in Utah fell behind on mortgage payments, the trustee on the deed of trust elected to sell the property. After the sale, the owner refused to leave and the purchaser filed suit to force her to vacate. The owner petitioned for interlocutory review by the Utah Supreme Court, arguing that the sale was invalid because the trustee, a national bank based in Texas, couldn’t act as a trustee under Utah law. The court then had to determine where the bank was located to continue the case. Read on for more details.

The American Land Title Association in comments on the Consumer Financial Protection Bureau’s policy to encourage trial disclosure programs, and encouraged the bureau to use the program to allow lenders and title companies to test the disclosure of the accurate cost of title insurance under TRID. Read on for more details.

A South Carolina man was sentenced to time in prison on a federal wire fraud charge stemming from a real estate scheme in which he and others used forged deeds and fake driver’s licenses to fraudulently transfer ownership of District of Columbia homes from the rightful owners. Read on for more details.

Universal American Mortgage Company, LLC (UAMC) has agreed to pay the United States $13.2 million to resolve allegations that it violated the False Claims Act by falsely certifying that it complied with Federal Housing Administration (FHA) mortgage insurance requirements in connection with certain mortgages. Read on for more details.

The Nevada Secretary of State has released proposed regulations to implement the remote online notary legislation, AB 413, which passed during the 2017 legislative session. Read on for more details.

The creditor trustee in a former Florida underwriter’s Chapter 11 bankruptcy case filed an adversary proceeding against the underwriter who took over the company’s policies and risks, alleging fraud. Read on for more details.

A man filed suit against two people who defrauded him in a failed financial transaction in which he pledged property as collateral for a loan to another entity. He also sued the title agency that performed the escrow, claiming it was negligent in not stopping him from entering the deal if it knew or suspected fraud. Read on for the details.

The owner of mostly vacant land in Perris, Calif., sued the city, the owner of a shooting and archery range being developed on adjacent property and his title insurer regarding access to the property. After reaching a settlement to end the case, the court granted judgment in accordance with the terms of the settlement. The property owner then filed a motion to vacate the judgment, which the trial court denied. Read on to find out what happened when the property owner appealed the judgment.

The Securities and Exchange Commission issued an investigative report cautioning that public companies should consider cyberthreats when implementing internal accounting controls. The report is based on the SEC Enforcement Division’s investigations of nine public companies that fell victim to cyberfraud, losing millions of dollars in the process. Read on for more details.

A 50-year-old Plano, Texas, man has been sentenced to federal prison for wire fraud. He also was ordered to pay almost $3 million in restitution. Read on for more details.

A federal grand jury convicted Nathan E. Hardwick IV of 21 counts of wire fraud, one count of conspiracy to commit wire fraud, and one count of making false statements to a federally insured financial institution on Oct. 12, 2018. He was charged with defrauding his law firm and title agency. Read on for more details.

The California Legislature adopted two bills regarding Blockchain. One requires the appointment of a Blockchain working group to define Blockchain and define the uses, risk and benefits of using Blockchain technology. The other bill would authorize corporations to adopt provisions of their articles of incorporation to allow the use of Blockchain in its records. Read on for more details.

After defending a law firm in a dispute with an underwriter that alleged the law firm breached several agency agreements in connection with a $775 million title policy, the law firm’s liability insurer sought a declaration that coverage for the case was subject to the policy limits. Read on for more details.

In its 5th annual Cyber Governance Survey, BDO USA, LLP found that digital transformation initiatives now involve entire organizations, putting digital strategy at the top of corporate boards’ agendas. Read on for more details.

The Illinois Department of Financial and Professional Regulation Division of Banking recently issued an order revoking a mortgage loan originator’s license after receiving information the loan originator was conducting a mortgage fraud scheme. Read on for more details.

Former employees of a title agency that was bought by a title insurer who left to form a competing title agency appealed to the 10th U.S. Circuit Court of Appeals a large jury award based on breaches of the former employees’ contractual and fiduciary duties. Read on for more details.

An insured sued their title insurer for negligence, breach of contract and bad faith, claiming the insurer asserted that it held fee simple title, including abutter’s and access rights but that its sale of the property was terminated after the discovery of a claim against the property by the Oklahoma Turnpike Authority. Read on for more details.

After a seller sold her house to new owners, the owners discovered a judgment lien on the property she sold to them. After losing litigation against the new owners and their title insurer, the seller sued the title insurer for negligence, breach of contract and negligent misrepresentation/nondisclosure. Read on for more details.

U.S. Attorney Bob Troyer announced that HSBC will pay $765 million to settle claims related to its packaging, securitization, issuance, marketing and sale of residential mortgage-backed securities between 2005 and 2007. During this period, federally-insured financial institutions and others suffered major losses from investing in RMBS issued and underwritten by HSBC. Under the settlement, HSBC will pay the $765 million as a civil penalty pursuant to the Financial Institutions Reform, Recovery and Enforcement Act. Read on for more details.

A Dix Hills, N.Y., man pleaded guilty to scamming 32 homeowners in a mortgage modification scheme. Read on for more details.