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TRID, closing instructions and the issue of liability
Posted Date: Monday, January 4, 2016
In the months since the TILA-RESPA Integrated Disclosure Rule (TRID) went into effect, title and settlement agents have received new closing instructions to reflect the new necessary procedures. Some also have discovered new clauses asking them to indemnify the lender for any missteps in the Closing Disclosure or the closing.
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Buyer files class action alleging title referrals, kickbacks
Posted Date: Monday, December 7, 2015
A real estate buyer in California filed a class action lawsuit alleging that a mortgage lender and servicer, real estate conglomerate and its affiliates, and their joint venture entered into an agreement to pay referral fees and kickbacks in exchange for the referral of title insurance and other settlement services to one of the real estate company’s subsidiaries. Read on for more details.
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Are insurer premium splits with Illinois attorney agents illegal kickbacks?
Posted Date: Tuesday, December 15, 2015
Illinois homeowners filed suit against their title insurers, claiming they made illegal kickback payments to attorney agents by splitting the title insurance premium with the agents. They argued that the payments were unlawful because the title companies provided the attorneys with a pro forma title commitment that determined the insurability of the properties’ titles, core title services that are to be performed by the agent under state law. After the trial court ruled in favor of the title companies, the homeowners appealed the decision to the First District Court of Appeal of Illinois. Read on for more details.
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Party to real estate dispute sues others for wrongful lawsuits
Posted Date: Monday, November 23, 2015
After being embroiled in an ownership dispute over property in Arizona, one of the parties filed suit against several of the other parties and lawyers involved in those cases, alleging wrongful institution of civil proceedings. Read on for more details.
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Illinois Supreme Court addresses tax deed order
Posted Date: Wednesday, December 9, 2015
The Supreme Court of Illinois addressed whether an order issuing a tax deed is void and subject to collateral attack because the address and phone number of the county clerk were not included in the publication and certified mail take notices that were required to be sent to the delinquent owner prior to issuance of the tax deed. It also determined whether due process standards are violated when certified mail notices to the owner are returned unclaimed. Read on for more details.
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Cybersecurity sharing included in Omnibus legislation
Posted Date: Wednesday, December 16, 2015
Congress released its omnibus bill to fund the government until September 2016. Among the things included in the bill is the Cybersecurity Information Sharing Act of 2015, a combination of House and Senate efforts to promote the sharing of cybersecurity information between government entities and the private sector. Read on for more details.
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Florida tweaks estoppel certificate bill
Posted Date: Monday, November 30, 2015
The Florida House of Representatives recently tweaked a bill to change the requirements surrounding estoppel certificates issued by homeowners’ associations. Read on to find out more about the additional provisions.
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NY Senate majority leader, son convicted on corruption charges
Posted Date: Tuesday, December 15, 2015
New York State Senate Majority Leader Dean Skelos and his son Adam Skelos were found guilty of federal corruption charges Dec. 11. Among other things, Sen. Skelos arranged for a developer to pay his son for title work, even though Adam Skelos did no work in connection with the real estate transaction. Read on for more details.
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Real estate service seeks to compel land records from recorder
Posted Date: Monday, December 7, 2015
An online real estate service filed a complaint for Writ of Mandamus with the Supreme Court of Ohio, asking the court to command a county recorder’s office to make available real estate records for copying, at cost and in accordance with state law. Read on for more details.
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Florida agent arrested for misappropriating funds, illegal title operations
Posted Date: Wednesday, December 16, 2015
Florida’s Department of Financial Services Division of Insurance Fraud announced the arrest of Kristine Ann Spahr, 41, after her alleged intentional misappropriation of nearly $400,000 in real estate escrow funds as an effort to gain personal monetary profit while she was illegally operating her insurance company, Signature Title and Trust LLC.
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National Property Fraud Alert Service launched
Posted Date: Wednesday, December 9, 2015
Title Lock Corp. announced the launch of its National Property Fraud Alert Service. The company works with a title company to send alerts to homeowners when documents of any type are filed at a county recorder’s office against a property’s address. Read on for more details.
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Escrow agent, real estate agent found guilty of $16 million mortgage fraud
Posted Date: Monday, December 7, 2015
After a 16-day trial, a federal jury found two Californians guilty of multiple counts of mail and wire fraud associated with their involvement in a mortgage fraud scheme that cost financial institutions more than $16 million. Several co-conspirators already have been found guilty. Read on for more details.
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Fresh start begins now
Posted Date: Monday, January 4, 2016
With the warm feelings of the holidays still lingering, it’s time to start executing the plan for 2016. I love the idea of a fresh start every Jan. 1. Whatever happened the year before is in the past, whether it was a good year or bad, whether I accomplished my goals or not. I get a chance to try again, choose new goals to work on, take on new challenges.
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What constitutes notice to E&O provider?
Posted Date: Wednesday, December 16, 2015
After receiving judgment in his favor against the title company that held, and misallocated, his escrow funds, an Oklahoma man filed a garnishment affidavit, seeking payment from the company’s professional liability insurer. The insurer denied the claim, arguing that it had no notice of the lawsuit or the ensuing judgment. The man filed suit against the professional liability insurer, seeking a determination that coverage did exist under the title company’s policy. Read on for more details.
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Title insurer disputes claim over federal right-of-way
Posted Date: Wednesday, December 16, 2015
After being denied a permit to build a single-family residence on property they purchased, a couple discovered their property was encumbered by a federal spoil easement which provided the federal government a right-of-way to build and maintain the Intracoastal Waterway. When their title insurers denied their claim, the couple filed suit. The suit eventually went before the South Carolina Court of Appeals.
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Orange County man arrested for alleged $1.2 million mortgage fraud scam
Posted Date: Tuesday, December 15, 2015
An Orange County man who allegedly bilked distressed homeowners with false promises that he could help them avoid foreclosure by obtaining modifications to their mortgages – or even completely eliminating their loans – was arrested this morning on federal fraud charges by special agents with the FBI.
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Rhode Island attorney, loan officer indicted for mortgage fraud
Posted Date: Tuesday, December 15, 2015
A 22-count federal grand jury indictment charges six individuals, including a Rhode Island real estate attorney, a real estate agent, a licensed loan originator, a former loan officer, a loan processor and a real estate investor, with allegedly participating in a conspiracy to obtain money they were not entitled to from financial institutions and individuals through mortgage loans, residential property sales and fees.
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Must insurer defend against affirmative defenses?
Posted Date: Tuesday, December 15, 2015
The holder of a promissory note sought defense by its title insurer against affirmative defenses brought by its mortgagor in a foreclosure action. The title insurer agreed to defend two of the affirmative defenses, but not the other 19. The promissory note holder then filed suit against the title insurer, bringing claims for breach of contract and breach of the implied duty of good faith and fair dealing. Read on to find out the court’s decision on the parties’ motions for summary judgment.
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Supreme Court of Wyoming addresses dispute of coverage for corporate successor
Posted Date: Wednesday, December 9, 2015
A limited liability company sued a national underwriter for denying its claim for coverage in a dispute with the county regarding an easement on its property. The underwriter denied the claim because it held that the company did not succeed the previous owners of the property as insureds under the policy. The case eventually went before the Supreme Court of Wyoming. Read on for more details.
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Title agency owner charged with stealing escrow funds
Posted Date: Wednesday, December 9, 2015
A Philadelphia title company owner was charged with wire fraud and bank fraud for allegedly using dedicated escrow funds to pay off prior obligations and operating costs. Read on for more details.
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Straw buyer recruiter admits to mortgage fraud
Posted Date: Wednesday, December 9, 2015
An Elizabeth, N.J., man admitted recruiting straw buyers and submitting bogus loan applications as part of large-scale mortgage fraud scheme involving properties in northern New Jersey. Read on for more details.
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Title company owner sentenced for stealing $7.7 in mortgage payoffs
Posted Date: Monday, December 7, 2015
Acting New Jersey Attorney General John J. Hoffman announced that a title company owner was sentenced to prison for stealing a total of $7.7 million entrusted to him as a settlement agent to pay off multiple mortgage loans in connection with real estate closings he handled. Read on for more details.
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Mortgagee seeks to quiet title from borrowers’ children
Posted Date: Monday, November 30, 2015
A mortgage company loaned money to a couple, not knowing that the couple only had a life estate in the property, and that their children retained the remainder interest. Once they discovered this fact, they sued both couples, seeking to quiet title to the property.
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Title company seeks reimbursement for seller’s unpaid city fee
Posted Date: Monday, November 30, 2015
After handling a claim for its insured, a title company sued the developer that sold the property seeking reimbursement. The developer failed to disclose the fact that it had not paid an impact fee to the city of Henderson, Nev., to construct a water-drainage facility, which it was required to do under the purchase agreement. Read on for more details.
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