News By Edition

The Federal Reserve Board, the Federal Deposit Insurance Corp., and the Office of the Comptroller of the Currency issued proposed guidance on managing risks associated with third-party relationships. The proposed guidance would offer a framework for banking organizations to consider in developing risk management practices for managing third-party relationships.

A man who sold property in Pennsylvania filed suit against the title companies that handled the buyer’s refinance transactions after missing the mechanic’s lien he filed on the property, alleging negligence claims and violations of RESPA. The case eventually went before the 11th U.S. Court of Appeals.

The U.S. Government Accountability Office issued a report finding that mortgage forbearance and other federal efforts reduced default and foreclosure risk. It was tasked with discovering how these efforts contributed to housing stability during the pandemic.

The holder of a tenancy-in-common interest in properties in California sued, among others, the title company the seller used for the transactions, arguing the title company knew of the illegal real estate commission and secret markup that was being used to inflate the price of the property. The trial court granted the title insurer’s demurrer and the investor appealed.

A borrower sued her lender and servicer, alleging they violated the statute of limitations to foreclose on her property in Houston. She sought a declaration that any foreclosure sale under the deed of trust is void and that title was quieted in her name.

A former Lynchburg attorney, who specialized in elder law and estate planning, pleaded guilty to wire fraud and making false statements. She claimed to be a victim’s great-niece to help her secure a mortgage.

A Texas agency sued its competitor and former employees for violating state and federal trade secrets acts and breaching contracts. The agencies had unsuccessfully negotiated the competitor’s potential acquisition of the Texas agency before recruiting a number of the agency’s employees.

In its latest Supervisory Highlights, the CFPB noted some regulated entities violated Regulation Z by improperly disclosing simultaneous issue rates.

Hawaii Insurance Commissioner Colin Hayashida recently issued Memorandum 2021-9LIC, notifying all insurers, licensees and registrants of the changes being made to the licensing process with the adoption of Act 111 on June 28, 2021.

Hawaii Gov. David Ige signed legislation mandating sellers provide additional information in their mandatory disclosure. The bill takes effect May 1, 2022.

New York Attorney General Letitia James announced the indictment and arrest of a Kings Point, Long Island man for allegedly stealing two brownstones located in Harlem. He is accused of targeting the brownstones using forged documents, limited liability corporations, multiple property transfers, an unethical attorney, and by abusing court processes.

The American Escrow Association announced the appointment of a new president elect for the 2021-2022 term. The new president elect began her term July 1.

The owner of property in Illinois sued the adjacent property owner, seeking declaratory judgment and an injunction, and asserting a trespass claim for a walkway and staircase that encroached on his property. The parties filed cross-motions for summary judgment.

Oregon Gov. Kate Brown signed legislation that makes permanent provisions relating to the performance of remote notarizations that were enacted on a temporary basis during the Oregon Legislative Assembly’s 2020 First Special Session. The bill went into effect upon passage.

The Financial Crimes Enforcement Network issued the first government-wide priorities for anti-money laundering and countering the financing of terrorism policy, following consultation with other relevant Treasury Department offices, as well as federal and state regulators, law enforcement, and national securities agencies.

New York State Department of Financial Services Superintendent Linda Lacewell announced the department issued new guidance on preventing ransomware attacks. Among other suggestions, the department joins the FBI in recommending that companies avoid making ransomware payments if their networks are compromised.

A Freeport, N.Y., man was sentenced to time in prison for participating in a conspiracy to carry out a $9 million scheme to use bogus information and simultaneous loan applications at multiple banks to fraudulently obtain home equity lines of credit.

The Mortgage Bankers Association and American Land Title Association wrote a letter to Leslie Reynolds, executive director, National Association of Secretaries of State, requesting it supports the Securing and Enabling Commerce Using Remote and Electronic Notarization Act that was reintroduced in Congress.