News By Edition

While industry members have always appreciated the need to file instruments appropriately, regulators and legislators are now seeing just how important these things are. Because of their new understanding, they have introduced a wave of bills over the last few legislative sessions clarifying who has a right to do these things, and how they are to do them.

Can title agents be sued for negligence in tort, and can underwriters be held vicariously liable for an agencies actions? Maryland’s highest state court was asked to look at these two issues in a recent case before them, and their decision could have some influence in other states wrestling with these issues.

While ultimately it is the title agent’s choice what type of funds to consider “good,” statutory guidelines are beneficial, particularly when dealing with a demanding customer who doesn’t understand the risks of accepting something less than good, collected funds. And when your state is seeing an influx of large, cash-only closings on oil-rich land, ensuring the funds you are collecting and distributing are good and collected is mission critical. North Dakota, an oil-rich state, is in the process of refining a good funds statute the title industry introduced. It went into effect on August 1, 2011, but needed some modifications, particularly after the real estate industry sought to dismantle the whole statute.

A bank gave a development company a loan to develop land in Georgia, despite the fact that there was no legal access to the property because the company assured the bank it would get an easement. When the company was unsuccessful in getting an easement and development stalled, it purchased the loan back and filed a claim with the title insurer. The title insurer denied the claim and the company filed suit. Read on to find out what the U.S. Circuit Court of Appeals for the 11th Circuit had to say when the case went before it on appeal.

The General Assembly of Colorado has introduced a bill that, if passed, would clarify the requirements surrounding tax certificates. Read on to find out more.

A real estate attorney from North Castle, N.Y., pled guilty to charges relating to the theft of approximately $2 million in real estate funds over the course of five years. Read on for more details.

RynohLive issued a warning to all title and settlement agents after discovering a new ZeuS Bot that found its way into an agent’s escrow account through the agent’s settlement software. Read on for more details and tips on how to protect your company from this threat.

The New Jersey General Assembly is considering legislation that would amend the state’s Residential Mortgage Satisfaction Act to place certain requirements on the issuance of mortgage pay-off letters and provide an additional process for discharging mortgages of record. Read on for more details.

The Connecticut Insurance Department released a bulletin reminding title agents and underwriters of the requirement to participate in the state’s Interest on Lawyers’ Trust Accounts program. Read on to find out more about these requirements.

The Tennessee General Assembly is considering a bill that would put a time constraint on mortgage assignments, requiring them to be filed within a ‘reasonable time.’ Read on for the details.

The Maryland General Assembly is considering a bill that would clarify that a refinanced first mortgage maintains its first lien status if certain conditions are met. Read on for more details.

A title attorney from New Kensington, Pa., pled guilty to 16 counts of wire fraud, filing false income tax returns and failing to file income tax returns as part of a scheme in which she used her brother and elderly aunt’s identities, as well as her aunt’s home, to perpetrate her scheme. Read on for more details.

The Consumer Financial Protection Bureau has found a replacement for Raj Date, whose last day was Jan. 31. The new acting deputy director will maintain his current duties in addition to the new position while they look for a permanent replacement for Date.

Twenty-five years after purchasing a tract of land from two elderly widows, 100 Investment Limited Partnership discovered the property it had purchased—and subsequently sold and developed—had been sold four years prior to their purchase. The double sale was the result of a missed deed during the title agency’s title search, as well as an improper survey. The company sued the title agencies involved, the surveyor, the title insurer and the surviving widow for negligence. Read on to find out what the highest court of Maryland had to say about questions that arose during the case regarding the title agency and the underwriter.

Lender Processing Services Inc. and its subsidiaries reached a settlement with Washington, D.C., and 46 state attorneys general in which LPS agreed to pay approximately $120 million to resolve allegations that the company and its subsidiaries “robo-signed” documents and engaged in other improper conduct relating to mortgage loan default servicing. Read on for more details.

Williston Financial Group appointed a new chief compliance officer from among its ranks. Read on to find out more about the new CCO.

Nine people involved in a long-running, large-scale mortgage fraud scheme were indicted in New Jersey for their roles in the $10 million scheme. The group used false identities, short sale flips and LLCs named similarly to area title companies to help perpetrate the fraud. Read on for more details.

South Carolina attorneys may soon be permitted to release mobile home liens. The South Carolina General Assembly is considering a bill that would permit mobile home liens to be released in similar fashion to mortgages on real property. Read on for the details.

The Washington legislature is considering a bill that would establish an alternate reconveyance procedure for mortgages that have been paid in full. It would allow title insurers, title agents, escrow agents and attorneys to conduct the reconveyance. Read on for more details.

While the suit against Chicago Title has been dismissed, Hancock and Benavides v. Chicago Title saga continues. The underwriter sued its agent for breach of contract and indemnity, alleging it was responsible for the overcharge that led to the lawsuit in the first place. Read on to find out what the U.S. District Court for the Northern District of Texas had to say about the issues.

The Iowa General Assembly has introduced a bill that would institute a new mortgage release process, whereby the Title Guaranty Division of the Iowa Finance Authority would be permitted to file a mortgage release certificate in the county in which the deed was filed. Read on for the details.

Kentucky Attorney General Jack Conway filed suit against MERS for allegedly violating Kentucky law. The lawsuit is a result of Conway’s investigation of mortgage foreclosure issues in the state. Read on for details.

After a federal appellate court ruled that President Barack Obama’s recess appointment of three members of the National Labor Relations Board was invalid, Washington watchers and compliance attorneys began to question the validity of Richard Cordray’s appointment as director of the Consumer Financial Protection Bureau. Read on to find out what they say is at stake.

A title agent involved in a mortgage fraud scheme at The Jade apartment complex in Miami was sentenced to time in prison and ordered to pay about $5 million in restitution. Read on for more details.

After purchasing a condominium in Kennebunkport, Maine, the new owner was sued by a neighbor claiming the condominium was subject to a view easement. The owner tendered the defense to her underwriter, who denied the claim. In the suit that followed, the trial court granted summary judgment to the insurer. The appeal went before the Supreme Judicial Court of Maine. Read on for details of the court’s findings.

After indemnifying an insured lender in several cases regarding property in California, two underwriters were sued for bad faith breach by the insured for not settling the matters in a timely manner. The insurers moved for summary judgment and the U.S. District Court for the Central District of California dismissed it. Read on for the court’s reasoning.