News By Edition

The beginning of a new year is a time to plan for the months to come, set goals and priorities items on your to-do list. With many legal, regulatory and legislative changes on the horizon, I spoke with industry experts and advocates about why advocacy should be on every title industry member’s to-do list this year.

As dramatic as 2011 was, the industry will be rolling up its sleeves to address even tougher issues in 2012, including insolvency, escrow fraud and new closing disclosure prototypes. In the second part of our series, industry experts share how they believe these issues will play out in 2012 and how these concerns will impact the industry.

The circuit court in the city of Richmond named the State Corporation Commission of Virginia the receiver of Southern Title Insurance Corp. Southern Title and the commission determined that the receivership was necessary to protect the interests of policyholders and creditors. Read on to find out more about the latest actions taken as a result of a rise in claims due to agent defalcation.

The seller of property in Washington state questioned a reconveyance tracking fee on his HUD-1, but went along with the sale anyway. Later on, he sued the title company for charging the fee. Read on to find out what the U.S. District Court for the Western District of Washington had to say when the case went before it on the title company’s motion for summary judgment.

The criminal case against the Evans brothers is now closed, after a federal judge handed down the brothers’ sentences. The men, both Jackson, Miss., attorneys, were convicted of orchestrating one of the largest mortgage fraud conspiracies in the state’s history. Read on for the details.

With Congress at odds over extending payroll tax cuts, and the Senate wanting to protect its position as the official green light for presidential appointments, such as that of a director of the Consumer Financial Protection Bureau, it agreed to a series of pro forma sessions. Is that enough to prevent the president from making a recess appointment?

With Congress at odds over extending payroll tax cuts, and the Senate wanting to protect its position as the official green light for presidential appointments, such as that of a director for the Consumer Financial Protection Bureau, it agreed to a series of pro forma sessions. Is that enough to prevent the president from making a recess appointment?

The Illinois General Assembly has introduced a bill that would modify the state’s mortgage foreclosure laws by adding a definition of abandoned residential property, as well as requirements and procedures for an expedited judgment and sale of abandoned residential property. Read on for more details.

The Attorney General of Nevada sued Lender Processing Services Inc. and its subsidiaries following an investigation into alleged deceptive practices in connection with the company’s default servicing of residential mortgages in the state. In response, LPS released a statement critical of the lawsuit’s attempt to “sensationalize” what it characterized as “false allegations.” Read on for more on the lawsuit and the LPS response.

One of the recently introduced bills to reform the secondary mortgage market and eliminate government sponsored enterprises Freddie Mac and Fannie Mae, got a boost on Dec. 14 when a house subcommittee approved the proposed law. Read on for more details.

The Legislature of the State of Washington is considering a bill that would modify its foreclosure fairness act to ensure mediators’ participation. Read on to find out more about the legislature’s efforts.

The seller of property in Fresno, Calif. sued her title insurer for mishandling the preparation of a deed of trust on a property she sold. Because the seller could not prove damages, the trial court granted the title insurer’s motion for summary judgment. Read on to find out what the Fourth District Court of Appeal of California had to say when the case went before it on appeal.

A loan originator and branch manager of a lender in Chesapeake, Va., pleaded guilty to charges of conspiracy stemming from a mortgage fraud she orchestrated with several other conspirators, including a mortgage broker, title company owner, accountant and local business owner. Read on for the details.

The American Land Title Association has added to its lobbying efforts by adding a director of government affairs. The new director will focus on federal issues. Read on for more about ALTA’s new face in Washington.

Just in time for the holidays, the Consumer Financial Protection Bureau unveiled its latest round of prototypes for the combined HUD-1/Truth In Lending disclosures. This time, the CFPB decided to make one form similar to the current HUD-1 and the other similar to the initial disclosures it’s been working on. Read on for the details so you can provide your input on the forms.

The Court of Appeals of Minnesota reversed the dismissal of a case against a title agency involved in a joint venture, allowing the case to continue in state court. Read on for the court’s reasoning.

In a bulletin released on Nov. 30, the commissioner of the Louisiana Department of Insurance expressed concern that title insurance producers in the state are violating Louisiana law by providing things of value to clients in exchange for business. Read on to find out what things of value he considers prohibited.

After a nine week trial, a federal jury found two Chicago attorneys and two of their co-conspirators guilty of participating in a $9.2 million mortgage fraud scheme. Read on for more details.

Lenders often mention the importance of customer service at the closing table, in terms of demeanor and quickness on the part of the title agent, but a recent white paper produced by the nation’s largest lender stressed the importance of the title agent acting as the last line of fraud detection.

When the purchasers of 6.56 acres of land bought property in 1972, they entered into a sales agreement with the sellers allowing them to have right of first refusal on the property adjacent to them, which the sellers still owned. Upon the death of the sellers, their estate sold the land to a third party. The original purchasers sued the estate and the title company involved in the sale, saying they still had the right of first refusal. Read on to find out how the Court of Appeals of Indiana settled the case

If you are a group of defrauded persons including a national underwriter, national banks and several homebuyers, you sue the defendants for actions under the Racketeer Influenced and Corrupt Organizations Act and several state law causes of action. Find out how the judge in the case ruled when the case went to the U.S. District Court for the Northern District of California.

When the Virginia General Assembly comes back in session on Jan. 11, it will be considering a recently prefiled bill regarding foreclosure sales. Read on to find out more about the bill’s requirements.

A former bank chairman has been sentenced to nine years in prison for stealing money from customers of a title company he owned. Read on to find out more.

Adding to the proposals already out there for winding down and eliminating government sponsored enterprises Fannie Mae and Freddie Mac, Sen. Johnny Isakson introduced legislation that creates a transitional program which will eventually be turned over to the private sector. Read on for more details.

The U.S. solicitor general filed an amicus curiae brief in the U.S. Supreme Court, outlining his opinion on an issue that has split the circuit courts: whether a plaintiff must demonstrate that an unearned fee for a real estate settlement services was divided between two or more persons in order to establish a violation of RESPA section 8(b). Read on to find out more on his opinion.

A Fairhaven, Mass., closing attorney was charged with two counts of bank fraud for allegedly diverting $3 million in mortgage funds and falsifying closing documents. Read on for more details.

Senate Republicans prevented a vote on Richard Cordray’s nomination to become the first permanent director of the Consumer Financial Protection Bureau. Read on for more details and for reaction to the action.

When two underwriters announced they were ceasing issuing new policies after they discovered agents had committed escrow fraud, industry members and regulators took notice. With transparency the new buzzword, leaders in the industry are attempting to work on an industry solution to curb the potential escrow fraud epidemic as regulators investigate ways to protect policy holders from insolvent insurers. Read on to find out more about how these issues might be addressed next year.

A rule stemming from the Dodd-Frank Act which could significantly change the way affiliated title agents do business may be revised after the House Financial Services Committee holds a hearing to consider legislation to change the language of the rule. The rule and its potential effects have sparked a debate among different segments of the title industry. Read on for more details.

Research from several sources indicates that title insurance companies that managed to stabilize in 2011 will be faced with additional pressure next year as they continue to encounter volatilities in the markets affecting housing. Read on for information on the 2012 economic forecast.

The operator of several title agencies in the Dayton, Ohio area pleaded guilty to money laundering as part of his role in a $5.6 million mortgage fraud scheme. Read on to find out more.

Connecticut’s attorney general and banking commissioner are urging Connecticut borrowers who believe they suffered financial injury because of harmful mortgage servicing and foreclosure practices to participate in the federal foreclosure review and claims process. Read on for more details.

The attorneys general of California and Nevada, two of the states hardest hit by the foreclosure crisis, are pooling their investigative resources to assist homeowners who have been harmed by mortgage fraud. Read on to find out more about the announcement.

After submitting initial comments last month on the Consumer Financial Protection Bureau’s first final disclosure prototypes, the American Land Title Association’s RESPA Task Force submitted additional suggestions for improvement in a letter to Raj Date, special advisor to the Secretary of the Treasury on the Consumer Financial Protection Bureau. Read on to find out what the task force had to say.

A Minnesota closing agent who pleaded guilty to participating in at least 175 fraudulent real estate transactions avoided prison time, getting three years probation instead. Read on for more details.

In order to combat HAMP mortgage modification scams, the Consumer Financial Protection Bureau, the U.S. Department of the Treasury and the Office of the Special Inspector General for the Troubled Asset Relief Program formed a task force to investigate these scams and provide education programs to vulnerable homeowners. Read on to find out more about this new partnership.

A Pennsylvania state court has established a mandatory residential foreclosure diversion program. This program automatically stays foreclosures for 90 days while the parties to the foreclosure undergo dispute resolution. Read on to find out more about the new program.

Massachusetts Attorney General Martha Coakley has filed suit against five national banks and Mortgage Electronic Registration System Inc., alleging that the companies pursued illegal foreclosures on properties in Massachusetts and engaged in deceptive loan servicing. Read on to find out more about the charges.

The Consumer Financial Protection Bureau is seeking public input on ways to streamline inherited regulations, asking for ways to update, modify or eliminate rules that were formerly under seven different federal agencies. Read on for more details.