News By Edition

The Ninth U.S. Circuit Court of Appeals recently heard a case regarding the superpriority lien of an homeowners’ association against a mortgagee. After the homeowners’ association foreclosed on its lien, the bank filed suit against it, seeking a declaration that the foreclosure sale was invalid and that its deed of trust continued as a valid encumbrance against the real property. Read on for more details.

The Treasury Department and the Internal Revenue Services issued final regulations relating to Section 1031 like-kind exchanges. The final regulations address the definition of real property under Section 1031 and also provide a rule addressing the receipt of personal property that is incidental to real property received in a like-kind exchange. Read on for more details.

The Federal Housing Finance Agency announced that Fannie Mae and Freddie Mac will extend several loan origination flexibilities, including the expanded use of power of attorney and remote ink-signed notarizations to assist with loan closings. Read on for more details.

The Virginia State Bar Disciplinary Board recently revoked the license of the attorney who handled LandAmerica Financial Group’s bankruptcy and wind down. He had recently presented an affidavit declaring consent to the revocation of his law license, acknowledging the facts of misconduct regarding his handling of the bankruptcy trust account were true. Read on for more details.

A couple filed suit against the law firms that assisted them for failing to properly inform the couple of the risks of litigating the propriety of a mortgage lien on their residence. This led them to reject several settlement offers in reliance on the firms’ advice, which resulted in an adverse judgment against them. After a trial court granted the firms’ motion for summary judgment in the malpractice litigation, the couple appealed. Read on for more details.

The New York State Department of Financial Services announced a partnership with the non-profit Global Cyber Alliance to bring a free cybersecurity toolkit to small businesses, including those in financial services. Read on for more details.

The Mortgage Bankers Association and Housing Policy Council wrote to the Consumer Financial Protection Bureau, requesting the bureau revise 12 C.F.R. Section 1024.17 to allow servicers to include, in annual escrow statements, an option for the borrowers to repay in lump sum any escrow shortages or deficiencies that are more than one month’s escrow payment. It also requests the bureau provide reliable guidance to servicers confirming they can communicate to borrowers that lump sum payment is an option without violating Regulation X. Read on for more details.

When a couple purchased property in New Jersey, their attorney charged additional funds for recording their deed and mortgage. They filed suit against their title insurer, arguing that they were required to reimburse them for the losses they incurred under the closing service letter and sought certification of a class of similarly situated buyers. Read on for more details.

After the owner of property divided it and sold it to another, the buyer and seller argued as to which party held the easements after sale. The buyer filed suit to quiet title and the seller filed counterclaims for negligence against the title company that conducted the transaction. The title company moved to dismiss the suit. Read on for more details.

Tennessee Gov. Bill Lee announced the appointment of a new commissioner of the Tennessee Department of Commerce & Insurance. Read on to find out more about the new commissioner.

The Missouri Department of Commerce and Insurance began offering online proctored insurance producer examinations on Nov. 17. 2020. Read on for more details.

A Pennsylvania attorney was convicted of bank fraud and aggravated identity theft for forging and filing a mortgage satisfaction document, as well as forging bank officials’ signatures. Read on for more details.

A Bedford, N.H. attorney pleaded guilty to wire fraud and money laundering related to client funds. Read on for more details.

The Financial Crimes Enforcement Network announced the renewal until May of its Geographic Targeting Orders (GTOs) that require U.S. title insurance companies to identify the natural persons behind shell companies used in all-cash purchases of residential real estate. Read on for more details.

A couple that loaned money to another couple sought to prevent the discharge of the note they held after the other couple went into bankruptcy. Read on for more details.

The Federal Trade Commission has launched a new website, ReportFraud.ftc.gov, where consumers can report fraud and all other consumer issues directly to the FTC. Read on for more details.

The former president and chief executive officer of a bank in Elkton, Md., was sentenced to time in prison after pleading guilty to conspiracy to commit bank fraud, receipt of a bribe by a bank official, and false statement in bank records, in connection with the straw purchase of a home in Rising Sun, Md., upon which the bank had foreclosed. Read on for more details.

A Bolder, Colo., man was sentenced to five years in prison for bank fraud and aggravated identity theft. The man owned, operated or had interest in businesses involved with financing residential mortgage loans. Read on for more details.

The last few years, and particularly the last several months, have seen an increase in eClosings. With the increase in eClosings, and changing landscape, many in the industry have questions. October Research LLC recently held a webinar to answer some of these questions. Two industry experts answered some additional questions here. Read on for their answers.

After a couple bought a home in Annapolis, Md., their neighbors informed them of a suit they were bringing against them and the developers of the couple’s property due to runoff damaging the neighbors’ property. The couple sought coverage from their title insurer, who denied coverage. After hearing of the denial, the couple filed suit against the title company. Read on for more details.

New York Gov. Andrew Cuomo has extended until Dec. 3, 2020, the executive order authorizing notarizations to be performed utilizing audio-video technology. Read on for more details.

After their home was sold at a trustee’s sale, a couple sued their mortgage servicer, alleging several causes of action, including wrongful foreclosure. The case eventually went before the First District Court of Appeal of California. Read on for more details.

The Michigan Department of Insurance and Financial Services issued Bulletin 2020-44-INS in response to an emergency order issued Oct. 9, as well as emergency rules issued by the state’s Occupational Safety and Health Administration issued Oct. 14, 2020. Read on for more details.

The Alabama Department of Insurance recently launched its newly designed website. Read on for more details.