News By Edition

Being a national publication, it’s not often that I come across news that directly impacts the area of Northeast Ohio where I live. But the other day, I did, finding the announcement of a complaint against Freddie Mac for neglecting to pay recording fees in my own Summit County.

The Consumer Financial Protection Bureau (CFPB) came out with its highly anticipated, 1,099-page proposed rule regarding the combination of the good faith estimate, HUD-1 settlement statement and Truth In Lending disclosures into a loan estimate form and closing disclosure designed to encompass RESPA, the Truth In Lending Act, Regulation X and Regulation Z. As the dust settled from the rule’s release, The Legal Description talked with several industry experts to get their initial views of the form.

The liability being placed on the mortgage industry is significant and they will be looking to their vendors to help ensure new regulations are being met. What does this mean for the title industry? Two attorneys shared their insight.

Stewart Title Guaranty Co. announced the appointment of a new vice president and regional underwriting counsel for the Southeast region. The new vice president will be responsible for enhancing underwriting services in the region. Read on to find out more about the new counsel.

The fifth attorney was convicted of his role in a $66 million mortgage fraud scheme involving home sales through the offices of First Class Equities in Oceanside and Old Westbury, N.Y. Read on for more details.

The 6th U.S. Circuit Court of Appeals closed an antitrust case first filed in Ohio which alleged that 22 title insurers and the Ohio Title Insurance Rating Bureau had violated federal and state antitrust laws. Read on for its reasoning.

A Maryland appellate court determined that homeowners may not allege defects in the chain of title after a foreclosure sale has been completed, only defects in the sale proceedings. Read on for the court’s reasoning.

The clerk of the Circuit Court of Duval County Florida filed suit against Mortgage Electronic Registration Systems Inc. and MERSCORP, alleging the MERS system violated state statutes and common law. Read on for the court’s reasons for granting MERS’ motion to dismiss.

Dodd Frank Update is hosting a three-part Webinar series over the next few months, designed to provide training on very important areas industry members are facing this year under the Dodd-Frank Act and its regulations. Topics such as new provisions from the CFPB and QM/QRM are included. Read on for details of each Webinar and how to register.

Within days of each other, two Connecticut closing attorneys plead guilty to conducting fraudulent closings, leading to a total of $10 million in losses. Read on for the details.

California Attorney General Kamala Harris announced the signing into law of the Homeowner Bill of Rights, which protects homeowners and borrowers during the mortgage and foreclosure process in a number of ways, including the ability to demand the documentation of a loan servicer’s right to foreclose. Read on for more details.

Delaware Attorney General Beau Biden announced that his office reached a settlement with Mortgage Electronic Registration Systems Inc. in which MERS agreed to implement reforms that will help troubled homeowners in the state. Read on for more details.

The Financial Crimes Enforcement Network has released a targeted study analyzing reports indicating suspicious activities involving the title and escrow industry. It identified thousands of instances of reports of suspicious activity involving title and escrow companies. Read on for more from the report.

The New Mexico Financial Institutions Division warned customers of Mimbres Valley Escrow Services Inc. not to make payments to the company. It filed a restraining order against it and is conducting an audit of the company after receiving a complaint against Mimbres Valley. Read on for more details.

Sometime after the sale of property in Utah, the purchasers discovered an oil and gas company was going to drill on their property, making part of the property unusable. They sued the sellers and the escrow company, who they felt breached the title policy and engaged in negligent misrepresentation by not informing them of the lease. Read on to find out what the U.S. District Court for the District of Utah had to say when the escrow company filed a motion for summary judgment against the buyer.

The Wisconsin attorney general announced the filing of a complaint alleging a Wausau, Wis., title agent had engaged in racketeering, embezzlement and fraud. Read on for more details.

An escrow company and a mortgage lender in Ohio challenged the certification of a class in a suit against it in which the class representative alleges the companies have overcharged sellers and buyers since 1987. Read on for the appellate court’s decision.

Finding the plaintiffs had not alleged factual content to support their claim that title insurers in New York paid kickbacks to their title agents for business referrals, the 2nd U.S. Circuit Court of Appeals affirmed a lower court decision dismissing the case. Read on for details.

Several associations involved in the real estate finance industry, including the California Land Title Association and the American Land Title Association, cautioned San Bernardino County and the cities of Ontario and Fontana against a joint agreement to establish the Homeownership Protection Program, which would use voluntary sales and eminent domain to restructure the loans of underwater homeowners. Read on for more details.

Summit County Ohio’s prosecuting attorney announced the filing of a complaint in the court of common pleas against Freddie Mac, requesting restitution for neglecting to pay fees and taxes over a six-year period. Read on for the details.

In a 60-minute instructional Webinar, two professionals from the title insurance industry will coach participants on what they should be doing now in order to prepare for, what for some is, the biggest business transaction of their life — selling their title business. This Webinar is unique in that it gives title insurance professionals fundamental building blocks on how to strengthen their business currently in order to get the most out of a future valuation. Read on for more.

The Property Records Industry Association announced a milestone for eRecording —800 counties now eRecord. Read on for more about this milestone and the steps it took to get there.

The North Carolina General Assembly ratified a bill that provides an alternative mortgage satisfaction form and adds ‘filing a false mortgage satisfaction’ to the list of mortgage fraud act violations. Read on for the details.

Ahead of its statutory deadline, and a week before it celebrates its first year as an agency, the Consumer Financial Protection Bureau released a massive, 1,100-page proposed rule to accompany its proposed integrated mortgage disclosures under RESPA and TILA. Let the analysis begin!