|
Eyes open: Looking out for property fraud
Posted Date: Wednesday, October 21, 2015
There has been much talk in recent years about the threat of cyber-theft and the vulnerability of personal information stored on company servers and in the cloud. Although this is undoubtedly a significant threat to the industry, it is important that we continue to be diligent in looking out for fraud, forgery and identity theft. Industry experts provided insight into what they are seeing and how the industry can help prevent it.
|
|
|
House approves TRID bill, ignoring veto threat
Posted Date: Thursday, October 8, 2015
TRID enforcement reached Capital Hill this week. On Tuesday, the White House said the president would veto a House bill that would institute a safe harbor from enforcement until Feb. 1, 2016, for companies who are making good-faith efforts to comply with TRID. On Wednesday night, the House ignored the veto threat and voted 303-121 to approve the bill, with 64 Democrats joining Republicans in the majority. Read on for the details.
|
|
|
When does underwriter have apparent authority for agent?
Posted Date: Tuesday, July 28, 2015
During the course of constructing a vacation home, the homeowners used a title agency they believed was an agent of a national underwriter to be their escrow disbursing agent. After construction stalled and they were forced to pay an increased amount to finish construction, they sued the agent as well as the underwriter, arguing that the underwriter had apparent authority for the actions of its agent. Read on for more details.
|
|
|
Does title company owe duty of care to third-party?
Posted Date: Tuesday, July 28, 2015
Property owners brought an action against a title insurer, alleging that the company negligently recorded junior liens on the property that caused the owner to default on the loan secured by the senior lien. The case went before the 9th U.S. District Court of Appeals. Read on for more details.
|
|
|
Title company demands personal guaranty from construction company owner
Posted Date: Thursday, July 30, 2015
After being assigned claims against a builder and its owner on behalf of homeowners who were sued as a result of the builder’s failure to pay contractors, subcontractors, suppliers and laborers, the homeowners’ title insurer sought summary judgment. It argued that the company owner was liable for the repayment of the funds owed to its contractors. Read on for more details.
|
|
|
CFPB provides guidance, highlights risks of marketing services agreements
Posted Date: Monday, October 12, 2015
The Consumer Financial Protection Bureau issued a bulletin providing guidance to the mortgage industry regarding marketing services agreements. The bureau highlighted the risks of entering into marketing services agreements, as well as RESPA’s prohibition on mortgage kickbacks and referral fees. Read on for more details.
|
|
|
|
CoreLogic: Mortgage fraud risk down 8.9 percent
Posted Date: Thursday, October 15, 2015
CoreLogic released its latest Mortgage Fraud Report, finding that as of the end of the second quarter of 2015, mortgage fraud risk has decreased 8.9 percent year-over-year. Read on for more insight from the report.
|
|
|
Arizona House speaker appointed director of insurance
Posted Date: Monday, October 12, 2015
Arizona Gov. Doug Ducey announced the appointment of a former Arizona speaker of the House as the director of the Arizona Department of Insurance. The new director has been serving as the director of the Arizona Department of Weights and Measures since January. Read on for more details.
|
|
|
Maryland attorney convicted of bank fraud
Posted Date: Thursday, October 15, 2015
A federal jury convicted a Maryland settlement attorney of conspiring to commit bank fraud, bank fraud and two counts of making a false statement to a bank. She had her co-conspirators conducted property settlements using false identities and concealed information. Read on for more details.
|
|
|
NAIC CEO to step down
Posted Date: Monday, October 12, 2015
Sen. Ben Nelson announced that he will not renew his contract as CEO of the National Association of Insurance Commissioners. He will leave his position Jan. 31 to return to private law practice and spend time with family. Read on for more details.
|
|
|
Connecticut attorney sentenced for fraudulent closings
Posted Date: Monday, October 5, 2015
A Connecticut attorney has been sentenced for his role in a mortgage fraud conspiracy in which he knowingly closed transactions in which false information was provided. Read on for more details.
|
|
|
Former Pro Bowler gets 5 years in prison for mortgage fraud
Posted Date: Monday, October 5, 2015
Former Pro Bowl NFL wide receiver Irving Fryar was sentenced to five years in prison following a conviction on charges that he conspired to steal more than $1.2 million through fraudulent home equity loans. Read on for more details.
|
|
|
California residents with filing false loan docs, tax fraud
Posted Date: Thursday, October 15, 2015
A federal grand jury in San Jose, Calif., indicted Elizabeth Calderon and Esther Sanchez, AKA Trinidad Carrillo, with filing false tax returns, theft of government funds, aggravated identity theft, making false statements to federally insured institution, and conspiracy. Read on for more details.
|
|
|
Homeowners sue title company over missed unpaid special assessment
Posted Date: Thursday, October 15, 2015
After a company bought their home at a tax sale, homeowners discovered that though their taxes were current, there was an unpaid special assessment on the property that wasn’t paid by the previous owner. The couple sought coverage from their title company, which denied their claim. They then sued their title insurer for breach of contract and breach of the insurer’s duty of good faith and fair dealing. Read on for more details.
|
|
|
Homeowner makes claim over inaccurate legal description
Posted Date: Thursday, October 15, 2015
A few years after Cemonn Kessee bought a house in a subdivision in Hesperia, Calif., the city notified her that the subdivision was built out of compliance and that it had prepared an accurate tract map to correct the legal description of the property. Kessee filed suit against her title underwriter, arguing that the company knew about the subdivision map error before she purchased the house. Read on to find out what happened when the case went before the Fourth District Court of Appeal of California.
|
|
|
When does 90-day discovery notice begin for CPL claim?
Posted Date: Thursday, October 15, 2015
The Federal Deposit Insurance Corp., as receiver for IndyMac, filed suit against a title insurer for failing to resolve a closing protection letter claim it had. The parties disputed when the requirement for the FDIC to provide written notice of an indemnity claim within 90 days of discovery of facts giving rise to potential coverage began. Read on for more details.
|
|
|
|
Illinois district court says E&O insurer was obligated to provide coverage to companies impacted by agency defalcations
Posted Date: Monday, October 12, 2015
The U.S. District Court for the Northern District of Illinois recently ruled that Title Industry Assurance Co. RRG had a duty to provide relief to two companies that were impacted by the defalcation of Chicago Abstract Title Agency, a now-dissolved company whose escrow agent later pleaded guilty to charges of wire fraud. Read on to find out how, seven years after the agency’s defalcation, the companies with whom it did business are still trying to recoup their losses in court.
|
|
|
Buyers sue title insurer over undisclosed development restrictions
Posted Date: Wednesday, October 7, 2015
The purchasers of property in Lexington, Ky., sued their title insurer for breach of contract and coverage when the company denied their claim after they discovered an agreement under which development on the property was restricted. Read on for more details.
|
|
|
Massachusetts attorney sentenced for role in condo fraud
Posted Date: Wednesday, October 7, 2015
A Massachusetts attorney was sentenced to prison for his role in a multi-year, multi-property mortgage fraud scheme. The attorney assisted a developer in selling more than 27 condominium units to straw buyers. Read on for more details.
|
|
|
Liability insurer, underwriter dispute responsibility for agent negligence
Posted Date: Wednesday, October 7, 2015
A professional liability insurer sued its insured title agent, a title policy holder and title underwriter, seeking a declaratory judgment that it had no duty to defend the agent in a suit brought by the policy holder or any related claims brought against the agent by the underwriter. The title agent had failed to discover defects in title to the policy holder’s property, which was encumbered by more than $2 million in liens. The underwriter had worked to quiet title to the property on behalf of the policy holder and sought to dismiss the liability insurer’s suit. Read on for more details.
|
|
|
Man sues national underwriters alleging title rate scheme
Posted Date: Wednesday, October 7, 2015
A Georgia man has filed a class-action complaint against several national underwriters, alleging that they engaged in a scheme to increase revenue by claiming to employees and consumers that they were required by law to charge certain rates. Read on for more details.
|
|