News By Edition

An interesting bill came across my desk recently out of New York. The bill, SB 5093, sponsored by Sen. John DeFrancisco, R-Syracuse, would require title insurance providers to disclose title service charges to customers upon receipt of an application for title insurance.

The economic crash of 2008 and the subsequent foreclosure crisis hit Florida extremely hard. It is no wonder therefore that at the Attorneys' Title Fund Services LLC Annual Assembly, speakers took some time to discuss foreclosures in the state.

Lender Processing Services Inc. has agreed to a settlement with investors, settling claims that LPS misled investors about robo-signing and other improper practices in connection with foreclosures. Read on to find out more about the settlement.

The New York General Assembly has introduced a bill that would require title insurance providers to disclose title service charges to customers upon receipt of an application for title insurance.

A title insurer sued the president of a mortgagor after he failed to uphold a personal undertaking to indemnify the insurer when the mortgagee insured filed a claim. The claim was for defense in a mechanic’s lien foreclosure which was filed before the mortgage. The personal undertaking was issued specifically so the president of the mortgagor would defend the insurer and the insured mortgagee against the mechanic’s lien. Read on for more details.

WFG National Title Insurance Co. announced it is continuing to grow its compliance team, adding a new senior vice president of compliance and licensing. Read on for more details.

The bookkeeper of a Kentucky title company was sentenced to time in prison for embezzling funds, including writing checks from the company’s business account to pay for personal expenses. Read on for more details.

The California Department of Insurance and a Delaware title company reached a settlement over allegations that the company was conducting title and escrow business in the state without a license. Read on for more details.

While every attorney and every title agency owner has faith that the people they hire are trustworthy and able to do the task before them, it is critical to maintain a level of awareness of the employees in your office and the business they are conducting. During the Attorneys' Title Fund Services LLC Annual Assembly, Margaret Williams, Fund risk manager, provided tips for how to provide that level of awareness, from pre-hire throughout the staff member’s employment.

“As attorneys, it is our responsibility to safeguard our clients’ information and property and look out for their best interest,” Williams said. “As we take on this responsibility, it is often necessary to appoint others to assist us with the tasks involved. While we may delegate some tasks to non-attorney staff members or other attorneys, it continues to be our ethical duty to make sure our clients’ interests, their information and their property are safe. It is the attorney’s duty to choose their staff members carefully, to make sure their staff members have sufficient knowledge to do their job properly, to make sure [the attorney] has sufficient knowledge to know if [the employees] are doing their job properly or not, and to supervise their work consistently and carefully.”

A promissory note holder sued several parties, arguing it is entitled to collect money due under a promissory note on a condominium development. Among others, it sued the title company that conducted the closings of individual condominium units alleging that the insurer negligently transferred title to the units and funds to the developer without verifying the developer’s debt to the promissory note holder. Read on to find out what the Court of Appeals, Second District, California, had to say when the issue went before it.

Real Estate Data Shield’s compliance and data security awareness e-Courseware has received Horizon Interactive Bronze Award. Read on for more details.

Iowa Gov. Terry Branstad signed a bill that allows the Title Guaranty Division of the Iowa Finance Authority to execute and record a certificate of release in the property records. Read on for more details.

Much was said about escrow security, data security and fraud prevention during the 2013 Voice of the Title Agent. Read on to find out what fellow agents have to say on the subject and how you can find out what other topics were addressed in this year’s Voice of the Title Agent.

Years after a title company didn’t encumber the entire property being sold to a Texas couple, the couple, and the former owner, were sued by several taxing authorities to collect delinquent property taxes for the years the couple owned the property. The couple then sued the title company for negligence. Read on for more details.

A New Haven-based attorney was sentenced for his role in a mortgage fraud conspiracy in which he submitted false HUD-1 settlement statements and lied to FBI agents when questioned about the conspiracy. Read on for more details.

The Maryland General Assembly adopted a bill authorizing a mortgagor or grantor to refinance the indebtedness secured by a first mortgage or deed of trust without obtaining permission from the holder of junior liens. The bill awaits the signature of Gov. Martin O’Malley. Read on for details.

President Obama has asked the U.S. Supreme Court to clarify his power to fill government vacancies during a congressional recess when the Senate is in session. The request comes as concern regarding the validity of appointments Obama made last year. Read on for more details.

A federal court denied a title company’s motion to dismiss a breach of contract claim, saying the Federal Deposit Insurance Corp.’s complaint alleged a sufficient causal connection between a breach and the damages incurred in a fraudulent real estate deal. Read on for the details.

Michigan Attorney General Bill Schuette announced the former president of DocX was sentenced to 40 months to 20 years in prison for her role in authorizing the fraudulent signing of mortgage documents filed in Michigan. Read on for more details.

A Massachusetts homeowner sought the dismissal of her mortgage in bankruptcy, arguing, among other things, that the mortgagee engaged in the unauthorized practice of law when conducting her closing and that the person who notarized her mortgage did so outside her presence, in violation of a state executive order. Read on to find out what happened when the court heard the case on the bank’s motion to dismiss.