News By Edition

It looks like the Consumer Financial Protection Bureau (CFPB) is continuing full steam ahead creating new mortgage disclosures combining the disclosures currently required under RESPA and the Truth in Lending Act (TILA). Last month the bureau announced it was testing new closing disclosures in Philadelphia, Pa. (see story on page 11). After that, there will be one more round of testing on one last iteration of the forms before the bureau gets to work writing the rules that will govern the use of those forms.

A lot of things have changed over the last few years. Defalcations have proliferated, taking with them several agents and regional underwriters. Regulators have taken a closer look at title insurance, making several changes to the way they oversee the industry. And legislators, concerned about protecting consumers, have changed laws regarding underwriter liability and solvency requirements for both agents and underwriters. All of these things have caused agents and underwriters alike to examine their relationships with one another and look at how that may change in the future. During a recent October Research Webinar titled The Closer’s Balancing Act, experts from the underwriter, agent and regulatory point of view discussed these changes and what they mean for the agent/underwriter relationship going forward.

After sending out a request for supplemental briefs in Eaton, several parties obliged the Massachusetts Supreme Judicial Court. These additional arguments will help the court determine whether a foreclosing entity must hold the promissory note and the mortgage in order to properly foreclose on property. Read on to find out what the interested parties had to say.

Illinois Gov. Pat Quinn named a new commissioner to the state’s Department of Insurance, ending a lengthy search that required the appointment of several acting directors. Read on to find out more about the new commissioner.

The General Assembly of South Carolina is considering a bill that, if passed, would allow additional parties to execute mortgage satisfactions or deed of trust releases. Read on to find out more about the bill’s provisions.

The Arizona legislature has introduced a bill that, if passed, would create additional requirements for mortgage servicers involved in foreclosure proceedings. Read on to find out more about these new requirements.

With current Commissioner of the New Jersey Department of Banking and Insurance Tom Considine leaving for a job in the private sector, Gov. Chris Christie announced his nomination for Considine’s replacement. Read on for more about the nominee.

The American Land Title Association and a group of other real estate industry associations sent a letter to the Consumer Financial Protection Bureau asking the bureau to use an iterative rulemaking process when developing rules for implementing new mortgage disclosure forms. Read on to find out more.

Lender Processing Services has filed a response to the civil complaint filed by the Nevada Attorney General, requesting that the court dismiss the allegations that it was involved in illegal robo-signing activities. Read on for more from the company.

Title insurers in Georgia may have one more product to offer their customers, if a bill under consideration in the state legislature is passed. Under the proposed law, title insurers in the state would be allowed to issue closing protection letters. Read on to find out more details.

Days after the Residential Mortgage-Backed Securities Working Group was announced during the State of the Union, its creators shared its core mission with the public, fleshing out both its structure and goals. Read on to learn more.

The West Virginia legislature has introduced its version of the Uniform Real Property Electronic Recording Act, which, if passed, would allow electronic documents to be recorded in county recorders’ offices across the state. Read on for more details.

Two Bloomington, Minn., residents were indicted for their alleged roles in a foreclosure rescue scheme, using a nonprofit counseling program to defraud homeowners and financial institutions. Read on to find out more.

The Consumer Financial Protection Bureau’s mortgage disclosure team is back on the road testing mortgage closing disclosure prototypes, this time in Philadelphia. They are asking interested parties to tell them how the new prototypes work with the current version of the application disclosure. Read on to find out more about their process and to see the forms.

Speaking before the House Subcommittee on TARP, Financial Services and Bailouts of Public and Private Programs for the first time as director of the Consumer Financial Protection Bureau, Richard Cordray spoke of his desire to hear from Congress as well as the bureau’s accomplishments to date. Read on to find out what he had to say.

October Research, publisher of The Title Report, The Legal Description, Valuation Review, RESPA News and Dodd Frank Update, announced that it is launching an awards program to honor men and women in the mortgage and settlement services industries for exemplary accomplishment in the areas of leadership, innovation and philanthropy.

A former Chicago lawyer was sentenced to 15 years in federal prison for engaging in a mortgage bailout scheme involving at least 102 fraudulent transactions. Read on to get more details.

The Superior Court of Sacramento, Calif., has tentatively approved a settlement between a California title company and its escrow officers. Read on to get the inside scoop.

The New Jersey legislature has introduced a bill that, if passed, would establish residential mortgage fraud as a separate crime in the state. Read on to find out more about the bill.

Each year, the Colorado Division of Insurance presents a report on title insurance enforcement actions, market trends and consumer complaints to the state’s general assembly. This year’s report showed that the industry was stabilizing, but that the division had to address significant defalcations in the state. Read on for more from the report.

A New York real estate attorney charged with embezzling more than $7 million from a client fled to Hong Kong. His arraignment was held shortly after he was brought back to the United States by the U.S. Marshals Service.

The owner of a mortgage brokerage and the owner of a title closing company pled guilty to participating in a mortgage fraud scheme involving at least 88 transactions. Read on to find out more about the scheme.

Old Republic International Corp.’s subsidiary, Republic Mortgage Insurance Co. was ordered into supervision by the North Carolina Department of Insurance. The unit had been having increased claims throughout 2011. Read on for more details.

A Georgia lawyer was sued for breach of contract and malpractice after his firm failed to pay off mortgages at a real estate closing. The disbursement of those funds was to be handled by his partner and an escrow account signatory, as instructed. Read on to find out what the Court of Appeals of Georgia had to say on the matter when it came before the court on appeal.

The Virginia General Assembly is considering a bill that, if passed, would allow attorneys, settlement agents and title insurance companies to file corrective affidavits if obvious description errors are found in a recorded deed. Read on to find out the details.

October Research is pleased to announce it has selected two very prominent figures to deliver the keynote addresses at the 2012 National Settlement Services and Compliance Summit, to be held in Cleveland, Ohio, June 12-13 at the downtown Cleveland Marriott at Key Center.