Confusion over property taxes leads to title insurance disputeCourt Report
After the purchaser of property in Mount Prospect, Ill., received notice of sale and redemption rights stating the property had been sold at tax sale for delinquent property taxes from years in which the seller had owned the property, the purchaser sued the seller for unjust enrichment and seeking declaratory judgment that the seller was responsible to pay all future costs the purchaser would incur to clear title. After the trial court granted the seller’s motion to dismiss, the purchaser appealed.
Four data security tasks to take on right now Industry News, Regulatory Updates
Several high-profile data breaches that occurred in the last year have highlighted the importance of data security to consumers and regulators in a variety of areas. The importance of data protection to lenders has been highlighted in the last few years by several moves by their regulators — the Office of the Comptroller of the Currency, the Consumer Financial Protection Bureau and the Federal Trade Commission. These safeguard requirements are trickling down to the settlement services industry and it’s important to be prepared for new lender expectations before they come down the pike. During a recent October Research LLC webinar, Data Security Compliance: Taking the fear out of implementation, Christopher Gulotta, founder and chief executive officer of Real Estate Data Shield, led a discussion with Richard Purcell, chief executive officer, Corporate Privacy Group and Paul Schwartz, professor Berkeley Law School and director, Berkeley Center for Law and Technology to discuss things agents can do now to protect consumer data.
Colo. title agencies sued for alleged mishandling of escrow funds Court Report
A routine audit of two Colorado title agencies’ escrow accounts prompted their underwriter to take a deeper look into the companies’ financials. The underwriter discovered a large negative balance to the agencies’ trust accounts during an on-site audit and alerted the Colorado Division of Insurance, which is conducting an investigation of the companies. The insurer also filed suit against the companies in order to assist with loan closings to mitigate the harm that real property sellers, buyers, brokers or lenders may suffer.
Kickback suit moves forward in Maryland Court Report
Maryland homeowners filed suit against a real estate company and a title company, alleging that the real estate company received more than half a million dollars in illegal kickbacks from the title agency over 13 years, in violation of RESPA. The parties filed several motions, including motions to dismiss several defendants and a motion to certify the case as a class action. Read on to find out what the U.S. District Court for the District of Maryland had to say.
Ensuring protection from cyber theft Industry News
Cyber theft is all around us, and the threat is even greater for title companies. The amount of consumers’ money they hold is a risk weighed carefully by lenders and regulators. Both parties have attempted to mitigate the risk. But how can agents protect themselves? During a session at the LandTitle Compliance and Tecnology Conference, Charles Cain, senior vice president of WFG National Title Insurance Co., discussed how specific errors and omission’s coverage can help make agents whole, even after following all other safety protocols.
Sixth Circuit determines insurer’s coverage for CPL Court Report
A title insurer brought a breach of contract action against its professional liability insurer, after the insurer refused to cover the misappropriation of escrow funds from the title insurer’s policyholders by the insured’s limited purpose agent. The U.S. District Court for the Northern District of Ohio granted summary judgment for the professional liability insurer. The title insurer appealed.