A cautionary tale: Bank not liable for cyber theft, says 8th U.S. Circuit Court Report
An escrow company from Missouri can now be held up as a cautionary tale for other companies to do all they can to protect their escrow funds from cyber theft. After internet fraudsters stole $440,000 from their escrow account, they sued their bank to recover the lost funds. The bank counterclaimed for attorney’s fees. The district court held that the escrow company should bear the loss of the funds from its account.
Bank sues title insurer for bad faith after foreclosure, mistaken court filingA bank filed suit against a title insurer for breach of contract and bad faith under a title insurance policy with respect to a securitized mortgage of which the bank is the trustee. After a U.S. district court granted the title insurer’s motion for summary judgment, the bank appealed to the 3rd U.S. Circuit Court of Appeals.
Homeowners sue title insurer for failing to promptly and reasonably address title defectsCourt Report
After failing to sell their home because of defects in the title, a New Jersey couple filed suit against their title insurer. While the insurer resolved the title defects in the couple’s favor, the couple argued that the title insurer breached the title insurance contract by failing to uncover the defects and that the company’s efforts to cure the title defects were not prompt and reasonable. The case eventually made it to the 3rd U.S. District Court of Appeals.
Real estate software developer sues law firm over title rate calculator copyright infringement Court Report
A real estate software developer who created a Pennsylvania Title Insurance Rate Calculator sued a law firm who the developer argued infringed on his copyright by placing a version of the rate calculator on its website. The U.S. District Court for the Eastern District of Pennsylvania heard the firm’s motion to dismiss.
Wisconsin bulletin disapproves blanket exceptions in title policies Regulatory Updates
The Wisconsin insurance commissioner issued a bulletin informing title insurers that his office has received a complaint about title companies using blanket exceptions in their title insurance policies. He also informed title insurers that beginning June 24, he would be disapproving title insurance forms that include these exceptions.
Seeing clearly: Navigating the uncertainties of lender liability Industry News
During October Research, LLC’s National Settlement Services Summit this year, George Houghton, group president, agency operations, Stewart Information Services Corp., led a panel discussion with William Burding, executive vice president, general counsel, Orange Coast Title Co.; Penny Reed, vice president, industry outreach-business capabilities development, Wells Fargo Home Mortgage; and Paula-Rose Stark, senior principal, Promontory Financial Group LLC, on how to gain clarity and move forward to address the concerns of lenders and agents.