BREAKING NEWS: CFPB unveils eClosing initiative
Industry News, Regulatory News
The Consumer Financial Protection Bureau met with the public Wednesday to discuss the mortgage closing process. The agency announced that it will launch a new electronic closing pilot program in order to explore new avenues to make closings less complex for consumers. October Research, LLC is attending the forum at the CFPB’s headquarters in Washington, D.C. and speaking with those in the industry about the bureau’s new program.
Bank sues under CPL after discovering fraud
After discovering it lost $7 million on loans secured under a fraudulent property flipping scheme, a bank went after several parties, including the title agents who closed the transactions and the title insurer. The bank sued, asserting claims against the agents for breach of closing instructions and claims against the title insurer for breach of the closing protection letter. The bank eventually appealed the case to the Court of Appeals of Michigan on a trial court’s dismissal of one of the agents and the title insurer.
Homeowners seek defense of easement dispute
After being unsuccessful in filing a quiet title action against the adjoining property owners over an easement dispute, the plaintiff homeowners submitted a claim for defense to their title insurer. The title insurer denied the claim, asserting the suit was excluded from coverage. The homeowners then sued the title insurer for breach of duty. The case eventually went before the Supreme Court of Nebraska.
Homeowners accuse title insurer of violating RESPA with delivery companies
California homeowners sued their title insurer for violating RESPA when it received marketing fees from several delivery companies in exchange for referring overnight delivery business to the carriers via the insurer’s subsidiaries. The case went before the U.S. District Court on the title insurer’s motion to dismiss.
Fraud schemes to look out for in 2014
Industry News, The Blotter
Fraudsters continue to stay one step ahead of the rest of us, coming up with new schemes just as old schemes are being figured out. It’s important to stay as up-to-date on the prevailing schemes of the day as possible so you — and your customers — don’t become the victims of these frauds.
During the American Land Title Association’s Business Strategies Conference, Gary Bernier, vice president, underwriting counsel and agency services manager for New Hampshire and Maine, shared his insight into the latest schemes.
Insurer seeks dismissal of coverage dispute over air rights filing
A property owner purchased a fee interest in property in Brooklyn and air rights to contiguous property. It applied for a construction permit, but was denied because its certification of interested parties omitted certain necessary parties. It sued its title insurer for failing to submit the certification of interested parties on time.