Stewart, activist investors reach deal
In an agreement that will make it difficult to force a sale of the company for the next two years, Stewart Information Services announced that it will make changes to its board of directors. The agreement with activist investors Starboard Value LP and Foundation Asset Management brings the resignation of current board members Malcolm S. Morris and Stewart Morris Jr. after 16 years of service. Other changes were announced as well.
Lender sues under CPL for agent’s fraud
After Fannie Mae discovered a closing agent had perpetrated fraud in conducting real estate closings, it required the lender in those transactions to buy back the loans. The lender did so, began the foreclosure process and filed claims under the closing protection letters against the title insurer in the transactions. The title insurer denied the claims and the lender filed suit.
Title agency sues Indiana insurance commissioner
After entering a settlement agreement with the Indiana Department of Insurance, an Ohio title agency sued Indiana Insurance Commissioner Stephen Robertson, alleging violations of the Equal Protection and Commerce Clauses. The company argued that the commissioner was harder on out-of-state insurance agencies than in-state insurance companies. Robertson moved to dismiss the complaint.
Court rules CFPB to be unconstitutional
Court Report, Industry News
In its much anticipated decision, the Washington, D.C. Circuit Court of Appeals had much to say about the Consumer Financial Protection Bureau’s structure, its interpretation of RESPA Section 8 and captive reinsurance. Read on for more about the court’s reasoning and some initial reaction.
Title insurer sued for vexatious refusal
Thinking it had a subordination agreement with the home equity lender on property in Missouri, the lender of a refinance mortgage moved forward with its transaction. The borrower defaulted on the home equity and when the home equity lender went to foreclose, the refinance lender discovered the subordination agreement never had been recorded. When its title insurer denied its claim, the refinance lender filed suit for breach of contract and vexatious refusal.
Title insurer seeks injunction against former employees
After several employees left to start their own title agency, a title insurer sued them and their new agency, seeking a preliminary injunction. The title insurer argued the individual former employees had violated the non-compete provisions of their employment contract, as well as the company’s confidentiality agreement. Read on for more details.