Title co. must pay for losses due to unreported fraud, court says

After being victimized by a mortgage fraud scheme, the bank that unknowingly provided the fraudulent mortgage sued the title company that handled the escrow, arguing that the company failed to follow the bank’s closing instructions and notify it when a request for disbursement came in at the 11th hour. The bank argued that had it been informed of the disbursement, it would have stopped the loan. Read on to find out why the Fourth District Court of Appeal of California found in favor of the bank.