Does insurer owe coverage of unauthorized settlement?
After a title insurer paid out millions in claims regarding a real estate fraud claim, it got into a dispute with the owners of property allegedly bought with proceeds from a fraudulent sale it insured. It sought coverage from its liability insurer, but rejected its insurer’s defense because it came with a reservation of rights. The parties to the dispute entered into a settlement enforceable against the liability insurer on the title insurer’s behalf. The liability insurer then filed suit against all parties to the agreement.
Title insurance bill introduced in Congress
A bill regarding the cost of title insurance has been introduced in Congress. The bill amends RESPA to address what the sponsor calls conflicted referral advice, which he says will ensure that homebuyers are not overcharged when purchasing title insurance. Read on for more details.
LandAmerica settles retirement plan dispute
After LandAmerica Financial Group and its 1031 exchange subsidiary filed for bankruptcy in 2008, employees filed suit under the Employee Retirement Income Security Act, alleging several of the company’s directors and officers violated their fiduciary duties by allowing investment of LandAmerica Financial Group Employee Savings and Stock Ownership Plan assets in LandAmerica stock when they knew those investments would lose money. After a lengthy court process and settlement negotiations, the parties have reached a settlement.
Title insurers dispute responsibilities under reinsurance agreement
Two national title insurers entered into a reinsurance agreement after one of them provided an owner and a lender title insurance policies to finance the acquisition of property and the construction of a power plant on that property. Later the buyer and lender made claims under the title policies because mechanic’s liens recorded against the property had priority over their interests in the property. The title insurer who provided the policies entered a settlement with the parties and sought repayment from the other insurer for the insurer’s proportionate share of the sum.
Title insurer creates calculator to tackle simultaneous issue under TRID
One title insurer has taken a unique approach to calculating the simultaneous issue rate under the TILA/RESPA Integrated Disclosure Rule by placing a CFPB Quick Quote feature on its website. Read on for more details.
CFPB talks TRID restraint
Consumer Financial Protection Bureau Deputy Director Steven Antonakes was asked about a restrained enforcement period for the TILA-RESPA Integrated Disclosure (TRID) rule at a trade show in Orlando, Fla. See what he said, and what the bureau later felt the need to clarify.