Title insurer sues fraudsters to recover claim payouts
After paying out claims to insured mortgagees, a title insurer filed suit against fraudsters who conducted multiple schemes involving four properties in Lexington, Ky. It obtained a default judgment against the leader of the conspiracy, but sought to recover from his co-defendants. Read on for more details.
New York court affirms eNote, transfer history sufficient to foreclose
After the successor of her mortgagee moved to foreclose on her property, the owner moved to dismiss the complaint because the bank lacked standing to bring the action, arguing that the bank lacked standing because it could not produce a chain of valid assignments of the eNote from the original lender. The trial court agreed and the bank appealed.
Couple challenges decision in title insurance row
After buying a secluded piece of property in Washington state, a couple discovered an overlooked easement that could render their property far less secluded. Their title insurer agreed that it had overlooked the easement and the claim was covered, but disagreed about the diminution of value to the property. The couple filed suit and a jury returned a defense verdict. The couple appealed and the case eventually went before the Supreme Court of Washington. Read on for more details.
Michigan Supreme Court rules on CPL, foreclosure issues
The Supreme Court of Michigan ruled on a case in which, after submitting a full-credit bid on a couple of properties after foreclosing on them, a bank discovered that it had been the victim of fraud by, among others, the closing agents that closed on the property. The bank went after the agents and their underwriter, which issued a closing protection letter for each transaction. The lower courts had ruled that the court’s decision in New Freedom extended the full credit bid rule to indemnity claims under CPLs. Read on for more details.
Changes pushed records toward predictable fees
Regulatory Updates, The Road through Oct. 3
Everyone knows that one of the most important parts of a real estate transaction is the recording of the deed to the property, letting everyone know who owns or has rights to the land. In many jurisdictions, the fee for recording the deed and other real estate-related documents is based on the amount of pages being recorded. Although this has worked for many years, federal regulatory forces are in play that may be an impetus for change in many recording jurisdictions.
South Carolina Supreme Court rules on MERS fraudulent recording suit
South Carolina county officials filed suit against Mortgage Electronic Registrations Systems Inc., its parent company and various banking institutions, alleging a practice of fraudulent recordings that disrupted the integrity of the public index. The actions were consolidated and MERS’ motion to dismiss was denied before the case went before the Supreme Court of South Carolina. Read on for more details.