Title insurer compels fraud information from agent’s bank
After bearing the responsibility for $3.5 million in losses from its agent’s fraud scheme, a title insurer alleged that the agent’s bank partially was responsible because it let the fraudulent conduct continue, despite warning signs of fraud. When the bank refused to provide information, the insurer filed a motion to compel.
Federal, state data broker legislation to be on title industry watchlist
The Obama administration, Congress and even state legislators and regulators increasingly are interested in data brokers and data aggregators, whose non-public personal information they are using and how they are — or are not — regulated. During the Association for Title Information Management’s (ATIM) 29th Annual Conference, David Floyd, president, SKLD Title Services, discussed a new legislative trend in overseeing data brokers and how these bills could impact the title industry.
FDIC seeks recovery of $9M losses through CPL
The Federal Deposit Insurance Corp., as receiver for Washington Mutual Bank, sought reimbursement from a Florida title company for Washington Mutual’s losses on 14 defaulted mortgages. Washington Mutual had closing protection letters for each of the closings and sought claims on each of them, which the title company denied.
Homeowners sue escrow company, escrow agent for failed IRS lien payoff
Homeowners in California sued the escrow company and escrow agent who handled the refinance of their property for failing to pay off all of the IRS tax liens recorded on the property. By failing to do so, the homeowners claim the company and its agent breached their fiduciary duty and failed to follow escrow instructions.
LandCastle bought out; sues former CEO for embezzlement
On Aug. 25, LandCastle Title LLC made two significant moves. It sent a letter to partners informing them that Fidelity National Title Group (FNTG) had purchased a 70 percent ownership of the company. It also filed suit against its former CEO for alleged embezzlement.
Company sues title agency for negligence in 1031 exchange
After a partial failure of a 1031 exchange, a medical supply distributor sued a South Dakota title agency for negligence and negligent misrepresentation. The trial court held that the title agency was negligent in assisting the distributor with the exchange, and the title agency appealed. The case then went before the Supreme Court of the State of South Dakota.