News By Edition

A title insurer sued a company and two associates after an alleged fraudulent diversion of more than $2 million from the insurer’s escrow account to the company. A couple allegedly assisted in diverting the funds. The company and couple moved to dismiss the wife and two counts from the complaint.

New York Gov. Kathy Hochul announced New York’s first statewide cybersecurity strategy designed to protect the state’s digital infrastructure from cybersecurity threats.

The Innovation Cybersecurity and Technology Committee of the National Association of Insurance Commissioners released for comment a draft of its Model Bulletin on the Use of Algorithms, Predictive Models, and Artificial Intelligence Systems by Insurers.

The Connecticut General Assembly adopted legislation that, among other things, addresses mortgage modifications and mortgage payoffs. The new law goes into effect Oct. 1.

USB agreed to pay $1.435 billion in penalties to settle a civil action filed in November 2018 alleging misconduct related to UBS’ underwriting and issuance of residential mortgage-backed securities (RMBS) in 2006 and 2007. This settlement resolves the last case brought by a Department of Justice Working Group dedicated to investigating the conduct of banks and other entities for their roles leading up to the 2008 financial crisis.

The owner of a hotel property had to contend with the ramifications of the former owner’s agreement to lease property to the adjacent gas station owner to place a pole sign. After a dispute with the gas station owner, it sought coverage from the title insurer. The insurer denied the claim because the sign violated a city code prohibiting off-site signs, and the owner sued.

The Pennsylvania General Assembly adopted amendments to its municipal claim and tax lien law. The amendments go into effect 60 days after they were adopted, which was July 5.

The Utah Insurance Department repealed R592-15, Schedule of Minimum Charges for Escrow Services, as of Aug. 21.

Michigan Department of Insurance and Financial Services Director Anita Fox announced the promotion of an employee to serve as the director of the Office of Insurance Rates and Forms.

The Ohio Department of Insurance posted amendments to its continuing education course rule and regulation of agent pre-licensing education rule for comment. Comments must be submitted electronically by Aug. 30.

Acting New Hampshire Commissioner of Insurance David Bettencourt issued a bulletin reminding insurers of what they need to do to remain compliant with the law if they terminate a business relationship with a producer for cause. Read on for more.

A Franklin, Tenn., man pleaded guilty to fraud in connection with COVID-19 relief programs, mortgage fraud, and money laundering that netted him close to $1 million.

October Research announces that 25-year title and settlement services industry veteran Mary Schuster has joined the company as Chief Knowledge Officer. “Stay tuned for some exciting new developments we will be rolling out to assist our partners in the real estate transaction,” CEO and Publisher Erica Meyer said in the announcement. Read on for more.

The Montana Legislature adopted legislation to require sellers to provide a written disclosure statement, as well as a buyer’s right to rescind a sales agreement.

The New York State Senate introduced legislation that would expand the current real property law to include requirements to produce notice between mortgagee and mortgagor on the minimal purchase needed for compulsory flood insurance.

After purchasing property at a foreclosure sale, a couple discovered the property had another trust deed against the property. They filed suit, seeking a declaration that the other trust deed was either extinguished by the foreclosure of the other trust deed or, by order of statute, could no longer be foreclosed against the property. The trial court granted the lienholder’s motion for summary judgment and the couple appealed.

CertifID announced its PayoffProtect mortgage payoff verification product tracked a 5x increase in mortgage payoff fraud attempts from the first quarter to the second quarter. It predicted that losses from payoff fraud will accelerate.

The Texas Department of Insurance issued Bulletin B-0010-23, reminding title insurance agents and direct operations in the state of the passage of HB 1901, which allows agents to fille annual escrow audit reports electronically instead of by certified mail.

A Brooklyn, N.Y., man pleaded guilty to grand larceny for a deed fraud scheme in connection with two properties, one in Bedford-Stuyvesant, N.Y., and the other in Bushwick, N.Y. He committed mortgage fraud related to a third property in Park Slope, N.Y.