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Title insurer sues company, couple for alleged fraudulent diversion of escrow funds
Posted Date: Monday, August 14, 2023
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.
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NAIC releases draft of model AI bulletin for comment
Posted Date: Wednesday, August 16, 2023
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.
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USB settles mortgage securities fraud case for $1.4B
Posted Date: Wednesday, August 16, 2023
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.
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Does expired redemption period eliminate standing to challenge foreclosure for fraud?
Posted Date: Wednesday, August 23, 2023
A mortgagor filed suit to challenge the foreclosure and subsequent sale of his property. After the trial court issued its opinion, he appealed, challenging the court’s conclusion that he lacked standing to bring his claims after the redemption period expired. The Michigan Court of Appeals heard the case.
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Adjacent gas station’s sign creates title issue for hotel owner
Posted Date: Wednesday, August 23, 2023
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.
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Property owners sue for breach of policy, duty of good faith after coverage denial
Posted Date: Monday, August 21, 2023
When a property owner went to sell a portion of land it owned to a third party, it discovered the previous owners had deeded a strip of land to the Oklahoma Turnpike Authority and granted it all abutter’s rights. When the owner sought coverage from its title policy, it was denied. The property owner filed suit, and the insurer moved for summary judgment.
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Plaintiff adds title insurer to try-title suit
Posted Date: Monday, August 21, 2023
A man filed a suit to try title to property in Harris County, Texas, against an alleged owner of the property. He alleged the deed that purported to give title to the seller was a forgery, and therefore the deed to the alleged owner did not convey good title. He filed a third-party complaint against the title company that conducted the owner’s transaction, alleging negligence.
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New Hampshire issues bulletin on notice of producer termination
Posted Date: Monday, August 21, 2023
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.
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October Research welcomes Mary Schuster as Chief Knowledge Officer
Posted Date: Wednesday, August 16, 2023
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.
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Foreclosure sale purchasers sue other lienholder to prevent foreclosure
Posted Date: Monday, August 14, 2023
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.
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CertifID data shows mortgage payoff fraud attempts increased from Q1
Posted Date: Monday, August 14, 2023
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.
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New York man pleads guilty to deed fraud
Posted Date: Monday, August 14, 2023
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.
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