News By Edition

California Insurance Commissioner Ricardo Lara issued Bulletin 2022-8 to address unlawful title and escrow inducement activities, providing updated guidance regarding the Department of Insurance’s approach and priorities in enforcing the title and escrow anti-inducement provisions of state and federal law.

The Executive Committee of the Uniform Law Commission recently authorized the appointment of a new Study Committee on Model Marketable Title Act and Study Committee on the Use of Tokens or Other Similar Products in Real Property Transactions.

After a property owner filed suit against its title insurer and escrow agent in Missouri state court, the title insurer removed the case to federal court. It argued that the property owner fraudulently joined the escrow agent as a party to defeat diversity jurisdiction and failed to state a negligence claim against the escrow agent.

The Utah Department of Insurance is considering repealing R590-248, the Mandatory Fraud Reporting Rule, noting it is not used for enforcement. Comments are being accepted until Aug. 15 and the earliest effective date is Aug. 22, 2022.

The Texas Department of Insurance urged consumers to be wary of phone calls or other communications from anyone claiming to be a representative of the department.

The Securities and Exchange Commission charged Atlanta-based Angel Oak Capital Advisors, LLC and its portfolio manager Ashish Negandhi for misleading investors about the firm’s fix-and-flip loan securitization’s delinquency rates. The firm had raised $90 million through a first-of-its kind securitization of loans made to borrowers for the purpose of purchasing, renovating and selling residential properties.

A title company filed suit against the city of Baltimore, Md., challenging the city’s alleged construction holdback policy, whereby it charged a recordation tax on any construction holdback identified in purchase money deeds of trust. It argued the practice is unlawful and not supported by the language of state law.

A homebuyer in New York City filed suit against her title insurer and title agent for failing to timely record her deed, failing to use escrow funds to pay off existing mortgages on the property and breaching their duty to defend her in two separate actions regarding her purchase. The case eventually went to the Supreme Court of the State of New York Appellate Division: Second Judicial Department.

The Massachusetts Legislature is considering a bill that would authorize the Town of Nantucket to impose a real estate transfer fee for affordable and workforce housing and related capital improvements.

MISMO is seeking public comment on three industry resources to help accelerate the industry’s digital transformation.

A grand jury indicted a licensed real estate agent and her husband for conspiracy and bank fraud.

A New Orleans man was sentenced for his role in a mortgage-fraud scheme.

The 4th U.S. Circuit Court of Appeals recently addressed the question of whether a creditor’s failure to comply with its Section 1635(b) obligations following a borrower’s notice of rescission relieves a borrower of their obligation to tender the loan proceeds back to the creditor.

A title insurer, as subrogee for a buyer, sued the seller for breach of a warranty of title. After purchasing the property, the buyer discovered that two previously undisclosed easements impaired its ability to construct a Dairy Queen on the property. The insurer resolved its insured’s claim and sued the seller.

A California appellate court recently determined whether a title insurer or an escrow agent owes a duty of care to the spouse of a purchaser of real estate when the spouse and the purchaser expressly agreed the purchaser would procure the property in the purchaser’s name alone.

With the passage of Act 264 regarding requirements for obtaining and maintaining a title producer license, the Louisiana Department of Insurance has rescinded Advisory Letter 2020-04 and Advisory Letter 2021-01.

The Wisconsin Office of the Commissioner of Insurance partnered with its exam vendor to offer insurance agent licensing exams in Spanish and Hmong.

When the sellers of property sold property in Martin County, Texas, they reserved all mineral rights. They later consolidated the tracts from six to three and issued a correction deed to address the failure to reserve all mineral rights and interests to the sellers in the original deed. The buyers eventually filed suit, alleging the correction deed was not valid. The case eventually went before the Eleventh Court of Appeals of Texas.

The Louisiana Department of Insurance issued Advisory Letter 2022-02 regarding Act 264 of the 2022 regular session of the Louisiana Legislature. The new law enacts new statutory provisions and amends and reenacts existing provisions regarding the requirements for obtaining and maintaining a title producer license and went into effect Aug. 1, 2022. The advisory letter provides guidance regarding the issuance of new title producer licenses under the new statute.

The Colorado Division of Insurance adopted amendments to Regulation 8-1-2 Title Insurance Consumer Protection. The amendments add a requirement that a title insurance company notify the division if it becomes aware that a title agent fails to issue a title policy in a timely manner. The amendments will go into effect Sept. 14.

The New York Department of Financial Services issued Insurance Circular Letter No. 9 (2022) regarding storing books and records through electronic means, including in the cloud.

Shortly before H.R. 8152, the American Data Privacy and Protection Act (ADPPA), was passed by the House Committee on Energy and Commerce, the Mortgage Bankers Association wrote a letter to committee leadership to express its concerns about the legislation.

Three co-conspirators have been taken into custody on charges related to a multi-layered mortgage fraud, credit repair and government loan fraud scheme.

Since California and New York passed sweeping laws and regulations regarding data privacy and security a few years ago, other states have taken up their own legislative proposals to protect their residents.

New York Attorney General Letitia James entered an agreement with two title companies to terminate no-poaching agreements, pay the state $1.25 million and cooperate with James’ ongoing investigations into the industry.

The District of Columbia Council passed legislation to amend the Revised Uniform Law on Notarial Acts of 2018, allowing notaries to perform a notarial act for an individual who is not physically present before the notary public. The bill awaits action from the mayor.

The Fourth Judicial District Court of Montana granted the state’s commissioner of Securities and Insurance’s (CSI) motion to place a title company under the control of a court-appointed receiver after CSI received a complaint alleging multiple acts of misconduct on the part of the company’s owner.

The U.S. House passed the Securing and Enabling Commerce Using Remote and Electronic Notarization Act of 2021 shortly after the House Committee on Energy & Commerce passed six consumer protection bills, including the SECURE Notarization Act and the American Data Privacy and Protection Act.

Three people were arrested in connection with the theft of hundreds of thousands of dollars wired from a Florida title company to accounts across the country and the world, resulting in the first-ever cryptocurrency seizure by the Volusia, Fla., Sheriff’s Office.