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News By Edition
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The Legal Description Edition
November 6, 2017
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Must case be dropped after class action eliminated?
Posted Date: Wednesday, October 25, 2017
Plaintiffs in a case against title insurers doing business in Connecticut brought the suit under the Class Action Fairness Act. When, years after it was filed, they filed a fourth amended complaint deleting the class allegations, the title companies moved to dismiss the case, arguing that because the CAFA were deleted there is no basis for subject matter jurisdiction. Read on for the court’s decision.
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Court allows foreclosure-related suit to continue
Posted Date: Wednesday, October 25, 2017
When a debtor’s adversary proceeding was dismissed, he filed suit against his loan servicer in federal district court, alleging, among other things, that the foreclosed upon lien was void and that the bank was negligent in handling his loan modification applications. The case went before the 9th U.S. Circuit Court of Appeals, which remanded the case for further action in light of two recent court decisions on the matters at issue. A magistrate recommended that the case still be dismissed, but the court allowed the case to go forward. Read on for more details.
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Florida introduces Identity Theft and Fraud Protection Act
Posted Date: Wednesday, October 25, 2017
A bill was introduced in the Florida Senate that would require an agency to review for information susceptible to use for purposes of identity theft or fraud before making postings to a publicly available website. The Identity Theft and Fraud Protection Act would also require agencies to establish a policy providing for requests to remove an image or a copy of a public record containing information susceptible to use for purposes of identity theft and fraud. Read on for more details.
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California amends default procedures
Posted Date: Wednesday, October 25, 2017
California Gov. Jerry Brown signed a new law that amends the state’s default procedures regarding how much a beneficiary, trustee or mortgagee can seek from a mortgagor in reasonable costs and expenses incurred in enforcing the terms of the obligation. Read on for more details.
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Four indicted for fraud in New Jersey
Posted Date: Wednesday, October 25, 2017
A real estate investor, a builder, a mortgage loan officer, and a real estate settlement attorney were arrested today and charged with using “straw buyers” to fraudulently obtain mortgage loans from a bank. Read on for more details.
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Disbarred Massachusetts attorney sentenced for mortgage fraud
Posted Date: Wednesday, October 25, 2017
A disbarred Massachusetts attorney was sentenced in federal court in Boston for defrauding mortgage companies in connection with multiple mortgages she obtained on a single residence. Read on for more details.
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Insurer sues agent for breach of agency agreement
Posted Date: Monday, October 23, 2017
After having to pay a claim regarding an error the title agency made, the title insurer notified the agent of how much it had paid and reminded the agency of its requirement to indemnify the insurer for the loss incurred. The insurer then sued the agency for breach of the agency agreement. The agency appealed a trial court’s grant of summary judgment in the insurer’s favor. Read on for more details.
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Can title insurer file proof of claim in bankruptcy?
Posted Date: Monday, October 23, 2017
Relying on representations made to its insured that its insured would have a first priority lien on property, a title insurer issued a title policy to its insured lender when it provided a loan to purchase property in Nevada. It was discovered that the property owner did not provide its insured with first priority. When the property owner filed for Chapter 11 Bankruptcy proceedings, the title company filed a proof of claim, but was denied because it was in privity with its insured. The title insurer appealed. Read on for more details.
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Title issues arise in forcible-detainer suit
Posted Date: Monday, October 23, 2017
After being sued as a party in a forcible detainer suit in which the court awarded possession of the property to a bank, the occupant of the property appealed. He alleged that the lower court erred by granting judgment in the bank’s favor because, among other things, the court did not have jurisdiction of the case since the issue of possession was intertwined with the issue of title to the property. Read on for more details.
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Real estate broker, title agent, charged with forgery conspiracy
Posted Date: Monday, October 23, 2017
The Denver District Attorney’s Office formally charged a licensed real estate broker, her business partner and a title closing agent with criminal theft, conspiracy to commit theft, forgery and conspiracy to commit forgery. Read on for more details.
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Two indicted for wire fraud in Texas
Posted Date: Monday, October 23, 2017
Two men have been indicted in a wire fraud conspiracy in the Eastern District of Texas. The men allegedly conspired to create and submit fraudulent mortgage lien documents to title companies and financial institutions in order to receive transfers of funds they were not entitled to. The scheme resulted in $3.7 million in fraudulent proceeds.
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New York’s new anti-inducement rule
Posted Date: Wednesday, October 18, 2017
New York industry members have two new regulations to comply with. While one, Regulation 206: Title Insurance Agents, Affiliated Relationships and Required Disclosures, went into effect on Oct. 18, the other, Insurance Regulation 208: Title Insurance Rates, Expenses and Charges, will go into effect on Dec. 18. Regulation 208, which focuses on preventing inducements for title insurance business, is a result of the findings of the state Department of Financial Services’ investigation into the industry. Read on for more details.
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Purchaser sues title entitles regarding prior liens
Posted Date: Wednesday, October 18, 2017
An entity purchased a single-family residence as an investment, though the property was clouded by a trail of debts the seller accumulated, leading to liens and encumbrances on the property before escrow closed. After the transaction was completed, the entity sued the title insurer, title agent and escrow company, demanding they clear the cloud on title. Read on for more details.
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On appeal, was title company aware of fraud?
Posted Date: Wednesday, October 18, 2017
After purchasing properties in a Florida condominium complex, expecting it to be an investment deal, the borrowers later discovered they were liable for homes that were closed as residential properties and secured with equities in their Illinois homes as capital.
The borrowers sued the mortgage broker and the title company, claiming civil conspiracy and in-concert liability. The trial court dismissed all of the borrowers’ claims, and the borrowers appealed.
Read on to find out whether the Illinois appellate court found material questions of fact in the case that would allow a reversal of the trial court’s ruling.
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Florida Department of Financial Services promotes two
Posted Date: Wednesday, October 18, 2017
Florida Chief Financial Officer Jimmy Patronis announced the appointment of a new deputy chief financial officer and new legislative affairs director. Read on for more details.
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New Yorkers sentenced on mortgage fraud
Posted Date: Wednesday, October 18, 2017
Two people from West Babylon, NY, who were convicted of conspiring to commit mail and wire fraud for their role in defrauding a mortgage company in Rochester, NY, were sentenced for their crimes. Read on for more details.
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New York finalizes title insurance regulations
Posted Date: Monday, October 16, 2017
Earlier this year, New York Gov. Andrew Cuomo announced proposed regulations regarding title insurance rates and expenses, as well as affiliated business arrangements. Those regulations have been finalized.
The first of those regulations to go into effect is Insurance Regulation 206: Title Insurance Agents, Affiliated Relationships and Required Disclosures, on Oct. 18. The second is Insurance Regulation 208: Title Insurance Rates, Expenses and Charges, which goes into effect on Dec. 18.
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Bank sues title insurer after lien extinguished
Posted Date: Monday, October 16, 2017
A bank sued its title insurer after its lien was extinguished in a foreclosure proceeding. The title insurer had denied its claim because the bank failed to provide it with notice of the foreclosure in a timely manner. Both parties moved for summary judgment. Read on for more details.
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ALTA letter urges removal of 4-day limit to reset tolerances
Posted Date: Monday, October 16, 2017
In a letter submitted to the Consumer Financial Protection Bureau on Oct. 10, the American Land Title Association voiced its support for the removal of the four-business day limit for resetting tolerances with closing disclosures. It also shared simple changes it believes are needed to prevent degradation of the rule’s good faith and advance disclosure requirements. Read on for more details.
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Attorney convicted for falsifying foreclosure documents
Posted Date: Monday, October 16, 2017
A lawyer licensed to practice in Illinois has been convicted on federal fraud charges for scheming to provide falsified documents to prevent foreclosure on a nearly $2 million parcel of land in Aurora. Read on for more details.
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Settlement agent convicted of mortgage fraud
Posted Date: Monday, October 16, 2017
A former settlement agent from Wyckoff, N.J., was convicted on charges related to the refinancing of properties in Bergen and Morris Counties, N.J. Read on for more details.
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