News By Edition

The Financial Crimes Enforcement Network (FinCEN) announced an Advance Notice of Proposed Rulemaking (ANPRM) to solicit public comment on a potential rule to address the vulnerability of the U.S. real estate market to money laundering and other illicit activity. FINCEN said the systemic money laundering vulnerabilities presented by the U.S. real estate sector, and consequently, the ability of illicit actors to launder criminal proceeds through the purchase of real estate, threatens U.S. national security and the integrity of the U.S. financial system.

After a disagreement with the general contractor on a condominium project in Washington, D.C., a subcontractor filed a mechanic’s lien on the property. After the property owner and general contractor filed a consent petition to replace the lien with an undertaking and bond, the subcontractor filed suit. The case eventually went before the District of Columbia Court of Appeals.

Three lien holders dispute the priority of their deeds on a 12-unit apartment building in Ontario, Calif. The second lien holder paid off the first lien holder’s lien and sought to foreclose. The holder of the third deed of trust then filed suit.

Members of the National Association of Insurance Commissioners (NAIC) voted to form an Innovation, Cybersecurity, and Technology Committee to address the insurance implications of emerging technologies and cybersecurity.

The Colorado Division of Real Estate issued a warning for consumers to be aware of equity skimming.

Burlington County, N.J., Clerk Joanne Schwartz and the Burlington County Commissioners launched a new online service to alert residents of potential identity theft or fraud.

After the victim of a real estate fraud scheme obtained a multimillion-dollar judgment against the perpetrator, the victim filed a post judgment motion to amend the judgment to add alter ego entitles of the perpetrator as judgment debtors and void real estate transfers made by the alter ego entitles to various transferees. The victim’s post judgment motion was granted and the alter ego entities appealed.

A title marketing representative agreed to surrender his certificate of registration to market title insurance and accept a permanent ban on seeking another license from the California Department of Insurance to resolve an accusation against him. Earlier this year, the department alleged the representative consistently violated anti-inducement laws through his improper influence over a networking group that provided benefits to real estate agents.

After denying a claim regarding coverage for vehicular access to property it insured, a title insurer sued the policy holder, seeking declaratory relief that the policy does not cover loss due to the lack of vehicular access from the property. The parties filed cross-motions for summary judgment.

The Department of Justice and Consumer Financial Protection Bureau (CFPB) issued two joint letters regarding legal housing protections for military families. One letter was sent to landlords and other housing providers regarding protections for military tenants. A second letter was sent to mortgage servicers regarding military borrowers who have already exited or will be exiting COVID-19 mortgage forbearance programs.

A Morris County, N.J., man admitted his role in a reverse mortgage fraud scheme that exploited several elderly homeowners.

Adjacent property owners dispute an easement located across property in Flathead County, Mont. Currently before the Supreme Court of Montana is one party’s challenge of a lower court decision quieting title in the easement in favor of the other property easement.

Prior to a transaction closing, the attorney and issuing agent was terminated by the original title insurer. The agent arranged for a closing protection letter and title policy from another title insurer, but did not tell the lender. It closed the transaction but did not pay off a prior security interest on the property as required by the bank. The bank eventually paid off the prior security interest. It then sued the prior and current title insurer for action under the closing protection letter.

A borrower brought suit against its servicer, which held the deed of trust on the borrower’s property, arguing the foreclosure proceeding violated, among other things, the Fair Debt Collection Practices Act. The trial court sustained the servicer’s demurrer to the second amended complaint and the borrower appealed.

When purchasing property, the buyer also received a right of first refusal on additional property. Five years later, the seller sold the additional property to another party. The original buyer filed suit, seeking specific performance of the right of first refusal and damages caused by the breach of contract.

An Augusta, Ga., man was convicted on federal fraud charges for borrowing nearly $3 million to refinance an Augusta apartment complex, and then filing for bankruptcy protection when facing foreclosure.

Members of the National Association of Insurance Commissioners elected officers for 2022 during its Fall 2021 National Meeting plenary.

The Arizona Department of Insurance and Financial Institutions (DIFI) launched a new website that combines three previous agency websites into one, providing stakeholders and consumers with an updated resource for department matters, resources, and education.

The Ninth U.S. Circuit Court of Appeals recently determined whether a bank, as the first deed of trust lienholder, could set aside a completed superpriority lien foreclosure sale. The bank argued the sale occurred in violation of the automatic stay in bankruptcy.

In preparation for the effective date of the Revised Uniform Law on Notarial Acts on Jan. 1, 2022, the New Mexico Secretary of State adopted regulations to implement the law and provide specific procedures for those wishing to perform remote online notarizations.

The Financial Crimes Enforcement Network (FinCEN) is issuing a request for information (RFI) seeking comments on ways to streamline, modernize and update the anti-money laundering and countering the financing of terrorism (AML/CFT) regime of the United States.

A borrower filed suit against their lender, arguing that though a satisfaction of mortgage had been filed, the bank had recorded a notice of default against him. The bank countered that the satisfaction was of the arrears the borrower was required to pay under his Chapter 13 bankruptcy plan.

A New York attorney pleaded guilty to stealing more than $14.6 million in funds from his attorney escrow accounts. The funds belonged to at least 35 individuals and companies.

A loan officer for a mortgage company admitted his role in a long-running, large-scale mortgage fraud scheme.

The buyer of properties in Indiana filed suit against several parties to a series of transactions, including the title company that provided the title commitments. Those commitments included several exceptions to the title policies that precluded the sellers from granting marketable title prior to the closing date. Several parties entered into a settlement agreement that required funds held in escrow to be distributed to the buyer and sellers. The buyer then filed a second amended complaint against the title company and the title company sought to prevent the second amended complaint being filed.

The Consumer Financial Protection Bureau published its fall 2021 agenda as part of the Fall 2021 Unified Agenda of the Federal Regulatory and Deregulatory actions, listing the regulatory matters it plans to pursue from Nov. 1, 2021, to Oct. 31, 2022.

A debtor sought to avoid the recorded judgement of a company against his property in his Chapter 13 bankruptcy case. The company opposed the motion, arguing the judgment is not a fixed lien that impaired the debtor’s exemption.

FBI’s Internet Crime Complaint Center issued a public service announcement regarding money mules. Read on to learn more.

A bill has been prefiled in the Virginia General Assembly that would authorize attorney fees be awarded in eminent domain cases in which there is a judgment for a property owner if the judgment is not paid within the time required by law.

The Supreme Court of New Jersey disbarred an attorney for mortgage fraud The attorney received an admonition for violating RPC 1.3 and RPC 8.4(d) for proceeding with a client’s real estate purchase, despite knowing the seller had filed a bankruptcy petition and the sale required the prior approval of the bankruptcy court. Read on to learn more.

The New Jersey Legislature introduced legislation to create an Office of Information Privacy. It would require, upon request, redaction and nondisclosure of home address of judicial officers, prosecutors, law enforcement officers, and immediate family members residing in the same household.

A lender sued the underwriter for a transaction for not indemnifying it in a suit filed against an HOA that foreclosed on property to which it held a deed of trust. The title insurer removed the case to federal court before any party could be served and the lender sought to remand the case to state court.

The Financial Crimes Enforcement Network (FinCEN) issued a Notice of Proposed Rulemaking (NPRM) to implement the beneficial ownership information reporting provisions of the Corporate Transparency Act (CTA). The proposed rule is designed to protect the U.S. financial system from illicit use and impede malign actors from abusing legal entities, like shell companies, to conceal proceeds of corrupt and criminal acts.

The FBI issued a private industry notification warning that ransomware actors use significant financial events, such as mergers and acquisitions, to target victims.

The Washington Office of the Insurance Commissioner adopted rulemaking regarding out-of-state title records storage. The rule goes into effect Jan. 1.