News By Edition

After a title insurer terminated its agency relationship with a title agent, the agent issued a policy purportedly insured by the underwriter and held out there were no encumbrances on the property. When the policy holder discovered millions of dollars in liens on the property, he sought coverage from the underwriter, who denied coverage due to the fraudulent policy. The insured then sued the underwriter, agent, and the agent’s managing director. Read on for more details.

The Florida Legislature is considering a bill regarding personal information subject to public records exemptions, providing for requirements for people claiming a public-records exemption to request removal of information from a publicly available website and authorizing certain parties to access information recorded in the official records of a county which is otherwise exempt pursuant to a specified public-records exemption. Read on for more details.

A bill to change the amount of time in which an action may be taken on a judgment lien and the time in which a suit to enforce the lien of any judgment may be brought has passed both houses of the Virginia General Assembly. The bill also would allow settlement agents and title insurance companies to release a judgment lien, in addition to a deed of trust. Read on for more details.

The New Jersey Legislature is considering a bill that would require deeds recorded after Jan. 1, 2021 not contain a reference to a specific portion of a restrictive covenant prohibited by the Law Against Discrimination. It also would require a county clerk or register of deeds to refuse to accept any deed submitted for recordation that references that specific portion of a restrictive covenant and gives property owners the opportunity to release restrictive covenants by recording a certificate of release of certain prohibited covenants with the county clerk or register of deeds. Read on for more details.

The New York State Department of Financial Services issued an industry letter to its regulated entities following a discovery of cybersecurity vulnerabilities in Microsoft Exchange Server. Read on for more details.

The Arizona Department of Insurance and Financial Institutions announced a process improvement for submitting license applications and fingerprints. Read on for more details.

After it was discovered a closing attorney misappropriated funds instead of paying off a previous mortgage, a lender sought coverage under a CPL from both title insurers who had been attached to the transaction. When the insurers denied coverage, the lender filed suit. Read on for more details.

The New York Assembly is considering a bill that would provide for notice of illegal restrictive-covenant language in documents to be recorded and the recordation of restrictive-covenant modification documents where conveyance instruments include language that violates civil rights laws. It would further require title companies, abstract companies and escrow companies to include the notice in title abstract reports and inform the purchaser of the availability from the county recorder of restrictive-covenant modification documents. Read on for more details.

After purchasing property in Mesa, Ariz., a company began working on subdividing and selling separate lots for development. It entered into an agreement for another developer to purchase numerous lots and discovered under the plat, the lots were to be leased for use as residential dwellings, not sold individually. As it was working to revise the plat, it sought coverage from its title insurer, who denied coverage. Read on for more information on the lawsuit that followed.

The New York State Department of Financial Services announced that Residential Mortgage Services Inc. will pay a $1.5 million penalty for violating the state’s Cybersecurity Regulation. Read on for more details.

Three New Yorkers were charged with conspiracy to commit wire fraud and bank fraud for their alleged roles in a wide-ranging mortgage fraud scheme. Read on for more details.

A Brooklyn, N.Y., attorney was charged with several counts of grand larceny for allegedly stealing escrow funds. Read on for more details.

The Maryland Insurance Administration issued a bulletin advising title insurers they are required to include law firms in their producer register. Read on for more details.

The Arizona Department of Insurance and Financial Institutions issued a cease-and-desist order against Clearview Abstract LLC after receiving evidence the company violated laws concerning the conduct of a licensed escrow agent. Read on for more details.

The Rhode Island General Assembly is considering a bill that would mandate only Rhode Island attorneys could act as title agents and determine insurability and marketability. In addition, it would limit discount title insurance premiums and restrict sharing premiums. Read on for more details.

The Michigan Department of Insurance and Financial Services issued a cease-and-desist order against a title company and two employees for alleged unlicensed and fraudulent insurance practices. Read on for more details.

The Illinois General Assembly is considering legislation stipulating it is public policy in the state that consumers who are obligated to pay for title-insurance services be permitted to consult with legal counsel before title-insurance payment obligations are effective. Read on for more details.

Oklahoma Insurance Commissioner Glen Mulready promoted two current employees to key department roles, deputy general counsel and director of consumer assistance. Read on for more details.