News By Edition

Buzzwords like lender liability and agent vetting have become mainstays in the title industry vocabulary over the last several months as a result of the increased scrutiny lenders are facing for the actions of their service providers. Agents have been looking to assure lenders they chose the right title and settlement service provider for the job. This can manifest itself in many ways, and agents may feel overwhelmed by what seems like a great deal of additional work with little guidance as to how to proceed. During a recent October Research webinar, Title Liability Issues: Creating a Protective Fortress, several industry experts tackled this issue head on, looking at how this additional liability came about, what steps agents can take to address this issue, and how to get started on those action steps. 

With lender partners facing increased scrutiny and regulatory oversight, title agents are thinking of ways to assure them they chose the right title provider to work with. This can manifest itself in many ways, and agents may feel overwhelmed by what seems like a great deal of additional work with little guidance as to how to proceed. During a recent October Research webinar, Title Liability Issues: Creating a Protective Fortress, several industry members tackled this issue head on, looking at how this additional liability came about, what steps agents can take to address this issue, and how to get started on those action steps.

Nevada Attorney General Catherine Cortez Masto shared her top five… most common mortgage related complaints that is. In conjunction with National Consumer Protection Week, Cortez Masto announced the five most common complaints addressed by her Mortgage Fraud Unit (MFU).

With lender partners facing increased scrutiny and regulatory oversight, title agents are thinking of ways to assure them they chose the right title provider to work with. Much time and energy has been spent developing ways to provide this assurance, but one part of the answer could almost be overlooked — the submitting of the policy to the lender. Read on for more details.

A coalition of consumer groups, civil rights organizations and real estate professionals, including the American Land Title Association and American Escrow Association, urged regulators to alight the criteria underlying two important mortgage-related definitions — the qualified mortgage and the qualified residential mortgage. Read on to find out what this diverse group had to say.

After discovering that its agent was negligent in issuing title insurance policies, a national underwriter filed suit. It learned that the agent was covered by a professional liability policy and added the insurer to the suit. The court granted summary judgment in favor of the property and casualty insurer because the claim was made outside of the policy period. The title insurer appealed the case to the 5th U.S. Circuit Court of Appeals, which affirmed the district court’s opinion. Read on for the court’s reasoning.

The Florida legislature is considering a bill that would make tweaks to the current marketable record title statute and add to the list of rights unaffected by marketable record title. Read on for more details.

As a loan originator and servicer dispute whether the originator needed to buy back a loan based on a title defect discovered upon foreclosure, the two turned on the title insurer who issued the lender’s title insurance policy for failing to insure marketable title. Read on for details.

As part of National Consumer Protection Week, Nevada Attorney General Catherine Cortez Masto announced the top five most common complaints addressed by the Attorney General’s Mortgage Fraud Unit. Read on to find out what they are.

A bill being considered in the Maryland General Assembly would authorize a mortgagor or grantor to refinance the indebtedness secured by a first mortgage or deed of trust without obtaining permission from the holder of junior liens. Read on for the details.

Some bad players may have tainted outsiders’ view of the way title and escrow companies handle consumer funds, despite the vast majority having controls and procedures in place to protect those funds from being stolen. Agents simply need to document those procedures and controls so they can provide that proof to lenders, regulators and consumers when they are questioned. During a recent webinar, two industry leaders walked attendees through the steps of gathering and documenting those policies and procedures.

The General Assembly of Rhode Island is considering a bill that, if passed, “would render moot the question of standing of a nominee in foreclosure actions.” Read on for more details.

The General Assembly of Rhode Island is considering a bill that would criminalize residential mortgage fraud. Read on for more details.

A former property manager and fellow conspirator plead guilty to their roles in a $15 million mortgage fraud scheme in which they used phony documents and straw buyers to make illegal profits on overbuilt condos in coastal New Jersey. Read on for details.

In two separate cases, The U.S. District Court for the District of Maryland addressed whether paying insurance department required restitution made moot lawsuits brought against a national underwriter who allegedly overcharged customers who bought title insurance when refinancing their mortgage within 10 years. Read on for the court’s decision.

The 6th U.S. Circuit Court of Appeals affirmed a district court ruling in favor of Mortgage Electronic Registration Systems Inc. (MERS) in a case in which MERS and its members were sued by Kentucky county recorders for allegedly violating state law by not filing mortgage assignments. Read on for the court’s reasoning.

A Florida title company owner was sentenced to time in prison for wire fraud. The scheme was created to cover living expenses and other personal expenses. Read on for more details.

A New Hampshire family was involved in a series of sales of property from one member to another. After the third sale, the lender sought to foreclose, but discovered the property conveyed was not the property intended, but a vacant lot. A quiet title suit emerged and the lender sought indemnification in the case. The title insurer denied the claim and the lender filed suit. Read on to find out how the U.S. District Court for the District of New Hampshire ruled when the title company filed a motion for judgment on the pleadings.

Despite a dip in the third quarter of 2012, Interthinx’ Mortgage Fraud Risk Report noted a steady climb since the beginning of 2012. According to the latest report, the index is at its highest level since 2009. Read on for explanation and analysis.

C3 Compliance Consultants announced the addition of Bart Shapiro, one of the foremost authorities on the Dodd Frank Act and other consumer protection laws. Read on for more details.

Due to reports of violations of state law, the New Jersey Insurance Department issued a bulletin reminding title agents and real estate brokers about the restrictions on the payment of commissions, rebates and other inducements by title insurance producers. Read on for details.

The California General Assembly is considering a bill that would modify the definition of ‘mortgage.’ Read on for more details.

Title agent vetting has been a subject of conversation for months, since the Consumer Financial Protection Bureau announced it was holding lenders accountable for the actions of their service providers. Title agents need to prepare for this new phase of liability and customer concerns and The Legal Description and The Title Report are hosting a webinar to help agents do that.

An attorney, formerly of Connecticut, was sentenced to time in jail for a mortgage fraud scheme that involved the fraudulent release of mortgages on his Barkhamsted, Conn., property. Read on for more details.

The Missouri legislature is considering a bill that would modify real estate closing law by clarifying that title insurers and title agents may perform escrow or closing services in residential real estate transactions by giving notice to affected persons that their interests are not protected by the title insurer, agency or agent in situations where the title insurance policy is not being issued by the title insurer, agency or agent performing the escrow or closing services, among other things. Read on for more details.

A fraud scheme involving multiple units of residential property in Chicago led the lender victim to sue the title insurer, sellers and title agent involved for breach of contract. The scheme involved at least three loans the lender, Fifth Third Mortgage Co., issued. After discovering the fraud, Freddie Mac demanded Fifth Third buy back the loans. Fifth third sued to recover damages from the defendants. Read on for the details.