News By Edition

Insurance regulators across the country are springing into action to address escrow theft and solvency concerns regarding the title insurance industry. The NAIC is examining the issue as well, and invited ALTA to share suggestions on a white paper the association is writing on the topic.

Regulators and industry members are busy finding ways to curb escrow fraud in light of increases in reported escrow theft in the last few years and growing concerns about underwriter and agent solvency. One of the suggested solutions is to expand the use of closing protection letters (CPLs). Regulators and legislators in at least three states have been busy considering changes to their laws to make this happen. With underwriters increasingly being requested to accept this additional liability, and claims under CPLs growing right along with it, The Legal Description looked into the effects of CPLs on the underwriters.

Industry members in Colorado wanted to address concerns relating to non-resident agencies and their use of short searches and generic exceptions, so they put forth legislation that they felt would solve the problem. That legislation caused some concerns from other members of the industry. The bill died in committee, leaving the Land Title Association of Colorado to investigate other ways to address member concerns.

The recent movement for clean energy and onshore drilling is making it more and more difficult for title insurance professionals, who need to adapt both in the way they search for ownership on property and the way they insure that ownership. Read on for details about an educational event that will provide instruction on how to conduct better transactions with these unique and, many times, difficult properties.

The Real Estate Services Providers Council Inc.’s Board of Directors announced the election of its 2012 officers. Read on for more about the new officers of the board.

In a recent survey conducted by Ernst Publishing and released at the American Land Title Association Business Strategies Conference, the company asked what industry members thought about real estate fraud. Read on to find out the results.

After an order of sale in a foreclosure action had already been entered, and without either party objecting to the procedure, a trial court in Ohio brought into question a law governing foreclosures in the state. The Ohio Attorney General stepped in and asked for an appeal of the court’s decision.

The Alabama legislature is considering a bill that would provide a method for requesting a mortgage payoff statement, as well as a title clearing remedy for mortgage satisfactions. Read on for more details.

A Maryland title agency employee was sentenced to time in prison for filing false tax returns after failing to claim money she embezzled from her employer. Read on for more details.

A lot of things have happened since we broke the announcement of the investigation of the New Mexico title company that abruptly closed its doors a few months ago, culminating in a receivership hearing yesterday. Read on for the details.

Washington Gov. Christine Gregoire signed a bill that provides additional exemptions from the requirement that all persons who engage in escrow business be licensed escrow agents. Read on for the details.

After a mistake on a deed provided the buyer more land than agreed upon, the seller sued the purchaser to fix the deed. Fighting the suit against it, the purchaser tendered defense of the suit to its title company. The title company then filed suit against the purchaser, seeking declaratory judgment, finding it did not have to defend the initial suit. Read on to find out what the U.S. District Court for the District of Delaware had to say about the case.

The Maryland General Assembly has done away with its original plan to adopt additional closing protection regulations, seeking instead a study on closing protection practices in the state. Read on to find out more details.

After being issued a cease and desist order, the owner of a subdivision in New Hampshire turned to its title insurer to address the underlying problem, an ancient Class VI roadway allegedly traversing the property. When the title insurer denied the claim, the property owner sued.

The owner of a title agency in Broward County, Fla., pleaded guilty to her role in two mortgage fraud schemes that caused losses of approximately $12 million in losses. Read on for more details.

For the first time, title agents in the state of Alabama may be required to be licensed. Read on to find out details about the potential new licensing procedures.

The Missouri legislature is considering several amendments to its mechanic’s lien laws, changing requirements regarding notices required under the law. Read on for more details.

On March 30, a Duluth, Ga., real estate attorney was arrested on charges that he stole money from his clients after acting as the closing attorney for their real estate transactions. He had previously been disbarred by the Georgia Supreme Court.

A Connecticut man who worked as a mortgage broker and closing agent was sentenced to two years in prison for his part in a mortgage fraud scheme that took place in southeastern Connecticut. Read on for more details.

After the wrong mortgage was paid off, causing a homeowner to accrue fees and charges, she sued the mortgage servicer and title company who helped with the refinance. They, in turn, sued the refinance loan originator for providing them with the wrong loan number, causing the suit. The question that came before the U.S. District Court for the Eastern District of Louisiana is, “Can the servicer and title company sue the originator when the original suit is still in progress?”

The Consumer Financial Protection Bureau is seeking public comment regarding the quantitative testing of its proposed integrated mortgage loan disclosures. It hopes to use the testing to determine whether the forms aid consumers in understanding the terms of the mortgage loans they are receiving.

The co-owner and co-conspirator of a multi-million dollar wire fraud scheme was sentenced to time in prison and ordered to pay restitution of $3 million, as well as perform 300 hours of community service for his participation in an escrow fraud scheme. Read on for more details.

The Indiana legislature has passed a bill that will allow interested parties to adjudicate the rights of an omitted party in a foreclosure action and provides for the expiration of a mortgage lien if it is not enforced within a certain amount of time. Read on for more details.

The purchaser of property in Hawaii who had to fight to gain possession of his property after discovering a couple occupying the house sought reimbursement of the cost to defend the suit from the title company, which refused to defend the owner in the matter. Read on for more information.

A Georgia attorney and his wife have been served with civil suits after affected parties, including their underwriter and Fannie Mae, sought to recover funds lost as a result of an alleged wire fraud scheme. Read on to find out more.

The California General Assembly is considering a bill that would require lenders to follow new procedures when filing a notice of default in nonjudicial foreclosure cases. Read on for more details.