News By Edition

Ted Smith, a founding partner of Cornell Smith Mierl Brutocao, LLP, presented “The Future of Non-Competes and Overtime: What You Need to Know Now” at the Texas Land Title Association’s conference. He explained the impact of the Federal Trade Commission’s recent rule that bans non-competes and of the Department of Labor’s new rule that increases minimum salary thresholds for exempt employees.

Massachusetts Gov. Maura Healey signed the state’s fiscal year 2025 compromise budget, which included reforms to the state’s tax foreclosure process. The reforms were made light of the Supreme Court’s decision in Tyler v. Hennepin County.

Several industry and consumer associations released an issue brief with recommendations to combat deed fraud.

The American Land Title Association’s (ALTA) Board of Governors approved proposed revisions to ALTA’s Best Practices on password management and recommended due diligence, among others. Comments on the proposed revisions will be received until Aug. 12.

The Maryland Insurance Administration issued a bulletin about a new state bill which repeals the education and experience requirements for insurance producers that are required to pass an examination as a qualification for a producer license.

Joy Hatchette, acting commissioner of the Maryland Insurance Administration (MIA), announced the appointment of a new associate commissioner for insurance fraud and producer enforcement for MIA.

Three real estate investors have pleaded guilty to engaging in an extensive, multi-year conspiracy to fraudulently obtain a $74 million loan and a $45 million loan and fraudulently acquire multifamily properties.

Earlier this summer, the Consumer Financial Protection Bureau issued a request for information regarding fees imposed in residential mortgage transactions. Among the many answers to that request, which were due Aug. 2, were responses from the National Council of Insurance Legislators and the American Land Title Association.

The American Legislative Exchange Council issued a resolution reaffirming its support for the state-based system of title insurance regulation in response to what it calls federal encroachment on the regulation of the industry.

A new study by ndp | analytics showed seller impersonation fraud is a growing concern, with 28 percent of title companies experiencing at least one seller impersonation fraud attempt in 2023.

The Financial Crimes Enforcement Network issued a notice to financial institutions about reporting beneficial ownership information.

Maryland Gov. Wes Moore appointed a new commissioner of the Maryland Insurance Administration. The new commissioner will succeed the interim commissioner on Oct. 1, pending confirmation by the Senate Executive Nominations Committee.

A Scott Depot, W.Va., man was sentenced for making a false statement to federal agents, willfully overvaluing property on a loan application, and three counts of making a false statement to the U.S. Department of Housing and Urban Development.

A bill to revise New Jersey’s tax sale law and its In Rem Tax Foreclosure Act to bring those laws into compliance with the U.S. Supreme Court’s decision in Tyler v. Hennepin County has been signed into law.

A coalition of 14 state attorneys general, lead by Tennessee Attorney General Jonathan Skrmetti, sent a letter to the Federal Housing Finance Agency, expressing concerns over its pilot program aimed at removing title insurance requirements for certain loans sold to Fannie Mae.

FundingShield has released its fraud analytics for the second quarter of 2024, showing nearly half of transactions were at risk.

Several organizations, including the American Land Title Association and Mortgage Bankers Association, wrote to voice support for H.R. 8127, the Heirs Estate Inheritance Resolution and Succession Act of 2024. They said bipartisan legislation would provide relief to countless families that are negatively impacted by heirs’ property.

New York Attorney General Letitia James reminded New Yorkers of a new law establishing deed theft as a crime and expanding the Office of the Attorney General’s ability to prosecute deed theft.

A former New Mexico escrow company owner was sentenced to 46 months in prison for defrauding his clients of over $1.2 million.

The U.S. Treasury Department and the Financial Services Sector Coordinating Council published a suite of new resources to share with financial services on effective practices for secure cloud adoption.

The Pennsylvania General Assembly adopted legislation relating to rebates and inducements for insurance.

The chairman and ranking member of the House Financial Services Committee released a staff report from the committee’s bipartisan Working Group on Artificial Intelligence.

The Financial Crimes Enforcement Network, along with Treasury’s Office of Foreign Assets Control and the Federal Bureau of Investigation, issued a notice warning financial institutions to be vigilant about timeshare fraud being perpetrated by Mexico-based transnational criminal organizations.

The California Land Title Association Board of Governors appointed a new executive vice president to fill the position left following the retirement of former executive vice president.

After being sued by the purchaser to invalidate an easement and for fraud, the seller filed suit against the title insurer and abstractor for indemnity. The case eventually went before a New York State appellate court.

Reese Lacasse, senior vice president and chief information officer at CATIC, presented “Important Yet Affordable Cyber Security Defenses” at the Texas Land Title Association’s conference to share cost-efficient methods to protect against cyberattacks.

As part of a suit against an insurer alleging it failed to provide coverage under the title policy, the insured deposed a title operations manager at the insurer. The deposition was suspended when the parties disagreed on the line of questioning. The insured now seeks to compel the employee’s testimony.

The California Legislature is considering a bill that would establish new foreclosure notification and sales requirements.

The Michigan Legislature passed legislation regarding right-to-list home sale agreements. The bill has been sent to the governor for her signature.

A former Roswell, N.M., escrow company owner is scheduled to be sentenced for wire fraud on July 25. The U.S. Attorney’s Office for the District of New Mexico and the FBI are seeking potential victims.

When property owners found an easement prevented them from subdividing their property, they sought coverage from their title insurer. The insurer provided compensation based on the loss of value of the owner’s actual use of the property. The property owners filed suit, alleging the insurer failed to pay the full amount by which the property’s value was diminished.

On July 10, the Federal Insurance Office hosted a roundtable discussion with representatives from the financial services sector and consumer groups to discuss the title insurance industry and analyze potential reforms, as part of the Biden administration’s efforts to lower costs for homebuyers.

The California legislature is considering legislation that would authorize disinterested custodians to certify that a tangible copy of an electronic record is a complete and accurate reproduction of the electronic record.

Financial Crimes Enforcement Network (FinCEN) Deputy Director Jimmy Kirby participated in a beneficial ownership reporting outreach event in Colorado as part of FinCEN’s nationwide efforts to educate potential reporting companies of the aims of the program.

The Utah Insurance Department proposed amendments to R592-9, Assessment for the Title Insurance Recovery, Education, and Research Fund, and R592-10, Assessment for the Title Licensee Enforcement Restricted Account, to replace references to a rule which was recently repealed.

The Virginia State Corporation Commission has named a new chief administrative officer.

A title agency sued an underwriter for violating their agency agreement. The underwriter successfully dismissed several claims, except the agency’s claim the underwriter breached the confidentiality clause of the agreement. The underwriter moved for summary judgment on that claim.

Lindsay Nickle, partner and data privacy vice chair at Constangy, Brooks, Smith & Prophete, presented “Surviving a Cyberattack,” at the Texas Land Title Association conference, sharing the threat landscape and explaining data breach response and notification obligations.

New York State Department of Financial Services Superintendent Adrienne Harris adopted guidance to protect consumers from unfair or unlawful discrimination by insurers using artificial intelligence.

The Hawaii Legislature adopted legislation that will prohibit exclusive listing agreements.

Washington State Insurance Commissioner Mike Kreidler announced a familiar face will return to the Office of the Insurance Commissioner to serve as the new chief deputy commissioner.

An Asatula, Fla., woman was changed with one county of conspiracy to commit bank fraud in connection to a mortgage fraud scheme.