Title Insurance and More

This blog has moved over to ClearingTitle.com.

If you are interested in Pennsylvania title insurance, visit our PA Title Insurance Blog.

Other places that you can find me (Dave):

Sites:

Community First Abstract – Pennsylvania title insurance

www.davewirsching.com (blog)

www.whyaboutmarketing.com (marketing)

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More on Philadelphia Foreclosures

More on the Philadelphia Foreclosure Moratorium. The Philadelphia Business Journal (paid) is reporting that:

….[the] foreclosure steering committee that includes lawyers representing lenders and homeowners as well as social service agencies, said owner-occupied residential properties will not be sold at the May sheriff’s sale. But all other properties will proceed to a sale. The owner-occupied properties will be put on a special track intended to help borrowers with free legal advice and housing counseling.

A novel approach to avoid saving investors and speculators.  Should be interesting to see how it works.

Philadelphia gets a Foreclosure Moratorium

News outlets are reporting that the Philadelphia City Council passed a measure (non-binding) calling for a moratorium on mortgage foreclosures.  In response, the Sheriff has cancelled the April Sheriff’s Sale.  At least a temporary reprieve.  

ACORN estimates approximately 3,200 loans made in Philadelphia during 2006 are likely head down the path to foreclosure.

I’ll post more as it comes available.

Another Floridia Defalcation

The Ledger.com (Lakeland, Fl) is reporting another Florida defalcation.  

The only question is why was this problem allowed to run for over a year after is was discovered?  2 year old agency.  Owner used the company as an ATM.  Old Republic stuck with the clean up.

Busy in Florida

From the Orlando Business Journal (paid):

A Tavares company is one of 23 Central Florida firms and/or individuals under investigation by the state for title insurance fraud.

The Florida title fraud cases being investigated so far this year involve agents misappropriating escrow funds, says state Chief Financial Officer Alex Sink’s office.

John Corbett, law enforcement captain for the department, declines to share any details about the 23 local fraud investigations…….

Twenty three in one state is not a small number.

Minnesota Dept of Commerce Shuts 6 Sham ABAs

Press release here. 

The Minnesota Department of Commerce announced today it has taken action against another kickback scheme in which a title insurance company set up sham affiliated businesses with real estate agents, mortgage originators and developers in order to get around state and federal laws prohibiting direct payments for referrals. The Department revoked the insurance producer licenses from six title companies and fined Premier Title Insurance Agency $175,000 for participating in the kickback scheme.  According to the consent order, Premier Title Insurance allegedly created and controlled sham affiliated businesses and paid kickbacks or other things of value to its referral partners for the referral of title insurance business and real estate closings.

First American Downgraded

Yesterday Fitch announced the downgrade of First American’s issuer default and senior unsecured debt ratings.

The ratings were downgraded because the company said it expects to lose up to $50 million when it reports fourth-quarter quarter earnings Feb. 28, Fitch said in a statement. First American is also likely to increase reserves for loses in its title insurance unit, which will hurt earnings, Fitch said in a statement.

Fitch placed both ratings on a negative outlook.

Further evidence that the claims issue is far from over. 

Their issuer default rating was reduced to “BBB+” from “A-” and the senior unsecured debt rating reduced to “BBB” from “BBB+.”   It’s important to note that both ratings are still investment grade.

Nashville Title Agency Placed in Receivership

The Nashville Post is reporting that Forsythe Title & Escrow Services is missing a significant amount of their escrow funds:

According to a complaint filed in Sumner County Chancery Court, Forsythe Title & Escrow Services cannot explain numerous discrepancies in its escrow accounts, and the receiver appointed to investigate its finances suspects professional misconduct.

Pennsylvania Suit Against Commonwealth Granted Class Action Status

Excellent Law.com analysis here.

The suit alleges that anytime Commonwealth Land Title’s agents discovered in the title search that an insurance purchaser had refinanced the property within the past three or 10 years, they should have known that a prior insurance policy had been issued and that the discounts should have been automatically applied.

PA title agents know this is a vaguely worded section of the title insurance rating manual.   Unfortunate it has to be resolved via class action.

Suit against Fidelity Granted Class Action Status

The Toledo Blade is reporting that yesterday a suit against Fidelity National Title for misapplication of rates has been granted class action status.

But in a written opinion issued in U.S. District Court, Judge James Carr said: “The interests of fairness, efficiency, and judicial economy are all best served by a class action. Certification in this case is important because each individual class member’s claim may be small, resulting in a diminished incentive to sue to enforce his or her rights.”