A few more details have come to light since our past few missives on this subject that I wanted to bring your attention:

1) Title Insurance

2) Bank 8ks

3) State Attorney AG prosecutions

More to come . . .

Category: Corporate Management, Legal

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

10 Responses to “Title Insurance, 8Ks, Bank Problems”

  1. waterboy10 says:

    Without a doubt the title industry is huddling up and sh*ting their collective pants right now…

    This doesn’t just impact residential transactions but commercial too. Anything with hair on it is suspect….and considering the market right now, the only transactions occurring are distressed plays that have mechanics liens or BK’s there’s a whole bunch of anxious RE professionals right now…myself included. If you can’t clear these assets we’re all in a mess. I guess this makes a stronger case for new construction. Clean title and prolong the mess.

  2. Lugnut says:

    I would suspect/hope that there are at least a line or two within their title insurance policies that might deal with denial of coverage for fraudulent misrepresentation on the part of (any of) the parties involved, or some type of E&O exclusions. Nonetheless the potential cost to defend and litigate will send loss reserves through the roof.

    Retained Defense Counsel Law Firms FTW!

  3. wngoju says:

    This is great reportage, keep ‘em coming, thanks.

  4. franklin411 says:

    I bet the banking lobbyists will pull another one out and win this round as well, but…none of this would be happening had they not killed Chris Dodd’s/President Obama’s cramdown bill in April 2009.

  5. TakBak04 says:

    BR: Heads Up! Your video dust up with Diana Oleck is up over at Huffington Post with this sensational headline:


    Huff Post WATCH: ” Analyst Tears Into CNBC Anchor Over Foreclosure Crisis!”

    There is a long list of comments over there about the video but I didn’t have time to read them all to see if they were addressing the issues you raised.

  6. TakBak04 says:

    BTW: The Sensational Headline referenced above is on Huff Post’s front page but the link goes to a different headline.

  7. apachecadillac says:


    The title insurance is there to protect the buyer (and its financing) from title defects, regardless of who perpetrated the fraud or how the defects arose. That’s the whole idea behind title insurance. But keep in mind, we’re not talking about title defects on closed deals (past history). I’d assume that if in a prior deal the existing lien was released of record, that cloud on title is gone in most jurisdictions (regardless of the claims a real party in interest might have against whoever executed the release).

    The problem is with anything new. Unless you can be sure that whoever purports to have the standing to execute the release has the legal authority to do so, the prudent thing is not to insure title. As the joke goes, don’t just do something, stand there.

    That, of course, will gum up the ability to buy and sell real estate. But this really isn’t about courts, lawyers, defaulting homeowners, antiquated records systems, etc. impeding any putative increase in home prices It’s about legal certainty in commercial transactions and, grandiosely, the rule of law, or at least what is supposed to make the United States a safer place to invest than Latin America or East Asia.

    And now the pros are turning on each other. Presumably all those state pension funds and receivers for defunct German landesbankes are going to try to put their now worthless formerly triple A paper back to the trustees and deal sponsors at the purchase price. And to whom can the servicers of performing mortgages safely disburse the monthly payments they receive if it’s unclear whose owed the money?

    If it was just a matter of protecting the pros from their victims, I don’t doubt the system is flexible enough to do that. But I don’t think it is supple enough to protect them from each other.

  8. rktbrkr says:

    Didn’t take long…

    (It’s easy for Fidelity to talk nice about possible BOA related losses because any losses would take a couple years to work thru the system anyway…

    Bank of America Corp. has agreed to reimburse Jacksonville-based title insurance company Fidelity National Financial Inc. for any costs incurred by Fidelity because of foreclosure errors by Bank of America. Fidelity said earlier that it doesn’t expect to incur any significant costs because of the nationwide foreclosure mess.

    Bank of America is one of several major U.S. mortgage lenders that has frozen foreclosures because of concerns of falsified or missing documents. Fidelity spokesman Dan Murphy said Tuesday the bank approached the title company about this agreement to ensure that Fidelity would not be responsible for any errors made by the lender.

    But Murphy pointed out that Fidelity had already announced on Oct. 1 that the company did not expect to incur any losses on its title insurance policies

  9. rktbrkr says:

    Banks insuring the title insurors against losses due to foreclosure title problems. Love the circularity.


    (I’m guessing the prices for REO sales in places like FL will be down 25% compared to a few weeks ago – for properties than can get title ins, -75% for those that can’t get TI

  10. boveri says:

    I don’t see anything to comment about other than “more to come.”