The title insurance industry has won a huge victory with the issuance of a cease-and-desist order against Radian Guaranty Inc. by California Insurance Commissioner Harry W. Low. The Philadelphia-based mortgage insurer must immediately stop selling its Radian Lien Protection product in the state or face a fine of up to $5,000 per day. The commissioner ruled that the product is in fact title insurance, and Radian is not licensed to underwrite title insurance. Radian said it intends to appeal the order. Roy J. Kasmar, Radian's president and chief operating officer, said the company hopes "to demonstrate once and for all that Radian Lien Protection is not title insurance, but rather a mortgage insurance policy, substantially identical to those that Radian and its competitors have been issuing for almost two decades.” Meanwhile, the American Land Title Association pointed out that the California order joins others issued by regulators in Texas, Florida, New Mexico, Connecticut, and North Carolina. “This is a victory not only for title companies, but for lenders and consumers as well," ALTA executive vice president James Maher declared. "The benefits of the Radian product do not measure up to true title insurance. Its product does not involve a title search, and therefore would expose lenders and consumers to increased risk.”
-
Fannie Mae's latest economic forecast no longer expects mortgage rates to go below 6% next year, and that is affecting its views on loan origination volume.
1h ago -
Amid steady customer growth, USAA's banking arm failed to make the investments necessary to satisfy either its regulators or some decades-long customers. Changes in the executive suite haven't fixed the problems.
5h ago -
The Consumer Financial Protection Bureau has significantly raised the transaction threshold for its larger participant rule — which defines which firms will be affected — from 5 million annual payments to 50 million.
7h ago -
Critical defects increased for the second consecutive three-month period, with appraisal-related errors nearly doubling, Aces Quality Management said.
November 20 -
The Federal Reserve governor said the Supreme Court ruling could bring needed transparency and efficiency to regulatory policymaking.
November 20 -
In a congressional hearing, top officials from the Federal Reserve, Federal Deposit Insurance Corp. and Office of the Comptroller of the Currency said no new rules will be adopted or proposed this year.
November 20