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.”
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Flueid, which provides verification of title services, has raised $8.3 million of new capital, with lead investor LiveOak Ventures along with Gilbert's Detroit Venture Partners.
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Mortgage professionals are focusing on housing policies and the Federal Reserve this November.
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The Chicago-area lender, which at first was able to get the suit quashed, agreed to end the discrimination case by paying a $105,000 fine.
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The wholesale lender filed a motion to dismiss the case, or at least to strike the class action certification in mid-October.
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Remax, the real estate brokerage and mortgage broker franchisor of Motto Mortgage, rebounded from a year ago loss in a tough news cycle for both its businesses.
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