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November 2010 | Volume 3 • Number 10
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Update from ATG Underwriting Department
The Title Insurance Act and Closing Protection Letters
Public Act 96-1454 Requires Underwriters Issue All CPLs
EFFECTIVE JANUARY 1, 2011
Illinois Public Act 96-1454 changes the Title Insurance Act, effective January 1, 2011, to require all closing protection letters be issued by the underwriter, not the title insurance agent. It further requires that CPLs be issued to all parties in refinance transactions (lenders, buyers, sellers, and owners). The letters must be issued when either the title insurance agent or the title underwriter conducts the closing.
The change is intended to make sure all parties to closings have a remedy against a financially-solvent entity for loss of the closing funds or documents, as specified in the letter. It covers agents' actions as well as those of their staff from fraud or negligence if they are unwittingly caught up in others' fraud (read the Act). ATG Members: This new change in the law necessitates changes in our procedures and in REsource. Read the article in our November ATG Casenotes and Underwriters Bulletin: New Closing Protection Letters and Procedures Coming in January 2011 for details. Tania M. S. Stori |
ATG MEMBERS | Underwriters' Bulletin, Member Events
CLAIMS CORNER
Fraud
Mortgage Rescue Fraud — ATG has received numerous claims involving alleged mortgage rescue scams resulting when we insure the transaction between the party in distress and the rescuer. Closings that involve mortgage rescue fraud can be difficult to spot... read more (see also PA 94-0822)
MEMBER EVENT | THE ATG HOLIDAY RECEPTION IS BACK — JOIN US!
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ATTORNEYS | Practice Notes
REAL ESTATE AND TITLE INSURANCE NEWS
Mechanics' Liens
The Home Repair and Remodeling Act — The Act has caused a significant headache for the courts of Illinois due to certain ambiguities in its language. The Illinois General Assembly passed a bill replacing it with language creating a private cause of action for violations that directly lead to damages for the homeowner... read more
TRUST AND ESTATE PLANNING NEWS
November 2010 Outlooks — The U.S. economy grew at a 2.0 percent annual rate in the third quarter of 2010, slightly faster than the second quarter's 1.7 percent growth. Consumers did their part during the quarter as personal consumption expenditures rose slightly more than they had during the second quarter... read more
CASENOTES
Illinois
Riparian Rights; Subdivisions
Bohne v LaSalle Nat Bank — A man-made body of water can be treated as natural for the purpose of riparian rights if it has been subject to continuous and uncontested use as though it were natural... read more
Indiana
Foreclosure; Mortgages
Citizens States Bank of New Castle v Countrywide Home Loans, Inc — If a mortgagee forecloses on a property that subsequently remains subject to a junior lien from an entity not party to the original foreclosure, the mortgagee retains a mortgage in a superior position. However, the right to foreclose this mortgage does not pass to a third party transferee... read more
Wisconsin
Foreclosure
Sweeney v Petska — A mortgagee who foreclosed on only one of three parties who signed a mortgage could not add the other parties to the complaint over one year later solely to recover more money for the deficiency... read more
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IN THE NEWS | ATG Celebrates Top Members
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WHAT'S NEW | Member, CLE, Process, and Trust Services
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[Last update: 11-30-10]
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