Insurance, Residential Real Estate

Federal Housing Finance Agency Proposes New Rules on Lender-Placed Insurance

by Robert Wallan | Pillsbury Winthrop Shaw Pittman LLP on 5/16/2013

On March 29, the Federal Housing Finance Agency (FHFA) proposed consideration of new regulation on lender-placed insurance. The FHFA specifically requested public input concerning sales commissions and reinsurance activities,...more

CFPB proposes delay in effective date of Reg Z prohibition on financing credit insurance premiums

by Alan S. Kaplinsky | Ballard Spahr LLP on 5/13/2013

The CFPB has issued a proposal to temporarily delay the June 1, 2013 effective date of the Regulation Z prohibition on financing credit insurance premiums (Section 1026.36(i)). The proposal responds to concerns raised by...more

HUD Supplements Guidance On FHA Lender Insurance Program

by BuckleySandler LLP on 5/8/2013

On May 1, HUD issued Mortgagee Letter 2013-12, which updates and replaces another recently issued letter – 2013-10 – on the FHA’s Lender Insurance Program. The letter explains enhancements to that program, which allows...more

Capitol Report: Property Insurance Bill Creating Citizens Clearinghouse Passes 2013 Florida Legislature

by Kelly Cruz-Brown | Carlton Fields on 5/8/2013

Committee Substitute for Senate Bill 1770 (CS/SB 1770) passed by the 2013 Florida Legislature creates a “keep-out” clearinghouse to reduce the size and type of exposures insured by Citizens Property Insurance Corporation...more

New Jersey Passes Law Requiring Summary of Homeowners Policy

by Daniel Pickett | Sedgwick LLP on 5/8/2013

On May 6, 2013, the New Jersey state legislature approved Assembly Bill A-3642, which now becomes Public Law 2013, c.53, requiring homeowners insurance policies delivered or renewed in New Jersey to contain a one-page summary...more

When Does an "Occurrence" Occur?

by Jerome Sturhahn | Sherman & Howard L.L.C. on 5/1/2013

Two federal courts in Denver recently addressed a fundamental question that exists in almost every construction defect case - when did the property damage that gives rise to liability, and the insurer's obligation, occur? ...more

Landmark Florida Supreme Court Decision: Florida’s Economic Loss Rule

by Neha Dagley | Schecter Law on 4/29/2013

In Tiara Condominium Association, Inc. v. Marsh & McLennan Companies, Inc., the Florida Supreme Court held, in a five-to-two decision, that the economic loss rule is limited to products liability cases. Tiara Condominium...more

Mississippi Court Holds D&O Policy Not Triggered By Real Estate Scheme

by Traub Lieberman Straus & Shrewsberry LLP on 4/26/2013

In its recent decision in State Farm Fire & Cas. Co. v. Anderson, 2013 U.S. Dist. LEXIS 57837 (S.D. Miss. Apr. 23, 2013), the United States District Court for the Southern District of Mississippi had occasion to consider...more

Sixth Circuit Holds That Insurer Is Required to Defend Contractor in Claim by Customer, as "Your Work" Exclusion in CGL Policy Is...

by Peter Georgiton | Dinsmore & Shohl LLP on 4/25/2013

In Forrest Construction, Inc. v. The Cincinnati Insurance Co., No. 11-6262, 2013 U.S. App. LEXIS 722 (6th Cir.), the United States Court of Appeals for the Sixth Circuit held that an insurer breached its policy with an...more

Closing Protection Letters: Overlooked Indemnity Coverage For Common Foreclosure Defense Claims

by Joanne Davies, Randall Manvitz | Buchalter Nemer on 4/25/2013

Mortgage lenders are all too familiar with borrowers’ assertions that they did not receive two properly dated copies of the Truth-In-Lending Act (“TILA”) mandated Notice of Right to Cancel form (“NORTC”) at closing. Under...more

CFPB Settles Allegations of Improper Payments by Mortgage Insurers

by Michael W. Jahnke, Michael Mallow, Michael Thurman | Loeb & Loeb LLP on 4/16/2013

The Consumer Financial Protection Bureau (CFPB) announced that it had settled enforcement actions against four insurance companies in connection with alleged improper payments between the insurance companies and mortgage...more

CFPB Investigates Captive Mortgage Reinsurance

by Leonard A. Bernstein, Daniel Booker, John Ellison, Timothy Law, James Rockney | Reed Smith on 4/16/2013

The Consumer Financial Protection Bureau has entered into consent orders with four mortgage insurance companies involving captive reinsurance of mortgage insurance issued to mortgage lenders. Those consent orders impose fines...more

Calif. Plumbs The Depths Of Water Damage Exclusions

by Jose Umbert | Zelle Hofmann Voelbel & Mason LLP on 4/12/2013

A recent decision by the California Court of Appeal confirms the willingness of courts in California to enforce exclusions for water damage in property policies, thus precluding coverage for the policyholders’ alleged...more

Is That Covered? How Long Should I Keep an Insurance Policy?

by Michael R. Kelley | McNees Wallace & Nurick LLC on 4/11/2013

Here's an often asked question: "How long should I keep my insurance policies?" Is it three years? Seven Years? The short answer is none of the above. Here are my recommendations...more

New York Appellate Division Holds Bond Insurer Can Pursue Repurchase Obligations On Performing Loans

by BuckleySandler LLP on 4/11/2013

On April 2, the Supreme Court of New York, Appellate Division, held that loans underlying mortgage-backed securities need not be in default to trigger the lender’s repurchase obligations. MBIA Ins. Corp. v. Countrywide Home...more

New York Appellate Court Rejects MBIA’s Pursuit of Rescissory Damages

by Orrick - Structured Finance Group on 4/10/2013

On April 2, New York’s First Department appellate court ruled that MBIA Insurance Corporation may not obtain rescissory damages in its breach of contract action against Countrywide because MBIA had freely given up its right...more

Drowning in a Sea of Tort: The Florida Supreme Court Reels in the Economic Loss Rule

by April Boyer, Stephanie Moot | K&L Gates LLP on 4/10/2013

On March 7, 2013, the Florida Supreme Court in Tiara Condominium Assoc., Inc. v. Marsh & McLennan Companies, Inc. expressly limited the application of the economic loss rule to products liability cases. 2013 WL 828003 (Fla....more

The Canadian Federal Budget and Financial Institutions

by Kashif Zaman | Osler, Hoskin & Harcourt LLP on 4/10/2013

The recently published federal budget (titled “Canada’s Economic Action Plan 2013”) included high level guidance regarding the Government’s priorities for the regulation of financial institutions, services and markets. The...more

CFPB Takes Action Against Mortgage Insurers To End Kickbacks To Lenders

by Stephen M. Quinlivan | Leonard, Street and Deinard - Dodd-Frank and... on 4/8/2013

The CFPB has announced four enforcement actions to end what the Bureau believes to be improper kickbacks paid by mortgage insurers to mortgage lenders in exchange for business. The CFPB filed complaints and proposed consent...more

Superstorm Sandy Is Causing New York and New Jersey Legislators to Reconsider Passing Legislation that Would Establish a Private...

by Melissa Brill, Kellyn Muller | Cozen O'Connor on 4/5/2013

Policyholders in New York and New Jersey presently have no private right of action against insurance companies for alleged violations of each state’s respective statutory claim handling guidelines – New York’s Unfair Claim...more