- March 13, 2012
- All New York State Agents, Office Counsel and Managers
- Mortgage Programs involving Trusts to provide Mortgage Relief and/or Reduction
Stewart Title Insurance Company has been made aware of several mortgage fraud/rescue and/or reduction programs where the homeowner places the title to the real property is some form of trust. The record homeowner apparently participates in the trust. The trust then looks to remove the existing homeowners’ mortgage as a lien on the real property through a series of predominantly non-judicial notices provided to the lender. Apparently, the basis of the notices is the lack of ownership of the note/debt or standing claiming that a fraud was perpetrated upon the homeowner when the mortgage was made. A "default" is taken against the lender by virtue of the lender’s "failure" to respond to these notices, and the trust then deems the mortgage extinguished.
The purpose of the Bulletin is to make you aware of such programs and to advise you that you may not underwrite any such transaction on a Stewart Policy unless you fully disclose, in advance, any such transaction to Agency Legal Services for approval.
If you have any questions regarding this bulletin please contact John A. Frates, Esq. at firstname.lastname@example.org or call 212-922-0050 and speak with any Agency Legal Services counsel.
THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.