New York Federal Court Dismisses RESPA Claim Because Alleged Fees Were Not Split

The United States District Court for the Southern District of New York recently dismissed a complaint filed against a lender alleging that the lender violated the Real Estate Settlement Procedures Act (“RESPA”) by splitting a fee, holding that RESPA only proscribes the splitting of fees “between two or more persons” but does not provide a remedy for unearned fees that are not split.

Seventh Circuit Finds Insured Owners Suffered No Loss Under Title Insurance Policy After Insurer Settled With Lender

The United States Court of Appeals for the Seventh Circuit recently affirmed a district court’s grant of summary judgment to a title insurer denying the insured owners’ claim for coverage under a title insurance policy, finding that the insureds suffered no loss because the insurer reached a settlement with the lender and the insureds no longer owed any money on their loan.

Supreme Court of Arizona Holds Lender’s Diminution-in-Value Loss Required to Be Calculated as of the Date the Policy Was Issued Rather Than Date of Foreclosure

In a significant decision for both the title and banking industries, the Arizona Supreme Court recently held that the diminution-in-value loss under a lender’s title insurance policy could be calculated by the date that the policy was issued, rather than the date of foreclosure, if the court determines the title defect caused the borrower to default.