Representative Mick Mulvaney (R-SC) submitted two questions for the record on ALTA's behalf following HUD Secretary Julian Castro's testimony before the House Financial Services Committee on February 11. The questions, which were entered into the Congressional Record, read as follows:
In the case Security Service Federal Credit Union v. First American Title Insurance Company, the United States Court of Appeals for the Ninth Circuit affirmed that insurers are liable for issues in the marketability of title, and not for problems connected with the marketability of the property. In California, a seller of property that has been subdivided into five or more lots must obtain a final public report (FDR) prior to selling any of the lots. In the Security Service case, an owner sold twelve such lots without obtaining an FDR. When the purchasers of the lots defaulted on payments and the lots went into foreclosure, the plaintiff-financer initiated suit against the defendant-insurer claiming that the failure to obtain FDRs prior to the plaintiff's purchase rendered the properties unmarketable.
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The American Land Title Association Government Affairs Team is currently engaged with policymakers and regulators on several issues that could affect the title industry. The following provides information on recent legislative and regulatory issues.