Radian appeal concludes in California
|October 9, 2002|
Dept. of Ins. argues for ban on mortgage guaranty product
Inman News Features
A California court held a hearing last week on the cease-and-desist order that currently bars Pennsylvania-based mortgage insurer Radian Guaranty's sale of its lien guarantee product in the state.
The original order issued in June prohibits the company from marketing or issuing any insurance policy that provides coverage for undisclosed liens.
Radian isn't licensed to sell title insurance in California or any other state, and the American Land Title Association has been battling to keep Radian's lien guarantee product off the market.
The California Department of Insurance at the hearing introduced signed affidavits from mortgage guaranty insurance companies PMI, RMIC and United Guaranty to support its case. ALTA said those statements indicated that those companies don't offer protection for undisclosed liens, as the Radian lien protection product does.
Witnesses for the Department of Insurance included Senior Staff Counsel Jill Jacobi and attorneys Henry Knebel, Richard Carlston of Miller Starr & Regalia and Roger McNitt, who is a former California chief deputy insurance commissioner.
Jacobi stated in her testimony that the Radian lien protection product falls within the legal definition of title insurance in state's insurance code and that the product violates certain so-called "mono-line" restrictions for mortgage guaranty insurance companies, according to ALTA.
Paul Fischer, SVP of risk management for Radian Guaranty and Amerin, testified on Radian's assets and agency rating.
The Department of Insurance has three weeks to submit its closing brief, Radian then has two weeks to submit its reply and the DOI has one week to submit its rebuttal.
Copyright: Inman News Service