N.J. District Court Upholds FTC Authority to Regulate Data Security

A decision by the U.S. District Court for the District of New Jersey upheld the Federal Trade Commission’s authority to regulate data security practices.

This is directly related to ALTA Best Practice #3 about Non Public Information.

The court denied Wyndham Worldwide Corporation’s motion to dismiss challenging the FTC’s authority to pursue unfair and deceptive trade practices claims arising from a cyber breach.

The FTC sued Wyndham and three subsidiaries in 2012 after hackers from Russia allegedly broke into its computer network and property management systems from 2008 to 2010. The hackers allegedly stole names, Social Security numbers and account numbers of over half a million of consumers. Fraudulent charges on the compromised accounts totaled over $10 million.

The commission alleged that Wyndham failed to employ reasonable data-security measures to protect the information from theft. It alleged there were several information-security problems at Wyndham hotels, including wrongly configured software, weak passwords and insecure computer servers. The complaint also said that Wyndham’s published online privacy policy was “deceptive.”

Is your information secure?

N.J. District Court Upholds FTC Authority to Regulate Data Security

ALTA Best Practice #1 - Licenses

Over the next few weeks I will be discussing the ALTA Best Practices.  #1 is about licensing.

– Title Agent or Producer license or registration or any other business licensing requirement as by state law, or a license to practice law , where applicable.

Best Practice

– Establish and maintain all current licenses that are required to conduct title and insurance settlement services business.

Reason

– Keeping up to date with all applicable state mandated licenses and corporate registrations, helps to establish and maintain a healthy and happy relationship between your company and the state.

For more information about ALTA Best Practices, take Learntitle’s Ethics course.  Enroll Here.

ALTA Best Practice #1 - Licenses

Ethics course updated

Learntitle’s Title Insurance Ethics course has been updated to include information about the new ALTA Best Practices.  The course is approved by DOBI for 3 credits.   Click Here to enroll.

Ethics course updated

3 security concerns when working with third-party vendors

This article reinforces title agent concerns about lender attitudes toward their vendors.

As more lenders turn to third parties, regulators are emphasizing the importance of gauging the potential risks involved.

“You have to assess not only the vendor; you may also have to assess the vendor’s relationships. Some of these third parties have connections to other institutions and servicers,” Comptroller of the Currency Thomas Curry said in a speech to the Independent Community Bankers of America.

Read the full article here

3 security concerns when working with third-party vendors

The ALTA® Board of Governors approved recommendations for new forms

The ALTA® Board of Governors approved recommendations to adopt 2 new endorsements and make revisions to 2 closing protection letters and a short form policy during a meeting on February 20, 2014.  -

The current ALTA Closing Protection Letter has been modified to clarify that coverage does not extend to loss arising out of federal consumer protection laws, nor for loss arising out of laws pertaining to securitization, including exemption from credit risk retention.

Tax Credit Endorsements were also added

The current ALTA Closing Protection Letter – Single Transaction (12-1-11) has been modified to clarify that coverage does not extend to loss arising out of federal consumer protection laws, as defined in 12 U.S.C. §5481 (14), the ability to repay, truth-in-lending or other federal or state consumer protection or predatory lending laws, nor for loss arising out of laws pertaining to securitization, including exemption from credit risk retention. – See more at: http://www.alta.org/forms/formsnews.cfm#sthash.8386Tqdc.dpuf

See more here

The ALTA® Board of Governors approved recommendations to adopt 2 new endorsements and make revisions to 2 closing protection letters and a short form policy during a meeting on February 20, 2014.  – See more at: http://www.alta.org/forms/formsnews.cfm#sthash.8386Tqdc.dpuf

The ALTA® Board of Governors approved recommendations for new forms

CFPB continues RESPA enforcement with action against nonbank lender - Lexology

On February 24, the CFPB announced that a nonbank mortgage lender agreed to pay an $83,000 penalty to resolve violations of RESPA’s Section 8. The lender primarily offers loss-mitigation refinance mortgage loans to distressed borrowers. According to the consent order, after the lender ceased obtaining funding for its loans from two subsidiaries of a hedge fund, the lender continued to split loss-mitigation and origination fees with the subsidiaries on 83 additional loans originated over an eight-month period, even though neither subsidiary provided financing or any other service in any of those transactions

Read the full article here

CFPB continues RESPA enforcement with action against nonbank lender – Lexology.

CFPB continues RESPA enforcement with action against nonbank lender - Lexology

New Jersey Rate Manual(effective 04/2013)

Register or Login to Enroll

Credits: 3

Enrollment Valid For: 12 months

New Jersey Rate Manual

Includes new rates (effective 04/2013)

Covers all the fees associated with a title insurance transaction.

New Jersey Rate Manual(effective 04/2013)