FDIC Sues For Alleged Nondisclosure, Summary Judgment Granted.
An "escrow officer" of First American Title Insurance Company became the "closing agent" for IndyMac Bank in California. IndyMac lent money to one Steven Darling for the purchase of "a single family home". IndyMac provided certain Closing Instructions to First American Title in connection with the purchase, to which FAT put its corporate name.
Among the Closing Instructions to which FAT subscribed, was one which "required First American Title to inform IndyMac if its escrow agent knew of a transaction involving the same borrower taking place within 180 days of the closing." Download FDIC v. First American Title Insurance Co. (C.D. Cal. Case No. SACV 10.0713, Order Filed August 24, 2011) PUBLIC ACCESS, also published as 2011 WL 3737435 *1 (C.D. Cal. August 24, 2011)(authorized password required to access Westlaw). FAT allegedly knew of two other Mortgage Loans to Mr. Darling for the purchase of two other properties through its escrow officer, one Bushway,
IndyMac and the Mortgage Loan in question both collapsed in the face of the financial winds howling across California -- and the rest of the United States -- once the Great Credit Collapse began. The Federal Deposit Insurance Corporation put IndyMac into Receivership. Among other actions as IndyMac's Receiver, the FDIC filed suit for alleged breach of contract against First American Title for alleged breach of the Closing Instructions in question.
First American Title defended itself by contending that it sent IndyMac a letter which "modified" the requirement to disclose material information. FAT did not, however, annotate any objection to the disclosure provision in the Closing Instructions signed by FAT including the provision which required First American Title to disclose certain information. Instead, it was undisputed that FAT simply signed the Closing Instructions and sent a letter. Id. at *7. The Federal Court in California granted the FDIC's Motion for Summary Judgment against First American Title.
According to PACER, the Federal Court's Online Docket, on September 7, 2011 First American filed a Notice of Settlement in this case, Download FDIC v. First American Title Insurance Co. (C.D. Cal. Case No. SACV 10.0713, Notice of Settlement Filed September 7, 2011) PUBLIC ACCESS.
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