Prohibits title insurance corporations from making payments to lenders on title insurance claims when the transaction conveying such title is false or fraudulent.
Impact
The impact of S07732 is significant as it introduces stronger regulations within the insurance sector, particularly concerning title insurance. By explicitly disallowing payments on fraudulent claims, the bill intends to protect consumers from potential financial losses associated with deed theft. This move aligns with broader legislative goals to curb fraud within the real estate transactions and ensure that banks and lenders are held accountable for their involvement in fraudulent conveyances. As a result, the bill is expected to enhance the integrity of property transactions across the state.
Summary
Bill S07732, known as the 'Deed Theft: Bank and Lender Accountability Act', targets fraudulent activities within the title insurance industry. The legislation aims to reinforce accountability by prohibiting title insurance corporations from making payments on claims related to title insurance policies when the transactions conveyed are determined to be false or fraudulent. This decision reflects a critical stance against the misuse of title insurance, especially concerning deceitful practices that could lead to unauthorized transfer of property titles.
Contention
Some points of contention surrounding S07732 likely arise regarding its implementation and the potential implications it may have on legitimate transactions. Critics may argue that while addressing fraudulent practices is essential, the strict nature of prohibiting payments might complicate the resolution of genuine claims, especially in cases where the authenticity of the transaction is disputed. There is also concern about how this bill might influence the behavior of lenders and the overall landscape of the title insurance industry, particularly regarding their liability and risk management practices.
Provides that any person who provides information to the attorney general, a district attorney or the insurance frauds bureau concerning a fraudulent insurance transaction or with information about a fraudulent insurance transaction that is about to take place may be entitled to an award of forty percent of the action or claim relating to such fraudulent action.
Permits any title insurance corporation or title insurance agent, or any other person acting for or on behalf of the title insurance corporation or title insurance agent, from undertaking any usual and customary marketing activity aimed at acquainting present and prospective customers with the advantages of using a particular title insurer or title insurance agent that are not intended for the purpose of a reward for the future placement of, or the past placement, of a particular piece of title insurance business; lays out such permitted practices.
Establishes the New York title guaranty program to provide title insurance for real property within the state; establishes the New York title guaranty corporation to implement the New York title guaranty program.
Establishes the New York title guaranty program to provide title insurance for real property within the state; establishes the New York title guaranty corporation to implement the New York title guaranty program.
Prohibits the recording of conveyances suspected of being fraudulent; requires the clerk or registrar to conduct an investigation into transactions suspected of being fraudulent and to report such investigations to the local law enforcement or sheriff's office.
Prohibits the recording of conveyances suspected of being fraudulent; requires the clerk or registrar to conduct an investigation into transactions suspected of being fraudulent and to report such investigations to the local law enforcement or sheriff's office.
Mandates transparency of the expenses of title insurance corporations, including marketing expenses, lobbying expenses, salaries and other forms of compensation and authorizes the department of financial services to lower title insurance rates if deemed excessive.
Requires that any person claiming an abandoned vehicle which has a false or fraudulent certificate of registration or number plate provide proof of proper registration and insurance.
Compels the delivery of real property subject to a fraudulent transfer to the person entitled thereto; provides for the recording of judgments and orders relating to a fraudulent conveyance of title to property.