Title Underwriter Heightens Level Of Scrutiny When Issuing Title Insurance On Property Foreclosed By Four Big Players

The Associated Press reports:

• Stewart Title Guaranty Co. is clamping down on sales of foreclosed homes that may be linked to flawed documentation. In an internal memo obtained by The Associated Press, Houston-based Stewart is issuing guidelines to its agents that make it difficult to write policies on property foreclosed upon by four banks whose processes are in question. Those banks are JP Morgan Chase, Bank of America, OneWest Bank or Ally Financial's GMAC Mortgage unit.

• In a statement, Stewart Title said the memo provides guidelines to its issuing offices to enable them to insure foreclosure sales in jurisdictions where lenders or state attorneys general have not issued a moratorium on foreclosures. "Stewart stands ready to insure these transactions in accordance with these guidelines," the company said.

For the story, see Stewart Title clamps down on foreclosure sales.