Title insurer wins round in mortgage fraud

The Daily Report details the ruling: "The federal appeals court in Atlanta has given a title insurance company a chance to recover some of the $742,000 it lost in a Georgia mortgage fraud scheme."

"Attorney's Title Insurance Fund Inc. paid Long Beach Mortgage Company after it turned out that the property in Lithonia, Ga., was in default and was actually owned by another lender.
The U.S. government prosecuted the fraud perpetrators. One of them agreed to forfeit the proceeds remaining from the Long Beach loan as part of his sentence."

"The title insurer sought to recover its loss, but a federal judge in Augusta denied its petition, saying the government's interest in the forfeited funds came first."

Fidelity aquires LandAmerica

MarketWatch reports: "LandAmerica shareholders will get 0.993 shares of Fidelity National for each stock they hold. The deal values LandAmerica at almost $130 million, based on the closing price of Fidelity National shares on Thursday."

"Title insurance protects home buyers against losses arising from disputes over the ownership of their property. As the housing slump has deepened, these insurers have been getting more claims, cutting into profit."

"Indeed, LandAmerica reported losses in the first half of 2008. The company also had more debt than some of its rivals, leaving it more vulnerable. Shares of the Richmond, Va.-based company were down 86% this year, through Thursday's close, while Fidelity National stock had lost 43%."

"'The unprecedented credit freeze and depressed real estate market have negatively impacted our business to the point that it has become increasingly difficult for LandAmerica to remain an independent public company,' Chief Executive Theodore Chandler said in a statement. 'This combination is in the best interest of our shareholders, customers and employees.'"