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."