News Express
Bulletin 2004/05 - 112
April 4, 2005
Mortgage Impairment Product is Title Insurance According to California Court of Appeal
The California Court of Appeal has upheld the cease and desist order issued by Insurance Commissioner Garamendi against Radian, a mortgage guaranty company. The Court of Appeal determined that the undisclosed lien coverage found in the Radian Lien Protection product fit the definition of title insurance.
The Cease and Desist prohibited Radian from issuing its Radian Lien Protection product on the basis that the mortgage impairment product provided title insurance in violation of the title insurance and mortgage guaranty insurance mono-line statutes. Read the Court of Appeal opinion (PDF).
