First American Liable For $4.5M Sham WaMu Loan: Judge

Law360, New York (June 10, 2011, 7:49 PM EDT) -- A federal judge in Michigan ruled Friday that First American Title Insurance Co. was liable to Washington Mutual Bank receiver the Federal Deposit Insurance Corp. for losses sustained in a $4.5 million sham mortgage.

U.S. District Judge Marianne O. Battani said First American was liable under a closing protection letter issued with the bogus home loan stating that First American would reimburse Washington Mutual if the title insurance carrier's issuing agent, Patriot Title Agency LLC, engaged in fraud.

First American had argued that the FDIC lacked...
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