FDIC Wants $10M From WaMu's Title Insurer For Loan Fraud

Law360, New York (October 3, 2012, 4:04 PM EDT) -- The Federal Deposit Insurance Corp. on Tuesday hit Attorneys' Title Insurance Fund Inc. with a suit alleging the title insurer failed to reimburse $9.6 million that ATIF agents misappropriated from now-defunct Washington Mutual Bank FSB in a number of residential real estate transactions.

The FDIC says ATIF encouraged WaMu to use its agents to handle funds and documents for the bank and to close real estate transactions for which it was providing title insurance. In “closing protection letters,” ATIF agreed to reimburse WaMu for any losses...
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