G at 82-83. This gave the appearance that Amerifunding was actually funding mortgages. This practice can create quite a headache for the borrower. According to the regulator, the bank violated the FDPA to make, increase, extend, or renew loans secured by properties in special flood hazard areas until after it obtained proof of adequate insurance. This website is not intended for viewing or usage by European Union citizens. ." See id. . . made or obtained from the Insured . Professionals rely on HW Media for breaking news, reporting, and industry data and rankings. 's Ex. The Court finds that the facts and legal arguments are adequately presented in the parties' papers and the decision process would not be significantly aided by oral argument. Most uploads do not require a Reference Number to provide the insurance information. Co., 949 F.Supp. See id. In mid-March 2004, as a result of Eisenhauer's investigation, Flagstar learned that the underlying mortgage transactions which Amerifunding submitted as collateral for advances under its line of credit were completely fictional. ( Id. whether such loan . Amerifunding and Security National were in fact controlled by the same group of people. Id. status of any class action settlement claim. Nov.17, 2006),, Universal Image Prod., Inc. v. Chubb Corp., 703 F. Supp. The cases upon which Plaintiff relies inexplicably rely on tort concepts to define an unambiguous term in an insurance contract. Accordingly, Federal's Motion for Summary Judgment is GRANTED. R at 42, 53. Federal also argues that the notes in this case do not qualify for coverage under the terms of the Bond because they are not negotiable instruments as the term is defined in the Bond. Over the last 90 years, the Standard Form Bond has undergone numerous revisions, the last being in 1986, "in order to incorporate commonly used riders, to clarify insuring agreements and to adjust the bond to conform with modern banking practices." Compounding the borrowers problems, lender placed insurance is often activated at a time when the borrower is in tough financial straits. at 862. 860; Georgia Bank Trust v. Cincinnati Ins. at 86-87). See Matsushita, 475 U.S. at 586; Stephenson v. Allstate Ins. Since the notes and mortgage documents that Flagstar held as collateral did not represent real transactions, Flagstar did not hold anything of value to secure its advances. 8). TROY, Mich., March 11, 2016-For the 11th consecutive year, Flagstar Bank is sponsoring statewide walks to support the March of Dimes March for Babies. ( See Pl. having a Credit Value not less than the amount of the Requested Advance." 's Ex. 's Ex. .

See First Federal, 768 F.Supp. . Flagstar Bank, FSB v. Federal Insurance Co., No. Similarly, the Court concludes that the result in First Federal is unpersuasive. In light of the resolution of the current motion, Flagstar's outstanding motions are moot and are HEREBY DENIED. 's Ex. at 117-20). Flagstar explained that it would not have advanced the funds to Amerifunding without first receiving the signed promissory notes. any Negotiable Instrument (other than an Evidence of Debt). Def. . 's Ex. Instead, Flagstar argues that the forgeries caused its loss because it would not have advanced the funds to Amerifunding had it not received the promissory notes bearing forged signatures. While Flagstar claims the notes had value because they were essential to completing the credit transaction with Amerifunding, this does not mean that the notes had any worth. Save my name, email, and website in this browser for the next time I comment. They are well aware of the risks of the transactions in which they are involved and can easily bargain with each other to allocate those risks. at 24. ." J. Just because Flagstar thought the notes were as good as gold does not change the fact that the notes had no potential to secure Flagstar's advances. In reality, the account was never funded and had a negative balance. All right reserved. See Def. The notes were not backed up by an actual interest in real estate and were themselves not real promises to pay money as a result of a loan. The notes involved in this case represented that the maker promised to repay a loan. The bank provides a broad assortment of banking services, including originating and servicing home mortgage loans. Id. document.getElementById( "ak_js_2" ).setAttribute( "value", ( new Date() ).getTime() ); For years, mortgage lenders have required homeowners to provide hazard insurance that protects the lenders financial interest in the home. ( See id.). ." The court further elaborated that a contrary result would "bind the defendant to a contract that it clearly did not enter into." I still have my receipt. To obtain an advance, Flagstar required Amerifunding to submit (1) an advance request; (2) an executed promissory note and mortgage; (3) an assignment of the note; and (4) written confirmation of a pre-arranged investor's commitment to purchase the loan upon closing.

is_confirmation;var mt = parseInt(jQuery('html').css('margin-top'), 10) + parseInt(jQuery('body').css('margin-top'), 10) + 100;if(is_form){jQuery('#gform_wrapper_805').html(form_content.html());if(form_content.hasClass('gform_validation_error')){jQuery('#gform_wrapper_805').addClass('gform_validation_error');} else {jQuery('#gform_wrapper_805').removeClass('gform_validation_error');}setTimeout( function() { /* delay the scroll by 50 milliseconds to fix a bug in chrome */ jQuery(document).scrollTop(jQuery('#gform_wrapper_805').offset().top - mt); }, 50 );if(window['gformInitDatepicker']) {gformInitDatepicker();}if(window['gformInitPriceFields']) {gformInitPriceFields();}var current_page = jQuery('#gform_source_page_number_805').val();gformInitSpinner( 805, 'https://topclassactions.com/wp-content/plugins/gravityforms/images/spinner.svg' );jQuery(document).trigger('gform_page_loaded', [805, current_page]);window['gf_submitting_805'] = false;}else if(!is_redirect){var confirmation_content = jQuery(this).contents().find('.GF_AJAX_POSTBACK').html();if(!confirmation_content){confirmation_content = contents;}setTimeout(function(){jQuery('#gform_wrapper_805').replaceWith(confirmation_content);jQuery(document).scrollTop(jQuery('#gf_805').offset().top - mt);jQuery(document).trigger('gform_confirmation_loaded', [805]);window['gf_submitting_805'] = false;wp.a11y.speak(jQuery('#gform_confirmation_message_805').text());}, 50);}else{jQuery('#gform_805').append(contents);if(window['gformRedirect']) {gformRedirect();}}jQuery(document).trigger('gform_post_render', [805, current_page]);} );} ); (emphasis added). ( See id. The excess bond was subject to the same terms and conditions as the underlying Bond and insured Flagstar for those losses above $10 million. "It is not enough to show that `but for' an act of covered forgery, for example, the insured would not have sustained `Loss.'" at1049-50. In each of the transactions involved in the present suit, the same permanent investor, TDF Mortgage Funding ("TDF"), purportedly agreed to purchase the mortgages. The best thing is the employee cost has remained very constant over the last 10 years with only limited increases. The plaintiff in Jefferson Bank loaned money to a debtor in exchange for a mortgage. 's Ex. There, a bank loaned money to a third person based on a guarantee signed by a husband as a guarantor. See 9A COUCH ON INSURANCE 132.47 (1995) (stating the "purpose of the exclusion is to avoid the risk of writing credit insurance."). Mich. Nov. 17, 2006). Thus, the allocation of risks in the transaction in Omnisource was completely different from that in the present case.

For years, mortgage lenders have required homeowners to provide hazard insurance that protects the lenders financial interest in the home. In addition, Flagstar obtained a $15 million excess bond for the same period from Continental Casualty Company.

's Compl. Upon receipt of these documents, Flagstar's loan processor would confirm that the documents were complete, and Flagstar would advance funds equal to 99% of the face value of each promissory note. Example: www.ihaveinsurance.com/. See id.