The high-octane lawsuit currently pending in North Carolina between First American, United General Title and Bank of America took on a new layer this week as First American filed its Answer and Counterclaim to the Bank of America Complaint.
- First American admits that it did not perform title searches prior to issuing the Fiserv lien protection insurance (home equity policies of title insurance).
- First American does not dispute the number of claims alleged in Bank of America’s Complaint, but says that they were properly denied pursuant to the conditions and stipulations of the insurance policy.
- First American alleges that Bank of America and its poor underwriting were the root causes of the alleged losses.
It’s an interesting read. A copy of the Answer and Counterclaim is embedded below.
For more information, read Slade Smith’s blog piece on Source of Title. Slade has an interesting quote from the American Land Title Association regarding Radian Guaranty, which was the precursor lien protection insurance to the Fiserv product now being pushed by First American and each of the remaining national underwriters. The hypocrisy of ALTA’s position is palpable.