Industry NewsMortgage

Fidelity will require warranties on all REO sales

Bank of America already on board

The nation's largest title insurer, Fidelity National Financial, will require warranties from all lenders beginning Nov. 1 limiting the company's liability in "robo-signing" disputes before it will insure title on real estate owned (REO) properties.Fidelity had previously reached an agreement with Bank of America to provide representations that all foreclosure documentation and procedures associated with a property comply with state law and local practices, and that the lender will indemnify Fidelity against any losses that are the result of the bank's failure to comply with those laws and practices.American Land Title Association CEO Kurt Pfotenhauer has said the industry group has been working with federal regulators, lenders and other stakeholders to secure assurances from all lenders that they have performed proper due diligence on their foreclosures.It was Bank of America that approached Fidelity offering to provide such warranties, after a competing title insurer iss...

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