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Decision affects mortgage fraud insurance claims, title insurers

Tuesday, June 12, 2018 @ 10:28 AM | By Jesmond Wong

A recent Court of Appeal decision highlights the importance of disbursing private mortgage funds only directly to the registered title holder and not to a third party.

In Nodel v. Stewart Title Guaranty Company 2018 ONCA 341, the private mortgage was a victim of mortgage fraud and sought to claim under his mortgage insurance policy with Stewart Title Guaranty Company (Stewart Title).

Stewart Title refused to pay and relied on a coverage exception in the policy that applies if mortgage proceeds are paid to any person...