Funds News

Company stops insuring titles in Chase foreclosures

NEW YORK, Oct 3 (Reuters) - Amid growing concerns about the legal practices of mortgage lenders, Old Republic National Title Insurance told agents Friday it would stop insuring homes foreclosed by JPMorgan Chase & Co JPM.N, The New York Times reported Saturday, citing a company memo.

Old Republic, one of the nation’s largest title insurers, said it would not write policies on foreclosed Chase properties until “objectionable issues have been resolved,” according to a company memo obtained by the Times.

Officials from Old Republic and Chase could not be reached immediately for a comment.

Minneapolis-based Old Republic last week said it would not insure properties foreclosed by GMAC Mortgage. Old Republic is a unit of Old Republic International Corp ORI.N

GMAC and Chase have halted all foreclosures in the 23 states where they need a court’s approval. Bank of America on Friday said it would stop all pending foreclosures in those states.

When house foreclosures are done with faulty documentation, new owners could be vulnerable to ownership claims. Title insurers agreed to protect buyers against defects or errors in the title. (Reporting by Joseph A. Giannone, editing by Maureen Bavdek)