Fidelity National Financial Inc., the largest U.S. title insurer by market share, will require lenders to sign a warranty assuring their paperwork is sound before backing sales of foreclosed homes.
An indemnity covering "incompetent or erroneous affidavit testimony or documentation" must be signed for all foreclosure sales closing on or after Nov. 1, the Jacksonville, Fla., company said in a memorandum to employees Wednesday.
The agreement was prepared in consultation with the American Land Title Association and the mortgage finance companies Fannie Mae and Freddie Mac, Fidelity National said.
