Mortgage Associates, Inc. v. Fidelity & Deposit Co. of Maryland

Opinion

VOGEL (MIRIAM A.), J,

As the result of a fraudulent scheme perpetrated by a mortgage lender’s employees and third persons, the mortgage lender made several loans for more than the value of the mortgaged properties. The mortgage lender, unable to recoup its losses through foreclosure, submitted claims under its financial institution bond (which covered some but not all losses resulting from employee dishonesty) and under 16 title insurance policies it had purchased for the mortgaged properties. Both insurers denied the claims, and both were sued by the mortgage lender. The insurers’…