Opinion ID: 2019475
Heading Depth: 1
Heading Rank: 3

Heading: insurance company loan

Text: In May 1958 the respondent applied for a loan to the Mutual Service Life Insurance Company, which was to be secured by a mortgage upon certain real estate owned by him. The attorney for the mortgagee, relying on the good faith and honesty of the respondent, permitted him to prepare the mortgage papers, including title opinion. The respondent prepared for the signature of his fellow lawyer a title opinion which represented that there were no encumbrances or liens against the property except the mortgage to the Mutual Service Life Insurance Company. As a matter of fact, there was a mortgage on the property which at the time of the preliminary title opinion had an unpaid balance of $5,224.41. When his fellow lawyer discovered that this mortgage had not been satisfied and confronted the respondent with the facts, the respondent readily admitted the deceit. From the findings it appears that the respondent conveyed to this attorney the property covered by the Mutual Service mortgage with authority to sell the property and pay all the liens thereon. Subsequently the property was sold and the liens paid.