Q: What is driving Fidelity’s change in policy regarding Mechanics and Materialmen Liens?
This is not a “Fidelity” issue. Rather, it is an issue that impacts the entire title industry, lenders, and purchasers of property, as well as providers of labor and materials that have gone unpaid for their work. The problem arises because of the inability under current NC m/m lien law to determine who all the potential lien claimants are in connection with immediately contemplated, ongoing, or recently completed construction. It is important to note that it is the NCLTA, not any one company, that is seeking changes to NC’s m/m lien laws, and that this is not a new issue, the NCLTA has been seeking fixes to the hidden lien problem for years.