Law360 Canada ( May 22, 2018, 8:53 AM EDT) -- Appeal by the insurer from a decision of an application judge finding that the respondent’s loss was covered by the mortgage insurance policy issued by the appellant. The respondent, a private mortgage lender, was the victim of a mortgage fraud. The appellant refused coverage relying on a coverage exception in the policy that applied if mortgage proceeds were paid to any person other than the registered title holder. Since the respondent’s lawyer had paid the mortgage proceeds to the borrower’s lawyer, in trust, rather than directly to the borrower, the appellant alleged that the exception applied. The application judge found that the exception did not apply because the registered title holder was paid when the borrower’s lawyer received the mortgage proceeds in trust. She thus found that the respondent’s loss was covered by the mortgage insurance policy....