This foreclosure debacle is a non-issue for Fidelity:
Before a foreclosured property can be sold the court issues a foreclosure title based upon documentation and testimony of the lender.
Fidelity issued a policy based upon the validity of the foreclosure title. Even if the court were to withdraw that title - which is very doubtful - it than would have to require the seller to make the good faith buyer whole.
Fidelity only insures the past not the future actions of a court. Therefore this foreclosure debacle is a non-issue and a buying opportunity for Fidelity.