Internet Archive Wayback Machine.....cool!

Wayback when I killed my old Radical Title Talk blog.  I did not keep a copy.  Every once in while I did wish that I could take a peek.  I stumbled across this Wayback site and here for your enjoyment are some good ole Radical posts.  LOL


Enter the Radical era of days gone by.

let me put it this way.........as a tiny mustard seed of a title agent who looked up into the guts of Full Spectrum from below, I'd say this suit sheds light on truth......

Allstate said that starting in 2003, Countrywide quietly decided to boost market share and ignore its own underwriting standards by approving any mortgage product that a competitor was willing to offer, in a "proverbial race to the bottom."

Countrywide then passed on the added risks to investors who bought debt backed by the mortgages, Allstate said.

Read more in Reuters.

humans prevail over automatons...thanks, we win one ;)

New rules from the five federal bank regulatory agencies no longer accept technological tools like automated valuation models alone as a substitute for an appraisal, forcing vendors to upgrade these products with the required on-the-ground inspection and other data.

Automated valuation models provide property values using mathematical modeling and a database of comparable properties. The

bait and switch? query via email from K

I have an unusual situation regarding a recent refinancing on my home that I would appreciate your advice on. I refinanced to a lower interest rate.  This was a no-cost refinancing and there was no dispersion of cash to me. I closed on November 20th.  I signed the appropriate paperwork and HUD statements electronically with a notary present.  As part of the final transaction I wired $400 to the

Americans marked off property, courts recognized that property, and the people got deeds that meant everyone knew their property was theirs. They could then buy and sell and borrow against it as they saw fit.

This idea of a deed protecting property seems simple, but it's powerful. Commerce between total strangers wouldn't happen otherwise. It applies to more than just skyscrapers and factories.

An attorney involved in several local mortgage fraud cases, including some involving Beechview developer Bernardo Katz, was sentenced in federal court today to 57 months in prison.

John Chaffo Jr. of Murrysville was the lawyer involved in 57 fraudulent property sale closings from 2000 through 2007, Assistant U.S. Attorney Brendan Conway told Senior U.S. District Judge Donetta W. Ambrose,

Why would an underwriter have strict credit standards for agents?

I thank reader, David, for his inquiry today concerning becoming a title agent and having some trouble because his credit history is not good.

I suggested that he consider a different profession.

Title insurance agents have access to and control loads of cash.  What is the primary attribute you as a consumer wish to see in a person who manages money?  How about trustworthiness?

What is a

here's a few hmmms.... for ya ;)

hmmmm........ A lender requires a private road maintenance agreement.  Instead of hiring a competent attorney to draft a document, the buyer drafts his own and in the process creates a separate individual document for each person on the street to sign.  The whole project ended up costing close to $350 in recording fees when an attorney would likely have charged $150 for creating a document that

Fannie Mae will no longer accept back a mortgage that was repurchased by a secondary market investor, government-sponsored enterprise or private institutional investor — even if the lender cured the defect in the loan.

Read more on Housing Wire.

query: what kind of experience leads to a job in mortgage underwriting

In my opinion, a good underwriter can be taught the mortgage rules IF they have the basic smarts and analytical talents.  It's not an entry level position and most often underwriters move up out of mortgage processing.  I have to say, however, that most of the underwriters I hired and trained when I was in mortgage banking did not.  Most were simply excellent performers in a related

A 'barn-find' Bugatti amounting to little more than a loose collection of bits has sold at auction for more than seven times its estimate.
Completely dismantled, incomplete and lacking its engine and body, the 1926 Bugatti Type 38 was expected to fetch only around £9,000 when it went under the hammer at a Bonhams sale in Australia.

Read more in the Daily Telegraph.

The firing prompted Mike Huckabee and Sarah Palin, among others, to call for NPR to be stripped of federal funding.

Ailes later semi-apologized for his comment in a letter to the Anti Defamation League.
"I was of course ad-libbing and should not have chosen that word, but I was angry at the time because of NPR's willingness to censor Juan Williams for not being liberal enough," he wrote, as

query: what if property taxes change after closing, does that impact prorations?

Hi Diane,

I didn't see on your blog where I could post my question, so hope you don't mind me writing to you.

I'm about to close (Nov 30) on a home for the first time, so I've been studying everything I can to try to be prepared at closing, and avoid any surprises, especially financial ones.  I'm wondering about the settlement of pre-payed property taxes.  The seller bought at the height of

Thanks to new federal rules covering closing costs on mortgages, home buyers are experiencing a new type of surprise at closing.

Instead of being faced with higher-than-expected costs -- as homebuyers often were shocked to find prior to this year -- the amount needed to close on a mortgage loan is generally the same or lower than the original estimate, experts say.

That's because lenders and

the day title insurance and Marilyn Monroe met in a Google Alert

"suggests that she not only cooked, but cooked confidently and with flair": Scrawled on stationery with a letterhead from a title insurance company, ...



Read all about it in the NYT.

haven't had a taste of mortgage fraud for awhile.....

So, the exercise of yesterday afternoon was like time travel back to the days of sub-prime.


We received a frantic call from a listing real estate broker concerned that the HUD-1 did not accurately reflect the movement of the money.  Huh?

Turns out that after our closer left the table, the seller had confronted her and demanded that she pay him $800 to cover his loss.  He had been forced to pay

this still blows my mind....ROBO-GFEs...don't they get it yet?

"Several important new features in ClosingCorp’s SmartGFE service just went live in order to improve the GFE data process — including an automatic notification of changed circumstances"  source


ClosingCorp's SmartGFE is nothing more than a ROBO-GFE in my mind.  It's only a matter of time before the lack of human decision making is exposed yet again as a bad idea.  Culture of brainlessness..."

Well, that's an angle I hadn't consider. Hmmm.

"We are not an equity owner in any law firm," he said.

Read the article in Housing Wire.

"standing in the wind" and "the wall is red"

I've probably talked about these two techniques before but just in case, let me explain.

What we call "standing in the wind" is the purposeful listening  to another person venting while remaining calm.  Our natural instinct is to get riled and defensive. It's not that the wind is bad.  The wind is.

Real estate is a large transaction that touches some of the most important moments of life and

My heavens to Murgatroyd, we're busy.

Me thinks consumers have finally discovered that interest rates are LOW LOW LOW and those that aren't buying are refinancing. 

Oh, and BTW - lenders are lending!  ;)

I really do not understand this need to make transactions brainless. Do you?

The robo-signers that have blown a hole into the foreclosure process are evidence of this never ending quest for the holy grail of brainlessness.  WHY  WHY  WHY WHY is the mortgage and title insurance business so darned interested in getting rid of competent human beings?

I just got a call from a nice lady at Closing.com.  They call every so often to ask if my fees are accurate and I always say

mortgage broker advertises interest rates tied to affiliated title insurance

A friend showed me the mortgage rate section of the Tribune Review last weekend and pointed to a mortgage company listing that had asterisks next to a few interest rates.  These asterisks pointed to a note that the rates were only available if the transaction was a purchase and the borrower used a particular title provider.

Clearly the mortgage broker sought to avoid Pennsylvania's discounted

Hey, readers. Hello!

Hope you like the new look of Title Insurance Talk.  This is the first visual overhaul since 2006.  I've been wanting to update the picture for some time but the right shot just hadn't surfaced, then my friend Marianne sent my this photo of us playing at the local farmer's market.  I LOVE that she caught my TCS minicooper in the shot, SOOOOO, here we are.  ;)

Marianne McAuliffe plays Native

Fidelity scales up outsourcing to India

CHENNAI: Spotting an opportunity to cut its costs by around 30 per cent with increased productivity, US-based insurer Fidelity National Title Group Inc has decided to scale up its business process outsourcing (BPO) and software development activities in India.

The company had set up its captive BPO company Fidelity

if you bought a foreclosed home and are concerned about recent news

“If a new homeowner’s title is challenged because of a faulty foreclosure, the title insurer may have an obligation to defend the challenge,” said Kurt Pfotenhauer, chief executive officer of ALTA. “However, it is unlikely that a court will take property from an innocent current homeowner and return it to a previous homeowner who failed to make payments on the

the junk junkies just never learn, do they?

I've been slowly watching the return of articles pushing automation in mortgage underwriting and mused that it wasn't taking very long for people to forget that the loss of competent human credit analysts is what started this whole mess.

This morning, this article popped up on Inman and I am simply amazed but I guess shouldn't be surprised that folks just don't get what credit underwriting is

the dangerous dangling lot

You might not think of an extra lot as being dangerous but from a title insurance perspective, the extra lot causes all sorts of misunderstandings and potential for loss, especially when the lot is forgotten or not considered.

A recurring problem surfaces in foreclosure.  If a title agent only places a mortgage upon the lot on which the house sits but doesn't consider discussing the adjacent

question to settlement agents

Are you seeing a drop off in the number of transactions with home warranties being sold as part of a purchase transaction?  I am.

Interesting, huh? 

interesting observation on RESPA 2010

How the industry is faring with new RESPA forms After eight months of using the new Good Faith Estimate and HUD-1 Settlement Statement forms, mortgage lenders, closers and the legal community are at a calmer place with implementation than they were on Jan. 1. But is it a perfect system yet? Two attorneys say no, with one saying that

query via email: Is it legal to have a simultaneous closing?

Hi Diane,
My question concerns methods of closing. Is it legal to have a simultaneous closing?
In other words on an A to B and B to C purchase where the bank is A, I am B, and an end buyer is C.
At closing is it legal for B and C to sign papers, with the funds from C put into escrow, and then A and B close using funds from escrow on first signing to fund that transaction?
I hear some Title

speaking of escrows

What do you think?  If an agent is no longer representing a particular underwriter, doesn't it make sense that the underwriter should take the escrows related to their policies?

I was thinking about that lately and it makes sense to me. 

abandoned escrows

It still blows my mind how many abandoned inheritance tax escrows we have every year.  I've got thousands of dollars sitting in escrow that I need to get over to the Department of Revenue.  They in turn will send us a release for our insured property and we can then file it at with the Register of Wills.

Each year I work with a different person at the Department. Most are just happy to get the

Hello to fast reader in the Netherlands. :) May I help you find something in particular?

This is the little blog that could. ;) Title Insurance Talk sits out here in the web ether answering usually 100 to 200 questions at day.  Most hits are specific queries - questions to search engines.  I always hope YOU, the reader will find what you are looking for.  If not, if it's a relevant question we haven't covered before, I'll do a post.  Some hits are regular readers and I love seeing

note to testy comment person

Roger, wilco and out.  ;)

query: should buyer get title insurance on land cash deal

Unless you want to put the cash at risk, YES, buy an owner title insurance policy.

query: when does being threatened with adverse possession end

I do hope you confer with a good real estate attorney.  In PA, you can evidence that you granted permission for the use, even if temporary permission and that should defeat an adverse possession claim.  A good real estate attorney can advise you.

I bought a property a few years back and the survey revealed that a neighbor was using my land for parking and generally as a side yard.  The land was

questions on a public forum

Purchased a house about 5 months ago in PA. I have talked to the guy 8 or 10 times now and he has made many excuses and promises.. and yet, I never received the original title back, or the owner's title insurance policy I paid for. I checked with the county, and the purchase has been recorded with them.

So, obviously I will try to press on him by filing BBB complaint, etc, but my concerns

question from Bob

A Lender’s Policy was issued by a Title Company for private financing in the amount of the loan on a single family home with a LTV of 50% or less.  A good portion of the loan proceeds were used to cure delinquent taxes and acquire an adjacent property.
Borrower signed as a Personal Representative of an Estate with minors.  Title Company failed to discover borrower’s PR status had expired.  This

2008 taxes used for 2010 closing?

Diane: After we closed on our property we discovered the title company had made an error when they did the title search regarding the taxes. They said they based them on the 2008 taxes because the 2009 tax bills were not out yet, we closed Feb. 22, 2010. They said their title search found the 2008 taxes were $1130 when in fact the 2008 taxes were $2950. The amounts that were allowed for

happy insured

Hi Diane,  thought I would follow up to share the outcome of this title insurance claim for the costly non-permitted construction on our house...

Even though our legal matter with the sellers was far down the road (and stalled) and only then had we decided to file the claim, First American agreed to pay the full amount of the policy cap of 25K for such claims (hey, it's something!).   So in

just curious

How many states or underwriters require a written quality control plan for title agencies?  I just had an inquiry from a reader in Kentucky who is looking for a plan.

JC's response to the last post.

JC says, if anything, what he hears most often now from borrowers is, "Is that all?", and I think that's just darn exciting.  RESPA 2010 has turned the world of the Good Faith Estimate on its head.

the great silence.....can you hear it?

I cannot remember the last time a consumer called or cried about their amount of cash required for closing.

How amazing is that?  It's wonderful.  It is life changing.

HUD, thank you.

Your plan worked.  The new GFE and HUD-1 2010 RESPA standards have accomplished what years of training couldn't - accountability in disclosure.

Put the fear of real penalties in the hearts of loan officers and

The seller did his own title search and.....

he says someone at the courthouse did his deed for him.  Hmmmm....

Well, the prior vested owner was a man, we'll call John Smith.  Our seller's deed was from a woman who says she was Mrs. John Smith.  The deed says John Smith is dead and that Mrs. Smith owns the property by operation of law as having been his wife.

Well, that's wrong.  She wasn't in title so does our seller actually own the

just a note to say hello

Our two most interesting cases pending now are one involving a Power of Attorney for a buyer and another in which the neighbor stepped forward on the eve of closing to say the driveway is on his property.

Both are cases of info coming in really late in a transaction and so both are delayed while we work out solutions.


In the case of the Power of Attorney, the buyers told the loan officer that

We're pretty darn busy...sorry no posts. I'm pedaling as fast as I can!

you probably know by now how I feel about FICO scoring...

I'm not a fan.

I think FICO got us into this credit mess by creating and supporting the false belief that automated underwriting could replace expert human analysis and judgment.  Though developed as a tool, it replaced humanity in the lending process.  NOW, it's time to let go.

We don't have subprime lending.  It's basically gone.  Hard money lenders are few and difficult for consumers to

helping a consumer deal with reality

Back in April we received a title insurance order for a vacant lot on which the buyer planned to build a new home.  It's a cash deal and it still has not closed.  Why?  Well, the seller didn't realize that he had a mortgage on this lot and now we are working through a long process of obtaining a release.

Why didn't the seller know about the mortgage?  Well, the purchase of the adjacent lot was

I get a kick out of seeing Title Insurance Talk translated into a foreign language.

Last year I noticed a post had been translated into Vietnamese.  Last week I saw one translated into Spanish for a Chilean reader and then this morning I noticed another translated into Dutch for a Belgian reader.  Cool. ;)

LOL....I'm sorry but this makes me laugh.

The vagueness of the individual factors is compounded by the subjective balancing process inherent in the test. HUD explains that the ten factors “will be considered together in determining whether the entity is a bona fide settlement service provider.” But HUD gives no indication how many factors might be determinative, or which factors might weigh more heavily in the analysis. Any entity

sham test unconstitutional?

The U.S. District Court, Northern District of Ohio, Western Division in Toledo, Ohio has issued a Memorandum and Opinion Order decided by Judge Jack Zouhary which holds that HUD's 10-Part Test to determine whether a controlled business arrangement is a sham entity or not is unconstitutional. The case is styled Erick Carter, et al. v. Welles-Bowen Realty, Inc., et al. and involves two

WILLIAMSPORT — A State College businessman who admitted embezzling $1.6 million while serving as an agent for Ticor Title Insurance Co., based in Philadelphia, has lost his bid to be given a sentence lighter than called for by sentencing guidelines.
In an opinion issued Friday, U.S. Middle District Senior Judge Malcolm Muir said while Ellery A. Crissman’s community activity may justify a

on support of TARP

Against lots of vocal opposition, I supported TARP.  This is why.  The assistance was necessary to stop a spiraling dynamic and prevent a banking disaster.  It was a carefully thought out plan with a way to recover funds when the danger was clear.

The unfortunate unintended consequence was that politicians across the nation saw it as a GO signal to borrow in previously unthinkable levels against

just got freaked out by a tax collector

If you live in a metro area or some other place of the country with professional tax collection, you just probably cannot believe how we collect property taxes in most of Pennsylvania.  Each municipality has an elected official in charge of the tax collection.  Many are part-time and work out of their homes.

I just got off the phone with a new tax collector who called because she could not match

short sale lender wants buyer docs? why?

This is a first.  We just got a post closing request from a real estate broker for "a copy of the Note, Homeowners Insurance Dec Page and paid receipt, Approval letter from lender or and Amended approval Letter."

Say what?  Why?  What business are these personal buyer documents to the seller's mortgage lender?

Here's my response:

"To guard privacy, we release documents when requested by the

query: title company will stop pay on refund check unless new HUD is signed

Interesting topic.  If you check the documents signed at closing you should find one or more in which you, the borrower in a mortgage transaction, agreed to cooperate and sign corrective documents as necessary.

If the title company has been charged by the mortgage lender or some other party to have a corrective HUD-1 signed and you are not cooperating, they may choose to use whatever means they

query: what does POC on a HUD stand for

Paid Outside of Closing

gee, Charles, you didn't look very hard...we've been out here talking with consumers for YEARS

"We decided that the only fair option is to let the consumer select a title company they can trust, rather than leave that decision to the financial institution" says Charles Marino, CEO of Pennsylvania Title Company. "We don't know of any other title companies who are reaching out to the end user like this, and we feel it will be a positive direction in which to take our company" says Marino.

Chicago Title held liable for fraud by employees

Fidelity National Financial Inc.’s Chicago Title Corp. and Chicago Title Insurance must pay $5.7 million in punitive damages for the role some employees played in a $30 million real estate scam, a San Diego jury said today.

The companies also were told to pay a share of $1.11 million in compensatory damages the California state court jury awarded to three investors who sued.

Read more on

error in proration or lender escrow?

Diane,I did not see a link to allow a new post on your Title Insurance Blog, so I wanted to email you.  I read many of the posts and several came close to my question, but as always a little different.
We recently purchased and closed on a condo.  Afterwards (about 10 days) my closing attorney contacted me about an error found by the seller on the HUD-1.  It was missing prorated insurance on

read this article in the Baltimore Sun, please

Government knows it has a problem.

In a recently concluded report, the Commission to Study Title Insurance in Maryland, appointed by the legislature two years ago, wants the insurance commissioner to study setting up a guaranty fund to pay back future victims. It also suggests making title-insurance underwriters more responsible for the behavior of agents such as Sybert who represent them at the

Just because the grantor is FANNIE MAE you ought not to overlook review of the deed and power of attorney.

It's frustrating.  FANNIE MAE does not release the deed for review prior to closing.  We have to wait for a courier delivery of the original which arrives on the day of closing.  That means we have no opportunity to find problems before the last minute and usually everything is okay but not always.

This morning JC reviewed a FANNIE MAE deed for a closing in Somerset County.  The deed referenced

WASHINGTON — The Federal Housing Finance Agency has ordered Fannie Mae and Freddie Mac to delist from the New York Stock Exchange and any other national securities exchange.

For more information, visit washingtonpost.com:
http://link.email.washingtonpost.com/r/U38ITL/O9UFJ/HSF107/H1TXYW/B985Y/JY/t

query: what does owners extended coverage per rate filing mean for closings

hmmmm.....

I'm guessing the buyer bought extended owner title insurance rather than the regular owner title insurance which is less expensive.  The "per rate filing" just indicates that the charge for extended coverage is determined by a filed rate, likely with the state insurance department.

I'll further guess that the buyer didn't get a moment in which to choose whether or not to purchase the

But, he warned that restricting yield spread premiums (YSPs) and limiting how much a loan officer can make would impact lenders' ability to attract and retain qualified loan officers on their staffs.
Found this sentence is this article and it kinda makes me nauseated.  You see, I think reducing the amount earned by loan officers per mortgage transaction will reduce the origination capacity down

oops...missed two items in foreclosure.....

Usually the foreclosing mortgage lender buys the property at sheriff sale.  Sometimes a third party decides to outbid the lender and that's what happened on the case sitting in our office.  Not only did a third party decide to outbid the lender but they immediately listed the property for sale and it went under contract BEFORE the sheriff's deed was recorded.  So that's a pretty good indication

query: do mortgage underwriters contact the IRS

At closing, most mortgage lenders require that the borrowers sign an IRS form 4506 which gives them the right to obtain a copy of the borrower's income tax form.  Mortgage lenders DO contact the IRS routinely as part of a good quality control program.  It's a fraud prevention tool and they DO catch fraudsters using this method.

I strongly advise against falsifying tax forms used in a mortgage

hmmm...a word about a potential title insurance claim

In 2006 we insured a transaction for property which sat in two different municipalities.  The house and most of the land was in one and the back 50 feet of land was in another.

I received a letter last week from the grandfather of the insured stating that we had failed to clear title on the 50 feet and that we had better pay roughly $700 to resolve the matter and that his granddaughter ought not

a sure sign of trouble.....

Former Priority Search workers interviewed during the investigation verified that Sichler oversaw all business operations, with one former staffer describing her as an “absolute control freak” who insisted on opening every piece of mail and maintaining exclusive control over all company bank accounts and finances.  Read the rest of the story of theft and dishonor.  What a creep.

ERIN TOLL....

Erin:  You topped my list of industry heroes.  I hear you are leaving the public sector for a real estate career.  GOD SPEED, LADY.  I wish you well. ;)

Radical

finally a straight link

to the pdf.

query: what is it called when you have a signed contract and one party wants to amend it and the other doesn't so the first party refuses to comply with the contract until the other signs the amendment

I'd call it a breach of contract in which case you may wish to consult your attorney for advice.

June is do or die month for the federal homebuyer tax credit.

That means we can expect a HUGE closing traffic jam at the end of the month.  If you are refinancing or buying and expect to close during June, plan to close as soon as possible.  Please try to close in the first half of the month if you can because closing during a volume crunch is not pleasant.  There can be document or funding delays. You won't get a great selection of time, dates or location.

query: falsifying Schedule A of the title insurance commitment

You have me really curious.  The only section of Schedule A that might cause harm if falsified is the title vesting area.  I can't think of any other item on Schedule A that would service a fraud.  The title vesting area is where the proposed insured buyer or lender learns who owns the property now.  Unless someone forges the title insurer's signature on Schedule A, you'd have to have a thief and

right in the middle of a crazy HUD prep day....the civil defense whistle went off!

After we were in the basement for a few minutes we found out it was a false alarm.  How more wacky could today have been?  ;)

nice job, ALTA!

per email from ALTA, "ALTA's language to limit the ability of the new Consumer Financial Protection Agency to regulate the title industry was included in final passage."

query: what does a FHA spot audit cover

It's been awhile since my last FHA spot audit but I've been through a few over the years. 

The first was the most memorable.  It was in 1978 and I was a young originator.  The FHA auditor walked into our office, unannounced, identified himself and asked for 25 randomly selected files, some closed, most in process.  After he reviewed the files he walked over to my desk for a chat.  He explained

query: seller won't release earnest money - pa

Earnest money also called hand money is a good faith deposit made by the buyer in a purchase transaction.  Earnest money shows the seller that the buyer is serious and willing to put money at risk in exchange for the seller taking the property off the market while the sale is pending.

When there is a real estate broker involved the money is held in the escrow account of the brokerage.  In FSBO

hey, Linda...this post is for you!

All title agents reading this post raise your hand if you are constantly asking yourself "Why is everybody trying to get into my pocket?"

The answer is that everybody thinks you do nothing for a living except enjoy a straight main line into pure cashola.  Everybody who is in a position to refer business to you thinks they deserve some of that easy money.

Why does everybody think you do nothing?

well, isn't this special....

According to two EMC analysts, they were encouraged to just make up data like FICO scores if the lenders they purchased loans in bulk from wouldn’t get back to them promptly.See story on Housing Wire.

any title attorneys out there want to comment?

Searching for info on title insurance claims and found your blog.  Awesome there's someone out there explaining how this stuff works, thanks!!!!  Any chance you can offer an opinion on our issue below?

We have First American Title Ins. Eagle Protection Owners Policy on our home bought in 1999.   Many years into our ownership in 2008 our city building department came to us to enforce an old order

whew...Old Republic got lucky the day this deal closed.

the case of the ill-defined easement

EVERYBODY KNOWS HOW IT GOES......

I am of the opinion that giving property reports away for free is a violation of RESPA and at least three state laws, Pennsylvania, Colorado and Washington.
ALTA doesn't think that's a RESPA problem, at least according to their outside counsel.  Kurt says "Just to let you know, I had our outside counsel run this through a RESPA scrub and he does not believe it to be a violation."
Okay, well

query: I recently found out that a piece of property I bought had a strawbuyer on it back in 1955. How does this affect my title?

I wouldn't worry.  A strawbuyer does not necessarily mean that a crime has taken place.

For readers who do not know what a strawbuyer is, let me give you my definition.  Think of a strawbuyer as a fake buyer, like a scarecrow made of straw, who stands in the place of the farmer in the field.  A strawbuyer stands in the place of the real buyer to hide the identity of the buyer.

We think of

I still respect the opinions of Paulson, Bair and Bernanke.

While reading this article on Housing Wire this morning, I remembered how strongly I believe these three understood the crisis and that they were right about TARP.

TARP was a risky move that went way beyond what they would have like, in my opinion but I believe they felt it was a necessary step to calm the markets. I agree.  What they and I failed to see was that TARP was a peek at heaven for

morning chuckle

First American's thorough title searches, title clearance and title insurance policies help to produce clear property titles and enable the efficient transfer of real estate. Source.

OAITA has update on First American/Bank of America case

The high-octane lawsuit currently pending in North Carolina between First American, United General Title and Bank of America took on a new layer this week as First American filed its Answer and Counterclaim to the Bank of America Complaint.  Read more on OAITA.

just cause HUD chose restraint for 180 days, what about other regulators?

On 11/13/2009, HUD issued release No. 09-215 indicating that for the first 4 months of 2010 they would "exercise restraint in enforcing new regulatory requirements under RESPA, due to take full effect Jan. 1, 2010."

Has anyone been examined during this time period and what was the approach of the examiners? Despite our Bank's significant and documented good faith efforts to comply, our OCC exam

I feel like a kid finishing a term paper at the last minute.

The  PA Data Call spreadsheets are due tomorrow.  I have Part Two finished and most of Part One but we got really really busy at the end of the month and  I didn't finish and submit. 

Today's the day.  Glad it's cloudy and might storm.  Let's hope we don't lose power.  OH NO!  I hadn't thought of that.  Yoi, double YOI!

the new Colorado law

Will we finally see a move by title insurers in Colorado to finally charge for title insurance commitments issued for transactions that do not close?  The only reason title companies do not charge for these services, even when the charge would be leveled against a consumer, is fear of retribution by referral sources such as realtors and lenders.

We have this problem in PA.  We've got the law and

So, I guess this means the new First American Title iphone app

which provides free data to realtors is illegal in both Pennsylvania and Colorado?  Can't give free property reports in either state.  Anyone else have details on other state laws?

Colorado....YOU ROCK!! Well done. ;)

April 28, 2010                                                    For Immediate Release  
Contact:  Cameron Lewis, Colorado Division of Insurance, 303.894.2261               Chris Lines, DORA Public Information Officer, 303.894.7873
NEW RULES FOR TITLE INSURANCE TAKE EFFECT MAY 1, 2010
Although many homebuyers are not educated in the intricacies of title insurance, the Colorado Division

sign contract by 4/30.....close by 6/30

We are in the midst of a panic as homebuyers are trying to close on April 30 mistakenly believing that the 30th is the last day to close.

Please read this article.

Eligible borrowers must sign contracts by April 30 and close on their loans by June 30 to qualify for the tax credits, which include $8,000 for first-time buyers and $6,500 for home owners buying a new residence.

cool....hello Vietnam! Just noticed a reader translated this post. ;)

Post-đóng có nghĩa là sau khi đóng. It's a catch all phrase for jobs or tasks that take place AFTER the actual closing. Đó là một nhận tất cả cụm từ cho công việc hoặc nhiệm vụ đó diễn ra sau khi kết thúc thực sự. Post-closing includes the final takedown/bringdown of title and recordation of documents, the issuance of title policies, disbursement of funds not disbursed at the closing table

is this FREE app a thing of value under RESPA?

The AgentFirst app is currently available at no charge from the App Store at http://itunes.com/apps/agentfirstrealestate. For more information, or to establish an AgentFirst account,real estate professionals may contact their local First American Title sales representative.

Read more here.

making the rounds......HUD Official going over “How to Properly Complete the new GFE” ;)

query: how much are tax service fees that FHA won't pay

Tax service fees are a one time charge collected at closing by a mortgage lender.  What a tax service does is a bit iffy to me.  I always thought that once a mortgage loan was set up in servicing that the tax service would monitor and oversee the tax payments for that property.

That appears to be partially true in some cases, because we do see instructions for the future billings going to tax

good advice...

Technically, a full mark up might not be completed until AFTER a closing, depending on the type of closing. The mark up takes place prior to the issuance of the policy and after all conditions noted in Schedule B1 are resolved. We routinely send copies of the title insurance commitment to consumers PRIOR to closing so they know we have agreed to insure and they have the opportunity to review

at street level everyone knew what was going on....

There's plenty more of the same in the complaint by MGIC charging that Countrywide agents were complicit in various and sundry deceptions. Frankly, we found it all something of a hoot, though it's not hard to see why MGIC isn't laughing.  Read more on Barron's.

The MGIC issue with Countrywide like the First American Title issue with Countrywide loans now being held by Bank of America is a real

We just closed a most interesting $1200 transaction.

That's right, TWELVE HUNDRED DOLLARS.

A month or so ago I received a call from a nice lady who wanted to buy a vacant lot which was being marketed by a bank after foreclosure.  Her intentions were to build on that lot.

The price was low because the property is in a distressed part of town but that's okay we are seeing lots of renewal in our metro areas where potential homebuyers are finding

query: what does POC stand for on a HUD-1 form

POC means PAID OUTSIDE OF CLOSING.  In other words, money paid prior to closing or in some odds cases, after closing.  This is money being reported on the HUD-1 form because it is related to the transaction but the figures are not included in the column calculations.

query: will a mortgage underwriter overlook my little lie

What?  Why are you lying to your lender?

If your mortgage underwriter is smart, the underwriter will verify everything and not take your word for anything.  That's how mortgage underwriting SHOULD be done anyway.

Most people tend to estimate their income a bit high and their liabilities a bit low.  That's not unusual, but if you are flat out falsifying data, then I would hope the underwriter

seller questions HUD-1 after closing

Hi, I came across your web site after doing a few google searches on the topic of HUD-1 errors.  We closed this past Friday on selling our house, and received the HUD-1 form today, Wednesday.  We looked over it, and saw that the attorney (this is in NY) for the buyer (who prepared the HUD-1) did not put the buyers earnest money in line 501, and did not include our $300 credit to the buyers for

ALTA on RESPA 2010

RESPA is getting some attention in the mainstream media, and I wanted to be sure you saw this New York Times article about problems created by the new regulation. ALTA's RESPA Implementation Task Force continues to meet regularly and recently summed up its most pressing concerns in this April 13 letter to HUD.

query: where do home inspections go on the new HUD

We are putting them in the 1300 section.

nice to be busy.......we are slammed!

LENDERS ARE LENDING AND IT'S A GREAT TIME TO BUY OR REFINANCE.

here's another oldie but goodie....buyer beware when hiring a notary public

Be explicit. Are you buying notarial services OR are you buying "signing agent" services?

You see, things are very confused in the notary business these days. Let me take a moment to explain.

Each state has its own set of laws concerning the closing of a real property transaction - purchase or refinance.

In all states, attorneys may perform the transaction.
In many states, attorneys ONLY

Bank of America v. First American

CLICK HERE


Guess a judge will have to decide who was the greater fool.  It's like a team of engineers who design and build a bridge using substandard materials which they buy from a dealer who knows his materials are crap but is willing to guarantee replacement of parts and apparently neither the dealer or the engineers considered that the bridge might collapse.

Just for kicks, here's a rerun....query: future of title insurance?

Boy, you and me both, we could sure use a crystal ball now couldn't we?

We "traditional" title examiners and agents are operating in a strange industry quagmire in which our supposed leaders and purveyors of what we have to sell - the big title insurance companies - seem to be hell bent on destroying our product - title insurance.

This product which found its roots in the hands of carefully

query: what does it mean if we paid for title insurance

I am presuming you are faced with a potential loss or title issue to resolve and someone has asked if you paid for title insurance?  If you did pay for title insurance, it would be noted on the HUD-1 Settlement Statement in the 1100 section.  The form will indicate whether you paid for lender coverage or owner coverage or both.  Check the papers you received at closing.

Even if you borrowed your

Oops, almost forget to tell you...

that I received copy of a letter sent by the PA Department of Banking to a VP at Saxon Mortgage Services, Inc.  Did I mention that my last document pack and letter was copied to the Department and also the Tom Corbett, PA Attorney General?

I'm a fairly persistent and persuasive professional problem solver and if I couldn't penetrate the mortgage servicing brick wall at Saxon, just imagine how

maintaining privacy

We title agents are charged with guarding other peoples money and other peoples information.  On the information side, we have privacy rules.  One of these rules is that we do NOT release documents from our closed files to anyone other than a principal to a transaction who would have a legitimate need for a document.  That principal must request the document in writing so we have a reasonable

Pennsylvania Treasury escheat deadline is looming......

Title agents must file a report even if they have no money to escheat!


Q:  Are holders required to file a “negative report”?
A:  Yes, all holders that have no property to report, must file a none report each year by April 15th.

Read more FAQs on the Treasury web site.

what about these title agents who fail to issue policies, eh?

Hi Diane,
I came across your blog sometime last year and really enjoy reading it as it helps to understand what goes on in the world of title. I recently began job in the mortgage industry. This company grew fast and could not keep up the pace of processing the incoming final documents (recorded mortgage and title policy) so I was hired to get the company back on track. After clearing out

query: I have been pre-approved and have received a Good Faith Estimate, does that mean I am approved?

No.  Receipt of the Good Faith Estimate is the first step in selecting a lender.  The question on the table right now is - are YOU satisfied with the terms offered by the mortgage lender?


Your job right now is to speak with a few lenders and compare Good Faith Estimates. Lenders cannot charge you for that pre-approval or Good Faith Estimate so move fast, make your decision -  choose a lender.

on the PA Data Call

It just hit me.  The reason PLTA and members are outraged over the PA Data Call is that they don't keep good records.  DUH!  That means they don't keep track of cancelled transactions and that HAS to be why they aren't outraged about the loss of thousands and thousands of dollars.

HEY TITLE AGENTS!!! Start a spreadsheet for dead deals.  Live and learn, baby.  Start counting the thousands -

wasted money and manhours

If PLTA and the various commenting members would get as outraged over wasted money and manhours spent processing cancelled title transactions as they got over the PA Data Call, we'd make some headway.

I'll likely go to my grave still wondering why our industry places little or no value on its prime work product.  I am proud of our work.  It has value.  I kills me to be forced to give it away in

Well, I am impressed.

Anne Anastasi did call back after receiving my message concerning cancellation fees.  She noted that we do have a specific statute in Pennsylvania and wondered how we could address this nationally.  Here's our PA rule: § 125.2. Charges required for title reports and others. (a)  The issuance without charge of a title report, commitment to insure, guaranteed general search, information

ALTA asking for membership

As part of what I guess is a routine membership drive, I received a voice mail from the soon-to-be president of ALTA noting that I had previously been a member and would I consider rejoining?

Yes, I used to pay over $2000 per year for the privilege of ALTA membership.  I stopped paying $2000+ per year when I suddenly realized that ALTA was advocating against my interests and not for them.  DUH!

PLTA responds to the PA Department of Insurance on the data call

LETTER


Interestingly, we have paid for voluntary annual CPA audits and maintained spreadsheets for issued policies and cancelled transactions so we're able to give reasonably accurate data for everything accept the geographic breakdown.  For that, we are randomly reviewing scanned files for these years, as many as we can and will do a guesstimate based upon an extrapolation of the sampling.

to be or not to be "on the list" --------- RESPA 2010

We do lots of closings for lots of different lenders.  Sometimes we are "on the list" and sometimes we're not.  By "on the list" I am referring to the Provider List given to a borrower with the new GFE.  When a lender gives a borrower the name of a title service provider, they have to put the provider on the list.  This is a referral and when the lender gives a name to a borrower and also gives

query: is the title company the agent of the lender

Good question.  If by title company you mean a title agency, the title agency is the agent for the title company/underwriter.

Title insurance companies/underwriters and their title agents have a fiduciary duty to the mortgage lender and so they do or should be keeping their eyes open for fraud and error.  If the mortgage lender has requested coverage under a closing services/protection letter

phew, I am trying to calm down.....

I haven't been this angry while writing a blog post for a long, long time.  Just goes to show how much wonderful progress we have made.  It's rare to run into incompetence and ignorance in the business and that's a good thing.  So, let me end my blog day on the happy note.  I want to express gratitude to the thousands of folks who have embraced good practices and work with their thinking caps

Sorry, there's no better way to say this, Saxon Mortgage is an IDIOCRACY.

I have never - NEVER - NEVER - in my entire 35 year career faced an absolutely hideous mortgage servicer.

Saxon uses teams of customer service people who seem to exchange roles in and out of the payoff department - each time you call you wait forever and any prior conversation is completely erased from the company memory.  Letters sent go into a black hole.  Money goes into a black hole and sits

RESPA Referral Fee Matrix

Check this out.  You have to be kidding me.  Is there seriously anyone out there still playing the referral fee game and thinking that regulators will give them a pass?

I found that little jewel in under this blog post:

LO’s are again asking about the RESPA rules — about when you can legally pay an affiliated party a referral fee.  Dr. Gary Lacefield, RESPA Expert, has provided a RESPA REFERRAL

query: how do I complete the GFE for 1st and 2nd mortgages

HUD wants you to do a separate GFE for each mortgage.  Check the RESPA FAQs.  There's lots of good info available in there.

query: what do you mean mortgage post closing

The word "post" means after.  So any reference to post closing means after closing.

We have a post closing department which handles all of the details and work that takes place AFTER the closing.  For a title insurance agent, that means recording documents, issuing policies, delivery of documents, filing, scanning, escrows and sending out checks, etc.

Mortgage lenders also have post closing

enjoy a title insurance blog - what? are you crazy? ;)

Diane,

This might strike you as a bit strange, but I enjoyed visiting your blog.
Who would have thought I would visit a blog about title insurance?
I stumbled on your blog when I was researching the term "successors and assigns". I was interested in the term because I was sort of skimming through the United States Code. Right from the get go, the USC defines terms, one of which is "company".

First American responds to suit....

The lawsuit pits the nation’s No. 1 mortgage lender against the nation’s No. 2 title insurance company. Officials for Bank of America declined to comment on the case.
A spokeswoman for First American issued a statement expressing regret over the lawsuit, adding that the practices of an intermediary likely will be “scrutinized” as a result of the case:
“United General Title Insurance Company and

well, well, well......crappy title underwriting comes home to roost

Now Bank of America Corp., the nation's biggest mortgage lender, is saying the nation's second-largest title insurer did much the same thing and should be on the hook for more than $500 million in losses.

In a lawsuit filed earlier this month, BofA alleged that First American Corp. in Santa Ana relied on home buyers to tell them about liens on their properties and other matters, rather than

This is fascinating...I'm sure there's more to this story.

Bank of America, one of America's largest mortgage lenders and the recipient of more than $45 billion in TARP funds from the federal government, claims that United General Title Insurance and First American Title Insurance, now corporate affiliates, insured mortgages for title defects, undisclosed intervening liens and other problems, and to cover equity loans and lines of credit up to $500,000.

HELOC/open end payoff, satisfaction, reconveyance.....

When you find an "open end" or line of credit/HELOC mortgage on record in a title search, you really need proceed carefully.  Most important is to freeze the account when you get your payoff letter.  You need to stop the moving money target.  There are some lenders who refuse to put a freeze on these accounts so your post closing payoff procedure can include a few extra steps to eliminate risk. 

call is over.....

I thought it was very helpful.  The answer to my question is that I can opt to use Table B which I will do.

BTW - That "mouthy broad" was NOT me.  LOL


Favorite comment - "I agree with the dog."  ;)

PA Data Call conference call this morning.......

My question:

Please comment on the section concerning the various discounted rates.  I do not understand the limited categories of BASIC and REISSUE for short form policies.

It seems to me that the question of whether a long or short form was used is not related to the rate charged to the consumer.  For instance, in PA the most popular Community Reinvestment Act program is a Pennsylvania

RESPA 2010 - just where do you put the NOTARY or SIGNING SERVICE on the new GFE?

Simple......... in title services.

RESPA 2010 - purchase with a 1st and 2nd mortgage

We are getting ready to close our first simultaneous 1st and 2nd under the new rules.  Our buyer is getting a line of credit 2nd mortgage and as far as I know, drawing the whole line now for closing.

When we got the title order, we checked the RESPA FAQ and saw on page seven that there should be TWO GFEs and TWO HUD-1 forms.  We asked the lender for both GFEs and held back delivery of the title

pre-qualification versus pre-approval

The new mortgage disclosure rule is upending the first step in the process of lending to homebuyers.
Before shopping for a property, a prospective buyer typically gets a preapproval letter from a lender indicating how big a loan the person qualifies for. Real estate agents often ask for these letters so they can make sure the customer can afford the property before showing it.  Read more here. 

selected title insurance agent data call from PA Insurance Department

We received a data call from the Department today.  Among other things it says:

"The Pennsylvania Insurance Department(the "Department") is conducting a study of title insurance in Pennsylvania.  The study is under the direct supervision and control of the Department; it is being funded by the Title Insurance Rating Bureau of Pennsylvania as the Department's statistical agent for collection of

lien letters and transfer taxes....what the heck to do on the new GFE and HUD-1

Here's my take....

First things first, determine whether the charge is TYPICALLY a buyer/borrower fee.  If yes, then you MUST show it on the GFE and HUD as a buyer/borrower fee, even if the seller has agreed to pay for it.

In my neck of the woods, typical is determined by state and county custom.

Transfer taxes are TYPICALLY split between buyer and seller in Pennsylvania, SO one half of the

if you enjoy forums, there's a new title insurance forum start up

Here's a blurb from its creator, Jonathan Yasko:

There is a new web forum dedicated to title insurance professionals called The Title Web (www.thetitleweb.com).  It is by title professionals, for title professionals in the attempt to create a repository of information for all to use.  It is free to join and has main and sub-categories to for different types of topics.  In addition, there are

IRS confusion over whether or not a HUD-1 must be signed

I am getting numerous queries concerning the availability of a SIGNED HUD-1 because folks are trying to comply with IRS instructions related to the tax credit program.

The HUD-1 form is part of RESPA.  This link will take you to the pages in RESPA concerning the HUD-1.

Many of you are telling me that the IRS is asking you to provide evidence that individual states do not require signatures on

Hey, Stewart from GA...

you're welcome and thanks for taking a moment to call.

Stewart is a loan officer who found this post  about calculating escrow, used the formula and found that he could predict the escrows with good accuracy rather than having to guess.  He has since created a bit of software so he could ditch the pencil and paper.

The funny thing about escrow calculation is that most everyone uses software and

In a bizarre move....

we had a lender overfund a closing then ask that we change line 802 on the HUD...AFTER closing.


What?

the unintended consequences of RESPA 2010 and the new HUD

For once unintended consequences are POSITIVE.  Yes, positive.  I sure don't think they intended to do this but by creating a uniform method for GFE disclosure which flows to a uniform method of HUD prep, we in the title world are enjoying UNIFORMITY of INSTRUCTIONS.  I love it.

What was it that everyone hoped to gain with UNIFORM CLOSING INSTRUCTIONS?  Uniformity, right?  Well, guess what? 

query: new GFE - FHA MIP refund

This is entirely an educated guess on my part.  I would say you would NOT show the refund on the GFE.  I think you would show it on your Cash to Close Summary or Details of Purchase on the 1003.  I do hope everyone is working with a Cash to Close Summary so that consumers have a clear understanding of the anticipated bottom line.  This is where you would show the seller assist, right?

On the HUD

IRS and the HUD-1 and the tax credit...what do you think?

Here's a little e-mail chat with a reader trying to help her client.  I am very interested to hear your thoughts on this issue of the IRS requiring that all signatures must be on one piece of paper.

Diane,
I have a client that is filing the IRS Form 5405 to claim the First Time Homebuyers Credit.   She has a HUD1 that is lacking the seller’s signature.  She has contacted the settlement agent’s

stand your ground, nicely and with patience......

We have had two closings, make that THREE closings in which the mortgage lender asked us to use different figures on line 801 than we found on the GFE. In each case, after listening to the lenders explain all sorts of methods they wanted to cure whatever problem they perceived, we just quietly said, we can't change that line, it's got to match the GFE, are you sure you haven't considered

it's time to think about escheat rules...here's an e-mail from the PA Treasury Dept.

As a former business professional, I know the importance of understanding the various laws and statutes that affect operations. I thank all businesses who comply with Pennsylvania’s Disposition of Abandoned and Unclaimed Property Act and annually file an unclaimed property report with Treasury. To those businesses who do not, I remind you to come into compliance with this state law to avoid

query: if two unmarried people refinance for the purpose of removing one borrower from mortgage and title in pennsylvania are there transfer tax

Yes.  A new deed will be created as part of the refinance.  When the deed is recorded transfer tax will be due unless the parties have a relationship that is exempt.

So, let's say we have two unrelated individuals who bought real estate together, perhaps friends or maybe they intended to marry but decided NOT to.  At any rate, because they are not related, there is no exemption.  Unless

Just how would a consumer feel if they know their mortgage application

was being produced by a stranger - a "lead generator" overseas?  I'm not sure who the source of this advice is but read it....

"One of my friend who has a BPO (authorized) located India and plans to begin the 1003 campaign through the application. He is currently producing mortgages and transfers of hot lead, I know which are allowed under U.S. law.
Yes, I see no legal problems with data

RESPA 2010 - where do we put deed prep on the HUD-1?

We insure title and performs closings in 34 counties in Pennsylvania.  In ONE of those counties it is customary for the buyer to pay deed preparation.  That county is Bedford.  So, if in Bedford, we would include the deed prep fee on the buyer side as part of title services on line #1101, even if seller paid.  In the case of a seller paid deed prep in Bedford County we would put a credit on the

RESPA 2010 - We have our first closing stopped due to need to redisclose.

On Friday evening we had a dry closing.  It was a REO closing and though we had an approved seller HUD - stamped and signed "approved" by the seller's attorney, we did not have a seller signed HUD and so we had our Dry Closing Disclosure signed and held documents and money pending receipt of seller signed HUD today.

Much to our surprise, the seller noted something their attorney did not.  There

What will happen to seller paid home warranties under RESPA 2010?

This subject was raised by an attorney conducting a RESPA training session for the Pennsylvania Land Title Institute.  I attended the session a few months ago.

He took the position that the home warranty was a buyer cost that should be placed on the buyer side of the HUD with a credit on page one from the seller.

I have done two prelim HUDs using this method.  Neither transaction has closed and

using an itemization of line #1101 for HUD prep

If you are not already using your own form, consider creating one.  It has made the process so much easier and maybe that is why I am enjoying prepping these new HUDs.

Here's how I do it.  As you know, we are doing our first PRELIM at the time we issue the title commitment, so at that time I have in hand the GFE with the provider list.

First I post all the GFE data in the system.  When I post

comments on Title Insurance Talk

Just a note to readers who wish to comment.  I love to hear from you because we all learn from each other and all the unique situations we face in real estate transactions.  It's better to NOT insert a link in your comment because I will likely reject the comment.  The only links I'll post through to comments are links that in my judgment add to the conversation.

query: RESPA 2010 who pays the mortgage broker

The mortgage broker fees are part of the origination charge.  Lender and broker origination charges are lumped together.  The lender instructions to the title agent or attorney should spell out how much of that is to be remitted to the mortgage broker.

tax service fee for FHA and VA transactions

Our take is that you place the tax service fee on the buyer side of the HUD and put a credit on the first page from the seller.  Depending on the lender, they may allow the credit to be lumped in with a seller assist or they may want the tax service fee credit on a separate line. Either way works.

query: RESPA 2010 can you stop a closing due to a 10% tolerance issue

I'd sure be surprised if a lender permitted a HUD to go to closing without a cure, however they do have the option of closing and curing the tolerance violation within 30 days after closing.  In my non-attorney opinion a consumer must make a decision to close or not.  If it were me and I felt strongly that there was a tolerance violation, I would not close unless I had in hand a signed letter

You won't believe it, but....

I had to do an old HUD today and I hated it!  It's SO not 2010.  LOL

I'm not kidding.  We're in a groove now and I'm grooving the new HUD!

Signatures on the HUD-1 form? Keith raises a good point.

Hi Diane,

I came across your blog while doing some research.  I was thinking that a good topic for an upcoming entry would be regarding signature requirements for the HUD-1 settlement statement.  In my case, my copy of the HUD-1 has the signature of the Settlement Agent (I'm assuming that was someone at the title company I closed at), but not the signature of the sellers.  A call to someone at

query: where do you put the FHA 203k escrow on the 2010 HUD-1?

Good question.  I haven't closed a renovation on the new HUD form yet, but have a few files pending.  My guess at this point is that the renovation escrow would be in the same section as the appraisal fee and FHA MIP.  What are your thoughts?

tax service fee - consumer shops for???

How exactly would consumers shop for this service?  Do tax service companies give individual quotes to consumers?  Just curious.  ;)

query: where can I get a copy of my HUD-1 statement

Hopefully it is in your filing cabinet because that's where it should be.  Every consumer should make certain they get a copy of their HUD-1 at closing.  Depending on some other party to maintain a copy and provide a back up when you need it is risky. 

Okay, so maybe you lost your copy or you never got one, what do you do now?  Call everybody else in the transaction.  Hope they are still in

Can a loan officer casually give the borrower a name of a provider...

without including that provider on the "list"?  I say no.  What do YOU think?  I am not certain that folks have their compliance arms all around this issue.  I believe we have lenders with lists that contain names of providers and an expectation that loan officers will not give the consumer any other names.

Be safe.  If you mention a provider's name to your consumer, write the provider on your

dare I say it....

I LOVE THE NEW HUD-1 !!

query: what does a HUD-1 look like?

Here's the new HUD-1 form.

Here's the new Good Faith Estimate form.

introducing GFE SOS for loan officers in our service market

Check it out.  The form is also linked from our web site just under the title insurance rate calculator.

had our first closing today with the new HUD-1

All in all, I'd call it uneventful. We were prepared, the lender was prepared, the consumer didn't notice.  ;)

POC origination fee on new HUD?

We had a request from a mortgage lender today to do a small portion of the origination fee as POC. We weren't sure, so we checked.  No can do.  See the RESPA FAQ, page 41. 

Interestingly this lender has already closed at least one other transaction in which the title agent complied and did the POC.

We're all in this together and we're all on a learning curve.  Every day is interesting and

query: new respa requirements if a portion of the fees will be paid by the seller do tolerance levels still apply

Yes.  Costs that are typically buyer costs must be disclosed on the GFE even if the seller has agreed to pay a portion of the buyer costs.  The credit from the seller will be placed on page one of the HUD and will not be included as part of the tolerance calculations.  That means costs that DO fall within the tolerance rules must be accurate even if the seller is paying a portion. 

still curious about this RESPRO model indemnification agreement

Here's another blurb on it:

"HUD's new RESPA disclosures will, for the first time, subject mortgage originators to liability if certain final closing costs exceed those estimated on the Good Faith Estimate (GFE), which is provided three days after the loan application.  When a loan originator permits a borrower to shop for third-party settlement services, HUD requires the loan originator to

haven't talked about title for awhile..let's chat about getting a survey

Back in 2005 I insured a conveyance for a couple who purchased a lot that abutted a vacated alley.  The alley is the borderline between a township and a borough.  For tax assessment purposes the alley was deemed to be in the borough.  The neighboring lot sitting across the alley is in the township.  To keep things clear we'll call them BOROUGH  LOT and TOWNSHIP LOT.  These two lots are in two

cash needed to close....how do you estimate using the new Good Faith Estimate?

Well, the good news is that you, the consumer, will get a more reliable disclosure of costs from all the lenders you shop - PLUS the disclosure will be on a uniform piece of paper.  That's great news for consumers.

There's one little tip you really need to think about and that's CASH TO CLOSE.

First, because lenders are on the hook for the estimates you can be assured the estimates will be a

new GFE - interesting questions out the door....

It's January 5th and already I have had THREE circumstances cross my path that make me wonder.

A GFE shows the TAX SERVICE FEE and FLOOD LIFE OF LOAN FEE in the category designated for consumers to shop for services.  The "provider list" has providers for these two fees.  I know from prior transactions that this lender directs the business to their affiliated companies and hey - just how would a

The Wilkersons take action, pronto!

Read this article:

OWINGS MILLS, Md. -- A local family who refinanced their home said they found out their original mortgage was never paid, and before they could get the problem resolved, the title company that did the leg work went out of business.According to state records, Maple Leaf Title Company had been in business since March 1999. But after August 2009, the company could not legally