Does propane reimbursement count in the minimum investment seller assist calculations?

Diane,

We closed on our property December 23.  The agreed upon contract was $325,000 and seller concessions of $5,000.  At the closing table, we found out that due to the terms of our loan, we had to have 5% down into the purchase price which would decrease the seller concessions to approximately $2700. We were contacted by the seller's agent yesterday b/c she forgot to have the propane in

Is flood zone determination covered by title insurance?

query via email:

Hi, Diane.I just bumped into your blog on http://titleinsurancetalk.blogspot.com/2007/10/query-how-to-file-claim.htmland would like to ask your opinion on a title insurance problem we are having. We have a situation with our property which bought 2 years ago. We are doing the backyard drainage landscape project this year. During the process of applying for permit with our town,

on Southern Title

Southern Title voluntarily suspended the issuance of new title policies on Sept. 15. The SCC issued an order of suspension Sept. 19.

An impairment order was issued by the SCC on Nov. 4 because the company no longer met minimum capital and reserve requirements.

Virginia Commissioner of Insurance Jacqueline K. Cunningham has been appointed deputy receiver in an effort to rehabilitate the

states file amicus brief on RESPA...GOOD!!!!

The attorneys general also argued that it would be senseless to assume Congress carved out an exception that would allow brokers and lenders to charge unearned fees as long as they did not share them with another party.



“[T]he harm to the consumer — and the abusiveness of the broker or lender’s practice — is the same regardless of whether an unearned fee is divided,” the attorneys general

query: can you pay a title for title insurance and they don't provide one

Hmmmm...popular subject this weekend.  Yes, it is possible to pay a title insurance company for title insurance and then they fail to provide a policy.  It shouldn't happen but it does.

I received another query via email this weekend from a real estate agent representing a seller with a PA inheritance tax matter and a refusal from their title insurance company to deal with the matter.  Why?  

query: when does a "repair credit" not go on the hud

If there is a repair credit from seller to buyer and there is a mortgage lender involved in the transaction the credit goes on the HUD-1, period, end of story.  Any other suggestion, even if it comes from a representative of the lender is collusion to defraud the lender.  What?  How could a lender representative collude to defraud itself?  Well, just test the representative.  Ask for written

query via email concerning a pending tax sale and a title insurance claim

Hello Diane,
My name is Gerald and I noticed your Blog re: Title Ins. said to email you with questions and  . . . .  ok here goes - 
100% DISABLED Person living on fixed - (lower income) 

1) My First time for a Title insurance claim - I have NO IDEA what to expect or ask for - ? My home is paid for but am facing Tax default / Tax Sale March 20, 2012. I paid 85,000 in 2005 for a cabin on one

legislation moving on home warranties

H.R. 2446, RESPA Home Warranty Clarification Act of 2011, sponsored by Rep. Judy Biggert H.R. 2446 provides clarity to existing law that home warranties are not subject to the Real Estate Settlement Procedures Act (RESPA). The bill also requires that homeowners receive a specific written notice about the payment arrangement for any individual selling, advertising or performing a homeowner

query: what happens when the warranty forgotten on hud 1 statement

I'm guessing this is a home warranty, the type that real estate agents sell.  Though the home warranty benefits the buyer, it's the seller who usually pays for it as an inducement to help move the property.  The real estate agent may also receive a commission for selling the home warranty.

If the title/settlement company failed to put the invoice for the home warranty on the HUD-1 Settlement

query: what happens when I get to settlement and the title company have wrong figures

I call this a STOP DROP and ROLL moment.  What better reason to make sure you get the HUD-1 to review prior to closing, eh?

Well, in all fairness, perhaps there was a change after the pre-closing review.  Unless you intend to live with the error, use your leverage by not closing until the figures are corrected.  Trust me.  After you close, your file will go on the back burner.  While you are

query: where the hell is my hud statement

Many search engine queries that arrive here on Title Insurance Talk are folks looking for their HUD-1 statements.  This one gave me a few chuckles.  Thanks. ;)

My friend was steered against his will and used the incident to teach the title agent a lesson or two.

I have a long time friend who is a savvy consumer of real estate.  He, like me, comes from a family familiar with the business of real estate from the inside.  So any provider of settlement services had better be on the up and up or else. ;)

Since we introduced our Choose and Save Program several years ago, we've processed many transactions for my friend who has argued with me that we aren't

spousal waiver versus having the non-vested spouse simply sign the mortgage

In Pennsylvania and some other states, a spouse may not be vested in title but may have marital rights to real property.  In these circumstances, when the marital rights may take priority over an insured mortgage, the title agent may require that the non-vested spouse sign the mortgage.  Their signature on the mortgage does not make them a borrower.  It simply allows the mortgage lien to be put

query: who underwrites for "XYZ" title

Well, I hid the name of the agency in the query. ;)

Contact the state insurance department and ask for the name of the underwriter(s) who sponsored the agency in the licensing process.  Title insurance agents represent underwriters and so the identity of the underwriter(s) for whom the title agent issues policies is known to the regulating agency.

query: title agency pocketed fee and never purchased insurance

You may still have evidence of insurance.  Look for the title commitment.  If you don't have a copy, ask your mortgage lender for a copy from their file. Next look at your HUD-1 Settlement Statement.  Does it say that you paid a premium for title insurance?

A copy of a fully signed HUD-1 combined with a copy of the title commitment can be used to show evidence of insurance.  If the title

fraud in the chain

A title insurance company was forced to pay a man more than $90,000 after a woman fraudulently signed the man's name to papers, in effect deeding his property to another person without his knowledge or consent, according to a recently filed lawsuit.Ticor Title Insurance Company filed a lawsuit Nov. 7 in St. Clair County Circuit Court against Yvette Reed, Diane Lee, Joseph Reed, Alfredo Vallejo

query: After I submit the conditions to the underwriter, will they scrutinize my file again

They may, especially if the underwriter is getting an off vibe that something is amiss.  Even if they don't and you close, they may still do a post closing quality control re-verification and re-underwriting.

So....be truthful.  ;)

"simmering below the surface" removing escrow responsibilities from title agents

If title agents don't move the money, who will and how much more will it cost the consumer?

This isn't a problem of changing roles, it's a problem of setting enforceable standards for escrow management and then policing the agents.

Defalcations were rare back in ye ole days before affiliated businesses and the subprime mentality of no oversight.

Hey, NAIC, ALTA and state insurance regulators

insurable title

Two title agents, an underwriting attorney and a real estate agent had a chat yesterday concerning insurable title.

Back in 2004 we issued an owner policy - insuring over an unsatisfied mortgage.  We had discovered the mortgage and requested a release.  It was a hefty developer's line of credit.  We were offered indemnification and accepted it.

Our insured owner is now selling his property and

consumers..you have the power

Take a moment to read the question being posed to readers of the ALTA newsletter.  Now notice how many title insurance folks do NOT market to you directly for their business.  What does that mean to you?  It means that the real estate agent or the mortgage lenders are their perceived consumers and thus more important to these providers than YOU the real consumer, the one who pays the bill.

In

query: are dry closings the mortgage brokers fault

A dry closing is any closing that is suspended for some reason causing the funds and documents to be held in escrow while a problem is resolved.  It is important to remember that a dry closing isn't really a closing at all.  It's an ALMOST closing - close but no cigar.

As each transaction is unique so are the reasons and the blame.

query: do I have to have title insurance for a HUD loan

If by HUD you mean FHA, then yes, you will be required to purchase a LOAN policy of title insurance.  I suggest that you also buy an OWNER policy so you are protected as well as the lender and HUD.

KICKBACK disguised as "work share"

The previous post is an email I sent to our agency rep who is also responsible for the bank owned title agency.  She could not understand why we objected to this kind of treatment from this mortgage lender and wouldn't just close the deal.  If we walk away from the transaction we lose roughly $170 in out of pocket cash for the abstract and lien letters.  If we close the deal as proposed by FNB

just sharing a bit of what consumer don't know about those bank owned title agencies.....

Just a follow up on this FNB situation.  I spoke with John this morning and he said you have some kind of list for an agency work share deal with FNB that mimics the approved attorney program.  Presumably that deal doesn't pre-define who gets what share of the premium.



Anyway.  As you know we offer consumers the most affordable option in PA for obtaining title insurance and settlement

query - does title insurer have a duty to audit agents and report fraud

Would I be too unkind to say that any title insurer who does not audit its agents is a fool?  There may not be a legal requirement to report fraud but I would certainly hope that the title insurer severs its contract with a fraudulent agent.  I think the title insurer would be doing a service to the industry to report the fraud and have the fraudster taken out of the position of trust they enjoy

query: title underwriter cannot find policy

Interesting.  Hard to say whether the underwriter had a failure of good document protection or the agent failed to remit.

Might seem strange but this isn't that unusual of a happenstance.  You see, unless the title insurance agent SENDS a copy of the policy to the underwriter, they don't have a copy.  Title insurance agents create policies after the closing.  They then send the premium along

First American fined in CO

The market conduct examination found 20 separate violations, including: failure to require agents to keep adequate documentation and records in title underwriting files, failure to require agents to remit title premiums within the required contractual period, and failure to provide evidence of written instructions from all necessary parties when First American's agent or direct operation

query: how do I get a copy of my HUD appraisal

A consumer may get a copy of the appraisal used for their mortgage application by making the request in writing and sending it to their mortgage lender.  If you do not get cooperation from the mortgage lender you can request help from the Consumer Finance Protection Bureau or the state mortgage licensing agency.  In Pennsylvania that would be the PA Department of Banking.

query: difference between a title commitment and title policy

A title commitment is like a mortgage commitment letter.  It's an approval to insure where the mortgage commitment letter is an approval to lend.  Both commitments set out terms and conditions.

A title commitment is typically in a standard format created by ALTA - American Land Title Association.  There is a jacket which gives definitions and other important information.  Schedule A sets out

comments went into spam can

Oops.  Sorry to commentators whose comments went into my spam can!  It's fixed and those awaiting moderation have been posted.  ;)

read your mortgage document before you sign that oil and gas lease

Did you know that your mortgage contains promises made by you to protect the collateral and NOT to store hazardous waste on the property?  If you sign an oil and gas lease without the approval of your mortgage lender you may be in default and subject to foreclosure - even if you are making your mortgage payments on time.

mobile home titles

If you are the owner of a mobile or manufactured home, please take the time to verify the status of the vehicle title.  Get evidence in hand showing that you either have the vehicle title or certificate of origin or evidence of surrender.  Having no hard evidence in place may impact your ability to refinance or sell your property.

Every year we work on transactions which are delayed while the

ah...the semicolon

Here's a blurb concerning a judicial interpretation of the Dodd Frank Act based upon the use of a semicolon:




Judge Altonaga ruled that the plain language of Section 1400(c), in
particular, the semicolon in the title, indicates that “Effective Date”
is not used as a subcategory of “Regulations.” Rather, the semicolon
“suspends the thought regarding regulations and begins a new thought

Jan is curious.

I know someone that recently borrowed against a home his
mother owns and has title to.  The father is deceased.

The son has been living in the home for many years.  Even
while the father was still alive.  Now they have found it necessary to

borrow against the home’s equity, I’m sure that’s
due to the mother’s old age illnesses and the son’s inability to
work.   They

borrowed over $86,000.00

computers and me.....finding my inner geek

I saw my first Radio Shack TRS-80 Model I at a friend's house many moons ago.  It was also at that house on the same day that I saw HBO for the first time.  It all seemed so fantastic - a computer that fit on a table top and a commercial free movie on a TV screen.  I'm guessing that was 1977.  I was a newbie selling real estate back then.  The "computer" in our office was a MLS terminal and I

two spaces after a period

Blogger no longer word wraps with forgiveness of the two space generations like me. So, please forgive me when you see those out of format little spaces at the start of lines.  This is one old habit I'm not trying to break.  It's on automatic pilot - two spaces and me.

Southern Title suspends issuance of policies mainly because of a defalcation.

I spoke recently with the Pennsylvania rep for Southern Title.  He had made the jump from New Jersey Title and was busy signing up agents who were left without an underwriter when New Jersey Title stopped writing new business.

Both regional title insurance underwriters were hit by substantial defalcations.  I am convinced that the system of title insurance underwriting is capable of

Virginia Business - News: Title insurance company suspends sales of new policies

Virginia Business - News: Title insurance company suspends sales of new policies

lenders on the RESPA hot seat for reinsurance partnerships

In exchange for the their business, companies such as Citigroup Inc, Wells Fargo & Co, SunTrust Banks Inc. and Countrywide allegedly required reinsurance partnerships on generous terms that violated the Real Estate Settlement Procedures Act, a 1974 law prohibiting abusive home sales practices.

During a two-day presentation in the summer of 2009, HUD's team presented DOJ attorneys with a thick

NAIC Title Insurance Task Force report

a must read for title agents

on robosignings

NEW YORK (AP) — Counties across the United States are discovering that illegal or questionable mortgage paperwork is far more widespread than thought, tainting the deeds of tens of thousands of homes dating to the late 1990s.The suspect documents could create legal trouble for homeowners for years.Already, mortgage papers are being invalidated by courts, insurers are hesitant to write policies,

procedures

Having managed lots of folks over my career I respect that individuals think and learn differently, that we aren't automotons and need some degree of personal discretion in our work.  I also know that mandatory procedures are necessary to maintain quality of service and product and, of course, meet contractual and legal requirements.  This is a constant managerial task - finding balance in the

all is right with the world, the mortgage banking world, that is

WAH?  That's right and do you know how I can tell?  Everyone is complaining about underwriters.  That's a sign of normalcy and that's what has been missing for over a decade.

Ah, the sweet sound of prudence.

New York takes aims at steering by real estate broker to affiliated title agencies

A law aiming to prevent improper quid pro quos for title insurance agents just got a new set of sharp teeth -- causing a furor in the already embattled industry. In late May, the Office of the General Counsel of the state's Insurance Department issued an opinion about whether it's legal for a residential brokerage to place lawyers on "recommended" lists, which are distributed to homebuyers, in

Fitch on ORI

The affirmation of ORI's ratings reflects operating performance of its core property/casualty (P/C) as well as title insurance operations that remain in line with Fitch's expectations and similar rated peers. The Negative Outlook reflects the continued uncertainty of mortgage market exposure on ORI's operations.


Read more on Market News.

query: how do you correct a HUD-1 post closing

So long as you have the consent of the mortgage lender, if there is one, and all parties, you simply create a new version of the HUD-1.  I like to put a bold easily found notation on the top of the first page that says something like:

REVISED August 16, 2011 to correct the blah blah.

You could also say that the earlier version of the HUD-1 is null and void.  Have folks initial this statement

complying with privacy rules when managing a request for post closing data

This happens infrequently but enough that it warrants a post.  I received a request from a consulting company who is performing a post closing audit.  In this case they are performing the audit for a private mortgage insurance company.

Presented as evidence of the authority to make the request is the typical quality control authorization signed by most borrowers at closing.  By signing the form

query: should sheriff sign a HUD-1 for sheriff sales

I have never heard of a HUD-1 form being used by a sheriff.  I wouldn't expect to see documents that you would normally see in a real estate transaction.  This isn't a typical consumer transaction.  Read everything carefully and unless you have some experience with sheriff sales, I'd seek the advice of a competent real estate attorney.

query: if I pay off my mortgage early is title insurance refundable

No.   The loan policy protected the lien position for the mortgage lender.  It was a one time non-refundable premium.

RESPRO continues fight for fair treatment

Just the RESPA News headline is enough to make me chuckle.

query: what is a fully executed HUD-1

Thank you for the query.  This one really points to the regular use of industry lingo that is unfamiliar to most consumers.  We toss around phrases like this and just expect that people know what the heck we are talking about, eh?  ;)

HUD-1 refers to a form created by the federal government under the Real Estate Settlement Procedures Act, RESPA.  The form is used in most real estate related

parallel worlds of real estate sales, mortgage lending, and title insurance

Most homebuyers - as consumers - must navigate procedures, language, documents and all sorts of mumbo jumbo created by these three industries just to buy a house.  What's horrendously confusing is that all three industries serving the consumer in the same transaction are not cross trained.  They operate in seemingly separate but parallel worlds with very little understanding of core documents and

Two articles on the CFPB caught my attention this week...

and since neither permit comments on their sites, I'll comment here.


The first is an article on Housing Wire.  Here's a blurb:


"Elizabeth believes in markets and in capitalism, but lying, cheating and stealing are not capitalist virtues. Honesty and trust are necessary conditions for a functioning market, and Elizabeth understands that," Fried told HousingWire. "It's obvious. Those who made

query by email: title agent pays off wrong mortgage

Hi, Diane,

How are you?  I was looking for help on the web and your blog came out.  I know you said that you are not an attorney but you have more knowledge on the title insurance more that I do.  Thus, can you please hear me out and provide me with your opinion?

I refi my house back to April of this year.  The title company a mistake on the pay off of my mortgage.  Instead paying off house A,

RESPRO doesn't like Dodd-Frank...does this surprise you?

In response to the Federal Reserve Board’s rules to implement the Dodd-Frank Wall Street Reform and Consumer Protection Act’s “ability to repay” standards, the Real Estate Services Providers Council Inc. (RESPRO) submitted comments to the Fed warning the agency that its rules will harm affiliated business arrangements (AfBAs).
“Unless federal regulators act now, the Dodd-Frank Wall Street Reform

Is Old Republic's mortgage insurance business in run off mode?

"Absent approval to underwrite new production through the separately capitalized subsidiary, it is most likely that the flagship insurance carrier's existing book of business would be placed into run off operating mode. In this circumstance, the Company's interest would be to manage the business within constraints of this segment's current capital base of $445.1 and thereby limit a possible

Demotech withdraws rating of New Jersey Title Insurance Company

Read the press release.

Defalcations are the problem and will continue to be the problem in our industry until and unless we get serious with licensing standards and realize there is alot money moving through agencies with little or no oversight.

state slow to respond

When a private investigator finally tracked down the owner of Choice Title of South Florida in the fall of 2009, the contents of her office were in a pile on her living-room floor and homeowner complaints were mounting in Tallahassee.Milissa Hernandez's company was facing fraud, conspiracy and breach of contract lawsuits. Its underwriter, the respected Old Republic National Title Insurance Co.,

local condominium units posted for sheriff sale...for a day

These are tough times.  There are a few unsold units left in the development.  The developer failed to pay property taxes and the sheriff came and posted signs on ALL units.  The signs stayed up for a day, then presumably the taxes were paid and the signs came down.

This story was told to me last night by a unit owner who seemed slightly perplexed.  All I can say is that there are really nice

nasty allegations against Tanya Blackwell, PA attorney

Ally Financial (GJM: 23.23 -0.13%) said it discovered a foreclosure defense attorney was working for its mortgage unit and pilfering confidential information on the company's foreclosure operations.

That's according to a lawsuit filed against the terminated employee, Tanya L. Blackwell, an attorney actively licensed to practice in Pennsylvania, according to the Pennsylvania State Bar

Office of Thrift Supervision closes as functions shift

The Office of Thrift Supervision’s functions, including the regulation of federal savings associations, have moved to theOffice of the Comptroller of the Currency, the OCC announced Wednesday.Section 312 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 mandated the OCC take over the functions of the OTS. The OTS will cease to exist on Oct. 19. OTS employees packed  up and

Bethany McLean of Slate's right on

I believe that government regulations like those that the controversial new Consumer Financial Protection Bureau may hand down are a poor substitute for bankers choosing on their own to behave ethically and responsibly, and for consumers digging into the details on products that sound too good to be true. But let's get serious. Bankers aren't going to change their behavior, and consumers aren't

required use and affiliated title agencies

There is a title insurance agency in Pennsylvania called Bankers Settlement.  It's owned by several community banks.  We do closings and title insurance on occasion for some of these community banks. Though they may not send us direct referrals, if a consumer wants to use The Closing Specialists, that's always been okay. Since our advertising is consumer focused and we have a terrific deal in

It's fascinating to me that ALTA is now lobbying for title insurance as an inclusion

in the final definition of Qualified Mortgage as juxtaposed with their successful lobby against inclusion of insurance as a regulated business under Dodd Frank.

So, isn't that kind of like HELP US SELL MORE TITLE INSURANCE BUT DON'T LOOK AT US WHILE WE DO IT?

Anyway, here's a blurb from HW.


"Prudent underwriting of a borrower’s ability to repay would require that a creditor evaluate the title

What RESPA complaints or inquiries now that CFPB has taken over?

CFPB_RESPAInquiries@cfpb.gov

CFPB issues interim rule

Today, the CFPB is issuing an interim rule effective immediately to fill a regulatory gap.Some lenders are chartered or licensed by states, while others operate under federal charters. For years, state lenders have been able to rely on a federal law called the Alternative Mortgage Transaction Parity Act (or AMTPA, for short) to make variable rate loans and other “alternative” mortgages,

title/settlement agents and the RESPA GFE provider list

We have a major national lender generating GFEs [Good Faith Estimate] on a computer model which creates a provider list containing ONLY their affiliated companies.  There is no option for a loan officer to ADD referrals to non-affiliated providers.  This wouldn't be an issue except that loan officers employed by this lender are making referrals to other providers and have no way to create a

on PA closing costs

Diane Cipa, general manager for The Closing Specialist in Ligonier, said that if Bankrate used good faith estimates to compile their data, the numbers could be inflated because the good faith quote is usually higher than the actual costs at closing.

"The current form for good faith estimates encourages lenders to quote high numbers for closing costs," Ms. Cipa said. "If they give a quote

query: earnest money need to show on the HUD-1

Yes, earnest money aka hand money should be shown on the HUD-1.  The exception is a case in which the funds haven't transferred or a mortgage lender has not been able to verify that the funds have transferred.  In these cases, the deposit is not credited on the HUD-1 because we do not want to imply that there was a deposit if in fact, one did not exist.

Sellers and agents should always deposit

query: whose liability would it be if the title insurance company issued a final policy on a construction loan and the house never got built

I don't see the issuance of a title policy as having anything to do with the construction of the house.  Title insurance does not insure construction.  For the mortgage lender, it insures the validity of their lien.  For the owner, it insures the ownership of the land.

Any property owner or mortgage lender involved in a construction transaction must keep their own eyes on the construction and

ALTA's Anne Anastasi Testifies Before the Financial Services Subcommittee

1. If ALTA believes what Ms. Anastasi says about the important function of a title insurance agent at the closing table, why does ALTA take no stand against the use of notary signing agents who are not employees, likely not licensed and even more likely not well trained, if at all?

2. Owner title insurance is a product that protects the buyer and is rightly, in my view, a product purchased on

former Ohio Attorney General Richard Cordray slated for CFPB director nomination

On Sunday the White House announced that the president would nominate the agency's current head of enforcement, former Ohio Attorney General Richard Cordray to lead the bureau. Cordray's selection will be announced at a White House event on Monday.

Read more on The Hill.

1500 pending RESPA violations cases moving to CFPB

In November 2008, HUD issued new RESPA regulation, establishing a standard Good Faith Estimate form and process and an expanded HUD-1 Settlement Statement. To be in compliance with RESPA, and help assure fair prices for consumers, actual costs at closing must fall within established tolerance ranges. These new disclosures were implemented in January 2010.

Since then, HUD opened more than

query: getting a replacement copy of title insurance policy

This one's easy.  If your original policy is lost and you do not just want a photocopy of the policy and need an original, just go to your title insurance agent and request a DUPLICATE copy of your policy.  The agent may not know that they CAN issue a duplicate but if they contact their underwriter for instructions they can do it.

The typical procedure is for the agent to reprint the policy and

I don't know. This phrase is just so bizarre, I can't think of anything to say. ;)

"prejudicing consumers against considering these services by using loaded terms like ‘not required,’"

Read more on Business Wire.

coupla chuckles

CHUKLE #1  "Brown said the treatment of home warranties under the Real Estate Settlement Procedures Act, which prevents kickbacks for referrals among settlement service providers, is one of the issues facing real estate firms, home warranty companies and consumers. Since home warranties are not a requirement for a mortgage origination or home sale, NAR believes that including the optional

HUD continues to clean house on RESPA violation cases

WASHINGTON, DC - July 13, 2011 - (RealEstateRama) — The U.S. Department of Housing and Urban Development (HUD) today announced an agreement with Prospect Mortgage, LLC (Prospect) to settle allegations the California-based mortgage lender created sham affiliated business arrangements for the purpose of paying improper kickbacks or referral fees in violation of Federal Housing

query: how does an insurer cancel title insurance

Hmmm....as far as I know, once issued, the title insurance policy cannot be cancelled.  Now, if you are talking a title insurance commitment, that's different.  An insurer can refuse to insure, even if a commitment has been issued.

FNF agreed to cease the practice of paying real estate brokers.....THANK YOU HUD.

FNF agreed to cease the practice of paying real estate brokers that place orders via the software platform for title insurance and other services.

"RESPA is very clear that paying fees or providing anything of value for the simple act of referring business is a violation of law," said Acting FHA Commissioner Bob Ryan. "This agreement should be a signal to others that these business

free CE credits and other stuff

being nostalgic today about Radical Title Talk

Radical Title Talk was born in anger. Every post was passionate and most people reading and commenting did so with passion. That takes a tremendous amount of energy. I am not a personal who walks in anger. I get angry, I deal with the issue and be done with it. I love to laugh and be a goof and have fun. Once Radical found its voice and its mission, I had to commit and follow it

query: what is a marked up title commitment and how soon should I get one before closing

Great question.  ;)

A title commitment is marked up by the title agent when they have completed the transaction and are prepping the file notes for the issuance of the title policy.

The mark up takes place during the closing process and is therefore not available prior to closing.

If you are given a marked up title commitment prior to closing it isn't a genuine mark up.

Consumers and lenders

CFPB Forum has been launched by Jonathan Foxx

The CFPB Forum has been launched by Jonathan Foxx, president of Lenders Compliance Group, as a "discussion forum" for news and views regarding the new Consumer Financial Protection Bureau (CFPB), an independent bureau within the Federal Reserve System
created by the Dodd-Frank Act. The CFPB Forum is not associated or affiliated with the Consumer Financial Protection Bureau.

Read more here.

commenting to CFPB concerning defining larger participants

There was a technical issue on www.regulations.gov which has now been resolved.  If you tried to post a comment and had a problem, give it a go now.  I just did and it worked!  Cool site. ;)

comment to CFPB

I am a title insurance agent. I operate what might be considered a small regional agency. I have had roughly $22,000,000.00 move through my escrow account YTD. The procedures I have in place to account for and safely guard these funds were developed with little or no oversight. These funds include down payments collected from home buyers,

Ms. Shelp is suing her title insurance company.

When Theresa Shelp bought 544 Eynon St. in Scranton two years ago, she said she thought she was living a dream.

But Ms. Shelp, 43, now says she is stressed over the house, which continues to have problems such as mold. The property also is at the center of a lawsuit Ms. Shelp has filed against the city and three companies. She claims in the lawsuit that she suffered financial distress and

helping a consumer with a Good Faith Estimate error

I was recently contacted by a new title insurance consumer, a homebuyer, who asked if I had worked with the mortgage lender he had selected.  I didn't recognize the name of the company but assured him that we work with many diverse lenders and would help this lender with the nuances of Western Pennsylvania customs in real estate, if needed.  This homebuyer then said he had talked with some local

CFPB

get to know Elizabeth Warren

query: what is the difference between a title commitment and title insurance

If you have ever applied for a mortgage loan, then think of the title commitment as being the same as the mortgage loan commitment letter.  The purpose of the title commitment is to formally state that the property has been approved for title insurance subject to certain conditions.

A smart consumer will obtain a copy of the title commitment prior to closing and READ IT.  This is your chance to

I watched this video this morning and tried to post a comment. I was blocked by the site's blacklist. WAH???

Here's my comment:


I hope for good results from the Consumer Financial Protection Bureau.

In response to your video, the bigger issue with these so-called "in-house" providers is the underlying conflict of interest.

The consumer loses their position as owner of the transaction as providers are motivated to serve their customer, the source of referrals.

I've been in this industry for over 35

Google is cramping my blogging style.

For years I've been able to blog on the fly with two email browsers up and running.  One for dianecipa@gmail.com and the other for dcipa@tcsclosing.com.  They both sit on Google platforms.  The gmail account was based on my original tcsclosing email address and so now Google doesn't want to have conflicting accounts open at the same time.

Google - You're killing me!!!

My blogs are accessed

tsk tsk Mr. Allen ....bad CEO bad CEO

ALEXANDRIA, Va. — The CEO of what had been one of the nation's largest privately held mortgage lenders was sentenced Tuesday to more than three years in prison for his role in a $3 billion scheme that officials called one of the biggest corporate frauds in U.S. history.

The 40-month sentence for Paul R. Allen, 55, of Oakton, Va., is slightly less than the six-year term sought by federal

I want to teach the world to sing in perfect harmony. ;)

Hey, why not, eh?

Here's some news.  Yours truly, the Title Insurance Talk lady is looking for a new path, a new challenge.  I have a wonderful replacement, an employee who I trust implicitly, to buy my business so I can move on when I find that next thing I want to do.  It's time. ;)

What do I WANT to do?  I'd love to find a place in which to help restore good practices in mortgage lending and

Here's a fraud case to watch.

MURRIETA, Calif. (KABC) -- A family is being told the house they thought they bought in Murrieta actually belongs to someone else. The family says they can't stop making their mortgage payments. 
"Even though you've made your payments in full every month, you could get a knock at the door saying get out," said would-be homeowner Charlie Zahari. "If you look at it, we're renters in a house

There hasn't been too much to talk about in title lately.

Or maybe I'm just not feeling compelled to post.  Hmmm....what is an interesting case?

Well, here's an interesting situation.  It's not new but it's always good to do a repeat.

We have a terrific program called Choose and Save.  We're closing a transaction today in which the consumer found us and our program while shopping on the web.  He was  tough shopper and checked with  numerous title

Well, here's a case that will cause regulators to notice escrow accounts.

MINEOLA, N.Y. (CN) - TitleServ, one of the largest title agencies in the country, swiped $7.9 million from customers' escrow funds, the underwriter WFG National Title Insurance Co. claims in Nassau County Court.
     New Jersey Title Insurance Co. has filed a similar complaint against TitleServ, which "was authorized to write title insurance policies in at least 26 states, including New York

look at this cool site for renovations loans!

RennoReady

new disclosures in the making

Elizabeth Warren and the Consumer Financial Protection Bureau revealed two prototypes of mortgage disclosure forms Wednesday as part of the agency's effort to simplify documents for homebuyers shopping for mortgages.

The two prototypes combine the federal Truth in Lending Act mortgage disclosure form with the Real Estate Settlement Procedures Act to remove redundant information and allow

FBI raids Titleserv

The FBI raided Titleserv in Woodbury Wednesday morning, a little more than two weeks after the national title insurance agent closed suddenly.

FBI spokesman Jim Margolin said agents went with a search warrant as part of an "ongoing investigation." The search started at 8 a.m. and continued into the early afternoon, ending with agents leaving with boxes of records, he said.

Read more on

What? You think you should keep the $25,000?

We closed a transaction last month.  We made a mistake.  Everybody makes mistakes.  That's why you need to buy an owner title insurance policy.

Our seller is a local appraiser, a popular appraiser who has been in the business for a long time.  Our title search revealed two mortgages.  We got two mortgage payoff letters.  The mistake happened in the HUD-1 preparation.  For some reason someone

tsumani of defalcations? well, maybe not but there sure has been loads of them

I remember sitting down with a group of regulators a few years ago making an effort to help them understand this business.  One of my goals was getting them to embrace the concept that a title insurance agent handles millions of dollars with little or no oversight.  The most frustrating part of that effort was the assignment of regulatory authority and that the oversight for management of escrow

judge removes stay

FED LO compensation rule is in effect.

RESPANews if reporting LO compensation rule stalled by court

On the evening of March 31, the U.S. Court of Appeals for the District of Columbia Circuit stalled the implementation of the Federal Reserve’s loan originator compensation and steering rule. The court decided to delay the rule’s implementation until it could review the cases filed by National Association of Mortgage Brokers (NAMB) and the National Association of Independent Housing

almost forgot to share this closing adventure

We've all got crazy closing stories, right?  Well, the other night we had an in office closing set for 5pm.  Folks started arriving a few minutes early just as our severe weather warning siren started blowing.  As the buyers walked in they got a call from a friend who was at the Walmart about 8 miles away.  They had been instructed to get on the floor and away from the windows.  A tornado was on

getting back to the REO transaction and the odd POA scenario

It hits me that this attorney isn't even in touch with the principal on the POA.  According to her the REO company may not even have current contacts for that company.  This attorney is apparently throwing darts at the public record trying to find a POA that might fit her transaction.  What the hey?

The vested lender is vested on the sheriff's deed because the foreclosure attorney filed an

Here's a different approach ...affiliate as "single person"

NAILTA supports the FRB's definition of the term "affiliate" as a "single person" for the purposes of the Rule.
An AfBA, according to NAILTA's view, is a single entity and, accordingly, should be subject to the "single person" compensation requirements. Indeed, the trade associations refer to the "affiliate" as a "one-stop" shop.
Therefore, treating them differently for purposes of the Rule

Facebook connections continue to evolve...

"It is great to see that the courts are willing to embrace new technology," says a British lawyer given permission to serve a summons to a difficult-to-reach debtor via Facebook.

Source techPresident.

criminy...here's a morning chuckle or maybe not - just pretend it's a Monty Python short

You be the judge.

What follows is a transcript of the deposition of Lawrence Patterson, acting head of information technology for the recorder's division of the county fiscal office. The questioner is attorney David Marburger, who filed the lawsuit on behalf of title companies. Another attorney, Matthew Cavanagh, represents the county and raises objections.

Read more on Cleveland.

Thanks

Are we on Candid Camera?

You be the judge.

What follows is a transcript of the deposition of Lawrence Patterson, acting head of information technology for the recorder's division of the county fiscal office. The questioner is attorney David Marburger, who filed the lawsuit on behalf of title companies. Another attorney, Matthew Cavanagh, represents the county and raises objections.

Read more on Cleveland.

just another day processing REO transactions....

notes for file

The lender's attorney agreed that the 2nd POA she submitted does not cover our transaction.  Our underlying mortgage is NOT part of that servicing agreement.

She wants to make an argument that the first POA she submitted can be used even though it does not specify power to sign a deed.  I disagree but said she can put her argument in writing and I will submit it to our

Fidelity sends more jobs out of the USA

BANGALORE: The world's largest property title insurance company Fidelity National Financial (FNF) will increase its headcount in India this year as it transfers more work from the US to its captive centre in Bangalore.

Read more on The Times of India.

subdivisions, outsales and foreclosure

TWO....TWO cases in one week with the same situation, well almost.

I've had two transactions cross my desk in one week that involve subdivision, sale of a portion of a mortgaged parcel which later went into foreclosure.  In both cases, the attorneys who handled the subdivisions and conveyance out of the mortgaged parcel overlooked getting a release from the mortgagee.  What were they thinking!

attention all PA title insurers...time to escheat!

April 15 is the deadline to report and deliver unclaimed property to the Pennsylvania Treasury.  Here are a few things to keep in mind as you prepare your company’s report:
All owner accounts with a last known address in Pennsylvania should be reported to the Pennsylvania Treasury.  Companies incorporated in Pennsylvania should report all “unknown” owner accounts to the Pennsylvania Treasury

"political junkie"

The New York head of nationwide title insurance company First American Financial Corp. has left under a cloud of suspicion over his conduct as an executive.

Steven Napolitano, the president, chairman and CEO of First American Title Insurance Company of New York, the wholly owned New York City office, left his postFeb. 15 after speaking with companyhonchos who flew in from Santa Ana, Calif.,

the conversation sure has changed

Every once in awhile I notice that the conversation has changed and I am so thankful.  For the last two decades every trade publication for the title insurance industry was all about joint ventures.  Every course offered was another way to beat RESPA and form some sort of affiliation.

I must say I don't miss looking at all that stuff.

At least if it's happening, it's happening in the dark where

"During this period we request that members do not commence foreclosures in MERS' name. If a member determines that it will commence a foreclosure in MERS’ name during this 90-day period, two weeks advance notice must be given to MERS to permit verification of the appointment and current status of the certifying officer proposed to participate in the foreclosure. No foreclosure may be

just deactivated my free Closing.com listing

I thought Closing.com was a nice platform for folks to find title agents until they put together a program to auto-fill Good Faith Estimates for mortgage lenders.

As I expressed to Dan, the nice fellow who called today from Closing.com, they are giving lenders a false sense of security and basically creating a platform which is about as reliable as ROBO-signing foreclosure plants.

Why is it

one of the soldiers of disaster apologizes

I was 22 years old when I decided to go into mortgage sales. I was finishing an undergraduate degree in criminal justice and had decided that I didn't want to go to law school as I had originally intended. I didn't have rich parents, and had never made any significant money, so I set out to find the highest-paying job someone with my limited qualifications could find.

At the time, my

We just finished our annual CPA audit and in the process heard an interesting title insurance claim story.

Yes, we pay to have our books audited annually by an independent CPA.  I wish it was a mandatory audit, but it's not.  I'm not a big government fan, in fact I'm an advocate for limited government - highly bent in the libertarian direction, BUT when a licensed entity has access to millions of dollars of other people's money, I think there ought to be some sort of formal audit standards which

failure to closely guard the escrow account leads to big trouble.......

The indictment alleges that beginning at least as far back as 2004, a substantial shortfall began to develop in an escrow account maintained by Troese Title and Troese/Hughes for the receipt and disbursement of funds in connection with real estate closings carried out by both title companies. This shortfall is alleged to have been partly the result of mistakes made during the closing process

Pennsylvania Gov.-elect Tom Corbett nominated a partner in the Saul Ewing law firm and former lawyer in the Pennsylvania Insurance Department to become the state’s next insurance commissioner.
Michael ConsedineConsedine’s appointment awaits a confirmation hearing by the state Senate.

Read more on IFAWEB.

Wendy finds the darndest things.

Wendy's job is a critical part of our title examination process.  She receives the raw search reports from our abstractors.  She combs documents and notes just to be sure the abstractor didn't miss exceptions in their report.  She plots the metes and bounds description to see if it closes and looks anything like the map provided by the abstractor then she types our legal description.

I review

court rules against banks in pivotal mortgage case

"There is no dispute that the mortgagors of the properties in question had defaulted on their obligations, and that the mortgaged properties were subject to foreclosure. Before commencing such an action, however, the holder of an assigned mortgage needs to take care to ensure that his legal paperwork is in order," Justice Cordy wrote.  Read more in WT.

Okay, here's my lazy, I'm not going to

PA 400 Manufactured Housing Endorsement

Sorry, I'm at home as I write this and so I don't have the ALTA number in front of me.

Has anyone had any claim experience in which this endorsement comes into play?

We issue it all the time for lenders mortgaging a manufactured home or a mobile home which has been permanently attached to the land.

The endorsement doesn't really say much.   It simply includes the manufactured home in the

If the average title search is anywhere near as flawed as the document checks of the robosigners, we're in for some wild court cases.

To make that billion-dollar question even more chilling is the fact that, in many cases, the banks have already sold said homes to new buyers -- new buyers with title insurance of their own. If the average title search is anywhere near as flawed as the document checks of the robosigners, we're in for some wild court cases.

Read more: Hot potato time for title insurers | Bankrate.com http://

Good morning and happy new year!!

We've had a good year and moving into 2011 are hopeful for another.

Much of what was good during 2010 I think is the result of the 2010 RESPA rules.  We experienced a tremendous change in the way lenders prepare for closings and also in the quality of consumer disclosure.

Gone are the days of tears and anger when consumers get their final figure of cash needed to close.  In 2010 the most