FLTA Gov't Affairs Blog

Foreclosure Reform Bill scheduled for Senate Vote

(Past member) — Wed, 01 May 2013 01:10:00 GMT

4-30-13 The foreclosure bill has been withdrawn from its last Senate committee of reference and is scheduled for floor consideration on 5-2-13. I'm told that procedurally this took a minor miracle.

4-29-13 The Foreclosure Bill passed the full House of Representatives 87-26, and has been transmitted to the Senate. The Senate counterpart remains stuck in its final committee of reference, which may present procedural issues for considering the house version.

4-22-13 The Foreclosure bill was calendared for second reading in the House. At this point, there are significant differences between the house and senate versions as regards the handling of senior judges. Keep your fingers crossed.

4-19-13 The referral of the Senate Companion to the Rules committee was withdrawn, shortening the path to becoming a law. At this point it still has one remaining Senate Committee stop (appropriations), and scheduling may become difficult.

4-17-13 Facing increasing opposition from consumer groups, Rep. Passidomo's Foreclosure reform bill was approved by the House appropriations committee 17-8

4-3-13 Because of the addition of the senior judges provisions, Rep. Passidomo's foreclosure bill was pulled from the house calendar and given an additional referral to the House Appropriations Committee, thus delaying final approval.

3-28-13 This morning the House Judiciary approved the Foreclosure bill posturing it to move on to the House Floor.

On Wednesday afternoon 3-8-13, Rep. Passidomo's Foreclosure Reform bill (HB 87) was approved by the House Justice Appropriations Subcommittee by a 9-2 vote.

It will now move to its third and final committee stop before the House Judiciary committee.

This is one of the bills that FLTA members advocated during the recent Lobby Days.

Fraudulent Recording Bill

(Past member) — Wed, 01 May 2013 00:30:00 GMT

4-30-13 The Fraudulent Recording Bill was unanimously adopted by the house and will be sent to the Governor for signature.

4-29-13 The Senate version of the bill was substituted for the house version, and second reading occurred this morning.

4-16-13 The house version of this bill was adopted by the full Judiciary Committee by a 17-0 vote and is now postured for consideration by the full House.

4-11-13 SB 112 was adopted by the full Senate in a 39-0 vote.

4-3-13 SB 112 was approved 16-0 with a CS by the Senate Rules committee, completing its last committee stop in the senate. The house companion, HB 915 is on the agenda for the house Justice Appropriations committee tomorrow morning

3-28-13 SB 112 is on the calendar for its final committee stop on Tuesday April 2

The house companion remains stuck in the Justice Appropriations Subcommittee. Absent special treatment it is probably dead for this session.

3-18-13 SB 112 passed out of the Senate Criminal Justice Committee 7-0. It has one remaining committee stop

3-6-13 Senator Dean's Fraudulent Recording bill making it a crime to record an instrument containing a materially false, fictitious or fraudulent statement or representation with the intent to defraud or harass. The bill also allows the "victim" of the fraudulent instrument to file to have the fraudulent instrument voided and stricken from the record and allows an injunction prohibiting a filer from any future filings without express court permission.

The bill was intended to clearly criminalize fraudulent documents and to address the problems with "Sovereign Citizens" filing false liens, judgments by the "people's court" and the like against sitting judges and government officials.

Several of the early drafts were overly broad potentially criminalizing human error and legitimate practices. On behalf of FLTA, we have negotiated a number of changes to the original proposal to make it more acceptable. The revised version is not perfect, but the product of compromise, outright opposition is awkward given that there are legitimately fraudulent instruments being filed to harass and defraud.

The bill, with the changes recommended by the FLTA, was approved by the Senate Judiciary Committee 9-0.

Land Trust Bill Passes Both Houses

(Past member) — Mon, 29 Apr 2013 18:24:00 GMT

4-26-13 The Land Trust Bill has passed both houses of the legislature and is now ready to go to the Governor for signature.

4-24-13 The House Bill, HB 229 has been placed on the Special Order calendar for second reading on 4/24/13. The Senate Version is scheduled for vote on 4/25/13.

4-17-13 SB 1172 was approved by the Rules Committee 13-0.

4-2-13 The Land Trust Bill, SB 1172 was approved by the Banking and Insurance Committee 10-0. The senate bill has one remaining stop at the Rules Committee.

3-20-13 HB 229 passed 16-0 out of the Judiciary committee, its third committee of reference and moved on to the house Floor

3-12-13 By a Land Trust Bill advances in House 9-0 vote, the Senate Judiciary Committee approved SB 1172 with a committee substitute. The bill has two remaining committee stops in the Senate.

3-6-13 By a 13-0 vote, the House Insurance & Banking Subcommittee approved HB 229. The bill has one remaining stop in the House. The senate companion bill, SB 1172 has been agendaed for its first of three committee stops on 3-12-13

2-13-13 the House Civil Justice Committee approved HB 0229 with a committee substitute by a 10-0 vote. This bill addresses the issues raised in the Brigham v. Brigham case which suggested that the inclusion of trust powers under s. 689.071 could take a traditional estate planning trust outside the protections of the trust code.

HB 995 curative act for witnesses

(Past member) — Sat, 27 Apr 2013 00:13:00 GMT

4-25-13 SB 736 passed the full Senate 38-0, and has been taken up by the House on second reading.

4-17-13 SB 736 passed its final committee of reference and has been placed on the special order calendar for 4-24-13 consideration.

Florida has long had a curative act validating a deed lacking witnesses or with a defective notary five years after recording. The RPPTL proposal to expand this curative act to apply to any instrument lacking required witnesses or with a defective notary.

The bill passed in its final committee stop in the house on March 28.

The senate companion, SB736 has two remaining committee stops.

Hidden Lien Bill Passed -- On to Gov. Scott

(Past member) — Sat, 27 Apr 2013 00:06:00 GMT

4-26-13 HB 267 Has now passed both houses of the legislature and is prepared to be sent to Governor Scott for signature.

4-21-13 HB 267 is awaiting a Floor vote and is calendared for 4-23-13

4-17-13 SB 404 passed the appropriations committee 17-0 and is on the Special Order calendar for the Senate on April 25

3-27-13 The Senate version of the Hidden Lien bill passed 10-0 out of it's third (of four) committee.

3-20-13 The Hidden Lien bill passed out of its third house committee of reference 16-0 and moved on to the House Floor.

3-8-13 This week the Hidden Lien Bill, which our members lobbied during our Lobby Days, advanced in both the House and Senate. The Senate Judiciary Committee approved SB 404 by a 9-0 vote on Wednesday 3-7, the House Local and Federal Affairs Committee approved HB 267 by a 17-0 vote. In both committees a committee substitute was adopted.

2-13-13 the House Civil Justice Committee by a 12-0 vote endorsed HB 267, which includes the "Hidden Liens" provisions introduced by Rep. John Wood.

Design Professionals Bill Becomes Law

(Past member) — Wed, 24 Apr 2013 21:09:18 GMT

4-24-13 SB 286 was signed by the Governor becoming law Chapter No. 2013-028, Laws of Florida

Senator Negron's bill allowing individual design professionals (including surveyors) to limit their liability for professional malpractice in their contracts has passed both houses and been submitted to the Governor. The Governor must act on this bill by April 29.

This is very similar to the issue facing the title industry (and many others) following the Supreme Court's limitation of the economic loss rule to product liability cases. An unhappy homebuyer will be able to sue their title agent in negligence notwithstanding any limitation contained in the title policy or even policy limits.

Marketable Record Title Act -- Local Government Exclusion SB 762/HB 1317

(Past member) — Mon, 01 Apr 2013 13:04:00 GMT

Local Government groups have proposed two new exceptions to MRTA which would create major gaps in its coverage and impose significant search burdens. Alan Fields and Raul Ballaga from Fox Ruiz met with representatives from the Dade County Attorneys office last week to better understand their goals and the issues they are facing. It was a positive session, although no mutually acceptable solution was found, each side came away feeling they better understood the issues and concerns of the other.

No committee hearings have been held on either bill, but the issue is expected to continue to be of concern to the local governments.

Condo Act - ILSA CS/SB 120 CS/CS/HB 175

(Past member) — Mon, 01 Apr 2013 12:38:27 GMT

4-4-13 The fix for the interstate land sales act problem with current Florida condo law passed the Senate 40-0. The house companion bill HB 175, has passed all committees of reference and is awaiting floor action.

Amendments have been proposed to the Condominium act allowing for the early recording of a condo declaration to create legal descriptions during the presale process so that presales are not in violation of the Interstate Land Sales Act.

These bills have passed all committees and are on the calendar for floor action in both the House and Senate.

HB 903 Adverse possession

(Past member) — Thu, 28 Mar 2013 15:28:00 GMT

HB 903 making dramatic changes to the statute regarding adverse possession without color of title, passed out of the House Judiciary committee on a bipartisan basis. This was its third and final committee stop on the house side.

The sponsors agreed to continue working with the Real property section.

There has not yet been any movement on the senate companion bill SB 1166

Narrow Ruling in the Pino Case

(Past member) — Mon, 11 Feb 2013 01:57:16 GMT

Last Thursday, the Florida Supreme Court released its opinion in Pino v. Bank of New York. FLTA and ALTA had filed a joint Amicus brief in this case. The opinion was carefully crafted to address only the question of reopening a case which had been voluntarily dismissed (in this case, after allegations of fraud had been asserted) before any affirmative relief had been granted.

Given the court's understandable frustration with the mortgage crisis and various frauds on the courts, ALTA and FLTA were concerned about the possibility of an overbroad ruling, which might call into question the sanctity of REO outsales. In the opinion, the court specifically stated:

"Although this case arises out of a mortgage foreclosure action, we do not decide broader issues related to mortgage foreclosures in general, such as whether a copy of an assignment of mortgage is necessary to establish standing to foreclose on the mortgage or whether the rights of affected third parties who later purchase foreclosed properties are protected when collateral attacks are brought against otherwise final court proceedings."

While we are pleased with the narrow scope of this opinion, the language above highlights the importance of our efforts in supporting the finality provisions of House Bill 87.

Copies of the Opinion and more background on this important case can be found here.

Foreclosure Reform Bill passed out of House Civil Justice

(Past member) — Thu, 07 Feb 2013 15:42:41 GMT

About half an hour ago, the House Civil Justice Committee passed the Foreclosure Reform bill (HB 87) 10-3. There were over 2 hours of testimony, pro and con and some concerns yet to be worked through.

Recess Appointments Invalidated

(Past member) — Fri, 25 Jan 2013 18:26:22 GMT

A federal appeals court today ruled that President Barack Obama violated the Constitution when he bypassed the Senate to fill vacancies on the National Labor Relations Board.

The court's decision could also have implications for Richard Cordray, the head of the Consumer Financial Protection Bureau. President Barack Obama also used a recess appointment to name him to his position after Republicans blocked his nomination from coming to a vote.

More from the Wall St. Journal

Qualified Mortgage Rule may be coming????

(Past member) — Wed, 02 Jan 2013 19:09:21 GMT

Jan. 9th date emerged as a possible drop-date for the final QM rule since the CFPB scheduled public hearings to collect feedback on Jan. 10 and Jan. 17. Nothing has been officially confirmed by the CFPB, but the scheduling of those hearings is a suggestion the rules will be released right before the feedback sessions.

More from Housing Wire

US to hit Debt Limit December 31. Extraordinary measures begun

(Past member) — Fri, 28 Dec 2012 19:17:02 GMT

The U.S. government will hit the $16.4 trillion federal debt limit Monday and turn to “extraordinary measures” to continue borrowing, the Treasury Department said Wednesday, beginning a countdown until Congress either passes legislation to allow for more borrowing or the government defaults on its debt.

In a letter to Congress, Treasury Secretary Timothy F. Geithner said that although the debt ceiling would be reached Dec. 31, the government could buy roughly two months’ more time before it would be unable to meet all its obligations.

House Ethics Committee finds no violations in Countrywide VIP probe

(Past member) — Fri, 28 Dec 2012 19:14:59 GMT

WASHINGTON -- The House Ethics Committee has found no rules violations by lawmakers and staffers who used a VIP loan program from Countrywide Financial Corp. saying the allegations of special treatment fell outside the panel's jurisdiction.

The committee's leaders said its investigation largely led to the same conclusions as the Senate Ethics Committee, which determined in 2009 that there was "no substantial credible evidence" that Sen. Kent Conrad (D-S.D.) and former Sen. Christopher Dodd (D-Conn.) had broken rules by accepting loans through the special program.

Expected Foreclosure Wave Weakened by Short Sale Rip Current

(Past member) — Fri, 28 Dec 2012 18:52:37 GMT

A strong rip current of distress continues to threaten the U.S. housing market despite the absence of a giant wave of bank foreclosures in 2012.

There’s no doubt that the great foreclosure wave of 2012 just didn’t happen. No mighty financial dams fell and no monetary levees were washed aside.

Certainly that’s still a huge number of bank repossessions by historical standards. In 2005 and 2006 there were less than 270,000 REOs per year. But it’s 19 percent below the 800,000 REOs in 2011 and 35 percent below the peak of more than 1 million REOs in 2010.

According to the National Association of Realtors, “distressed homes undefined foreclosures and short sales sold at deep discounts undefined accounted for 24 percent of October sales (12 percent were foreclosures and 12 percent were short sales), unchanged from September; they were 28 percent in October 2011.” Foreclosures sold for an average discount of 20 percent below market value in October, while short sales were discounted 14 percent.” (Parenthesis theirs)

Foreclosures come out in 'drips and drabs' in Florida as prices rise

(Past member) — Fri, 28 Dec 2012 18:47:49 GMT

The foreclosure crisis brought the state of Florida a bad reputation. But new home sales and investor demand seem to be perking up the coastal state.

Tampa home prices rose 5.9% year-over-year in October, while Miami prices rose 8.5%, according to data from the Standard & Poor's/Case-Shiller home price index report.

"I wouldn't say we are in a full recovery," said Becky Walzak, president and CEO of Looking Glass Group, a consulting firm for the consumer financial services industry in West Palm Beach, Fla. "But we are in a strong position right now. We have a lot of foreign buyers who come in and pay cash for properties," Walzak said. Snowbirds from the Northeast searching for real estate deals in Florida also have shown interest.

Still, it took a few years for the state to recover from news of massive foreclosure litigation and the launch of investigations targeting some of the state's largest default services law firms.

More from Housing Wire

Fannie/Freddie may have lost $3B to LIBOR manipulation

(Past member) — Thu, 20 Dec 2012 15:02:21 GMT

Mortgage finance giants Fannie Mae and Freddie Mac may have lost up to $3 billion from the manipulation by several big banks of the global interest rate known as Libor, according to an internal government memo.

That was just one more sign Wednesday of the growing rate-fixing scandal, as federal prosecutors and regulators also announced that Swiss banking giant UBS had agreed to pay $1.5 billion in fines for manipulating the rate. U.S. authorities also filed criminal charges against two UBS employees, the first individuals targeted by the widening investigation.

CFPB Proposes "Trial" Disclosure Programs

(Past member) — Thu, 13 Dec 2012 18:59:40 GMT

UPDATE: Staff at the Consumer Financial Protection Bureau informed ALTA that its trial disclosure program is not intended to be used for the RESPA-TILA disclosures, rather it is part of a larger effort to develop or revamp financial disclosures like credit card and student loan disclosures.

CONSUMER FINANCIAL PROTECTION BUREAU PROPOSES ALLOWING COMPANIES TO RUN TRIAL DISCLOSURE PROGRAMS

Bureau Reaffirms Commitment to Improved Consumer Disclosures through its Project Catalyst Initiative

WASHINGTON, D.C. –The Consumer Financial Protection Bureau (CFPB) announced its proposed policy to allow companies to test new consumer disclosures on a case-by-case basis. As part of its Project Catalyst initiative, and in line with its statutory authority, the Bureau’s goal is to encourage banks, credit unions, and other financial services companies to propose and conduct trial disclosure programs.

“As part of our efforts to foster innovation in consumer financial markets, the proposed policy will allow companies to conduct real world trials of disclosure alternatives,” said Richard Cordray, Director of the CFPB. “That will help the Bureau identify what works and does not work to provide consumers with the clear information they need to make financial decisions in a marketplace of evolving programs and products.”

The Dodd-Frank Wall Street Reform and Consumer Protection Act, which created the CFPB, authorized the CFPB to facilitate innovation and to approve trial disclosure programs. As a part of that commitment, the Bureau launchedProject Catalyst in November. Project Catalyst is an initiative designed to encourage consumer-friendly innovation in markets for consumer financial products and services.

The Bureau is continuing to foster new ideas with today’s proposal. Under the proposed policy, the Bureau would approve individual companies, on a case-by-case basis, for limited time exemptions from current federal disclosure laws in order for those companies to research and test informative, cost-effective disclosures. The companies involved will then share the results of their trial disclosure with the CFPB. The CFPB will use that information to improve its disclosure rules and model forms. The public will have input through the rulemaking process.

When deciding whether or not to grant a company a waiver from current disclosure requirements, the Bureau proposed policy would evaluate a number of factors including:

· Consumer Understanding: The Bureau will assess how effectively and efficiently the proposed trial will test for potential improvements to consumer understanding about the costs, benefits, and risks of products and services.
· Cost Effectiveness: The Bureau will evaluate how the proposed trial will help develop more cost-effective disclosure rules or policies.

· Minimizing Consumer Risk: The Bureau will evaluate the extent to which the program is designed to mitigate any risk to consumers.

Today’s proposal builds upon the CFPB’s broader dedication to improving disclosures for consumers. Through its Know Before You Owe initiative, the CFPB has been working to create clear, easy-to-understand disclosures that allow consumers to better understand products such as mortgages, student loans, and credit cards. The proposed policy also builds on the Bureau’s streamlining initiative, which intends to update, modify, or eliminate outdated or unnecessary provisions in the Bureau’s inherited regulations.

A copy of the proposed policy can be found at: http://files.consumerfinance.gov/f/201212_cfpb_trial_disclosures.pdf

California Response to 3rd Party Vetting

(Past member) — Mon, 10 Dec 2012 15:17:00 GMT

We note with interest the California Department of Corporations' bulletin with regard to Third party vetting -- basically suggesting that use of such a service by either the lender or the escrow agent may be a violation of state and federal law.

See the Bulletin

6 Convicted in Miami Mortgage Fraud Scheme

(Past member) — Mon, 10 Dec 2012 15:03:43 GMT

Six defendants, including a real estate attorney and mortgage brokers, received prison sentences this week for their respective roles in a $5.6 million mortgage fraud scheme.

The parties sentenced include real estate attorney Lilia Casal-Diaz, 42; Andres Mendez Sr., 47; Andy Mendez Jr., 26; Josephine Santana, 57; Jose Rafael Martinez, 36; and Basilio Gomez, 52.

The U.S. Attorney for the Southern District of Florida Wilfredo Ferrer said the defendants were sentenced for their roles in a scheme where the parties used straw buyers to acquire apartments at the complex while preparing multiple sets of loan documents, including fraudulent documents that allowed them to eventually collect millions in fraudulently obtained loan proceeds.

Apparently, HUD-1 documents submitted to lenders contained false information, while a second version of the same forms were submitted to borrowers with the real sales prices. The defendants each received jail time, with the average sentence well over a year.

Census Bureau reports Housing Starts up 29.8% over Oct. 2011

(Past member) — Fri, 30 Nov 2012 16:28:40 GMT

According to the U.S. Census Bureau, privately-owned housing units authorized by building permits in October were at a seasonally adjusted annual rate of 866,000. This is

2.7 percent (±0.8%) below the revised September rate of 890,000, but is 29.8 percent (±1.8%) above the October 2011 estimate of 667,000.

Does the resurgence of the new home market affect your business strategies?

More information here

Fannie/Freddie conforming loan limits to remain the same.

(Past member) — Fri, 30 Nov 2012 16:21:29 GMT

The maximum conforming loan limits will remain the same for mortgages acquired by Fannie Mae and Freddie Mac, the firms' conservator said Thursday.

The Federal Housing Finance Agency said the maximum loan limit for one-unit properties will remain at $417,000, but can still run as high as $625,500 when the property resides in one of the designated high-cost areas.

Note: the maximum for FHA loans through the end of 2013 is $729,750 in the nation's most expensive neighborhoods.

More from Housing Wire

FHA Extends Anti-Flipping Waiver Through 2014

(Past member) — Thu, 29 Nov 2012 17:03:33 GMT

From our friends at ALTA

The Federal Housing Authority once again extended its temporary waiver of anti-flipping regulations, this time through December 31, 2014.

Prior to the waiver, a mortgage was not eligible for FHA insurance if the contract of sale for the purchase of the property that secured the mortgage was executed within 90 days of the prior acquisition by the seller, and the seller did not come under any of the exemptions to this 90-day period specified in the regulation. The waiver is applicable to all single family properties being resold within the 90-day period after prior acquisition, and is not limited to foreclosed properties.

The waiver, which was set to expire at the end of 2012, was first issued in January 2010 and has been extended several times. The FHA said it extended the waiver to encourage renovation of foreclosed and abandoned properties, increase the availability of affordable homes and stabilize home prices.

More from ALTA

Federal Register Notice

Mortgage Interest Deduction, Once a Sacred Cow, Is Under Scrutiny

(Past member) — Wed, 28 Nov 2012 20:38:34 GMT

Reports out of Washington suggest that the Mortgage Interest Deduction may be one of the items addressed as part of any "Grand Compromise" to avoid the fiscal cliff. If these deductions are eliminated or severely restricted it will have obvious negative impacts on the housing market -- so expect our friends at ALTA to be asking for our assistance with Congress if this goes beyond the "trial balloon" stage

We're Number ONE -- Again

(Past member) — Wed, 28 Nov 2012 17:32:30 GMT

Florida Named Top State For Mortgage Fraud Risk In Q3

Although national mortgage fraud risk is on the decline, Florida is showing signs of increased fraud risk, according to new data released by Agoura Hills, Calif.-based Interthinx.

More here

Fannie Mae releases Maximum Legal Fees for foreclosure

(Past member) — Mon, 26 Nov 2012 15:21:47 GMT

Fannie Mae recently updated its foreclosure fee schedule in Florida (and elsewhere). We are hopeful that the increased fees permitted will help avoid a repeat of the robo-signing and shoddy practices of the past.

New 30-year debt: FHA to collect MIPs for life of mortgage

(Past member) — Mon, 26 Nov 2012 15:12:35 GMT

While this is not set in stone, there is speculation and rumor that FHA will change its current policy which allows a homeowner to stop paying mortgage insurance premiums once the mortgage has been paid down to 78% and at least 60 payments have been made.

Needing funds, and recognizing that FHA liability remains in effect for the entire 30 year live of a loan, this is seen by some as a quick source for additional revenues. Since the chance is thought likely to apply only to loans originated after the policy change is announced, this may provide an added incentive (as if today's low interest rates aren't enough!) for your former customers to participate in a HUD streamlined refinance.

Former LPS Executive Pleads Guilty in Robo-Signing Fraud

(Past member) — Thu, 22 Nov 2012 16:49:33 GMT

A former executive of Lender Processing Services Inc. (LPS) pleaded guilty yesterday (11-21-12), admitting her participation in a six-year scheme to prepare and file more than one million fraudulently signed and notarized mortgage-related documents with property recorders’ offices throughout the United States.

More here.

Now if only we knew which million properties were affected by the fraud! So we didn't continue to insure based on documents known by the U.S. Attorney to be fraudulent.

New Mexico orders refunds of overcharges -- FLTA Board takes position in Reissue Rate Cases

(Past member) — Thu, 15 Nov 2012 15:29:12 GMT

Proving that Florida is not the only state having problems with ambiguities regarding reissue rates, the New Mexico Department of Insurance just entered into an agreement that will result in refunds of alleged overcharges.

More about New Mexico Here

On a separate front, yesterday FLTA's board has approved taking an amicus position in the appeal of one of the Florida reissue rate cases. In that case, the plaintiffs are appealing claiming that title agents have an affirmative duty to (beyond asking their seller for the copy) to seek out and track down any prior policies. This would be a huge burden on all agents, given that it is often impossible to identify which company may have insured a prior transaction.

Election Results

(Past member) — Wed, 07 Nov 2012 04:25:06 GMT

Here are selected results for Florida Legislative races of interest to FLTA.

The candidates in bold understand real estate issues and have been supportive of FLTA positions in the past.

Select 2012 Florida Legislative Races

State Senator, District 6

John Thrasher REP 132,309 59.26%

Kathleen Trued DEM 90,970 40.74%

223,279 total votes cast.

State Senator, District 8

Dorothy L. Hukill REP 97,277 56.9%

Frank T. Bruno, Jr. DEM 73,691 43.1%

170,968 total votes cast.\

State Senator, District 10

David Simmons REP 112,723 55.5%

Leo Cruz DEM 90,375 44.5%

James Patrick Adamczyk WRI 0 0%

203,098 total votes cast.

State Senator, District 16

Thad Altman REP 138,258 62.85%

Dominic A Fallo II DEM 81,730 37.15%

219,988 total votes cast.

State Senator, District 34

Ellyn Bogdanoff REP 100,716 47.08%

Maria Sachs DEM 113,191 52.92%

State Representative, District 41

John Wood REP 30,213 51.51%

Karen Cooper Welzel DEM 28,438 48.49%

State Representative, District 57

Jake Raburn REP 40,051 58.62%

Bruce Barnett DEM 28,276 41.38%

State Representative, District 73

Greg Steube REP 60,575 73.63%

Bob (Doc) McCann NPA 21,696 26.37%

State Representative, District 93

George Moraitis REP 39,435 54.9%

Gerri Ann Capotosto DEM 32,390 45.1%

71,825 total votes cast.

State Representative, District 106

Kathleen Passidomo REP 60,962 78.87%

Peter Richter LBT 16,332 21.13%

AG Bondi reaches agreement with Legislative Leaders on Mortgage Settlement funds

(Past member) — Mon, 05 Nov 2012 17:08:16 GMT

Florida Attorney General Pam Bondi announced her office's intention to allocate $300 million from national mortgage settlement funds distributed to the state.

The majority of the funds will be used to help distressed homeowners and fund housing initiatives that provide down payment assistance and foreclosure relief for borrowers.

This distribution is in addition to the $7.5 billion in relief already allotted to Florida homeowners from the $25 billion national mortgage settlement. The settlement was reached by state AGs and the nation's largest mortgage servicers to settle robosigning and foreclosure handling issues.

More here

Guilty Plea for "Reverse Staging" to drive down Short Sale Price

(Past member) — Thu, 01 Nov 2012 14:09:22 GMT

Guerard Wallace Howard, 63, Melbourne, Florida, pleaded guilty to one count of wire fraud, he faces a maximum penalty of 20 years in federal prison.

According to the plea agreement, between November 2007 and August 2011, Howard operated an illegal real estate short sale flipping business, Provincial Real Estate Administrative Services, Inc. Using Provincial, Howard made properties appear to be in poor condition during appraisals, through a scheme known as reverse staging. Reverse staging is a process wherein someone manipulates the short sale price by intentionally downgrading a property's appearance and falsely representing the condition of a property in advance of bank appraisals.

Reverse staging is done in an effort to acquire the property at below market price. In this case, it included Howard removing receptacle plates and pulling wires from the walls to falsely represent to an appraiser that the house required rewiring; falsely representing that the house needed electrical service upgrades, and repair work. In some instances it also involved spraying the house with a foul-smelling prank product, and falsely representing to an appraiser that the odor was due to mold or other potential biohazard issues that required expensive remediation costs. The reverse staging effectively caused the lender to agree to the below market offer made by Howard through Provincial. The property was then immediately resold at a profit.

While a title agent would not normally be aware of this type of reverse staging, the immediate resale at a profit is a red-flag.

New Short Sale Guidelines Go Into Effect TODAY

(Past member) — Thu, 01 Nov 2012 14:05:40 GMT

The new Federal Housing Finance Agency short sale guides for both Fannie Mae and Freddie Mac will go into effect Nov. 1.

HousingWire hosted a short sale guidelines webinar, which featured senior servicing policy analyst Ryan McGuinness of Freddie Mac and operations policy director Simone Beaty of the GSE. Both discussed what services and borrowers could expect when the short sale guidelines go into effect.

Separately, Fannie Mae reached agreements with its nine mortgage insurers to allow short sales and deed-in-lieu to be processed more efficiently. The agreements will also speed up the foreclosure prevention process.

More from Housing Wire

Conviction for "Decorator Allowances" and other disguised kickbacks

(Past member) — Mon, 29 Oct 2012 13:58:55 GMT

Two Orlando area attorneys have pleaded guilty to conspiracy to commit bank and wire fraud in connection with a scheme that artificially inflated the sales prices of condominium units through the use of nominee purchasers.

These "straw buyers" obtained loans on condominium units they had no intention of inhabiting and were usually paid a sum of money for the use of their identities and credit scores. In any inflated value scheme, the problem is always how to get the "spread" out of your trust account.

They accomplished this with a combination of "kick-backs" to Realtors and the straw buyers after the condominium units were sold, and disguising payments as decorator's allowances" or other miscellaneous charges on the closing statements.

They also paid a 25% monthly fee to a co-conspirator involved with the development of the three condominium conversion projects for all of the closings done for units in the three developments. These payments were not disclosed on closing statements.

Seven Charged in Florida Mortgage Fraud Scheme

(Past member) — Mon, 29 Oct 2012 13:45:56 GMT

While a bit vague, the description in Attorney General Pam Bondi's press release suggests the complicity of the closing agent.

"This scheme operated with straw buyers who used their names and credit to purchase numerous properties. Once the loan had been secured and records reflected a price well over the actual price paid to the seller, a variety of financial exchanges would take place to make the purchase appear legitimate. The laundered money would then go back to the closing agent's escrow account and be characterized in the records as the cash brought to the closing by the straw buyer."

Would your staff have spotted this? Or helped facilitate it?

Bucking National Trend, Florida Foreclosures Increase

(Past member) — Thu, 25 Oct 2012 13:13:10 GMT

While Foreclosures nationally are down 12.9% compared to the third quarter of 2011. In contrast, foreclosures in Tampa are up 43.18% and in Miami up 10.52% over the corresponding quarter.

More here

Obama plans to fire FHFA head if re-elected

(Past member) — Thu, 25 Oct 2012 13:10:14 GMT

U.S. housing regulator Edward DeMarco is likely to lose his job overseeing government-controlled mortgage giants Fannie Mae and Freddie Mac if President Barack Obama wins re-election, the Financial Times reported on Wednesday.

Many liberal advocacy groups and Democrats on Capitol Hill have pressed Obama to replace DeMarco, the acting director of the Federal Housing Finance Agency who has denied requests from the White house to implement a housing rescue program that reduces mortgage principal for troubled homeowners.

The Financial Times, citing people familiar with the matter, said that due to DeMarco's unwillingness to be as aggressive as the White House would like on certain policies and past clashes over the execution of anti-foreclosure efforts, the administration hopes to oust him in the coming months.

US sues BoA over "Hustle" Mortgage Fraud

(Past member) — Thu, 25 Oct 2012 13:03:14 GMT

The United States filed a fraud lawsuit against Bank of America Corp, accusing it of causing taxpayers more than $1 billion of losses by selling thousands of toxic mortgage loans to Fannie Mae and Freddie Mac.

Wednesday's case, originally brought by a whistleblower, is the U.S. Department of Justice's first civil fraud lawsuit over mortgage loans sold to the big mortgage financiers, which were bailed out in 2008.

Would your office have spotted these frauds?

(Past member) — Wed, 24 Oct 2012 19:40:23 GMT

We are pleased to report that the U.S. Attorney's office for the Middle District of Florida has continued to aggressively prosecute mortgage and real estate frauds. (Some of you will recognize the name the prosecuting attorney, Tom Palermo, who spoke at the FLTA convention two years ago and at a Real Property Section CLE on Mortgage Fraud).

These two cases are of particular value to title agents because the news releases go into detail about how the fraud was structured. Hopefully this will help each of us spot the next "Bad" deal that walks into our office -- and avoid it.

While there were many other red flags in the Lebron and Gogolewski cases, the key element of that fraud was the near simultaneous closing of a short sale and a "flip" at a much higher price. While "Buy Low, Sell High" may be the American way, the U.S. Secret Service and the FBI have been known to view this (if not disclosed to the both the short selling lender and the new lender in writing) as the failure to disclose a material fact in connection with a federally insured loan, and/or as bank fraud.

There were two policy claims settled in the Edwards and Allen prosecution. (this case explains all of those "Be careful with Powers of Attorney" bulletins) I'm sure the insurers involved will have some pointed questions to ask of that agent and will likely be looking to their E&O coverage to cover part of the loss. (I don't know about any claims in the LeBron case, but would expect a CPL claim at a minimum).

Criminal prosecution of the closing agents involved is not out of the question under either of these fact patterns. Depending on how much you know (or how willfully blind you or your staff is to the obvious facts), it is very easy to cross the line from being a victim to being a co-conspirator.

So I urge each of you to print these news releases and use them as training tools at your next staff meeting. It might save you from big claims -- or worse!

US Attorney Press Releases

Palm Beach Tax Collector Website Down

(Past member) — Mon, 22 Oct 2012 20:05:47 GMT

The Palm Beach County Tax Collector's website indicates:

"Property tax search and payment functions will be inactivated and unavailable effective 10-16-12 through 6:00 a.m. 11-1-12. This is a system requirement as our office loads the new tax data and completes final preparations for the 2012 Property Tax Season.

We apologize for any inconvenience."

During this period, title agents may email taxconta@pbcgov.org and FLTA members report that the collector's office has been responding within a day or so.

Because of past problems with the accuracy of information from this office (which we hope will be corrected by this upgrade), please continue to follow any special instructions from your insurers.

U.S. Sues Wells Fargo Alleging Civil Mortgage Fraud

(Past member) — Wed, 10 Oct 2012 17:18:42 GMT

Wells Fargo lied about the quality of thousands of loans it certified for a federal insurance program, a decision that ultimately cost the government $190 million in claims when those loans failed, according to a civil lawsuit filed by federal prosecutors on Tuesday.

Citigroup, Flagstar Bank, Bank of America, Deutsche Bank and FBC collectively have repaid the FHA $1 billion following legal settlements in cases similar to the one brought against Wells Fargo.

Fake press release announces Fannie Mae principal reduction program

(Past member) — Thu, 20 Sep 2012 13:49:17 GMT

A fake press release with Fannie Mae letterhead, links and contact information was sent to some media outlets, announcing a new principal reduction program.

The fictional HomeRight Community Relief Program in the fake press release would force servicers to reduce principal "to reflect their current market value" through HAMP modifications. A phone number is even assigned to press contact Andrew Wilson, but the area code is from Georgia – not really close to Washington, D.C., where Fannie is based.

More from Housing Wire

More Florida companies try to cancel mortgage debt with lawsuits

(Past member) — Wed, 19 Sep 2012 14:29:40 GMT

In the continuing saga of attempts to deal with underwater mortgages, some companies have made a business around trying to "Quiet Title" as a means of eliminating the mortgage on the property -- and in a few cases have actually gotten default judgments.

Here's an article from the Palm Beach Post describing the practice and naming some of the companies involved.

Because a default judgment can be set aside fairly readily and the legal theory for making your mortgage disappear is a bit tenuous, we urge all of our members to contact their underwriter before insuring a property that has allegedly been cleared of its mortgage.

Fannie Mae Auction yields good return on Florida Foreclosed properties -- More sales expected

(Past member) — Tue, 11 Sep 2012 14:37:51 GMT

Fannie Mae’s first auction of foreclosed homes to be managed as rentals sold for $78.1 million, or 96 percent of the properties’ estimated value, the Federal Housing Finance Agency said.

The purchase, of 699 homes in Florida, was the first to be completed in Fannie Mae’s auction of almost 2,500 repossessed properties in six states. The buyer was San Diego, California- based Pacifica Companies LLC, the FHFA said in a statement today. The homes had a total value of $81.5 million, including joint-venture financing from Fannie Mae, according to a transaction summary.

Fannie/Freddie to soften Buy-Back Rules?

(Past member) — Tue, 11 Sep 2012 14:33:08 GMT

In a move aimed at making it easier for consumers to get mortgages, the federal regulator for Fannie Mae and Freddie Mac FMCC 0.00% said Monday the mortgage giants would address a big controversy of the housing bust: who gets stuck with bad loans.

Fannie and Freddie have forced banks to repurchase billions of mortgages that have defaulted over the past few years. To protect themselves from facing similar demands, banks have raised their lending standards beyond what the two mortgage companies require, scrutinized appraisals, and demanded extensive documentation of a borrower's income and assets.

To ease lenders' concerns, the Federal Housing Finance Agency said on Monday it would issue guidance that would detail steps that could limit their risk of having to buy back defaulted mortgages in costly loan "put-backs."

More from the Wall St. Journal

What’s worse for credit score — foreclosure, short sale or deed in lieu?

(Past member) — Fri, 07 Sep 2012 18:03:46 GMT

While not truly a "Government Affairs" Topic, it is a question I've long found interesting and on which I've gotten conflicting stories.

Bradley Graham, senior director of scores product management at FICO, was quoted as stating that there’s no significant difference in FICO score impact among foreclosures, short sales or deeds in lieu of foreclosure.

You can find more on this topic here, here and here.

It sometimes makes me wonder if we are doing our customers a service by facilitating their short-sales given the potential tax differences, especially where the deficiency is not being released.

Romney offers glimpse of Housing Plan

(Past member) — Thu, 06 Sep 2012 13:50:04 GMT

Republican presidential candidate Mitt Romney has offered the outline of his housing policy proposals.

In a new page added to the candidate's website, Romney presents what he calls "A Plan To End The Housing Crisis." The four-part solution, presented here verbatim, is as follows:

Responsibly sell the 200,000 vacant foreclosed homes owned by the government;
Facilitate foreclosure alternatives for those who cannot afford to pay their mortgage;
Replace complex rules with smart regulation to hold banks accountable, restore a functioning marketplace and restart lending to creditworthy borrowers; and
Protect taxpayers from additional risk in the future by reforming Fannie Mae and Freddie Mac.

Romney's website claims the federal government owns "almost half of all of the foreclosed homes in the country," while the candidate promises to "facilitate creative alternatives to foreclosure for those who cannot afford to pay their mortgage" - however, the specifics of these alternatives were not spelled out.

$10.56B In Mortgage Relief Paid As Part Of Settlement

(Past member) — Thu, 06 Sep 2012 13:47:05 GMT

The Office of Mortgage Settlement Oversight (OSMO) has issued its first progress report on how the five financial institutions that signed the National Mortgage Settlement are meeting their obligations.

"The report discloses that the banks have granted $10.56 billion in consumer relief to borrowers between March 1 and June 30," says Joseph A. Smith Jr., monitor of the settlement. "Additionally, first lien principal reduction trials were offered and begun for about 28,000 homeowners, totaling approximately $3 billion of potential relief. This information is self-reported and has not been confirmed by the professional firms working with me. Further, it represents gross dollar amounts and cannot be used to evaluate progress toward the banks' $20 billion obligation.

The OSMO's full report is available online.

New Case on Quiet Title to Clear Mortgages

(Past member) — Mon, 20 Aug 2012 20:36:08 GMT

The federal district court was recently called upon to review one of claims that a borrower can "quiet" a mortgage based on defects in the subsequent assignment or securitization. Even though the court didn't address the ultimate issue, granting leave to amend, it is interesting reading.

http://docs.justia.com/cases/federal/district-courts/florida/flsdce/9:2012cv80368/397871/14/0.pdf?1340965963

Even where a borrower is successful with this tactic, my understanding is that most underwriters are hesitant to insure over a recorded (albeit quieted) mortgage. Please discuss with your underwriter.

ALTA Webinar on New CFPB Forms and 3 day rule

(Past member) — Tue, 14 Aug 2012 16:25:56 GMT

ALTA is continuing its education efforts regarding the New CFPB disclosure forms. Last week they held a webinar which included ALTA CEO Michelle Korsmo and ALTA members Ruth Dillingham of First American Title Insurance Co. and Shari Schneider of Title Resource Group.

The webinar addressed:

Current Process- getting documents to consumers today
CFPB intent in proposing new time frames
Proposed Process: getting documents to consumers three days in advance
What if there is a variation in actual costs
Possible impacts on operations

Click here to view the power point from the webinar.

This is one of the many benefits of being a member of the ALTA.

CFPB releases Rules for Mortgage Servicers

(Past member) — Tue, 14 Aug 2012 16:23:28 GMT

On August 10, 2012, the Consumer Financial Protection Bureau (CFPB) proposed two notices containing rules to protect homeowners from surprises and costly mistakes by their mortgage servicers.

“Millions of homeowners are struggling to pay their mortgages, often through no fault of their own,” said CFPB Director Richard Cordray. “These proposed rules would offer consumers basic protections and put the ‘service’ back into mortgage servicing. The goal is to prevent mortgage servicers from giving their customers unwelcome surprises and runarounds.”

CFPB Investigates Possible Mortgage Insurance Kickbacks

(Past member) — Mon, 06 Aug 2012 14:30:01 GMT

In descriptions which sound familiar to many in the title industry, the CFPB appears to be investigating the practice of some lenders participating in profits on Mortgage Insurance through captive reinsurance and the payment of fees for the referral of Mortgage Insurance Business not permitted by RESPA.

Anyone think that they'll be looking at affiliated businesses in title more closely?

Chicago considers eminent domain to seize underwater mortgages

(Past member) — Mon, 30 Jul 2012 13:54:13 GMT

Building on an idea first proposed in California, the City of Chicago will hold a hearing over using eminent domain to seize underwater mortgages.

The idea first came under consideration in San Bernardino County, Calif. Venture capital firm Mortgage Resolution Partners is pitching the idea to several cities across the country. Using investor dollars, local governments would seize performing mortgages in negative equity, reduce the principal for the borrower and refinance it into a government-backed loan. Under the MRP proposal, only loans on which payments were current would be eligible for the program, raising the question as to whether the anticipated discounts on value would result.

More from Housing Wire

Condo on Long Term Lease and Homestead protections??

(Past member) — Sat, 28 Jul 2012 15:07:37 GMT

In the recent case of Geraci v. Sunstar, the 2nd DCA held held – properly we believe – that a condominium unit built on a 99 year land lease qualified for homestead protection from creditors. The court further suggested that what constitutes homestead differs depending on whether the question is protection from creditors or restraint on devise.

Suggestion has been that the court erred on both of these points – and that a condominium unit built on leased land does NOT qualify for homestead protection. As you would expect, this was a controversial argument and one with which many real estate practitioners disagreed. On the other hand, there seems to be a broader consensus that the definition of homestead is the same whether the question is protection from creditors or a restraint on devise.

The Florida Supreme Court has been asked to accept jurisdiction of this case, so expect to hear more.

Questions about Attorney Trust Accounts & Audits

(Past member) — Sat, 28 Jul 2012 15:03:10 GMT

Last session, the law (HB 643) was changed to require attorneys to maintain a separate trust account for real estate transactions and to permit it to be audited by their title insurers. This law was drafted carefully to comply with Florida Bar Ethics Opinion 93-5. That opinion validates exactly this practice and recognizes that such audits are necessary to ensure the safety of the client’s funds. This has been a normal practice for many insurers ever since.

After the law passed, several questions were raised by some pretty good lawyers.

• Isn’t this a violation of an attorneys duty of confidentiality. – Ethics opinion 93-5 says it is not.

• Does this mean I have to maintain a separate trust account for each client? – No the express language of the statute says “all funds (plural) received in connection with transactions (plural) … [go] into a separate trust account (singular).

• Does each attorney have to maintain their own trust account – or may all attorneys in a firm use the firm trust account.

Several of us have suggested that all of these questions are answered by a plain reading of the statute and the existing ethics opinion. They feel there is no need to change anything.

However, questions have been forwarded to the Florida Bar Ethics committee, and they have asked RPPTL Section for comment and suggestion. I’m actively participating in the committee working on the RPPTL response.

Real Property Section backs FLTA Amicus Position

(Past member) — Sat, 28 Jul 2012 14:30:29 GMT

In an unusual and disappointing result,the Florida Supreme Court rejected the FLTA's request to file an amicus brief in the CRC 603, LLC v. North Carillon, LLC case. We are pleased to report that our friends at the Real Property, Probate and Trust Law Section of the Florida Bar were successful in obtaining court approval to file an amicus brief -- which made many of the same points.

We thank the Section for their hard work in support of this critical issue.

More on that case and its issues Here and Here.

GAO finds servicers largely avoid military mortgage reviews

(Past member) — Wed, 18 Jul 2012 19:38:33 GMT

Regulators reviewed only half of mortgage servicers for compliance with national military lending law between 2007 and 2011, according to the Government Accountability Office.

In 2011, two mortgage servicers under investigation from the Justice Department revealed 165 improper foreclosures conducted without a proper court order as required by the Servicemember Civil Relief Act.

Six of 10 other servicers responded to House of Representatives letters shortly after, revealing another 148 improper foreclosures, according to the GAO report.

Banks were found to have charged more than 15,000 servicemembers fees and interest rates higher than the SCRA allowed. JPMorgan Chase refunded roughly 10,000 of them through a settlement last year.

More from Housing Wire

Dismissal of Jax Clerk's case against MERS

(Past member) — Fri, 29 Jun 2012 14:10:26 GMT

Some time ago, the Clerk of the Court in Duval County filed suit against MERS seeking relief under the provisions of Florida’s Recording Statutes and alleging civil conspiracy, unjust enrichment and fraud.

Yesterday, Federal Court Judge Schlesinger dismissed the case with prejudice, pointing out that there is no duty to record every assignment of mortgage, even though the recording acts provide important protections against intervening claims.

A copy of the ruling and order of dismissal is attached.

Proposal to Expand Service Members Civil Relief Act

(Past member) — Thu, 28 Jun 2012 13:17:03 GMT

Sen. Jay Rockefeller, D-W.Va., has introduced legislation designed to broaden the laws that protect servicemembers from losing or foreclosing on their home while they are on or have recently returned from active duty.

Reid threatens to Block NFIP Vote Over Rand Paul's Conception Amendment

(Past member) — Thu, 28 Jun 2012 13:11:35 GMT

Senate Majority Leader Harry Reid, D-Nev., has threatened to block a vote on a bill to reauthorize the National Flood Insurance Program (NFIP) if it contains an amendment submitted by Sen. Rand Paul, R-Ky., that states life begins at conception.

Florida #1 in Mortgage Fraud -- $ Value Doubles

(Past member) — Mon, 25 Jun 2012 18:47:32 GMT

We have the dubious distinction, for the fourth time in the last five quarters, of ranking number 1 for First-Quarter 2012 Mortgage Fraud Index from MortgageDaily.com. Perhaps the most troubling detail is that the estimated dollar amount of fraud doubled from the previous quarter.

More here.

While some of this still relates to past frauds still being uncovered, new frauds and types of frauds continue to be reported. So be careful out there!

New York Assembly Passes Robo-Signer Law

(Past member) — Sat, 23 Jun 2012 17:37:16 GMT

A bill that could land mortgage servicers in prison for foreclosure fraud in New York passed the state Assembly Thursday.

An identical version of the bill is still sitting in a New York State Senate committee. As some of you will recall a similar bill was introduced by Rep. John Wood (R-Winter Haven) last session. That bill passed the house, but ran out of time in the Senate.

More from Housing Wire

Congress faces an agenda full of front-burner issues

(Past member) — Mon, 18 Jun 2012 15:32:06 GMT

Our friends at ALTA put up the "good fight" to protect our interests in Washington, but their ability to keep our issues moving forward often depend on the general political climate and the issues that "Absolutely Must" be addressed -- because those tend to crowd the more mundane issues of keeping the real estate economy on track.

I found the attached article from the Washington Post to provide an interesting guide to some of the hot button issues that must be resolved before the election.

Live E-Recording Map

(Past member) — Sun, 17 Jun 2012 13:20:33 GMT

Through the courtesy of Vicki DiPasquale of SimpliFile, we have posted a map showing the availability of E-Recording in various Florida Counties. Here's a link to the Map, which also appears in the FLTA "Members Only" Search and Exam Resources.

If your office is not already using E-Recording, we urge you to take another look at it. Not only can it save time and money, it dramatically reduces the "Gap" and the risk of several types of fraud.

FHFA Proposed Rules on PACE Liens

(Past member) — Sun, 17 Jun 2012 03:08:32 GMT

On Friday afternoon (6/15/12), FHFA released proposed rules (again) restricting Fannie & Freddie from holding mortgages on properties encumbered by Property Assessed Clean Energy (PACE) loans. PACE loans have been authorized in Florida for several years and recently over $2 Billion of PACE bonds were approved.

Here are the key provisions of the proposed rule:

(a) The Enterprises [Fannie/Freddie] shall immediately take such as actions as are necessary to secure and/or preserve their right to make immediately due the full amount of any obligation secured by a mortgage that becomes, without the consent of the mortgage holder, subject to a first-lien PACE obligation. Such actions may include, to the extent necessary, interpreting or amending the Enterprises’ Uniform Security Instruments.

(b) The Enterprises shall not purchase any mortgage that is subject to a first lien PACE obligation.

The entire Federal Register report can be found here

Fraud Doesn't Pay -- Taylor Bean CFO Sentenced

(Past member) — Sun, 17 Jun 2012 01:40:09 GMT

Yesterday, Delton de Armas, a former chief financial officer (CFO) of Taylor, Bean & Whitaker Mortgage Corp. (TBW), was sentenced today to 60 months in prison for his role in a more than $2.9 billion fraud scheme that contributed to the failure of TBW.

More here.

FHA to expand sales of severely delinquent mortgages

(Past member) — Sun, 10 Jun 2012 17:22:19 GMT

The Federal Housing Administration will sell 5,000 mortgages in the foreclosure process every quarter beginning in September to give borrowers more options to stay in their homes than government programs currently allow.

The inventory of repossessed homes held by the Department of Housing and Urban Development reached a three-year low because of servicing and foreclosure delays. But the more than 707,000 severely delinquent FHA-backed mortgages hovered around a record high since the start of the year.

How will your company capitalize on this opportunity?

More from Housing Wire

NFIP Extended

(Past member) — Fri, 01 Jun 2012 18:47:02 GMT

Yesterday afternoon, President Obama signed a 60 day extension of the National Flood Insurance Program. ALTA, FLTA, and NAR will continue to push for a longer term extension of this program The extension (ON THE LAST DAY) avoided a lapse in the program

Zone VP, Aaron Davis on Fox News Tampa Bay

(Past member) — Tue, 29 May 2012 23:45:04 GMT

Today, Aaron Davis, FLTA's Zone 4 Vice President was featured on Fox News Tampa Bay discussing the May 31 expiration of the National Flood Insurance Program and FLTA and ALTA's efforts to have the program extended.

Here's a link to the Story.

As some of you are aware, both FLTA and ALTA have been monitoring this issue closely. The National Flood Insurance Program (NFIP) has lapsed eleven times since Sept. 30, 2008. (12 counting this week) Each lapse has delayed thousands of closings and caused considerable uncertainty for buyers, sellers and lenders. These disruptions cost title and escrow businesses’, lenders’, and consumers’ time, money and unnecessary worry.

What is less widely known, is that earlier this month, FLTA sent a delegation of 10 of our members to Washington DC to join the ALTA team in visiting legislators to express our concern that the NFIP might lapse again.

We expect another short-term extension of the program. Months ago, the House of Representatives passed a five year extension of the NFIP by a bi-partisan majority; the Senate declined to vote on the long term extension. Two weeks ago, seeing no action on the Senate side and knowing the deadline was fast approaching, the House approved a 30 day extension of the program. Last week, the Senate approved a 60 day extension.

We are in a position where the bills from both sides must be reconciled, voted on and sent to the President for signature. We are cautiously optimistic that this will be completed before May 31 so that there is not another lapse in the program.

Our thanks to Aaron for carrying this important message (albeit in a highly edited form) to the public.

Insurance agent restructuring bill Signed by Governor

(Past member) — Sat, 05 May 2012 01:35:00 GMT

5/4/12 Update: Today Governor Scott signed HB 725 making it law. The FLTA bulletin providing more detail about this bill can be found here.

4/20/12 Update: HB 725 was sent to the Governor today. He has until May 5 to act on this bill.

3/7/12 Update: The house version of the bill which included the title industry fixes on key issues was unanimously adopted in the Senate today. Our Special Thanks to Greg Thomas at DFS, Senator Richter and Rep. Hagar for working so closely with the title industry to address our concerns.

3/5/12 Update: SB 938 has been placed on the Senate Special Order calendar on Wednesday 3/7/12.

2/29/12 Update: HB 725, including the title industry supported amendments unanimously was passed by the full House of Representatives.

2/28/12 Update. Today on second reading, HB 725 was amended on the house floor to exempt title agents from the requirement to take a single 7 hour continuing education course. Our Thanks to the good folks at DFS and the title insurance Lobby team for arranging this important change for the title industry.

The Senate counterpart awaiting second reading and we anticipate conforming changes.

2/22/12 Update. Today HB 725 was passed out of the House Judiciary committee with amendments preserving the $35,000 surety bond -- but moving responsibility for it to the insurers as part of the appointment renewal process; softening the prohibition on solicitation for title insurance, but still requiring that only a licensed agent or an attorney-agent could solicit the individual proposed insured. We were unsuccessful in lessening the requirement that the majority of our continuing education hours be taken in a single 7 hour block. This bill will now move to the house floor.

2/21/12 Update Today SB 938 was approved by the Senate Budget committee without the title industry's amendments. We'll continue to work on protecting the existing surety bond, and make other changes but things are not looking promising on this bill.

Senator Richter and Rep. Hagar have filed a bill at the request of DFS that the industry has been tracking since early in the session. Along with changes, the bill would

a. Eliminate the current $35,000 surety bond requirement

b. Provide that only licensed agents could solicit for the sale of insurance

c. Require continuing education to be taken in a 7 hour course (which could be broken up over multiple days) from a single provider.

We have been working with DFS in an attempt to address concerns with these provisions and believe we have reached agreement on language to preserve the current $35,000 bond -- which is important to the protecting the public, and softening the prohibition on unlicensed persons communicating with Realtors and other referral sources. We are still working on a solution to the 7 hour block CE requirement.

In the meantime, these bills have been progressing. both bills have one remaining committee stop.

Title Data Call Bill Signed by Governor

(Past member) — Sat, 05 May 2012 01:23:00 GMT

5/4/12 Update: Today, Governor Scott signed the Title Data Call Bill (HB 643) and its related public record exemption (HB 645) making them law. This bill was strongly supported by FLTA and our bulletin providing more information can be found here.

4/20/12 Update: The Title Data Call bill HB 643 and its public records companion HB 645 have been submitted to Governor Scott for consideration. He has until May 5 to act on these bills.

3/7/12 Update: Thanks to the Hard Work and Dedication of Rep. George Moraitis and Sen. Thad Altman, the Title Insurance Data Call bill, and the related public records exemptions, have passed in both the House and the Senate. Given Gov. Scott's historic concern about minimizing regulatory burden, we expect it will be necessary to reassure his staff that this bill is something that the regulated feel is appropriate and necessary.

3/5/12 Update: SB 1404 and 1406 have been placed on the special order calendar for Senate vote on Wednesday 3/7/12. This could not have been accomplished without all of the coordinated hard work of the lobby team that represents the various underwriters and the Agents Section. My thanks to all of you!!!

3/2/12 Update: On Wednesday, Senator Bennett submitted a late filed amendment to the Data Call bill which mandated the issuance of a "supplemental" owners policy every time a lenders policy was written, and separately would have required the payment of policy limits on a total title failure without regard to the fair value of the property. In combination the two provisions would have created a significant opportunity for fraud. The title lobby team sprang into action and was successful in blocking the amendment by a close voice vote. Following that success, the bill (without the objectionable amendment) was passed by the budget committee and has proceeded to the full senate.

Separately, the senate public records exemption was withdrawn from its last committee of reference so that it could proceed to the senate floor.

2/23/12 Update: The Public Records exemption for information submitted in response to the data call unanimously passed the full house of representatives today. The senate companions are awaiting review by the budget committee.

2/16/12 Update: Congratulations to Rep. George Moraitis! Today the Florida House of Representatives unanimously passed the title industry Data Call bill, HB 643. The linked public records exemption has not yet been heard by the full house but has passed all committees. The Senate companions SB 1404 & SB 1406 have one remaining committee stop.

2/15/12 Update: HB 643 has been approved by all committees, placed on the special order calendar and had its second reading today and is on the agenda for a floor vote tomorrow. The companion public records exemption is is also on the special order calendar and has been read twice.

2/9/12 Update: SB 1404 was reported favorably by the Senate Judiciary Committee this afternoon after amendments conforming it to the house version were made. Next and final committee stop is the Senate Budget Committee.

2/8/12 Update: This morning both HB 643 and 645 were reported favorably by the House Economic Affairs committee with two negative votes. This was the final committee stop for the public records exemption of HB 645, which will now move to the house floor.

Yesterday the Senate government operations committee approved the Senate public records exemption SB1406.

2/3/12 Update: This morning, HB 643 was recommended favorably by the Rulemaking and Regulation Subcommittee. It has one remaining committee stop before the House economic affairs committee.

2/2/12 Update: SB 1406 (the public records companion bill is scheduled to be heard by the Governmental Oversight and Accountability Committee on 2/7/12 at 4:00 PM

One of FLTA's major legislative initiatives for 2012 has been to "fix" the statutes to permit a proper data call. Anytime a government agency is tasked with promulgating (as they do in Florida) or ruling upon the reasonableness of an insurance rate, they need information to do that. It's fairly easy in most lines of insurance, where they can get all necessary information from the insurer.

In title insurance, as we all know, the title agency does a large share of the work in searching title, examining the search, determining insurability and appropriate requirements, in clearing title objections and defects and issuing the final policy. So if you are going to have an appropriate premium rate, they need to understand the substantial costs the agencies incur in doing all of that work. On the other side of the equation, we've been working closely with OIR and DFS to develop the questionnaire that will provide enough information to do that. There is a good article on that process in our June 2011 Newsletter.

In this post, I'm happy to report that this week we were successfully in moving both the House Bill and its related public records exemption (HB 643/HB645 sponsored by Rep. George Moraitis (R-Ft. Lauderdale -- and himself a very good real estate attorney) and its Senate companions (SB 1404/1406 by Sen. Thad Altman R-Melbourne) through one more committee stop.

We still have a ways to go, but remain cautiously optimistic about these bills.

Oral Argument in Pino v. BoNY

(Past member) — Fri, 04 May 2012 13:37:19 GMT

The Oral Arguments in Roman Pino v. Bank of New York will be heard before the Florida Supreme Court on Thursday, May 10, 2012 beginning at 9:00 AM. In this case the court will be addressing the circumstances under which a voluntary dismissal (a final judgment or other court action) can be set aside long after the case is over, based on underlying fraud on the court. FLTA and ALTA, represented by former Justice Ken Bell, have filed a joint Amicus brief in which we urge the court to protect innocent third party purchasers out of foreclosure from having their ownership rights overturned under such circumstances.

More background on this case and copies of the various briefs can be found here. The Oral Arguments can be watched live on http://www.wfsu.org/gavel2gavel/index.php.

While the certified question being addressed is narrow, the title industry was very concerned about the possibility of a sweeping ruling which might call into question the insurability of any REO property in light of widespread allegations of falsified documents and “robo-signing.”

Our thanks again to Justice Bell for his excellent brief and to the insurers who have so generously funded our amicus participation in this case.

40 States have followed Florida's lead in prohibiting Private Transfer Fee Covenants

(Past member) — Sat, 21 Apr 2012 17:40:25 GMT

Kentucky and Alaska have recently become the 39th and 40th States to prohibit private transfer fee covenants. The Florida prohibition was an initiative of the Real Property, Probate and Trust Law Section, supported by FLTA, which passed the Florida legislature and became law back in 2008 as Fla. Stat. 698.28.

Who says Florida can't have a national influence?

Facts on New Short Sale Timeline Requirements for Fannie and Freddie

(Past member) — Sat, 21 Apr 2012 17:38:14 GMT

Our friends at ALTA have posted an article on the new short sale timeline guidelines from Fannie & Freddie. More here.

Construction Lien Fix Bill Sent to Governor

(Past member) — Fri, 20 Apr 2012 23:27:00 GMT

4/20/12 Update: HB 897, which includes the landlord liability for tenant improvements "Fix" from last year's bill, has been sent to Governor Scott for consideration. He has until May 5 to act on it.

3/9/12 Update: HB 897 has passed the Senate by unanimous vote

3/7/12 Update: SB 1202 has been placed on the special order calendar for Friday 3/9/12.

3/6/12 Update: SB 1202 was "withdrawn" from its last committee of reference and placed on the Senate calendar for second reading.

2/23/12: Today the House Judiciary Committee unanimously approved HB 897 by FLTA Member Rep. George Moraitis. Among other things this bill fixes a glitch in last year's bill addressing the landlord's liability for tenant improvements and a last minute amendment made last session which implied that a Notice of Commencement continued in effect until the work was completed and final payment made, regardless of the date specified. This was its last committee of reference in the House and the bill will proceed to the full House of Representatives.

The Senate companion, SB 1202, has one more committee stop.

"Bulk Condo Buyer" extension signed by Governor

(Past member) — Tue, 10 Apr 2012 15:55:56 GMT

HB 517 Chapter 2012-61, Laws of Florida

In an effort to revitalize the Condominium market, in 2010 the Legislature passed the Distressed Condominium Relief Act. This act relieved bulk buyers and bulk assignees (generally purchasers of seven or more units, with or without an assignment of developer rights), from certain liabilities and obligations as a successor developer. The original Act was scheduled for automatic repeal on July 1, 2012. HB 517 including language extended the Act until July 1, 2015.

City of Palm Bay v. Wells Fargo

(Past member) — Mon, 09 Apr 2012 20:00:56 GMT

Some months ago -- thanks to the hard work of Homer Duvall (with a little assistance from me and others), FLTA filed an amicus brief with the Florida Supreme Court in City of Palm Bay v. Wells Fargo. This is the case which addresses the relative priority of city code liens vs. recorded mortgages and which mischaracterized Florida as a "race notice" state. More on that at http://www.flta.org/GovtAffairs

The oral arguments are scheduled for this Wednesday 4/11 and expected to begin at about 10:40. While amici do not usually have the opportunity to make oral arguments, FLTA will be present to answer any questions the court may choose to direct to us. The proceedings are normally broadcast over the internet at http://www.wfsu.org/gavel2gavel/index.php

Homestead Clarifications Sent to Governor

(Past member) — Mon, 09 Apr 2012 17:53:43 GMT

HB 733 was part of the package sent to the Governor last week. He has until April 21 to act.

The first issue addressed in HB 733 is simply bringing the statutes into conformity with judicial interpretations. We have long known that Tenancy by the Entireties properties and properties held as Joint Tenants with Right of Survivorship passed automatically to the survivor upon death and were not subject to the constitutional prohibition on devise. Ostyn v. Olympic, 455 So.2d 1137 (Fla. 2d DCA 1984); see also Marger v. De Rosa, 57 So.3d 866 (Fla. 2d DCA 2011). The bill amends the current definition of “protected homestead” to expressly state that “real property owned in tenancy by the entireties or in joint tenancy with rights of survivorship is not protected homestead.”

The bill also clarifies the timeframes for a surviving spouse, who would normally receive a life estate in homestead property to elect instead to receive an undivided one-half interest in the homestead as a tenant in common.

Currently a natural or adoptive parent whose parental rights have been terminated may still inherit through intestate succession upon the death of the child. The bill creates §732.1081, Fla. Stat., treats the parent as having predeceased for inheritance purposes upon termination of parental rights.

Martin/St. Lucie County Boundaries changed

(Past member) — Mon, 09 Apr 2012 16:36:07 GMT

Subject to approval by voters in the affected areas, HB 800, Laws of Florida, ch. 2012-45 will change the boundary between St. Lucie County and Martin County such that a 129 acre enclave, including the subdivision of Beau Rivage off Northwest Britt Road will move from St. Lucie to Martin County.

If approved, this change will become effective July 1, 2013.

Please make certain that your searchers and examiners are aware of this upcoming change, as it will be necessary to search the affected properties in records of both counties.

The last time county boundaries were changed was 2007 when part of southern Palm Beach County was annexed into Broward County.

Transferee Tax Liability Bill Signed by Governor

(Past member) — Fri, 06 Apr 2012 16:25:00 GMT

4/6/12: The governor has signed the transferee tax liability bill, which includes the real estate "carve outs" that FLTA advocated. Our thanks again to Rep. John Wood, Russ Hale representing the Florida Bankers, and Bill Wiley and Gary Teblum of the Business Law Section for all of their hard work on this bill.

3/30/12: The Transferee Tax Liability bill has been signed by the officers and sent to the Governor for signing or veto. He must act on this by 4/14/12.

3/7/12: Thanks to the hard work of Rep. John Wood (R - Winter Haven), the Transferee Tax liability bill has been passed by both houses and will move on to the Governor for signature.

3/6/12: The House version of the transferee tax liability bill has moved to the Senate floor and is on second reading.

3/1/12 After a long period of inactivity in the Senate, the Transferee Tax Liability bill (SB 170) was withdrawn from its last committee of reference and placed on the special order calendar for 3/6/12.

Last year, through the hard work of Rep. John Wood (R- Winter Haven), we came close to solving a significant unintended problem with the transferee tax liability law. That law makes the purchaser of a business responsible for unpaid sales and other taxes owed by the seller. Unfortunately, it can be triggered by the sale of real estate (even a home, under some circumstances) where one is not buying the "business" which triggered the tax.

While the tax liability of the buyer would not be covered under a title policy, our customers often claim the closing agent is responsible for protecting them from all unexpected liabilities. And this is one which can't be detected through a review of the official records -- or anything short of demanding a tax audit of your seller. (obviously not a popular requirement).

The bill, which FLTA strongly supported would have clarified that the sale of 1-4 family residential property, of owner occupied commercial property or vacant land would not trigger transferee tax liability. It passed through the entire committee process last year, passed in the Florida House and died the last night in the Florida Senate.

So, we had to start all over this year. With the strong leadership of the Business and Tax Law Sections of the Florida Bar, this year's bills have passed all committees in the house and all but one committee in the Senate. We are optimistic that this good bill will pass into law this session.

Payoff Statements for Subsequent Owners Signed By Governor

(Past member) — Fri, 06 Apr 2012 14:57:06 GMT

4/6/12: The RPPTL supported bill requiring lenders to provide limited estoppel statements for subsequent owners of property has been signed by the Governor.

3/30/12: The bill has been signed by the officers and sent to the Governor for signing or veto. He must act on this by 4/14/12.

3/7/12 Update: This bill has passed in both the House and the Senate and will proceed to the Governor for consideration.

3/6/12 Update: The Senate version of this bill was taken up in the House and is on second reading.

2/29/12 Update: SB 1050 passed the full Senate unanimously.

The RPPTL Section initiative to require lenders to provide mortgage payoff information to subsequent owners of encumbered property, notwithstanding privacy considerations, HB 505, has unanimously passed out of its final committee of reference in the house today. This same bill includes changes to the uniform principal and income act.

The Senate companion, SB 1050 was approved by the judiciary committee today, and moved immediately onto the Senate special order calendar.

FHFA Issues Final Rule on Transfer Fees

(Past member) — Mon, 19 Mar 2012 00:27:59 GMT

After a long period with no visible activity, the final version of the Private Transfer Fee rule was released by the Federal Housing Finance Agency on March 16, 2012. Like earlier versions, this prohibits Fannie, Freddie and the Home Loan Banks from purchasing, investing in or otherwise dealing in any mortgages on properties encumbered by private transfer fee covenants or securities backed by such mortgages. The definitions go into great detail, but it is important to note that the application is limited to covenants created on or after February 8, 2011.

More information on this rule can be found Here

Supreme Court Denies FLTA Amicus Request

(Past member) — Fri, 16 Mar 2012 20:04:28 GMT

I’m sorry to report that the Supreme Court has denied our motion for leave to file an Amicus in the CRC 603 vs. North Carillon case regarding the requirements for holding escrows on pre-construction condominium contracts. More information about this case and the problems it potentially presents to the title industry can be found in this bulletin and this one.

FLTA thanks our friends at Fidelity National for their generosity in funding this appeal on behalf of the entire industry and Gwynne Young, Sylvia Walbolt and Christine Graves at Carlton Fields for all of their hard work on it.

Clerk of Court has Affirmative Duty to notify Owner of Tax Sale

(Past member) — Mon, 12 Mar 2012 22:48:59 GMT

Our thanks to Paul Minoff pminoff@mcglinchey.com at McGlinchey Stafford PLLC for pointing out and summarizing Delta Property Management v. Profile Investments.

In a decision that may prove to be a mixed blessing for title insurers and a headache to those who buy tax certificates, yesterday, the Florida Supreme Court ruled that when faced with knowledge that a notice of tax sale sent to the last known address of the property owner has been undelivered, the Clerk of Court has an affirmative duty to take reasonable steps to make sure that the property owner is provided with notice.

According to the court, "reasonable steps depend on the particular circumstances of the case and may include: checking the records of the taxing authorities for a change of address submitted by the legal titleholder; resending notice by regular mail so that no signature is required; posting notice on the property to be sold, not merely at the last known address of the titleholder; or sending a notice addressed to 'occupant' by regular mail."

Whether this ruling will make any practical difference in a given case is to be seen, but it could certainly spawn litigation in cases where the tax sale notice is not delivered regarding whether the Clerk of the Court did his/her job in accordance with this opinion.

As always, check with your underwriter as to any specific requirements for insuring a transaction following a tax deed.

Thank you Paul for all of your continuing support of FLTA.

A Note endorsed in Blank and Allegations of Ownership are Sufficient.

(Past member) — Mon, 12 Mar 2012 22:43:43 GMT

FLTA Member (and Darn Good Lawyer), Paul H. Minoff at McGlinchey Stafford PLLC has been doing a great job in keeping us up to date on the latest rulings affecting title for which we thank him.

In yet another opinion dealing with the issue of standing to bring and maintain a foreclosure action, the Florida 5th District Court of Appeal ruled yesterday that DBTNC's possession of the original note endorsed in blank along with its allegation in the complaint that it was the owner and holder of the note and mortgage at the time of the filing was enough to establish standing even though the assignment of mortgage to DBNTC was executed after the date of the filing of the original complaint. Here's the Opinion.

The court affirmed the view consistently espoused in the 4th DCA that the mortgage follows the note and that as long as the plaintiff had possession of the original note at the time of the filing of the complaint (or was a non-holder with the rights of the holder at the time of the filing), standing was established. It further affirmed that an assignment of mortgage is NOT required to establish standing in Florida.

Additionally, the court overturned the lower court's dismissal of DBNTC's complaint with prejudice due to DBNTC's counsel's violation of a court order, finding that the trial court did not apply all of the factors required for such a drastic remedy under the leading Florida Supreme Court case of Kozek v. Ostendorf, and further finding, among other things, that there was not any evidence that DBNTC even knew of its counsel's disregard of the court's order.

Despite these consistent standing opinions, foreclosure defense counsel are still not being dissuaded from raising standing issues in response to foreclosure complaints, and we are probably a long way away from seeing the end of these appellate opinions dealing with standing issues.

Fannie/Freddie Fees to Rise

(Past member) — Thu, 08 Mar 2012 15:56:19 GMT

In order to pay for the payroll tax cut, as of April 1, Fannie Mae and Freddie Mac will be raising the fee they charge lenders for guaranteeing mortgages, charging an additional 0.1 percent of the loan amount on top of the current charge. That's expected to drive up interest rates about one-eighth of a percent as those costs are passed along to borrowers. More here

Having discovered this nearly invisible source of funding for their favorite projects, a group of senators have proposed extending the “tax” on Fannie/Freddie guaranties to pay for some of the costs of the BP Oil Spill Clean-up. More from Housing Wire.

Condominium Act Amendments on Calendar for Friday

(Past member) — Thu, 08 Mar 2012 00:33:00 GMT

3/7/12 Update: SB 680 has been placed on the Special Order Calendar for Friday 3/9/12.

3/6/12 Update: SB 680 was "withdrawn" from its last committee of reference and placed on the Senate calendar for second reading.

2/29/12: HB 319 was approved by the full House by a vote of 114-1.

2/23/12 HB 319 by Rep. George Moraitis, passed in its final committee yesterday and progressed to second reading before the full house. Among many changes to the Condominium Act, this bill extends the “Bulk Buyer” protections through 2015 – so hopefully this will help move more condominium units. It also provides some much needed clarity on the question of when subsequent purchasers are liable for late fees, interest, costs, and reasonable attorney fees incurred by the association in attempts to collect from prior owners.

The senate companion, SB 680 by Sen. Bogdanoff is awaiting action by the budget committee, it’s last committee of reference.

Hidden Lien Bill on Special Order Calendar for Last Day of Session

(Past member) — Thu, 08 Mar 2012 00:27:00 GMT

3/7/12: SB 670, the Hidden Lien Bill, has been placed on the special order calendar for Friday 3/9/12 -- the last day of the Session. There is still hope, but always a dangerous place to be on the schedule.

3/6/12: SB 670 was "withdrawn" from the Budget committee and placed on the calendar for second reading. This positions the bill for possible passage by the Senate later this week.

3/5/12 HB 671, by Rep. John Wood, passed the full house of representatives today by a vote of 101-14. The Senate Companion SB 670 was not among those withdrawn from the budget committee today, which could indicate troubles.

3/2/12 HB 671 was read the second time today on the house floor. The senate companion SB 670, after initial favorable committee reviews has been stuck in a Senate budget subcommittee with no action since January 31. Efforts are being made to "withdraw" the referral to the final committees so that it may be considered by the full Senate.

2/8/12 HB 671 passed unanimously out of the House judiciary committee and was placed on the house calendar

SB 670, the hidden liens bill which would require all governmental liens other than ad valorem taxes, special assessments and for utility services to be recorded in the official records before they were binding against a purchaser or lienholder for value, was passed unanimously out of the Senate Community Affairs committee this morning. It has one remaining committee stop in the Senate.

It's companion, HB 671 also has one remaining committee stop and an amendment conforming the two versions has been filed.

Updated Bill Tracking Report Posted

(Past member) — Wed, 07 Mar 2012 03:24:00 GMT

We have posted the updated FLTA Bill Tracking Report. FLTA members can access it Here

HB 213/SB 1890 Mortgage foreclosure Bill Passes House, Proceeds to Senate Floor

(Past member) — Fri, 02 Mar 2012 23:02:00 GMT

3/2/12: SB 1890 has been placed on the Senate Calendar for second reading.

2/29/12: Our thanks and congratulations to Rep. Kathleen Passidomo who successfully managed the passage of HB 213 by the full house. This frequently misrepresented bill drew significant and often unwarranted attacks, but nonetheless passed the full house 97-17.

2/28/12 Update: HB 213, by Rep. Passidomo moved to second reading where various technical amendments were made. Like its senate companion, HB 213 has been stripped of the "finality" provision that was so important to the title industry. We nonetheless support the remainder of the bill as a good step toward solving some parts of the foreclosure problem.

2/27/12 Update: Recognizing the great impact that foreclosure problems are having on the people of Florida, the Senate Banking and Insurance Committee held a special, late in the session hearing to consider SB 1890 by Sen. Latvala. Out of concern that the "finality" provision might be construed to prevent criminal sanctions of lenders, the amendment preserving that important provision was withdrawn and the bill moved forward by a 6-4 vote.

2/24/12 Update: This morning, Senator Richter filed a proposed amendment to SB 1890 which would include the "finality Mini-MRTA provision" that FLTA has been advocating.

2/22/12 Update: This morning a strike all amendment for HB 213 was passed by the Senate judiciary committee. Unfortunately the Mini-MRTA provisions designed to protect a subsequent owner of the foreclosed property are still not part of the house bill. From here, the bill goes to the full house.

2/20/12 Update: In spite of opposition, the Senate Companion to the Foreclosure bill, SB 1890, by Senator Latvala passed was approved 5-2 by the Judiciary Committee. The approval included a strike all amendment which includes the title industry's Mini-MRTA provisions. You can review a copy of the Strike All here.

2/8/12.8:45 am Update : This morning discussion was running long and the House Economic Affairs committee "Temporarily Passed" HB 213. this is a procedural move that keeps the bill alive, and but will require a later hearing and approval of the committee. This late in the process, this is not a positive thing. 1/27/12 FLTA members spent many months working with Florida Rep. Kathleen Passidomo (R-Naples) -- herself a Board Certified Real Estate Attorney -- on legislation to address some of the foreclosure problems facing Florida. Her bill included a clear duty on the part of the lender to provide unconditional estoppels within 15 days, to actually return the original note, and to provide a degree of protection to the innocent purchaser of foreclosed property.

We regret to report that the Civil Justice Subcommittee removed each of those important provisions from the bill. While the handling of estoppels and return of the original note, when paid in full, don't actually affect the foreclosure process, they apparently misunderstood that the ultimate goal of a foreclosure is to get the foreclosed property back into the stream of commerce. The finality of foreclosure judgments is a critical part of that process. FLTA will be working with the RPPTL section of the Florida Bar and others in an attempt to bring the finality provisions back into any final bill.

While we focus on a narrow aspect of the bill, we applaud Rep. Passidomo and the Civil Justice Subcommittee for taking on a very complex task and taking very good steps to fixing some of the key problems in Florida's foreclosure crisis.

Fraudulent Document Bill Passes House

(Past member) — Fri, 24 Feb 2012 03:25:13 GMT

2/23/12 HB 1331 by Rep. Wood, unanimously passed the full house of representatives today. The senate companion, SB 996 by Sen Dean passed unanimously out of the Senate Criminal Justice Committee with an amendment yesterday and has one remaining committee stop.

SB 996/HB 1331 (By Real Estate Attorney, John Wood) attempts to deal with some of the practices of so-called sovereign citizens, and with elements of the robo-signing problem, by expressly criminalizing the filing, with intent to defraud, of a document relating to real or personal property containing material false information.

HB 1331 was reported favorably by the House Criminal Justice subcommittee today.

Last week, the Senate version was unanimously approved by the Judiciary Committee and is now headed for hearing in the Senate criminal justice committee.

FLTA Files Amicus Brief in Pino v. Bank of New York Case

(Past member) — Tue, 07 Feb 2012 18:05:30 GMT

Thanks to the generous support of a number of our underwriters, we were able to engage Ken Bell, former supreme court justice, and a great dirt lawyer in his own right to file a "Friend of the Court" brief with the Florida Supreme Court in Pino v. Bank of New York.

More detail and a copy of the brief can be found here.

Estoppels for Subsequent Owners

(Past member) — Fri, 03 Feb 2012 01:18:00 GMT

Update 2/2/12

SB 1050 is on the agenda for the Senate Banking and Insurance Committee for 2/7/12 at 1:30. After this, it will have one additional committee stop in Senate Judiciary.

1/31/12 -- One of the issues periodically faced by title agents is how to get a mortgage estoppel information when the mortgagor is no longer in title. They've passed, a subordinate lien was foreclosed, or the property was sold "subject to" without a formal assumption. Many lenders took the position that they were not permitted to provide any information because it would be a violation of their privacy obligations to the original mortgagor.

HB 505/SB 1050 attempts to address this issue by requiring lenders to provide a payoff amount and per diem estoppel (but no other detail) when presented with a request from or on behalf of the current owner of the property. The request must include a copy of the instrument vesting title in the new owner.

Today, HB 505 unanimously passed its second committee of reference, and has one more committee stop with the Economic Affairs Committee (Chaired by FLTA 2011 Legislator of the Year Dorothy Hukill).

Mechanics Liens for Tenant Improvements

(Past member) — Wed, 01 Feb 2012 03:17:50 GMT

Last year, we thought we had fixed the problems created by the Everglades Electric case, holding that the landlord's interest was not exempt from liens for tenant improvements unless each and every lease contained exactly the same language claiming the statutory exemption and that language exactly matched the notice filed.

During the sausage making process, some critical language was dropped and it didn't solve the entire problem.

HB 897 (by Real Estate attorney Rep. Moraitis) fixes the critical language. Today, this bill was unanimously approved by the Government Operations Subcommittee, leaving it with one more stop before the House Judiciary Committee. The Senate companion SB 1202 was also scheduled to be heard today, but the Judiciary Committee meeting was cancelled.

HB 149 Website Publication of Foreclosure Sales and Notices Dies

(Past member) — Wed, 01 Feb 2012 02:58:40 GMT

FLTA had some concerns about HB 149/SB 230 because it seemed to change the longtime standard for making a diligent effort to serve someone before resorting to giving notice by publication; set standards that only one vendor could meet; and would have unfairly shifted the costs of running the website to those seeking to confirm the validity of the publication (something that is currently free in the court records).

We are pleased to report that the House Civil Justice Subcommittee shared our concerns and voted down the bill today. As a practical matter, this bill can be considered dead for this year.

Bill to Would Require EPR Searches, Consequential Damages, 90 days claims resolution

(Past member) — Fri, 27 Jan 2012 16:56:16 GMT

Now for the bad news. Sen. Mike Bennett (R-Bradenton) has filed SB 826, which among other things would require:

1. The insurer to pay policy limits if a claim is not fully resolved within 90 days -- or to pay architects, engineers, lawyers fees, mortgage interest and other listed damages.

2. Would require an Earliest Public Records Search (later amended to a MRTA search) in every case;

3. Payment of policy limits on a failure of title without regard to the value of the insured property; and

4. As amended, would require the issuance of an owners policy at simo rates with every refinance or construction loan.

As one would expect, the title industry -- agents and insurers alike -- have significant concerns about these requirements. The search requirements and inclusion of consequential damages will only increase the costs to the consumer. Yesterday, a committee substitute for this bill (incorporating the changes referenced above) passed out of the Senate Banking and Insurance Committee. Copy here

To his credit, Sen. Bennett has expressed a willingness to work with the title industry (and has already amended his bill in response to some of the industry's concerns). Those discussions will continue in the weeks ahead.

Large Banks Near Robo-Signing Settlement

(Past member) — Fri, 27 Jan 2012 16:14:32 GMT

The Large Banks are again nearing a settlement over the allegations of robo-signing and fraudulent assignments. More from the Palm Beach Post.

Within the title industry, we rely on the accuracy and validity of the documents which wind up recorded in the court files and the official records. While it is one thing to reach an economic settlement that may preclude future criminal charges, those of us who rely on those official records encourage the collective Attorneys' General to complete their investigation into the scope and nature of the problem and release that information publicly so that we can consider appropriate underwriting standards.

1 in 4 third-quarter home sales were foreclosures in Palm Beach County

(Past member) — Fri, 27 Jan 2012 16:10:03 GMT

The Palm Beach Post reports that 1 in 4 of the third-quarter home sales in Palm Beach County were post foreclosure properties. More here. This highlights the importance to the title industry and to Florida's still fragile real estate economy of making sure final judgments of foreclosure remain "Final" and are not later called into question by allegations of underlying fraud and robo-signing.

These are the reasons that FLTA has been leading the fight for Rep. Kathleen Passidomo's (R-Naples) HB 213, which would statutorily protect the innocent purchaser of a previously foreclosed home, and are filing an amicus brief on the subject before the Florida Supreme Court.

FLTA Tracking Reports are Posted and will be kept updated

(Past member) — Sun, 22 Jan 2012 03:51:28 GMT

I'm now posting the Tracking Charts showing the status in the process of all of the bills that I'm actively tracking on behalf of FLTA on our Government Affairs Page. I'll endeavor to update these every weekend through the rest of the legislative session.

If you come across any bills that concern you for the title industry, which I'm not tracking, please let me know.

FHA extends Waiver of Anti-Flipping Rule

(Past member) — Wed, 28 Dec 2011 01:40:45 GMT

2 years ago, the FHA waived the requirement that all property flips be seasoned more than 90 days in order to be eligible for FHA financing. The waiver was scheduled to expire December 31, 2011, but has been extended until the end of 2012.

Note that the Waiver continues to be limited to sales meeting the following conditions:

All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.
In cases in which the sales price of the property is 20 percent or more above the seller’s acquisition cost, the Waiver will only apply if the lender meets specific conditions and documents the justification for the increase in value.
The Waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.

For more information, see the FLTA bulletin

Southern Title Insurance Corp. Placed into Receivership

(Past member) — Mon, 26 Dec 2011 18:54:22 GMT

Three months after suspending the issuance of new policies due to financial difficulties, Southern Title Insurance Corp. was placed into receivership Dec. 20 by the Circuit Court of the City of Richmond. A moratorium has been placed on the payment of claims until the receiver completes an evaluation of Southern Title’s financial condition.

Please note this Southern Title is a Richmond based insurer and in no way associated with the Southern Title family of companies (title agencies) headquartered in Daytona.

Prosecution of Down Payment Assistance

(Past member) — Mon, 26 Dec 2011 18:49:29 GMT

We have seen few cases in which the organizers of "charitable" down payment assistance schemes have been prosecuted -- partially because the cases are rarely appealed and reported.

Here's a case that was appealed. Even though the case turns on statute of limitations issues, the court describes the underlying violation in some detail.

http://www.leagle.com/xmlResult.aspx?xmldoc=In%20FLCO%2020111223146.xml&docbase=CSLWAR3-2007-CURR

Next Round of HUD-1 Forms for Our Comment

(Past member) — Fri, 16 Dec 2011 22:49:12 GMT

The Consumer Financial Protection Bureau released its second round of alternative prototypes of a settlement disclosure form to be used during closing to replace the current HUD-1 and Truth in Lending disclosure.

The Bureau is seeking comments through Dec. 21. It is important ALTA members inform the Bureau how these draft forms of a new HUD-1 will affect closings and your business. Go to the CFPB’s Know Before You Owe webpage to leave comments. Make sure to switch to the “Industry Tool.”

Last month, the CFPB tested two prototypes for a disclosure of final loan terms and closing costs. They were both similar. This time around, the CFPB created a different format for this information. In the latest prototypes, the CFPB are testing a design that displays final closing costs in a format similar to the prototype it has tested for the application disclosures. In this round, the CFPB released two, five-page drafts called Mimosa and Sassafras.

Please take a few moments to offer your insights on these latest drafts.

Flood Insurance Extension Part of Controversial Bill

(Past member) — Fri, 16 Dec 2011 22:45:48 GMT

The U.S. House Tuesday night (Dec. 13) voted to reform and extend the National Flood Insurance Program (NFIP) for five years as part of a bill that also would extend the expiring tax cuts, including cuts to the payroll tax.

House Republicans tucked a long-term NFIP extension, which had already been passed in July, into the “Middle Class Tax Relief & Job Creation Act of 2011,” which passed by a 234-193 vote mostly along party lines.

The NFIP program expires Dec. 16 without an extension.

Unfortunately, this is the same controversial bill that is on the nightly news, and the Flood Insurance extension is only a small part of the bill, which also includes House Republicans’ demands for budget cuts in exchange for their support on extending expiring tax cuts. Senate Majority Leader Harry Reid (D-Nev.) has said the bill is “dead on arrival.” President Obama also has indicated he would veto the measure.

ALTA is actively working to preserve the Flood Insurance extension here and in other bills.

FLTA Amicus Acknowledged

(Past member) — Sun, 04 Dec 2011 23:00:20 GMT

Our work on filing an Amicus Brief in City of Palm Bay v. Wells Fargo (regarding the priority of code enforcement liens) was acknowledged before the RPPTL executive council at their Marco Island meeting this weekend. I’d like to again repeat my thanks to Homer Duvall of Fidelity National Title who served as co-counsel on this, and to our members Marty Awerbach and Rod Neumann for their technical guidance. Here’s the background on FLTA’s involvement.

In light of some of the issues raised in our brief regarding the ambiguity between s. 695.01 and s. 695.11, the RPPTL Problem Studies Committee (whose Vice-Chair is our past President, Pat Hancock) have appointed a subcommittee to evaluate whether some statutory clarification is appropriate or desirable.

RPPTL Endorses Passidomo Foreclosure Bill

(Past member) — Sun, 04 Dec 2011 22:55:46 GMT

Yesterday, the Real Property, Probate and Trust Law Section of the Florida Bar (RPPTL) joined FLTA in endorsing Rep. Kathleen Passidomo’s foreclosure bill. Many of you will recall that at our urging, her bill includes several provisions that are very important to the title industry and the sanctity of land title in Florida. See the bulletin here. We also were quoted extensively in the Naples Daily News regarding this bill. More here.

Given the current focus of our Legislature on reapportionment and budget matters, the conventional wisdom is that little else will be addressed during this session. Given the importance of resolving the current foreclosure crisis, we are hopeful that the legislature will address this important bill.

Another Extension of Flood Program Imminent

(Past member) — Tue, 22 Nov 2011 18:33:18 GMT

From ALTA

While ALTA continues to urge Congress to pass a bill that would provide long-term certainty to the National Flood Insurance Program (NFIP) to ensure access to affordable flood insurance and end disruptions in closings when lapses occur, it looks as if another temporary extension will be approved.

Set to expire Nov. 18, the House and Senate are expected to pass another continuing resolution that will keep both the federal government and the NFIP running until Dec. 16.

On May 13, 2011, the House Financial Services Committee unanimously approved H.R. 1309, the Flood Insurance Reform Act (Biggert, R-IL; Waters, D-CA). The bill would extend the NFIP for five years. It also would reform the NFIP to strengthen participation and put the program back on the path to fiscal solvency, including by a) adding coverage options for business interruption and living expenses and indexing the limits; and b) improving the scientific integrity of floodplain mapping and streamlining the appeals processes.

Earlier this month, the U.S. Senate Banking Committee approved a five-year extension of the program. The bill awaits Senate floor action.

Freddie Mac Updates Short Sale Requirements

(Past member) — Tue, 22 Nov 2011 17:05:44 GMT

Our Friends at ALTA have been successful in persuading Freddie Mac to correct some of the problems with its short sale requirements, including an overreaching affidavit demand that insisted closing agents make factual representations about which they usually had no knowledge and to indemnify the lender and Freddie if they or anyone else had misrepresented something.

See our bulletin here.

District of Columbia Prohibits Rebating/Discounting Title Fees

(Past member) — Sat, 12 Nov 2011 21:48:33 GMT

The District of Columbia recently adopted a new law that prevents consumers from receiving any rebates, discounts or other inducements in connection with title insurance.

FLTA reports on Insurer Insolvency Issues

(Past member) — Sat, 12 Nov 2011 20:40:55 GMT

At the recent ALTA convention in Charleston, Insurer Section Chair, Jim Russick and Executive Director, Alan Fields, reported on the recent changes to Florida law regarding the insolvency of a title insurer. As part of their presentation, they suggested that with insurers issuing policies in multiple states, a uniform national model for handling the assets and policy obligations of a failed insurer was needed.

This discussion continued at last week's NAIC's 2011 Fall National Meeting Nov 3-6 in National Harbor MA.

More from ALTA

Theft of Funds Not a Defense to Condo Assessments

(Past member) — Sat, 12 Nov 2011 20:21:35 GMT

Good afternoon and Happy Saturday,

This opinion is a few months old now, but I thought it was worth sharing because it highlights the risks of condo purchasing and ownership. Long story short, certain members of the condo association had allegedly improperly depleted condo funds. In order to maintain the association property (and essentially make up for the loss), the board passed a special assessment, and sought to foreclose on Coral Way when it refused to pay the assessment. Coral Way defended the foreclosure action on the basis that the assessment was improper because it would not have been necessary had the association not improperly squandered funds in the association coffers. The trial court disagreed and entered judgment in favor of the association.

The Fourth District Court of Appeal (Broward & Palm Beach Counties) agreed with the trial court and upheld the summary judgment of foreclosure. In sum, although the association may have acted improperly in wasting association funds, the special assessment was properly done consistent with the governing documents, and because Coral Way was an owner, it was liable for the special assessment.

The entire case can be accessed here.

Regards,

Paul

Paul H. Minoff
McGlinchey Stafford PLLC
Direct: (954) 332-3639
Cell: (954) 999-2441
Fax: (954) 333-3847
Email: pminoff@mcglinchey.com

Mortgage follows Note, No Assignment of Mortgage Required to Foreclose

(Past member) — Fri, 11 Nov 2011 15:05:13 GMT

Another Case law update from Paul Minoff at McGlinchey Stafford PLLC

In the further chipping away of the "lack of standing" defense frequently asserted by foreclosure defense counsel, earlier today the Florida Second District Court of Appeal followed the now extensive line of Fourth DCA cases establishing that standing to foreclose will exist without an assignment (or even when the assignment was not signed until after the lawsuit was filed) so long as the foreclosing entity can establish that it holds the note via an endorsement or allonge. In this case, the court rejected Ice Legal's (the firm that brought us the term "robo-signing") position that standing did not exist, holding that the plaintiff (Bay Loan Servicing) obtained "equitable standing" to foreclose the property based upon the allonge to the note, and that "equitable ownership" of the mortgage also passed to Bayview because the mortgage followed the note.

Despite this victory, the court ended up reversing the summary judgment in favor of Bayview because Bayview failed to overcome the defendant's lack of proper notice affirmative defense. In that regard, Bayview did not submit a copy of the default letter required under paragraph 22 of the mortgage in support of its motion for summary judgment. This case is a stark reminder that when an affirmative defense is raised, it must be responded to and overcome; if not, the judgment is subject to reversal.

[Ed -- this kind of ruling means we as title examiners have little ability to determine whether the proper party is actually foreclosing beyond the presumption that the court did a proper verification]

A copy of the case can be found here

Thanks Paul!!

FHFA Confirms Title Insurance Remains Part of HARP Program

(Past member) — Mon, 07 Nov 2011 19:13:30 GMT

Following the announcement of the revamped Home Affordable Refinance Program (HARP), a handful of media reports indicated that title insurance and closing costs are among the fees that will be reduced or eliminated in the HARP program. ALTA has been assured by the agency responsible for HARP, the Federal Housing Finance Agency (FHFA), that this is not the case.

More from ALTA

Due Diligence for Service by Publication

(Past member) — Sat, 29 Oct 2011 16:34:09 GMT

Our thanks -- once again -- to Paul Minoff, who periodically sends us updates on cases of interest. Here's his latest....

Although the attached Florida Fourth District Court of Appeal opinion provides no guidance as to what constitutes "due diligence" for purposes of serving a foreclosure complaint by publication, it does remind us to make sure that our process servers are making a diligent effort to effectuate by service as required by Florida Statutes sections 49.011 and 49.021, and as interpreted by the Fourth DCA in the attached opinion of Parker v. LaSalle Bank.

Please feel free to reach out if you ever have any questions or require assistance with any of your Florida foreclosure matters.

Regards,

Paul Minoff

Paul H. Minoff
McGlinchey Stafford PLLC
Direct: (954) 332-3639
Cell: (954) 999-2441
Fax: (954) 333-3847
Email: pminoff@mcglinchey.com

Fannie/Freddie to Drop Approved Counsel Lists

(Past member) — Fri, 21 Oct 2011 20:23:16 GMT

The Federal Housing Finance Agency this week directed Fannie Mae and Freddie Mac to start transitioning to a new system where mortgage servicers pick the foreclosure attorneys they work with -- not the GSEs.

More here

New FLTA Gov't Affairs Bulletins

(Past member) — Thu, 13 Oct 2011 13:48:51 GMT

FLTA has posted several new bulletins on the FLTA website. Click on the bulletin title for a quick hyperlink.

2011 Bulletin 12 -- How Many Trust Accounts Do I Really Need?

During the boom times, many FLTA members were holding pre-construction deposits on condominium units. Under the Condominium Act, any deposits in excess of 10% of the contract price could be released to the developer to cover certain construction costs. The normal practice in many parts of the state was to require a 20% deposit. When the market turned, many purchasers under those contracts sought a refund of their deposits and were rarely successful.

Double AA International Investment Group, Inc. v. Swire Pacific Holdings, Inc., 674 F.Supp.2d 1344 (S.D. Fla. 2009), aff'd in part, vacated in part, 637 F.3d 1169 (11th Cir. 2011) held that the Condominium Act required an escrow agent holding pre-construction deposits in excess of 10% of the purchase price of a condo to maintain totally separate accounts for the amounts in excess of 10% of the purchase price. FLTA worked with the Florida legislature to overrule this case and were successful, but a recent case held that our “Fix” didn’t work.

This bulletin provides all the details.

2011 Bulletin 13 -- DFS Designation Rule Update

As many of you know, DFS has been working on a rule which would restrict what designations, job titles or other descriptions could be used by title agents and in other categories of insurance. This bulletin includes the latest version.

2011 Bulletin 14 -- Fees on VA Loans

Title agents have known for years that certain itemized fees are not permitted in a VA loan, and must be covered out of the 1% fee paid to the lender. A recently unsealed lawsuit attacks the practice of some banks in recharacterizing impermissible fees into “permitted” categories.

2011 Bulletin 15 -- Bar issues UPL Letter on Short Sale Assistance

On September 30, 2011, the Florida Bar’s Standing Committee on the Unlicensed Practice of Law issued its long awaited guidance on whether a title agent’s facilitating a short sale constituted the unlicensed practice of law. FLTA has been actively participating in the process and the UPL Committee just issued its letter on the subject that is outlined in this bulletin.

US Supreme Court Declines to Hear MERS Case

(Past member) — Thu, 13 Oct 2011 13:47:08 GMT

The U.S. Supreme Court denied review of a case brought against Mortgage Electronic Registration Systems by a California man, the Court announced Tuesday.

Gomes v. Countrywide is the first major MERS case filed with the U.S. Supreme Court, and centered on whether MERS had a right to foreclose on the homeowner without proving it had the noteholder's authority to foreclose.

More from Housing Wire

US Supremes to Hear another RESPA Case

(Past member) — Thu, 13 Oct 2011 13:44:18 GMT

The U.S. Supreme Court agreed Monday to clarify the scope of a federal law meant to protect homebuyers from being overcharged for real estate settlement services.

The question the court will resolve is whether a provision of the Real Estate Settlement Procedures Act banning service providers from charging for services they did not actually render applies only when the unearned fees are split between two or more parties.

Three circuit courts have ruled that the law applies to any unearned fees, whether retained by a single defendant or multiple defendants. The Department of Housing and Urban Development's position is in line with these rulings.

Four circuit courts have issued opinions taking the opposing view.

More from Housing Wire

Federal Lawsuit Accuses Lenders of Charging Attorney, Settlement Fees on VA Loans

(Past member) — Tue, 11 Oct 2011 17:40:28 GMT

A lawsuit filed in 2006 and unsealed last week in an Atlanta federal court claims several large banks and mortgage companies defrauded veterans by charging illegal fees on Interest Rate Reduction Refinancing Loans offered by the Department of Veterans Affairs.

The lawsuit, brought under the Federal Claims Act by two mortgage brokers, alleges the defendants charged attorney’s fees or settlement closing fees, which are prohibited on VA loans. According to the lawsuit, the companies skirted the rules by hiding attorneys’ fees as title examination or title search fees.

More from ALTA

Florida State Government facing $2 Billion Shortfall

(Past member) — Tue, 11 Oct 2011 17:30:47 GMT

TALLAHASSEE --Senate President Mike Haridopolos said Thursday that the state is facing another multibillion-dollar budget shortfall, and the public can expect another year of deep cuts to government programs and services.

Having to make such extensive cuts to state expenditures is expected to reduce the number of other bills that are given substantive consideration during the legislature's 60 day session.

Draft Designation Rule Updated -- Comments Sought

(Past member) — Thu, 29 Sep 2011 19:13:59 GMT

The latest version of the DFS designation rule has been released, and we are seeking comments on how this might impact your business practices in the FLTA Title Forum.

Please take a moment to review the latest version --- which FLTA has been objecting to -- and help arm us for the next round.

Title Friendly Foreclosure Bill Filed!

(Past member) — Wed, 28 Sep 2011 15:08:15 GMT

Nationally, we are facing a huge foreclosure problem. Congress is holding hearings, and our friends at ALTA are actively protecting the interests of the title industry. The Office of the Comptroller of the Currency has mandated that upon request, a foreclosed homeowner is entitled to an independent review of any improprieties in their foreclosure process. (here's the Link at ALTA) This is only going to open up the possibility of more attempts to set aside a completed foreclosure, increase the risk and uncertainty facing our title insurers and delay the economic recovery.

In Florida, we have been working on a different approach to the problem. Yesterday, Rep. Kathleen Passidomo (R-Naples) filed her Fair Foreclosure Act (HB 213), which is intended to streamline several aspects of the judicial foreclosure process. This bill includes several important provisions for the title industry, including a section which assures home-buyers that if they buy a foreclosed home, their ownership to the property won't be challenged or taken away.

National Flood Insurance Program Extended Through Nov. 18

(Past member) — Wed, 28 Sep 2011 15:01:24 GMT

The National Flood Insurance Program (NFIP), which was set to expire Sept. 30, received a temporary extension Monday as the Senate approved legislation keeping the program running through Nov. 18.

By a 79-12 vote, the Senate ended an impasse that threatened a government shutdown at midnight Friday by approving a continuing resolution that will keep the government funded through Nov. 18. The key was a determination by the Federal Emergency Management Agency earlier Monday that it had enough money to fund its emergency loan program through the end of the current fiscal year.

More from ALTA

Know the Basis for Construction Liens

(Past member) — Wed, 28 Sep 2011 14:49:12 GMT

Another Case of Interest from Paul Minoff, Esq.

Just over a week ago, the Florida Fifth District Court of Appeal clarified the law in that jurisdiction on mechanic's liens under Chapter 713, ruling, among other things, that a claim of lien can be found to have been fraudulently made even when the lienor believed in good faith that the lien was properly based upon lienable work, materials, etc.

In this case, the court reversed final judgment in favor of the contractor and remanded the case back to the trial court to determine whether the lien was fraudulent despite the proclaimed good faith belief of the lienors.

This opinion definitely stresses the importance of not only making sure that the appropriate bases exist to file a claim of lien, but in fully analyzing the bases of the lien and the amount claimed therein when defending such claims.

Regards,

Paul

Here is a link to the Case

Must Have a Legitimate Business Purpose for ILSA exemption

(Past member) — Wed, 28 Sep 2011 14:35:08 GMT

New FLTA Member Paul Minoff reports:

In what could potentially have far-reaching implications to land developers in Florida (and outside as well), earlier this month, the 11th Circuit Court of Appeals ruled that developers who are seeking exemptions from the Interstate Land Sales Full Disclosure Act must provide a "legitimate business purpose" when structuring transactions in way to exempt them from the Act, and expressly holding that avoiding the requirements of the Act is NOT a legitimate business purpose.

In this case, the developer used two separate agreements to place the development project within two separate exemptions under the Act. The court reviewed the use of such agreements and ruled that the developer did not have a legitimate business purpose, resulting in a return of the purchaser's condo deposits. As anyone in the development world knows, this type of practice was and is very common so it behooves everyone representing clients in the industry (as well as escrow agents who are holding deposits) to closely review this opinion.

We can only hope that the string of bad recent decisions affecting the real estate and title industries will come to an end soon.

Hope all is well.

Paul

-- Paul H. Minoff
McGlinchey Stafford PLLC
www.mcglinchey.com | www.cafalawblog.com

Direct: (954) 332-3639
Cell: (954) 999-2441
Fax: (954) 333-3847
Email: mailto:pminoff@mcglinchey.com
101 N.E. Third Avenue, Suite 1500
Fort Lauderdale FL 33301

FL House of Representatives Hearing on Foreclosure

(Past member) — Sat, 24 Sep 2011 20:47:24 GMT

Last Tuesday, the Civil Justice Subcommittee received testimony on Florida's Foreclosure "Crisis." The economist for the Florida Legislature, Amy Baker, gave a report which included some truly disturbing statistics. A copy of the powerpoint slides presented are here.

The following day, this article appeared suggesting that Gov. Scott and certain legislative leaders were again considering non-judicial foreclosures in Florida.

The FLTA leadership will be actively involved in evaluating any proposals to modify Florida's foreclosure process to, among other considerations, make certain that any changes will result in an insurable foreclosure.

Doc Stamps are Tricky

(Past member) — Fri, 23 Sep 2011 01:40:35 GMT

When one of our members reported having received a "Love Letter" from the Florida Department of Revenue asking why doc stamps hadn't been paid on the assignment of a winning foreclosure bid, FLTA issued a new bulletin outlining some of the subtle and sometimes counter-intuitive rules governing doc stamps.

We also posted some handy references on both doc stamps and intangible taxes on our Members Only Exam Resources Page.

As you think of additional resources that you would find helpful in your business, please let me know.

Thanks,

Alan

CFPB Seeking 4th Round of Comments on Combined TILA - GFE

(Past member) — Wed, 14 Sep 2011 15:12:05 GMT

The CFPB is seeking a 4th round of comments from the industry on their latest draft of the combined TILA - GFE forms. Please take a moment to share your comments here

In particular let CFPB what you think about pre-populating the field for borrower's attorney's charges. Does that imply that legal representation is necessary in every refinancing, or that someone shouldn't use a title agency to close their transaction?

Buying a WWII Bombing Range is not a Title Defect

(Past member) — Sat, 10 Sep 2011 17:40:32 GMT

In Louisiana, the purchaser of a WWII era bombing range discovered that the local government wouldn't issue permits for turning the property into a residential subdivision because of unexploded ordinance.

The purchaser then sought to recover under his title insurance policy -- and the court ruled (quite correctly) that this was a matter affecting the condition of the land, not a title defect and that non-record environmental problems were expressly excluded from coverage.

Here's the case.

Major Banks Sued by FHFA for LTV and Occupancy Misrepresentations

(Past member) — Fri, 09 Sep 2011 18:14:09 GMT

Major banks allegedly misrepresented the owner occupancy and loan-to-value ratios by sometimes as many as 50 percentage points or more on securities sold to Fannie Mae and Freddie Mac, according to the lawsuits theFederal Housing Finance Agency filed last week.

The FHFA, overseer of the government-sponsored enterprises, filed suits against 17 major banks and scores of individual executives, alleging they knowingly falsified the quality of mortgage-backed securities sold to the GSEs. The lawsuits span nearly $190 billion in MBS.

More from Housing Wire

Six Steps That Could Boost Refinancing

(Past member) — Fri, 09 Sep 2011 17:30:49 GMT

The Wall Street Journal offers President Obama six ideas that would help achieve his stated goal of more refinancings.

More from the Wall St. Journal

Time Running Out for Higher Mortgage Loan Caps

(Past member) — Fri, 09 Sep 2011 17:28:18 GMT

Time is running out for Congress to decide whether to block a scheduled drop in the maximum size of government-backed mortgages, and some House lawmakers are calling for quick action.

The group, mainly Democrats from pricey coastal housing markets, is pushing to add to a federal spending bill a measure preventing the maximum size of loans that can be backed by Fannie Mae, Freddie Mac and the Federal Housing Administration from declining next month.

Boxer-Isakson Proposal on Foreclosures and Refinancing

(Past member) — Fri, 26 Aug 2011 13:52:53 GMT

Another bill to watch on the national level -- Sen. Barbara Boxer (D-Calif.) and Sen. Johnny Isakson (R-Ga.) are sponsoring a bipartisan bill to help homeowners avoid foreclosure. The bill has already received qualified statements of support from the National Association of Realtors, the National Consumers Law Center and the National Association of Mortgage Brokers.

The Boxer-Isakson legislation would do several things, including saving Fannie Mae and Freddie Mac money as a result of lowering the foreclosure rate. It would eliminate risk-based fees on loans for which Fannie and Freddie already bear the risk, removing refinancing limits on underwater properties and making it easier for borrowers with second mortgages to participate in refinancing programs, and it would help borrowers receive a fair interest rate, comparable to one received by any other borrowers in good standing who have not had a drop in home value and have stayed current with their mortgage payments.

ALTA addresses Transfer Fee Covenants

(Past member) — Fri, 26 Aug 2011 13:41:13 GMT

Florida was among the first in the nation to ban Private Transfer Fee Covenants over four years ago. That largely solved "our" title problem with them. But the battle continues in other states and through the aggressive efforts of ALTA and other state title associations more and more states are banning or placing significant restrictions on such transfer fees.

Steve Gottheim, ALTA's legislative and regulatory counsel, recently participated in an October Research Webinar on the status of Private Transfer Fee Covenants nationally. More information is available here.

GAO Study of Foreclosure Documentation Problems

(Past member) — Wed, 24 Aug 2011 16:09:35 GMT

The General Accounting Office has released its study entitled: "MORTGAGE

FORECLOSURES - Documentation Problems Reveal Need for Ongoing Regulatory Oversight" which can be accessed here.

Among other recommendations they suggest a need for federal standards on the handling of foreclosures -- a matter which could significantly impact title practices.

Only 1/2 of Notaries carry E&O coverage

(Past member) — Wed, 24 Aug 2011 14:34:49 GMT

The National Notary Association reports that 46 percent of Notaries who responded to its poll said they do not carry Errors & Omissions (E&O) insurance, leaving nearly half of the Notary community vulnerable to costly lawsuits.

Do the Mobile Notaries you use carry this coverage?

NAIC meeting to address Title Insurance Matters at August Meeting

(Past member) — Fri, 19 Aug 2011 18:09:48 GMT

The National Association of Insurance Commissioners Title Insurance (C) Task Force (Task Force) will meet during the NAIC’s summer meeting Aug. 30 in Philadelphia to discuss issues related to title insurers and title insurance producers.

The Task Force will hear reports from its four working groups. The Annual Statement Instructions (C) Working Group had seven proposals approved by the Blanks (E) Working Group. The proposals involve improvements to the title annual statement and filing instructions, which include crosschecks for title filing data. ALTA’s Accounting Committee has been helpful providing information to this group.

The Task Force also will consider a Title Agent Statistical Data Plan Implementation Guideline as recommended by the Title Statistical Plan (C) Working Group. The NAIC says the guideline will assist states in implementing the Title Insurance Agent Statistical Report. The data call report and guideline will assist members in the collection of various data elements that could be useful in market analysis and market regulation. ALTA will continue to work with the NAIC to improve stat plan.

More from ALTA

Obama: Keep the Feds in the Mortgage Market

(Past member) — Thu, 18 Aug 2011 15:51:56 GMT

President Obama has directed a small team of advisers to develop a proposal that would keep the government playing a major role in the nation’s mortgage market, extending a federal loan subsidy for most home buyers, according to people familiar with the matter.

The decision follows the advice of his senior economic and housing advisers, who favor maintaining the government’s role as an insurer of mortgages for most borrowers. The approach could even preserve Fannie Mae and Freddie Mac, the mortgage finance giants owned by the government, although under different names and with significant new constraints, said people knowledgeable about the discussions.

FHA/VA Bonds may be Downgraded -- Because of Foreclosure Timelines

(Past member) — Thu, 18 Aug 2011 15:47:03 GMT

Bonds backed by the Federal Housing Administrationand Veterans Affairs loans are beginning to show a few cracks, prompting Moody's Investors Service to place $3.5 billion of residential mortgage-backed securities issued through 39 transactions on watch for a possible downgrade.

More from Housing Wire

MERS Case reaches U.S. Supreme Court

(Past member) — Thu, 18 Aug 2011 15:39:49 GMT

A controversial case challenging the ability of Mortgage Electronic Registration Systems to foreclose on a California man was filed with the Supreme Court Monday, making it the first major MERS case to reach the nation's highest court.

More from Housing Wire

Transfer Tax Fraud?

(Past member) — Wed, 10 Aug 2011 16:46:14 GMT

FLTA Member Barbara Burke's Real Estate Law Series Blog has posted an interesting article about over-paying your Doc Stamp taxes as a means of artificially manipulating subsequent appraisals.

Join the discussion here

CFPB releases 3rd Draft Disclosure Form

(Past member) — Wed, 03 Aug 2011 12:40:57 GMT

After two months, four different versions and more than 18,000 comments, the Consumer Financial Protection Bureau released its third round of draft mortgage disclosure form.

Once again, the Bureau is soliciting feedback on these forms, which features disclosure for a loan with a “balloon payment,” or a single large payment that occurs at the end of a loan.

Conservative legal foundation creates property rights institute to beef up Florida presence

(Past member) — Wed, 03 Aug 2011 12:34:05 GMT

The conservative Pacific Legal Foundation of Sacramento has created the Wade Hopping Institute for Private Property Rights in Stuart to beef up its presence in Florida.

The institute is named for longtime Tallahassee industry lobbyist Wade Hopping, who died two years ago from complications from a stroke and esophageal cancer. Hopping, founder of Hopping Green & Sams in Tallahassee and a former Florida Supreme Court justice, served on the board and was a past president of the Pacific Legal Foundation.

One of the goals of the Hopping Institute goals was the establishing of a network of pro bono, experienced Florida land use attorneys that would serve as counsel to property owners requiring legal assistance to defend against property rights abuses at the trial or administrative level. No other existing Florida pro bono program targets assisting ordinary citizens in the defense of their property and economic rights.

More information here

FTC Refrains from Enforcing MARS rules as to Realtors.

(Past member) — Sun, 31 Jul 2011 02:33:31 GMT

The Federal Trade Commission (FTC) announced July 15 it will refrain from enforcing most provisions of its Mortgage Assistance Relief Services Rule (MARS) against real estate professionals who assist consumers in obtaining short sales from their lenders or servicers.

More from ALTA

Closing Services Fee is All Inclusive

(Past member) — Fri, 29 Jul 2011 16:48:21 GMT

CFO Jeff Atwater's July 2011 edition of The Pulse reminds title insurance agents that the closing services fee listed on the settlement statement form is to include all the fees and

charges made by the agency to close and complete the transaction.

Consumers should not be charged additional fees in addition to the amount listed as the closing or settlement services fee on the HUD-1 or other settlement statement form.

Examples of fees that should not be listed as separate line charges on the form include, but are not limited to:

Postage and handling
Notary services
Copies
Digital documents
Document preparation fees
Document storage or warehousing fees
Electronic conversion of documents to CD or DVD format

The full text of The Pulse can be found here

Reissue Rate Reminder from DFS

(Past member) — Fri, 29 Jul 2011 16:34:56 GMT

CFO Jeff Atwater, in the July 2011 edition of The Pulse reminds us that Reissue Rates may ONLY be given where the agent has, and retains in his file, proof of the prior policy.

Please keep in mind that the three year limit referenced in the article is only applicable to one category of Reissue Rates. The three year limit does not apply to policies on real property which is unimproved except for roads, bridges, drainage facilities, and utilities if the current owner’s title has been insured prior to the application for a new policy; or Mortgage policies issued on refinancing of property insured by an original owner’s policy which insured the title of the current mortgagor.

The complete article can be found at The Pulse July 2011

FLTA has an ongoing working group with some of the smartest people in Florida title insurance looking at ways to simplify and clarify Florida's sometimes difficult to understand rate categories. (and they really hate it when I describe them that way!)

For more information about Reissue and other rate categories in Florida, please review F.A.C. 69O-186 or consult your underwriter.

Robin Westcott Appointed as Insurance Consumer Advocate

(Past member) — Fri, 29 Jul 2011 15:33:38 GMT

Chief Financial Officer Jeff Atwater announced the appointment of attorney and insurance watchdog Robin Westcott to serve as Florida’s Insurance Consumer Advocate. CFO Atwater signaled that Westcott’s vast insurance knowledge as well as her career-long experience safeguarding Florida’s consumers will be a tremendous asset to the insurance-buying public.

Over the last several years, Westcott has repeatedly called on the insurance industry to hand over data on various insurance products important to consumers, including auto insurance and sinkhole coverage, and demanded accountability from insurance companies charging excessive fees for servicing policyholders through affiliated companies.

Congratulations Kurt & Michelle!

(Past member) — Thu, 28 Jul 2011 14:52:33 GMT

This week we saw major changes in the executive leadership at ALTA. Kurt Pfotenhauer will be leaving ALTA to serve as Executive Vice President and Vice Chairman for First American Title Insurance Company. (announcement) While we will miss him at ALTA, he will continue to be an active part of the Title Family.

Michelle Korsmo, ALTA's Chief Operating Officer under Kurt will step up as the new CEO. (announcement) So ALTA is in good hands and we expect to see a continuation of the growth and success started by Kurt.

Congratulations to Both of You!

Florida enjoys mini-sales boom on condos in June

(Past member) — Thu, 28 Jul 2011 14:50:40 GMT

Florida’s existing-condo sales rose 8% in June with 7,922 units sold statewide compared to 7,330 sold in June 2010, according to Florida Realtors.

The statewide existing-condo median sales price last month was $94,100, up 2% from $92,300 in June 2010.

More from Housing Wire

LPS finds new business from mortgage servicer crackdown

(Past member) — Thu, 28 Jul 2011 14:49:23 GMT

More mortgage servicers signed up to use Lender Processing Services (LPS: 18.78 -0.37%) technology to comply with new requirements from the recent regulatory consent orders.

Last year, foreclosure problems surfaced in courts across the country, leading to moratoriums, federal and state investigations. In April, the Federal Reserve, the Office of the Comptroller and the Currency and the Office of Thrift Supervision settled their investigations with 14 mortgage servicers.

LPS also was required to sign a consent order with the Fed for executing and recording "numerous affidavits, assignments of mortgages, and other mortgage-related documents that contained inaccurate information." LPS was forced to implement new oversight plans to manage its processes.

More from Housing Wire

Freddie Mac releases Loan Mod Figures

(Past member) — Thu, 28 Jul 2011 14:44:20 GMT

Tuesday, July 26th, 2011, 1:15 pm

Freddie Mac completed 10,809 loan modifications in June and slightly more than 66,000 during the first half of the year, according to the company's latest monthly volume summary.

The monthly average is up from 8,891 loan modifications in May.

More from Housing Wire

MERS: File Assignments back to Owner Before Foreclosing

(Past member) — Thu, 28 Jul 2011 14:31:36 GMT

Following a series of cases splitting on the question of whether MERS is a proper party to foreclose. Mortgage Electronic Registration Systems, Inc. (MERS) is withdrawing from the foreclosure business.

The organization has issued a policy update to its members stating that no foreclosure proceeding may be initiated in the name of MERS and no legal proceedings in a bankruptcy may be filed in the name of MERS.

Before a lender or investor starts a foreclosure or files a bankruptcy motion, they must execute an assignment of the security instrument from MERS to themselves as the mortgagee and record the transfer with the applicable county clerk or public land records office, MERS said.

Federal Tax Lien Registry

(Past member) — Tue, 26 Jul 2011 01:26:34 GMT

Senators Carl Levin (D-MI) and Mark Begich (D-AK) have introduced legislation (S. 1390) that would require the IRS to file tax liens in a centralized electronic database instead of in the local property records office. As the Senators envision it, the electronic registry would be accessible by the public and free to search and would index liens by "at a minimum, taxpayer name, the State of the taxpayer's address as shown on the notice of lien, the type of tax, and the tax period." The Senators argue that this bill would save $150 Million a year and help reduce the amount of time necessary to release a tax lien down from 30 days to 20 days. More information about the bill can be found here.

Many think this would be a disaster for traditional search and examination procedures. We have enough problems dealing with “common names” in large counties. It would be all but impossible to sort out all of the “John Smith” entries in a national registry to focus only on those tax liens which might affect a given property.

The practical reality is that such a law will likely lead to a further erosion of search standards to essentially ignore (and insure over) tax liens against certain common names, simply because there is no practical way to sort them out. Ironically, this could actually reduce IRS tax collections, because the title industry would no longer have any practical ability to assist in their collection.

ALTA is already working on this issue. If you have any thoughts on how this proposal would reduce efficiency for title processes please forward them to Kelley Williams ALTA Manager of Government Affairs at kwilliams@alta.org.

Tax Credit Had ‘Fleeting’ Effect on Housing

(Past member) — Wed, 20 Jul 2011 14:50:59 GMT

Critics of last year’s $8,000 tax credits for home purchases routinely argued that the credits were unlikely to do more than offer sellers the chance to boost their sale price by the amount of the tax credit.

Those critics won’t be surprised, then, by a new paper that findsundefinedyou guessed itundefinedthat average listing prices rose by around $8,000 in the month after the signing of the first major tax credit, and that they fell by slightly less than $9,000 two months after the tax credits expired.

More from the Wall St. Journal

GAO Evaluates Dodd-Frank impact on Mortgage Market

(Past member) — Wed, 20 Jul 2011 14:08:26 GMT

GAO examined five of the nine qualified mortgage criteria specified in the DoddFrank Act for which sufficient data were available and generally found that, for

each year from 2001 through 2010, most mortgages would likely have met the

individual criteria. The five criteria address payment of loan principal, length of

the mortgage term, scheduled lump-sum payments, documentation of borrower

resources, and borrower debt burden.

The impact of the full set of qualified mortgage criteria is uncertain, partly because data limitations make analysis of the other four criteria difficult and partly because federal agencies could establish different criteria as they develop final regulations. Consumer and industry groups indicated that the criteria specified in the act would likely encourage sound underwriting but could also restrict the availability of and raise the cost of

mortgage credit for some homebuyers.

The full report can be accessed here

Gov. Scott Calls for Lower Title Insurance Rates

(Past member) — Tue, 19 Jul 2011 21:01:50 GMT

In his signing letter for HB 1007, which created a mechanism for dealing with title insurer insolvencies, Governor Scott pointed out his opposition to the provisions passing the cost of dealing with insolvencies on to consumers and called on the cabinet to join him in lowering title insurance premiums commensurate with the assessment.

FLTA will be working with the Governor and members of the Cabinet to prevent an arbitrary rate adjustment not supported by a proper data call and evaluation.

A copy of the Signing Letter can be reviewed here

President appoints Ohio AG to head CFPB

(Past member) — Tue, 19 Jul 2011 20:58:32 GMT

President Barack Obama said Sunday he would nominate former Ohio Attorney General Richard Cordray to head the consumer finance watchdog agency created in the wake of the 2008 financial crisis.

During two years as Ohio's attorney general, Mr. Cordray was a leader among state regulators who challenged banks over their mortgage foreclosure practices. Among other things, the CFPB will be responsible for enforcing RESPA and providing a consolidated GFE and TILA disclosure.

Fidelity hires Former Deputy Insurance Commissioner of California

(Past member) — Tue, 19 Jul 2011 20:46:32 GMT

Fidelity National Financial Inc. announced the appointment of Sherwood "Woody" Girion as senior vice president, government relations.

Girion most recently served as the California deputy commissioner of insurance, financial surveillance branch and previously served as the deputy commissioner of rate regulation and the deputy commissioner of consumer services and market conduct.

Robo-Signing hasn't Stopped?????

(Past member) — Tue, 19 Jul 2011 20:32:22 GMT

In an AP exclusive, it was reported that mortgage industry employees are still signing documents they haven't read and using fake signatures more than eight months after big banks and mortgage companies promised to stop the illegal practices that led to a nationwide halt of home foreclosures.

County officials in at least three states say they have received thousands of mortgage documents with questionable signatures since last fall, suggesting that the practices, known collectively as "robo-signing," remain widespread in the industry.

GOP gets one last shot at Consumer Protection bureau before it opens

(Past member) — Mon, 11 Jul 2011 21:59:44 GMT

When Consumer Financial Protection Bureau architect Elizabeth Warren testifies before the House Oversight Committee on Thursday, Republicans will get one last chance to air public critiques of the CFPB before the new agency begins its work.

Why Real Estate May Be The Buying Opportunity of the Decade

(Past member) — Mon, 11 Jul 2011 21:54:06 GMT

No one knows what the economy or the stock market will do over the next six months. But when your time horizon is 20 years, the outlook is actually a lot clearer. And right now, all the trends are lining up to make real estate a fantastic long-term buy.

Read more: http://moneyland.time.com/2011/07/11/real-estate-the-buying-opportunity-of-a-lifetime/#ixzz1Rpu7Jgq0

Fidelity settles with HUD over mortgage kickback claims

(Past member) — Mon, 11 Jul 2011 21:48:38 GMT

The Department of Housing and Urban Development struck a $4.5 million settlement withFidelity National Financial over claims the title company paid real estate brokers kickbacks and referral fees in violation of the Real Estate Settlement Procedures Act.

House resolution advocates temporary foreclosure moratorium

(Past member) — Mon, 11 Jul 2011 21:46:52 GMT

Rep. Marcy Kaptur (D-Ohio) introduced a House resolution that would establish a temporary national foreclosure moratorium.

Kaptur submitted H.R. 344 to the House Financial Services Committee on July 8, which called on President Obama to declare "a national residential mortgage foreclosure emergency" and encouraged individual states to enact the moratorium.

Pictures of Rule Redrafting Committee Posted

(Past member) — Sat, 09 Jul 2011 19:13:52 GMT

Pictures of Rule Redrafting Committee have been Posted to FLTA's Facebook site. You can view them here.

ALTA Addresses Problems of Roll-up Lines and Lack of Itemization on HUD-1

(Past member) — Fri, 08 Jul 2011 17:05:52 GMT

One significant change to the RESPA rule adopted in November 2008 and implemented in January 2010 was the introduction of “roll up” lines and aggregate line item totals on the HUD-1 Settlement Statement. This concept was designed to help consumers shop for settlement services by making it simpler to aggregate classes of charges. While HUD’s stated goal was improving consumer understanding of charges, roll ups have not been an effective tool for achieving this transparency and simplicity, and itemization of charges is a more logical solution, ALTA’s RESPA Task Force wrote in a paper addressing RESPA reform.

More from ALTA

Florida Senate Evaluates Bad Faith Insurance Claims

(Past member) — Fri, 08 Jul 2011 15:13:52 GMT

As one of its interim projects, the Florida Senate will be reconsidering the area of the law surrounding "Bad Faith" claims regarding insurance settlement practices.

While there has long been a duty for an insurer to act in good faith as to their insureds, Gwynne Young (Pres. Elect of the Florida Bar and active RPPTL Member) and Johanna Clark pointed out in a recent Florida Bar Article the relatively new practice of intentionally setting up a "Bad Faith" claim with unreasonable demands, conditions and other "tricks" in order to elevate a claim beyond policy limits.

A copy of their Bar Journal article can be read here.

And here is the link to the Senate Project Summary. It is part of a long document, so search for project 2012-132

The title industry lobby team is evaluating whether we, as an industry, should provide the senate with specific examples of problems affecting the title insurers.

Senate Studies Vexatious Land Use Legislation

(Past member) — Fri, 08 Jul 2011 14:58:05 GMT

The Senate has announced a series of interim projects under consideration. One of them will be addressing vexatious Litigation and so called SLAP suits (Strategic lawsuits against public participation).

Here is a summary of the issues they plan to address:

Vexatious Litigation

DATE DUE: September 1, 2011

PROJECT NUMBER: 2012-212

During the 2011 legislative session, concern was raised that land use laws, regulations, and local land use ordinances were being abused by individuals or organizations that file lawsuits in bad faith for financial gain. Although s. 163.3184, F.S., requires good faith filing, there was interest in finding out whether the protections already in place for landowners could be strengthened without harming affected citizens’ access to courts.

Number of Licensed Title Agents

(Past member) — Thu, 07 Jul 2011 19:51:13 GMT

Licensed Title Agents and Agencies in Florida
as of July 1, 2011:

License	Lic. Type	Appointed	Not Appointed
Resident Title Agent	04-10	2,626	5,446
Non-resident Title Agent	94-13	204	570
Total:		2,830	6,016

Resident Title Agency	04-12	1,542	1,710
Non-resident Title Agency	04-13	192	241
Total		1,734	1,951

Compliments of the Florida Department of Financial Services

We Hope None of Our Members are Ever Affected by This!!

(Past member) — Thu, 07 Jul 2011 19:17:49 GMT

Ray Wenger, as part of his continued outreach on behalf of the Department of Financial Services, suggested we remind our members that Florida Statutes §626.641 was revised last year to include subsection (3)(b):

(3)(a) If any of an individual’s licenses as an agent or customer representative or the eligibility to hold such license or licenses has been revoked at two separate times, the department may not thereafter grant or issue any license under this code to such individual.

(b) If a license as an agent or customer representative or the eligibility to hold such a license has been revoked resulting from the solicitation or sale of an insurance product to a person 65 years of age or older, the department may not thereafter grant or issue any license under this code to such individual.

This statute DOES apply to title insurance agents and agencies. That means a title agent or agency who issues a title insurance policy on a person who is age 65 or older and the transaction is found to violate the Florida Statutes, could find that their license is revoked and they would not be eligible to reinstate that license because of this statute.

This statute can dramatically increase the be extremely important to an agency specializing in reverse mortgage closings.

It will also apply if an agent or agency fails to respond to an administrative complaint against their license and the complaint includes an allegation involving a senior citizen. The license may be revoked under the Florida Statutes and the statute above would prevent the license from EVER being reinstated.

Fannie Mae - The Cost Of Owning 150,000 Foreclosed Homes

(Past member) — Thu, 07 Jul 2011 19:11:44 GMT

Something we don't often think about:

When you are the nation's largest owner of foreclosed homes, even little things can get expensive fast. Such is the case for mortgage giant Fannie Mae, which as of March 31 had a mind-boggling 153,000 foreclosed homes on its books.

Treasury considering Short Sale Changes

(Past member) — Wed, 06 Jul 2011 17:13:08 GMT

The Treasury Department is considering more changes to the Home Affordable Foreclosure Alternatives program in order to boost short sales and deeds-in-lieu of foreclosure, according to officials administering the initiative.

More from Housing Wire

Call For Action -- National Flood Insurance Program

(Past member) — Wed, 06 Jul 2011 17:10:48 GMT

From ALTA

The National Flood Insurance Program (NFIP) has lapsed ten times since Sept. 30, 2008. Each lapse has delayed closings and caused considerable uncertainty for buyers, sellers and lenders. These disruptions cost title and escrow businesses’, lenders’, and consumers’ time, money and unnecessary worry.

Congress will consider a long term extension of NFIP on the House floor this Thursday, July 7^th. Lend your voice and help avoid the costly delays of a repeat lapse of NFIP.

Contact your Members of Congress today to let them know that you strongly support a long-term, sustainable extension of NFIP.

CLICK HERE TO CONTACT YOUR REPRESENTATIVE!

Thank you for taking action!

Should Rebating Statute apply to Title Insurance?

(Past member) — Wed, 06 Jul 2011 14:43:57 GMT

At today's Agents Section Call, Norwood Gay suggested we evaluate making F.S. 626.572 applicable to title insurance. There are pros and cons to this approach and it merits further discussion.

The current statute reads as follows:

626.572 Rebating; when allowed.undefined

(1) No insurance agency agent shall rebate any portion of a commission except as follows:

(a) The rebate shall be available to all insureds in the same actuarial class.

(b) The rebate shall be in accordance with a rebating schedule filed by the agent with the insurer issuing the policy to which the rebate applies.

(c) The rebating schedule shall be uniformly applied in that all insureds who purchase the same policy through the agent for the same amount of insurance receive the same percentage rebate.

(d) Rebates shall not be given to an insured with respect to a policy purchased from an insurer that prohibits its agents from rebating commissions.

(e) The rebate schedule is prominently displayed in public view in the agent’s place of doing business and a copy is available to insureds on request at no charge.

(f) The age, sex, place of residence, race, nationality, ethnic origin, marital status, or occupation of the insured or location of the risk is not utilized in determining the percentage of the rebate or whether a rebate is available.

(2) The insurance agency agent shall maintain a copy of all rebate schedules for the most recent 5 years and their effective dates.

(3) No rebate shall be withheld or limited in amount based on factors which are unfairly discriminatory.

(4) No rebate shall be given which is not reflected on the rebate schedule.

(5) No rebate shall be refused or granted based upon the purchase or failure of the insured or applicant to purchase collateral business.

Senate Judiciary Committee Studies Foreclosure Issues

(Past member) — Wed, 06 Jul 2011 01:38:34 GMT

The Judiciary Committee of the Florida Senate has an interim project to present issues and options related to expediting the foreclosure process, including the implementation of nonjudicial foreclosure or other options, should the Legislature desire to establish a new process in this state. Among other elements, the project will review the existing judicial process and efforts being made to facilitate that process; analyze the extent to which states can implement nonjudicial foreclosure in the residential context, in light of federal law changes; review the experiences of other jurisdictions that use nonjudicial foreclosure; consider due process, fiscal, and other issues related to use of nonjudicial foreclosure; and address, in particular, the application of nonjudicial foreclosure in the commercial property context.

So please expect a busy legislative session again trying to get a better handle on the Florida Foreclosure Crisis.

More Bad Servicer Practices Coming?

(Past member) — Wed, 06 Jul 2011 01:17:06 GMT

Fannie Mae will retroactively charge mortgage servicers for failing to process severely aged loans.

The government-sponsored enterprise sent an alert to servicers in the first quarter of 2011, saying it would issue fees going forward. But last week, under guidance from its regulator the Federal Housing Finance Agency, Fannie alerted servicers it would levy fines for actions taken – or in this case not taken – in 2010.

HUD issues SAFE Act Rule

(Past member) — Wed, 06 Jul 2011 01:08:40 GMT

HUD has issued minimum standards that states must meet to comply with the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act) in licensing mortgage loan originators (Final Rule).

More for ALTA members

The Final Rule

Military Financial Services Provider Purchases National Title Company July 5, 2011

(Past member) — Wed, 06 Jul 2011 01:06:15 GMT

USAA's real estate subsidiary, USAA Real Estate Co., has entered into an agreement to purchase United Lender Services, a Pittsburgh-based title insurance agency.

more for ALTA members

HUD to give away $1 billion to struggling homeowners

(Past member) — Wed, 06 Jul 2011 01:02:40 GMT

In June, the newly launched $1 billion Emergency Homeowners’ Loan Program, or EHLP, became available to homeowners who are among the most difficult to help: those who fell behind on their payments because of job loss or unexpected medical bills. For many of them, it might be the last chance to save their homes.

Exceptions to Form 9 Coverage must be Express

(Past member) — Wed, 06 Jul 2011 00:57:40 GMT

The Form 9 series of endorsements provide some valuable coverages for lenders and owners, over and above what is covered by the basic title policy. And it takes additional work and examination in order to underwrite and issue. That's why they carry a 10% additional premium in Florida.

So we wanted to reiterate what we have all been taught over the years. That when you are taking exceptions to the coverages provided in any of the form 9 series of endorsements -- the exception must be express, not simply a general reference to "covenants recorded in O.R. Book ...." (after all, if that general exception worked, the Form 9 wouldn't provide any meaningful coverage).

Although less detailed exceptions might be upheld by the courts, the better practice -- where the Declaration of Condominium or restrictive covenants include a payment requirement or a right of first refusal or any of the other matters covered by the version of form 9 you plan to issue -- is to first take the general exception for the Declaration, then spell out that it includes the specific item (ideally with a page number reference for the offending matter), and then to expressly state that coverage under any form 9 endorsements is not available for this matter.

Each underwriter has their own standards and suggested language for taking exceptions to form 9 coverage.

Please take a few minutes to refresh yourself as to the coverages being provided under Form 9, and check with your underwriter as to their preferred language for exceptions and the search and examination standards you are expected to follow when writing on that company.

Are Clerk Audits coming to Florida? Audit by Mass Recorder reveals 75% of Assignments of Mortgage Fraudulent or Suspect

(Past member) — Fri, 01 Jul 2011 21:27:51 GMT

Yesterday [June 28, 2011] at the Annual Conference of The International Association of Clerks, Recorders, Election Officials and Treasurers (IACREOT), Register John O’Brien revealed the results of an independent audit of his registry. The audit, which is released as a legal affidavit was performed by McDonnell Property Analytics, examined assignments of mortgage recorded in the Essex Southern District Registry of Deeds issued to and from JPMorgan Chase Bank, Wells Fargo Bank, and Bank of America during 2010. In total, 565 assignments related to 473 unique mortgages were analyzed.

McDonnell’s Report includes the following key findings:

Only 16% of assignments of mortgage are valid
75% of assignments of mortgage are invalid.
9% of assignments of mortgage are questionable
27% of the invalid assignments are fraudulent, 35% are ”robo-signed” and 10% violate the Massachusetts Mortgage Fraud Statute.
The identity of financial institutions that are current owners of the mortgages could only be determined for 287 out of 473(60%)
There are 683 missing assignments for the 287 traced mortgages, representing approximately $180,000 in lost recording fees
per 1,000 mortgages whose current ownership can be traced.

When will we see this type of systemic evaluation in Florida?

Mortgage fraud reports rise 31% in 1Q

(Past member) — Thu, 30 Jun 2011 18:55:49 GMT

Mortgage fraud reports grew 31% in quarter one as lenders probed deeper into their pools of distressed assets looking for signs of fraud and theft.

The Financial Crimes Enforcement Network, which is part of the Treasury Department, released its first-quarter Mortgage Loan Fraud report Tuesday, which shows suspicious mortgage activity reports growing to 25,485 complaints in first quarter, up from 19,420 last year.

Fannie Mae Silence on Taylor Bean let Fraud Continue

(Past member) — Thu, 30 Jun 2011 18:10:41 GMT

The first sign of what would ultimately become a $3 billion fraud surfaced Jan. 11, 2000, when Fannie Mae executive Samuel Smith discovered Taylor, Bean & Whitaker Mortgage Corp. sold him a loan owned by someone else.

Fannie Mae, the government-sponsored enterprise which issues almost half of all mortgage-backed securities, determined over the next two years that more than 200 loans acquired from Taylor Bean were bogus, non-performing or lacked critical components such as mortgage insurance.

OCC Guidance on Foreclosure Processes

(Past member) — Thu, 30 Jun 2011 17:31:19 GMT

FROM ALTA

OCC issued Supervisory Guidance 2011-29, clarifying the standards expected of national banks and their servicing companies. Among other standards announced, the Guidance provides:

Management should ensure that foreclosure governance processes are sufficient to manage and control operational, compliance, legal, and reputation risk associated with foreclosure activities. Boards of directors should ensure that management has addressed these areas.
Borrowers are often confused when a servicer is working with them to modify their mortgage but continues with legal proceedings related to foreclosure. To reduce this confusion, management should suspend foreclosure proceedings for successfully performing trial period modifications where they have the legal ability to do so under servicing contracts.
Management must ensure that attestations in foreclosure-related affidavits are truthful, accurate, and adequately supported by file documentation, that affiants have sufficiently reviewed the documentation and have adequate knowledge to make the attestations, and that notary practices conform to state legal requirements.
Management must ensure that all documents required supporting lawful foreclosure actions are maintained and have been properly endorsed or assigned.

(emphasis added). The complete guidance can be accessed here.

Chase & FDIC v. First American -- CPL Independent of Policy Coverage

(Past member) — Wed, 29 Jun 2011 15:41:46 GMT

Here is an interesting case from the Federal Court in the Eastern District of Michigan defines the interaction between a Closing Protection Letter and claims under the title policy, basically holding that they are wholly independent obligations, which may be pursued separately.

How this ruling will affect practices in the industry remains to be seen, but it certainly seems to increase a title insurer's risk.

Link to Case

Declines in Home Prices Ease

(Past member) — Wed, 29 Jun 2011 14:50:16 GMT

Home prices slowed their pace of decline in April, feeding hope that housing is near a bottom. But tens of thousands of foreclosures and faltering consumer confidence are expected to leave markets bumping near their current level for the rest of the year.

Bank of America agrees to $8.5 Billion Settlement on Mortgage Backed Securities

(Past member) — Wed, 29 Jun 2011 14:48:05 GMT

Bank of America Corp. reached an agreement to pay $8.5 billion to settle claims by investors who lost money on mortgage-backed securities purchased before the U.S. housing collapse, the bank confirmed Wednesday morning.

More CFPB forms for Comment

(Past member) — Tue, 28 Jun 2011 17:30:44 GMT

The Consumer Financial Protection Bureau is asking the mortgage finance industry to comment on a second set of prototype mortgage disclosure forms.

The forms are part of the CFPB's plan to design and reveal sample mortgages, with the aim of rolling the forms into the marketplace to simplify home loan documents for homebuyers.

To offer comments directly to CFPB and to review the forms,

click Here

The click "Switch to Industry Tool" choice (to the right of the Green "Consumer Tool" button

It will present both forms and you can provide your comments and feedback directly to the CFPB.

Please review these forms and offer your comments and suggestions

South Florida No. 2 on mortgage fraud risk list

(Past member) — Tue, 28 Jun 2011 17:28:15 GMT

South Florida's mortgage fraud risk index spiked 10 percent during the first part of the year, shooting the region to second place nationally for potential housing scams.

Gov Scott Signs Insurer Insolvency Bill

(Past member) — Mon, 27 Jun 2011 21:15:20 GMT

This morning Governor Scott signed HB 1007 into law. This bill includes the provisions which we expect will avoid the need to terminate the outstanding title insurance policies issued by a failed insurer. Instead it creates a mechanism by which the those policies will be assumed by another underwriter and paid for, over time, with a per policy consumer assessment.

More information on that will be forthcoming from your underwriters.

Federal Prosecutors Seek Life Sentence for Mortgage Fraud Mastermind Lee Farkas

(Past member) — Sun, 26 Jun 2011 20:05:40 GMT

Alexandria, Va.

Federal prosecutors are seeking a life sentence for the man convicted of orchestrating a $3-billion fraud while running what had been one of America's largest private mortgage companies.

More from the Zone 4 Meeting -- Charging for Digital Docs, e-recording, etc.

(Past member) — Sun, 26 Jun 2011 02:12:57 GMT

In the course of his presentation, Ray Wenger made the point that the Department's view is that separate charges for digital docs, e-recording and the like need to be "rolled up" into the closing services fee rather than charged separately.

(While it is perfectly appropriate to provide the customer with a separate breakout of what is included in the closing services charge -- the total amount must be included on line 1101 of the HUD-1 and measured against GFE tolerances. -Alan)

Refunding Overcharges

(Past member) — Sun, 26 Jun 2011 02:09:33 GMT

The Zone 4 meeting was a wealth of information.

Ray Wenger, from the Department of Financial Services, explained that in the course of their audits they review trust accounts for un-refunded "over-charges." While he acknowledged that most overcharges are small in amount (often from inaccurate page counts for recording), they do add up to sometimes substantial amounts.

He stressed, that regardless of the amount of the overcharge, it is not the agent's money -- and must be refunded to the rightful owner.

Charging for Commitments/Binders

(Past member) — Sun, 26 Jun 2011 02:05:30 GMT

Another interesting point Ray Wenger made in his presentation, was that under s. 627.7831, it is not mandatory that a title agent charge for the binder or commitment in residential transactions. But neither is an agent prohibited from charging for his residential commitments.

Prohibition on Paying Commissions to Marketing Reps

(Past member) — Sat, 25 Jun 2011 22:53:02 GMT

Ray Wenger from the Department of Financial Services was our guest speaker at the FLTA Zone 4 meeting yesterday (6-24-11). And as always, Ray gave a great presentation and valuable insights into the thinking of our regulators. One of the topics discussed was the Department’s view that Florida Statutes §626.112 prohibits an Agency from paying its unlicensed marketing reps a commission based on the premium or number of title insurance policies sold.

He also indicated that the Department was enforcing violations of this statute and assessing fines and other penalties.

As one would expect, this generated a great deal of concern and discussion as to how an agency could legally compensate and incentivize its “true” employees. Ray did indicate his unofficial view that compensating “true” employees based on a share of the agency’s profitability, gross revenue or the profitability or gross revenue of an individual office would be legally permissible under §626.112. FLTA will be working with the Department to obtain further clarification of their position and guidance.

A more detailed bulletin is attached here.

In the meantime, please share your thoughts on how this prohibition is likely to affect your business.

Four of Conspirators in Sarasota Flipping Case Plead Guilty

(Past member) — Fri, 24 Jun 2011 22:46:53 GMT

TAMPA - Four members of the alleged Craig Adams mortgage fraud conspiracy appeared Thursday before a federal magistrate, pleading guilty to one of the largest mortgage fraud cases in Florida history and being assured by the judge that they all would face prison time.

Herald Tribune Article

OFAC Tightens Libya Sanctions

(Past member) — Fri, 24 Jun 2011 22:41:33 GMT

From ALTA

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) took a series of actions to further tighten U.S. sanctions against the Government of Libya. “The Treasury Department is carefully monitoring Libyan-associated entities worldwide to ensure that they are not attempting to evade sanctions and assist the Qadhafi regime,” said OFAC Director Adam Szubin. “We will remain vigilant in our efforts to isolate the Qadhafi regime from the international financial system.”

Title and settlement agents should be reminded they need to be in compliance with requirements against doing business with targeted foreign countries, terrorists and others targeted by OFAC. Imposing Blocking Requirements on Three Foreign Libyan-owned Banks

Get Ready for Second Round of CFPB’s Draft Mortgage Disclosure Form

(Past member) — Fri, 24 Jun 2011 22:39:11 GMT

From ALTA

If you remember the headaches caused by HUD’s RESPA reform in 2009, it’s vital ALTA members provide feedback as the Consumer Financial Protection Bureau (CFPB) attempts to combine the Truth in Lending Act (TILA) disclosure and the Real Estate Settlement and Procedures Act's Good Faith Estimate (GFE).

The CFPB is expected to release its second draft of the combined mortgage disclosure form next week and will begin discussing a new HUD-1 in the near future. In May, the CFPB released two initial prototypes, calledFicus Bank (Prototype 1) and Pecan Bank (Prototype 2). The CFPB accepted public comments on the draft forms for about a week. ALTA’s RESPA Task Force preferred the layout of the Ficus Bank form compared to Pecan Bank.

Once the CFPB releases its second round of the draft form, it will once again accept public comment for at least seven days.

The U.S. Supreme Court to Hear RESPA Case

(Past member) — Fri, 24 Jun 2011 22:16:27 GMT

From ALTA

The U.S. Supreme Court will review a case that could have a significant impact on who has the right to sue for damages under the Real Estate Settlement and Procedures Act.

This case, First American Financial Corporation v. Edwards, involves a basic question of constitutional law addressing who has standing to bring a lawsuit under RESPA. Edwards sued First American over an alleged kickback under Section 8 of RESPA despite not alleging she was overcharged for title insurance or harmed in any other way. Typically, consumers are only entitled damages when they can prove they were actually injured.

more

Proposed Designation Rule Updated

(Past member) — Wed, 22 Jun 2011 03:50:27 GMT

Today, the DFS circulated a revised draft of their Designation Rule. The rule would place restrictions on the use of various professional designations in connection with insurance (including the CLC/CLS designations and potentially earned degrees).

FLTA has requested a public hearing which will be held Tuesday, July 26, 2011, at 11:00 a.m. in Room 116 of the J. Edwin Larson Building, 200 E. Gaines Street, Tallahassee, FL 32399 .

For more information, a draft of the proposal and FLTA's response to the prior draft, click here

CFO Atwater warns of Unauthorized Insurers

(Past member) — Wed, 22 Jun 2011 02:34:12 GMT

CFO Jeff Atwater's office asked that we remind our members that it is illegal to write title insurance policies on insurers who are not currently authorized in Florida; and that any agent or other person who, directly or indirectly, aids or represents an unauthorized insurer can lose their licenses or face other disciplinary sanctions. A copy of his memorandum can be accessed here.

Agencies writing policies in multiple states are at particular risk of inadvertent violations -- simply by grabbing the wrong policy jacket for a Florida transaction.

While it is not addressed in this memorandum, it is also a violation to issue an unauthorized policy form insuring Florida real property. The 2006 policy forms approved in Florida differ from the ALTA standards in some key respects -- so make certain that you are only issuing policy and endorsement forms "with Florida modifications" on your Florida transactions.

Broward Clerk is NOT the Recorder

(Past member) — Sat, 18 Jun 2011 16:08:59 GMT

People are still sending recordings to the Clerk's office in Broward. After a delay, these documents are (hopefully) returned unrecorded. Recognizing the problems this may cause -- and because they want to do a good job for their customers -- the Broward County Records Division has asked that we remind our members:

BROWARD COUNTY , THE OFFICE FOR RECORDING DOCUMENTS

IS NOT ASSOCIATED WITH THE CLERK OF COURTS. IT IS:

THE BROWARD COUNTY

RECORDS, TAXES & TREASURY DIVISION.

PLEASE SEND YOUR DOCUMENTS FOR RECORDING TO:

RECORDING SECTION

115 South Andrews Avenue

Room 114

Fort Lauderdale, Florida 33301

REQUEST CERTIFIED COPIES OF PREVIOUSLY RECORDED DOCUMENTS FROM:

SEARCH & COPY SECTION

115 South Andrews Avenue

Room 119

Fort Lauderdale, Florida 33301

CHECKS MUST BE MADE PAYABLE TO:

BROWARD COUNTY

BOARD OF

COUNTYCOMMISSIONERS

BROWARD COUNTY BOCC

WHEN RECORDING BY MAIL, INCLUDE A SELF ADDRESSED,

POSTAGE PAID RETURN ENVELOPE OF SUFFICIENT SIZE

TO HOLD YOUR DOCUMENTS.

AVOID POTENTIAL DELAYS IN SERVICE

by complying with this information.

THANK YOU !

OUR WEBSITE:

www.broward.org/records

PHONE: (954) 831-4000

Qualified Residential Mortgage

(Past member) — Fri, 17 Jun 2011 19:39:57 GMT

FROM ALTA -- GRASSROOTS ACTION ALERT

Soon, liquidity in mortgage finance will be dictated by government regulations under the definition of a Qualified Residential Mortgage (QRM).

Dodd-Frank requires lenders to retain 5% of the risk of all mortgages that they sell to investors. The QRM is important because it exempts certain types of mortgages from Dodd-Frank's risk retention requirement.

Regulators have gone too far and said that only mortgages with a 20% down payment will be considered a QRM. That means you can expect most lenders will be offering 80/20 LTV mortgages and few other options.

Recently, over 200 members of Congress sent a letter to regulators asking them to reconsider QRM definition, including the negative impact a 20% down payment requirement would have on real estate markets. These lawmakers recognize that income verification, credit history and job security are more important to successful mortgage lending than a hefty down payment.

It is important that Members of Congress that have not signed the letter yet hear from you. Help stop real estate markets from getting worse! You can help by contacting your Member of Congress and asking them to sign onto this important letter to regulators

CLICK HERE to Contact Your Member of Congress!

Passidomo Fair Foreclosure Act

(Past member) — Wed, 15 Jun 2011 17:37:07 GMT

Representative Kathleen Passidomo (R-Naples) is continuing her efforts to address Florida's foreclosure crisis and has reached out to FLTA and the Real Property, Probate, and Trust Law Section of the Florida Bar for assistance in crafting that solution.

We are honored to have been asked to provide input at this early stage in the process.

Transferee Tax Liability

(Past member) — Sun, 01 May 2011 23:17:14 GMT

On Friday, the House passed HB 907, which includes the FLTA's language excluding most real property transfers as triggering events for transferee liability. Absent that exclusion, a title agent would be responsible for seeking a tax clearance certificate in almost every sale.

Short Sale UPL

(Past member) — Sun, 01 May 2011 23:02:24 GMT

The Florida Bar unlicensed Practice of Law committee will accept additional testimony regarding whether the handling of a short sale by a title agent constitutes the Unlicensed Practice of Law.

Comments should be routed to:

Jeffrey T. Picker, Esq.

Assistant UPL Counsel

The Florida Bar

651 East Jefferson Street

Tallahassee, Florida 32399-230