Title Insurance Talk

consumers suffering in the wake of the crappy standards era

2012-01-26T16:29:00.001-05:00

Roy, a truck driver, and Sheila, a former hotel housekeeping supervisor, knew their new loan from Wells Fargo would enable them to save $198.86 a month - a nice chunk to help with gas and groceries. But what the Bowers never imagined was that their old loan, the one Wells Fargo told them was paid off, would resurrect itself, trashing their credit report, scotching their son's student loans

"government sponsored enemies" ????

2012-01-25T08:53:00.001-05:00

“These government-sponsored enemies in the case of Freddie Mac and Fannie Mae are a large reason our housing crisis has occurred,” said Romney, who stood on a podium in front of a home that once belonged to Chris and Bridgette Davis, who saw their home foreclosed on in June 2011, according to public records. “I am running against a guy in this primary, who was out working for one of these

on the Countrywide VIP program

2012-01-18T09:43:00.000-05:00

Cummings also revealed an internal email at Countrywide from Brandt that alleges Mozilo's role in approving McKeon's loan. "Per Angelo — 'take off 1 point, no garbage fees, approve the loan and make it a no doc,'" Brandt wrote to staff, according to Cummings' letter. Read more on Housing Wire. I have to say my gut reaction to this program and how it worked has always been that Angelo

query: error on the HUD-1 fraud

2012-01-17T08:27:00.001-05:00

Hmmm.... This isn't real clear but since you mention fraud, first consider if you have suffered a loss as a result of the fraud. If so, you may have a claim against your title insurer. If your concern is making things right and perhaps just reporting a bad guy, do a certified letter to the title insurance company with copies to the state insurance regulator, the state attorney general and the

the important question is...

2012-01-15T14:21:00.002-05:00

How could a title agent, even one who is an attorney, get away with this crap without being discovered by his underwriter in routine audits? I think the underwriter ought to be held accountable for the negligence of not having kept a close eye on an agent. Failed to record 3000 documents? That didn't happen overnight. Jonas, as an owner of two title companies, failed to record more than

CFPB examines high risk lending

2012-01-12T10:12:00.000-05:00

If a lender offers non-traditional or subprime loan products and also offers loans that have two or more risky characteristics, the examiners must determine whether the increased risks are taken into account as part of the underwriting policies. They must also examine whether any mitigating factors are required for approval and whether actual underwriting practices conform with policies.

Who is the lender named on the HUD-1 form?

2012-01-11T11:01:00.001-05:00

First I think we need to recognize that the primary purpose of the HUD-1 is consumer disclosure. Until yesterday, every HUD-1 I have ever produced disclosed the name and address of the mortgage lender named in the NOTE and MORTGAGE. Simple. Yesterday, we had a transaction with a retail lender who was working with a wholesaler who called themselves a warehouse lender but really acted like a

lingo for a non-borrower co-mortgagor

2012-01-05T09:46:00.001-05:00

This is the language we add in mortgages when there is a vested owner who is not a borrower on the loan: The co-mortgagor, _____, has an ownership interest in the real property described herein and has joined in this Security Instrument for the sole purpose of validating the lien. Said co-mortgagor is NOT a Borrower on the Promissory Note referenced in this Instrument and his joinder in this

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

2011-12-30T18:09:00.000-05:00

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

Is flood zone determination covered by title insurance?

2011-12-27T14:11:00.000-05:00

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

on Southern Title

2011-12-22T08:35:00.001-05:00

Southern Title voluntarily suspended the issuance of new title policies on Sept. 15. The SCC issued an order of suspension Sept. 19. An impairment order was issued by the SCC on Nov. 4 because the company no longer met minimum capital and reserve requirements. Virginia Commissioner of Insurance Jacqueline K. Cunningham has been appointed deputy receiver in an effort to rehabilitate the

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

2011-12-20T10:38:00.000-05:00

The attorneys general also argued that it would be senseless to assume Congress carved out an exception that would allow brokers and lenders to charge unearned fees as long as they did not share them with another party. “[T]he harm to the consumer — and the abusiveness of the broker or lender’s practice — is the same regardless of whether an unearned fee is divided,” the attorneys general

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

2011-12-19T11:24:00.000-05:00

Hmmmm...popular subject this weekend. Yes, it is possible to pay a title insurance company for title insurance and then they fail to provide a policy. It shouldn't happen but it does. I received another query via email this weekend from a real estate agent representing a seller with a PA inheritance tax matter and a refusal from their title insurance company to deal with the matter. Why?

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

2011-12-12T14:47:00.001-05:00

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

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

2011-12-11T08:10:00.001-05:00

Hello Diane, My name is Gerald and I noticed your Blog re: Title Ins. said to email you with questions and . . . . ok here goes - 100% DISABLED Person living on fixed - (lower income) 1) My First time for a Title insurance claim - I have NO IDEA what to expect or ask for - ? My home is paid for but am facing Tax default / Tax Sale March 20, 2012. I paid 85,000 in 2005 for a cabin on one

legislation moving on home warranties

2011-12-09T06:58:00.001-05:00

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

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

2011-12-07T08:09:00.001-05:00

I'm guessing this is a home warranty, the type that real estate agents sell. Though the home warranty benefits the buyer, it's the seller who usually pays for it as an inducement to help move the property. The real estate agent may also receive a commission for selling the home warranty. If the title/settlement company failed to put the invoice for the home warranty on the HUD-1 Settlement

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

2011-12-05T11:22:00.001-05:00

I call this a STOP DROP and ROLL moment. What better reason to make sure you get the HUD-1 to review prior to closing, eh? Well, in all fairness, perhaps there was a change after the pre-closing review. Unless you intend to live with the error, use your leverage by not closing until the figures are corrected. Trust me. After you close, your file will go on the back burner. While you are

query: where the hell is my hud statement

2011-12-03T09:51:00.001-05:00

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

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

2011-11-26T19:14:00.001-05:00

I have a long time friend who is a savvy consumer of real estate. He, like me, comes from a family familiar with the business of real estate from the inside. So any provider of settlement services had better be on the up and up or else. ;) Since we introduced our Choose and Save Program several years ago, we've processed many transactions for my friend who has argued with me that we aren't

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

2011-11-26T11:17:00.001-05:00

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

query: who underwrites for "XYZ" title

2011-11-26T11:14:00.001-05:00

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

query: title agency pocketed fee and never purchased insurance

2011-11-21T13:34:00.001-05:00

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

fraud in the chain

2011-11-18T07:45:00.001-05:00

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

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

2011-11-17T09:17:00.001-05:00

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