Perhaps you've already heard that FEMA has new rules for flood insurance. We are getting reports that a new elevation certificate is required and these certificates are pricey. Once the new quote comes in, it's higher than expected. For instance one family selling their home told a buyer they were paying $400 per year for flood insurance. Under the new system their buyer will have to pay $2300.
We are also hearing that there may be legislation moving to delay or change this new FEMA rule. What have you heard?
Thursday, October 31, 2013
During the MBA Annual, a special committee of major lenders and title companies known as the Signing Professionals Workgroup announced the creation of best practice standards for notaries handling loan signings. These recommendations were the result of a year-long investigation and discussion for new notary standards within the mortgage process.
“After the Consumer Financial Protection Bureau issued the ‘Service Providers Bulletin in April 2012, financial institutions have been held accountable for verifying the credentials of their third-party service providers,” said Thomas Heymann, president and chief executive officer of the National Notary Association. “Until now, there were no consistent or broadly acceptable standards for the notaries who represent lenders at the signing table.”
In said CFPB Bulletin, lenders were told to verify that their service providers complied with federal law and maintained “appropriate training and oversight of employees or agents.” In addition, lenders are expected to establish ongoing monitoring programs, and put in place enforceable consequences for providers who fell short and failed to quickly address their shortcomings. For these reasons, the NNA and the members of the SPW committee felt compelled to act and shore up this end of the process.
Saturday, October 26, 2013
Tuesday, October 08, 2013
I just refinanced my house, We signed all the FINAL HUD FORMS! The title co sent us a check for the amount that we are getting from the lender, This was the final hud settlement forms . Now the title co wants me to hold the check and says they will stop payment on it if we deposit it. Everything was notorized and witnessed. After waiting the required 3 day resition period everybody was funded. Now he says I have to wait! Is this legal after closing and can he change the amount of our proceeds? Something seems to be fraudulent!
If the figures are being changed, you should be eligible for another 3 day rescission period. Contact your lender immediately and tell them what is going on. Tell them you insist that they inform the title company that it is too late or that they redo the closing statement and give you another 3 day right to cancel. Tell them you will contact the Consumer Finance Protection Bureau and the state banking department if they refuse to grant another right to cancel period. If you still don't get help, in addition to contacting these agencies you might want to talk with an attorney about sending in the cancellation form and rescinding the transaction anyway.
The entire purpose of the federal right to rescind on a refinance of a primary residence is to give the consumer a period of time to review the terms and the dollars involved in the refinance. You have to have REAL figures to consider before you waive your right to cancel. If these figures were wrong - and they might be legitimately in error - then you need to have good figures back in front of you with the right to cancel.
If the reality is that you would have cancelled if you had correct figures, then I believe you still have that right. If the reality is that you would not have cancelled if you had the correct figures, then you might want to just go along with the correction. There is a difference between a legitimate error and a bait and switch situation.
Hope this information is helpful.