and you'd think by now title agents would STOP enabling or colluding to defraud lenders.
You know, younger, inexperienced, or stupid title agents might make the argument that they didn't understand that having two settlement statements was mortgage fraud. Though they'd still be held accountable by authorities, someone might have believed them a year or two ago.
Now, anyone in this business who doesn't know that sending a lender a HUD-1 that does not match up with disbursements is mortgage fraud is an absolute criminal or ignoramus and deserves to at least lose their license.
I had an interesting chat with a real estate agent in New York yesterday. Seems she represented a seller in a transaction which included a seller assist. All went well until the closing. The seller did not attend. The real estate agent also did not attend because the seller was represented by an attorney who said he would attend. Turns out he did not. For some reason no one on the seller side reviewed or approved the HUD-1 prior to closing.
Who signed the HUD-1 for the seller? Get this. The title agent signed for the seller and did so without authority.
The real problem is that the mortgage lender capped the seller assist and rather than contacting all parties to renegotiate the contract, this title agent created and signed a HUD-1 matching the mortgage lender instructions, THEN disbursed funds based on the contract.
WHAT? Yes, the HUD-1 was a total fabrication meant to satisfy the mortgage lender.
THAT, FOLKS IS MORTGAGE FRAUD.
The real estate agent, once she discovered what had happened has been demanding that the title agent either undo the transaction or remit the balance owed to the seller so that funds do match up with the HUD-1.
I suggested that she report the facts to the Attorney General, the FBI, the state insurance department, the mortgage lender and the title underwriting company, oh, and also the Dept. of HUD.
We need to clean our business of title agents who are unable or unwilling to walk the straight and narrow line of fidelity. We need to have ZERO tolerance for bad guys or we won't get this situation in the mortgage market under control.
MORAL OF THE STORY FOR CONSUMERS: Control your transaction. Review the HUD-1 before you close and make certain that the movement of money is correctly shown. There is no such thing as "off HUD" disbursements. Anything paid outside of closing must be disclosed on the HUD-1 as POC so that there is a money trail. Do NOT allow a professional in the transaction to convince you otherwise. To do so is to collude to defraud a mortgage lender. I have no idea if the buyer in this transaction or their real estate agent knew what happened, but even if they did not, they can be held accountable for mortgage fraud.
Tuesday, April 07, 2009
Monday, April 06, 2009
Pennsylvania outlaws stated income mortgage loans
"Stated income loans present opportunities for abuse on both sides of the transaction," Kaplan said. "The new documentation requirements will go a long way in reducing the potential for fraud and dishonesty."
The new regulation also requires lenders and brokers licensed by the department to use a new, simplified, one-page disclosure form that calls attention to loan features, such as a variable interest rate or prepayment penalty, which can cause loan payments to increase or make it difficult to refinance. Read more......
Friday, April 03, 2009
NAILTA.ORG Spring Conference
You can now register for the conference at http://www.eventbrite.com/event/320490596 .
unrecorded spousal waiver
There's just no wiggle room to use unrecorded spousal waivers. We have to either have the spouse sign the mortgage to validate the lien or attach a recorded spousal interest subordination to the instrument. The only alternative is to use an unrecorded spousal waiver with an exception in the loan policy for the spousal interest and I just can't think of a lender that wants an exception for spousal interest, can you?
Underwriters are just paying too many claims on these cases that go to foreclosure. The unrecorded documents are too easily lost when lenders go out of business or do a poor job of maintaining their files. That along with title agents going out of business so nobody has a record that the spouse waived their marital rights.
The spouse may conveniently forget signing the waiver and there goes the validity of the mortgage lien. Poof!
Underwriters are just paying too many claims on these cases that go to foreclosure. The unrecorded documents are too easily lost when lenders go out of business or do a poor job of maintaining their files. That along with title agents going out of business so nobody has a record that the spouse waived their marital rights.
The spouse may conveniently forget signing the waiver and there goes the validity of the mortgage lien. Poof!
Monday, March 30, 2009
comment on rate filing
Dear Mr. Romberger:
I am writing concerning the proposed changes to the TIRBOP rate structure. I do hope my comments will be considered as I did not learn of the rate filing until last week, having received no notice from my title underwriters or PLTA.
I am a licensed title insurance agent. I have over 30 years of experience in the fields of real estate, mortgage lending and title insurance. Prior to starting a title insurance agency in 1991, I had worked for 13 years in mortgage lending including as a FHA direct endorsement underwriter and VA approved underwriter. I managed retail and wholesale lending departments for two large Pittsburgh based savings institutions. I was also responsible for regulatory compliance and assisted in the creation of quality control audit programs. Having to train personnel, manage the ever changing underwriting guidelines and regulatory compliance issues gave me a unique perspective when I entered the title insurance field. My first observations were that title insurance agents don't read guidelines, have no clue, handle lots of money and nobody is watching. Frankly, I was astounded.
I have since realized that state insurance regulators rely mainly on title companies, underwriters, to self police their agents. This would seem logical and probably did work for many years, as a company responsible for the acts of its agents, you would think, would be motivated to maintain quality. I have learned, however, through repeated observations that title companies work hard at maintaining the APPEARANCE of quality in its written procedure manuals and the TIRBOP manual while in reality the day to day business of title insurance largely ignores these standards.
Title companies, it seems to me, took a calculated risk that increased revenues generated by creating more agencies, mostly through affiliated businesses with real estate brokers and mortgage lenders, and generally tossing credible training and underwriting out the window to close and insure more transactions would make up for increases in claims. It was a bad bet. Judgment day has arrived.
I know from first hand experience that the TIRBOP manual is rarely covered in continuing education. The fact that title agents have trouble getting the premium correct and have left title companies exposed to class action law suits and regulatory penalties is NOT because the rules are too hard to understand but rather that title companies do not teach agents or monitor compliance in any way that would be effective.
I sit in continuing education sessions in which I am one of very few paying attention to the instructors. Most people in the room are reading newspapers, novels, working on their computers, texting or talking on their cell phones. It seems to me that CE credits should be worth more than simply showing up. I'm certain you agree, however, know that the instructors in charge of most of these sessions are title company attorneys. They are salesmen for their title company and afraid of enforcing discipline because the people in these classes are their CUSTOMERS or perspective customers.
The solution, if you want to make training meaningful, I think would be to have a moderator charged with enforcing discipline who is in the room. Sounds ridiculous, I know. I've never seen anything like it.
As to the SALE versus NON-SALE rate change, I don't care because other than the PHFA borrowers losing their discount, making the system easier because title agents are ignorant and title companies refuse to teach and monitor, I guess it's sort of revenue neutral and not a big deal.
I do STRONGLY object to the increase of the cost of the Closing Services Letter to $75. Losses covered under the CSL, defalcations and failure of an agent to follow lender instructions, can and should be reduced by legislative changes that introduce quality oversight where none exists.
Defalcations are largely self created losses by title companies who have failed to police and monitor their agents. Once again, because agents are perceived to be referral sources and, hence, customers of title companies, there is an inherent conflict of interest that I believe cannot be surmounted by title companies. I RECOMMEND LEGISLATIVE changes to create rules for the management of title agent escrow accounts including independent annual audits by a CPA. This way you prevent mismanagement of funds and likely defalcations and you do it without the reliance of the title companies and without increased cost to the consumer.
Failure to follow lender instructions - well you might be interested to know that in many cases, the title agent isn't the one receiving or signing the instructions. Many title agents in PA use independent, unlicensed contract closers who received these instructions and make the delivery to the mortgage lender. I am appalled that this system has evolved and RECOMMEND LEGISLATIVE changes to bring the performance of the closing, the actual signing and delivery of documents to the lender, under the umbrella of licensing by creating the requirement that the closer is an employee of the title company or agent.
I do not object to the extension to the consumer of the CSL coverage, however, charging $40 per insured transaction to me is highway robbery unless steps are taken to solve the REAL problems causing these claims.
I read with interest the Attorney General's press release and comments concerning title insurance premiums in PA. I, too, would love to see public hearings and would welcome an opportunity to testify.
Consumers in PA are not well served by the system. I follow the underwriting guidelines and earn the portion of the title insurance premium I retain. I have a full search performed by an expert abstractor. I do my own professional title examination and prepare the title insurance commitment myself. Closings are performed by trained employees. We spend much of our time searching and identifying potential title problems and resolving them prior to the issuance of the title policy. Even after the issuance of the policy, we work hard to resolve title problems that surface before they turn into formal claims, those that show up in the title company reports. We, as a TRADITIONAL title agent, earn every penny in our split of the all inclusive rate.
NON-traditional title agents, on the other hand, are nothing more than referral sources for the title company and, in my opinion, are not performing core services of title agency. These non-traditional agents take a title order and transmit it to the title company who then obtains the abstract and electronically delivers to the agent a fully examined and prepared title insurance commitment. Most of these non-traditional title agents don't even perform the closing or delivery to the mortgage lender, they contract that job out to independent closers, often hired again, by the title company.
If we were to compare only value added to the transaction TRADITIONAL versus NON-traditional title agents, we could argue that consumers are paying for services they are not receiving from NON-traditional agents even if we looked only at promulgated rates, however, if you look at the HUD-1 forms you will find that consumers are being robbed in the OPTIONAL fee category as well.
Take a close look at closing fees and settlement fees and you will find NON-traditional title agents who give the consumer no choice but to use a mobile notary, contract closer and that consumers are paying big bucks for these closers. If the all-inclusive rate would purport to include the services of closing and preparation/copying and stacking of documents to the lender, then how do you view situations in which the consumer has no choice but to use an out of office closer? Are consumers in PA well served by remote title agents who NEVER have the option of closing without paying the extra fees?
If you are looking for a way to give consumers a better deal in PA, I would eliminate or cap optional fees. We can argue over a $40 average increase to the consumer in this rate filing but it seem ludicrous when consumers are routinely charged hundred of dollars over the promulgated rates in optional fees. Title companies don't keep this money and so they aren't talking about it, but it's a major source of income to many title agents and one that flies under the radar. You can fix it.
I welcome an opportunity to discuss title insurance at any time.
Sincerely,
Diane Cipa
General Manager
THE CLOSING SPECIALISTS
204 West Main Street, Ligonier, PA 15658
888-680-5177 x104
724-238-7830 fax
I am writing concerning the proposed changes to the TIRBOP rate structure. I do hope my comments will be considered as I did not learn of the rate filing until last week, having received no notice from my title underwriters or PLTA.
I am a licensed title insurance agent. I have over 30 years of experience in the fields of real estate, mortgage lending and title insurance. Prior to starting a title insurance agency in 1991, I had worked for 13 years in mortgage lending including as a FHA direct endorsement underwriter and VA approved underwriter. I managed retail and wholesale lending departments for two large Pittsburgh based savings institutions. I was also responsible for regulatory compliance and assisted in the creation of quality control audit programs. Having to train personnel, manage the ever changing underwriting guidelines and regulatory compliance issues gave me a unique perspective when I entered the title insurance field. My first observations were that title insurance agents don't read guidelines, have no clue, handle lots of money and nobody is watching. Frankly, I was astounded.
I have since realized that state insurance regulators rely mainly on title companies, underwriters, to self police their agents. This would seem logical and probably did work for many years, as a company responsible for the acts of its agents, you would think, would be motivated to maintain quality. I have learned, however, through repeated observations that title companies work hard at maintaining the APPEARANCE of quality in its written procedure manuals and the TIRBOP manual while in reality the day to day business of title insurance largely ignores these standards.
Title companies, it seems to me, took a calculated risk that increased revenues generated by creating more agencies, mostly through affiliated businesses with real estate brokers and mortgage lenders, and generally tossing credible training and underwriting out the window to close and insure more transactions would make up for increases in claims. It was a bad bet. Judgment day has arrived.
I know from first hand experience that the TIRBOP manual is rarely covered in continuing education. The fact that title agents have trouble getting the premium correct and have left title companies exposed to class action law suits and regulatory penalties is NOT because the rules are too hard to understand but rather that title companies do not teach agents or monitor compliance in any way that would be effective.
I sit in continuing education sessions in which I am one of very few paying attention to the instructors. Most people in the room are reading newspapers, novels, working on their computers, texting or talking on their cell phones. It seems to me that CE credits should be worth more than simply showing up. I'm certain you agree, however, know that the instructors in charge of most of these sessions are title company attorneys. They are salesmen for their title company and afraid of enforcing discipline because the people in these classes are their CUSTOMERS or perspective customers.
The solution, if you want to make training meaningful, I think would be to have a moderator charged with enforcing discipline who is in the room. Sounds ridiculous, I know. I've never seen anything like it.
As to the SALE versus NON-SALE rate change, I don't care because other than the PHFA borrowers losing their discount, making the system easier because title agents are ignorant and title companies refuse to teach and monitor, I guess it's sort of revenue neutral and not a big deal.
I do STRONGLY object to the increase of the cost of the Closing Services Letter to $75. Losses covered under the CSL, defalcations and failure of an agent to follow lender instructions, can and should be reduced by legislative changes that introduce quality oversight where none exists.
Defalcations are largely self created losses by title companies who have failed to police and monitor their agents. Once again, because agents are perceived to be referral sources and, hence, customers of title companies, there is an inherent conflict of interest that I believe cannot be surmounted by title companies. I RECOMMEND LEGISLATIVE changes to create rules for the management of title agent escrow accounts including independent annual audits by a CPA. This way you prevent mismanagement of funds and likely defalcations and you do it without the reliance of the title companies and without increased cost to the consumer.
Failure to follow lender instructions - well you might be interested to know that in many cases, the title agent isn't the one receiving or signing the instructions. Many title agents in PA use independent, unlicensed contract closers who received these instructions and make the delivery to the mortgage lender. I am appalled that this system has evolved and RECOMMEND LEGISLATIVE changes to bring the performance of the closing, the actual signing and delivery of documents to the lender, under the umbrella of licensing by creating the requirement that the closer is an employee of the title company or agent.
I do not object to the extension to the consumer of the CSL coverage, however, charging $40 per insured transaction to me is highway robbery unless steps are taken to solve the REAL problems causing these claims.
I read with interest the Attorney General's press release and comments concerning title insurance premiums in PA. I, too, would love to see public hearings and would welcome an opportunity to testify.
Consumers in PA are not well served by the system. I follow the underwriting guidelines and earn the portion of the title insurance premium I retain. I have a full search performed by an expert abstractor. I do my own professional title examination and prepare the title insurance commitment myself. Closings are performed by trained employees. We spend much of our time searching and identifying potential title problems and resolving them prior to the issuance of the title policy. Even after the issuance of the policy, we work hard to resolve title problems that surface before they turn into formal claims, those that show up in the title company reports. We, as a TRADITIONAL title agent, earn every penny in our split of the all inclusive rate.
NON-traditional title agents, on the other hand, are nothing more than referral sources for the title company and, in my opinion, are not performing core services of title agency. These non-traditional agents take a title order and transmit it to the title company who then obtains the abstract and electronically delivers to the agent a fully examined and prepared title insurance commitment. Most of these non-traditional title agents don't even perform the closing or delivery to the mortgage lender, they contract that job out to independent closers, often hired again, by the title company.
If we were to compare only value added to the transaction TRADITIONAL versus NON-traditional title agents, we could argue that consumers are paying for services they are not receiving from NON-traditional agents even if we looked only at promulgated rates, however, if you look at the HUD-1 forms you will find that consumers are being robbed in the OPTIONAL fee category as well.
Take a close look at closing fees and settlement fees and you will find NON-traditional title agents who give the consumer no choice but to use a mobile notary, contract closer and that consumers are paying big bucks for these closers. If the all-inclusive rate would purport to include the services of closing and preparation/copying and stacking of documents to the lender, then how do you view situations in which the consumer has no choice but to use an out of office closer? Are consumers in PA well served by remote title agents who NEVER have the option of closing without paying the extra fees?
If you are looking for a way to give consumers a better deal in PA, I would eliminate or cap optional fees. We can argue over a $40 average increase to the consumer in this rate filing but it seem ludicrous when consumers are routinely charged hundred of dollars over the promulgated rates in optional fees. Title companies don't keep this money and so they aren't talking about it, but it's a major source of income to many title agents and one that flies under the radar. You can fix it.
I welcome an opportunity to discuss title insurance at any time.
Sincerely,
Diane Cipa
General Manager
THE CLOSING SPECIALISTS
204 West Main Street, Ligonier, PA 15658
888-680-5177 x104
724-238-7830 fax
PA title insurance rate increase in the news
Fees for some documents, such as a home closing service letter, would more than double under the proposal. Discounts for such things as home refinancings — where previous title searches were completed for the initial home purchase — would be eliminated.
Title rates are subject to approval by the Pennsylvania Insurance Department.
The industry contends its revenues declined 16 percent during a recent one-year period, claims it paid rose by nearly 20 percent, and reserves for unpaid Pennsylvania claims increased by 42 percent.
"All of these factors support the increase in title insurance rates proposed in this filing," Ronald Chronister, a Harrisburg consultant representing the title companies, wrote to the insurance department. "At the same time, as stated above, the Rating Bureau believes that the increase will have a minimal impact ($40 per closing) on the cost of title insurance for consumers."
Sunday, March 29, 2009
Closing Services Letter and defalcations
Let's fix the problem instead of charging consumers a higher fee for coverage.
When a consumer or a lending institution hands money over to a PA licensed title agent, they do so under the perceived umbrella of regulatory oversight. You may be surprised, however, to know the our insurance regulations contain no guidelines for the management of the title agent's escrow account. In fact, it's the PA Dept. of Banking that seems to have jurisdiction over these escrows and that seems like a HUGE disconnect to me.
If the title insurance underwriters can't get it together to set up rules, train and monitor agents, then I say it's time we amend our title insurance law to pull title insurance escrows under the umbrella of the PA Dept. of Insurance and set up guidelines, then police the industry.
We ought not to be putting multiple millions of dollars into the hands of people who are untrained and unqualified to manage it .
When a consumer or a lending institution hands money over to a PA licensed title agent, they do so under the perceived umbrella of regulatory oversight. You may be surprised, however, to know the our insurance regulations contain no guidelines for the management of the title agent's escrow account. In fact, it's the PA Dept. of Banking that seems to have jurisdiction over these escrows and that seems like a HUGE disconnect to me.
If the title insurance underwriters can't get it together to set up rules, train and monitor agents, then I say it's time we amend our title insurance law to pull title insurance escrows under the umbrella of the PA Dept. of Insurance and set up guidelines, then police the industry.
We ought not to be putting multiple millions of dollars into the hands of people who are untrained and unqualified to manage it .
Saturday, March 28, 2009
There's a filing for a title insurance rate increase pending in PA.
I, for one, hope the PA Department of Insurance will hold public hearings on the issue. I'd sure like to testify. Here are two questions to ponder:
1. Why should PA consumers pay title underwriters an increased fee for a Closing Services Letter to cover all the defalcations when defalcations are largely caused by poor selection, training, and monitoring of agents, all of which title underwriters control, not consumers?
2. Why get rid of the TIRBOP rate discount options just because agents can't seem to follow the TIRBOP guidelines and consumers are mad enough to file class action suits when title underwriters could easily teach and test agents, then monitor compliance?
I have sat through so many continuing education training sessions in which the title underwriters allow agents to read the newspaper and talk on their phones rather then listen. The so-called trainers often get the TIRBOP material wrong. They have never had a TIRBOP manual on site to refer to and once when I asked a specific question, the trainer admitted to not having read the manual.
Why, tell me, WHY should consumers in PA pay higher rates for title insurance and reward this abrogation of responsibility?
1. Why should PA consumers pay title underwriters an increased fee for a Closing Services Letter to cover all the defalcations when defalcations are largely caused by poor selection, training, and monitoring of agents, all of which title underwriters control, not consumers?
2. Why get rid of the TIRBOP rate discount options just because agents can't seem to follow the TIRBOP guidelines and consumers are mad enough to file class action suits when title underwriters could easily teach and test agents, then monitor compliance?
I have sat through so many continuing education training sessions in which the title underwriters allow agents to read the newspaper and talk on their phones rather then listen. The so-called trainers often get the TIRBOP material wrong. They have never had a TIRBOP manual on site to refer to and once when I asked a specific question, the trainer admitted to not having read the manual.
Why, tell me, WHY should consumers in PA pay higher rates for title insurance and reward this abrogation of responsibility?
Thursday, March 26, 2009
restrictions...for heavens sake, get a copy and read them!
I've had a nice e-mail exchange this week with a reader who wondered why her title insurance agent had never told her about the restrictive covenants for the housing plan in which she lived.
The lots in this plan are large and were meant to be used for residential purposes only. A neighbor, unaware of the restrictive covenants, started farming on their lot and added livestock. Our reader, also unaware of the restrictive covenants, has suffered for years battling with the neighbor over noise, smell, and general degradation of their use and enjoyment of their real estate. Only recently did our reader discover the restrictions and realize that the homeowners in the plan had legal standing all along to deal with the farm problem.
Read this, please, so you can understand how very important it is to select a title insurance provider who will give you a copy of the title commitment prior to closing along with copies of restrictions. Ask for these copies when shopping for services and then follow up to make certain you are getting a full and complete report BEFORE you close.
We found out last year that there are legally filed deed restrictions on our property that can be enforced by the property owners at the county building (we have a defunct Association) the restrictions effect all the other properties where we live (39/10 acre parcels) the deed restrictions run with the land and keep going every 10 years unless the majority of land owners vote them out etc which has not happened so people owning the land can enforce them. We were not given any of this info. when we bought our property by either the title company, the realtor nor the people we bought from - we bought it in 1998 and started building our house.
Last summer we had more continued issues with our neighbors who have livestock and poultry and started their farm after they moved out - about a year after us (improper disposal of manure is what they did last year), when they first moved out in 1999 we had issues too with them letting their sheep run all over the place and on our property (they have 30 acres we have 10) we found out about the deed restrictions by a friend who told us about such a thing when I was complaining about their farm. We had no idea there even was such a thing as we had never owned like this before. Well, I did the research and within one day I found the documents filed legally at the county building and they have been there since the 70's -our neighbors should never have put a farm in and had we known we could have stopped it right at the beginning and not be in this horrible situation where we have to smell manure, listen to roosters and cows and sheep and see their cows and barns (that they shouldn't have either) from our living room window. We do not know if they were told about the deed restrictions. Others who bought property way before we did received the deed restrictions when they bought their land. I've been told we could have a suit against our title company for not giving those to us and that we could get them to pay for all the harassment and loss of enjoyment of our property, the decreased value we now face due to the farm practically in our back yard and the cost of making our neighbors abide by those restrictions and remove the farm they shouldn't have. (we should not have to pay thousands to do this!) We have had a huge hassle to endure due to this, we were even told that we may have a suit against our neighbors title company if they didn't tell them.. our neighbors tried to file a harassment suit on us because we called the MDA on their improper disposal of manure, (yea they considered us calling the MDA harassing them of course the sheriffs dept told them they had no grounds for their attempted charges the MDA found them in violation and made them clean up the manure) they were putting bob cats buckets full of cow, horse, sheep manure right next to the property line in view of our back deck. (they were mad cause we and another neighbor filed a complaint with the health dept due to their garbage bags ripped open and garbage all over the place, which is also a violation of the deed restrictions) there's more to tell here if you find this a case your interested in. They are not nice people and retaliate if you turn them in for any violations. If we had known about these deed restrictions we would have stopped them years ago when they got their first cow!! I even called the title company and asked if they look for deed restrictions and they told me no.
Bottom line, I suggested they hire a good real estate attorney to sort the mess out. She found her owner policy and has hired an attorney. It will be interesting to see how the case is resolved and I do hope we hear the end of the story. ;)
The lots in this plan are large and were meant to be used for residential purposes only. A neighbor, unaware of the restrictive covenants, started farming on their lot and added livestock. Our reader, also unaware of the restrictive covenants, has suffered for years battling with the neighbor over noise, smell, and general degradation of their use and enjoyment of their real estate. Only recently did our reader discover the restrictions and realize that the homeowners in the plan had legal standing all along to deal with the farm problem.
Read this, please, so you can understand how very important it is to select a title insurance provider who will give you a copy of the title commitment prior to closing along with copies of restrictions. Ask for these copies when shopping for services and then follow up to make certain you are getting a full and complete report BEFORE you close.
We found out last year that there are legally filed deed restrictions on our property that can be enforced by the property owners at the county building (we have a defunct Association) the restrictions effect all the other properties where we live (39/10 acre parcels) the deed restrictions run with the land and keep going every 10 years unless the majority of land owners vote them out etc which has not happened so people owning the land can enforce them. We were not given any of this info. when we bought our property by either the title company, the realtor nor the people we bought from - we bought it in 1998 and started building our house.
Last summer we had more continued issues with our neighbors who have livestock and poultry and started their farm after they moved out - about a year after us (improper disposal of manure is what they did last year), when they first moved out in 1999 we had issues too with them letting their sheep run all over the place and on our property (they have 30 acres we have 10) we found out about the deed restrictions by a friend who told us about such a thing when I was complaining about their farm. We had no idea there even was such a thing as we had never owned like this before. Well, I did the research and within one day I found the documents filed legally at the county building and they have been there since the 70's -our neighbors should never have put a farm in and had we known we could have stopped it right at the beginning and not be in this horrible situation where we have to smell manure, listen to roosters and cows and sheep and see their cows and barns (that they shouldn't have either) from our living room window. We do not know if they were told about the deed restrictions. Others who bought property way before we did received the deed restrictions when they bought their land. I've been told we could have a suit against our title company for not giving those to us and that we could get them to pay for all the harassment and loss of enjoyment of our property, the decreased value we now face due to the farm practically in our back yard and the cost of making our neighbors abide by those restrictions and remove the farm they shouldn't have. (we should not have to pay thousands to do this!) We have had a huge hassle to endure due to this, we were even told that we may have a suit against our neighbors title company if they didn't tell them.. our neighbors tried to file a harassment suit on us because we called the MDA on their improper disposal of manure, (yea they considered us calling the MDA harassing them of course the sheriffs dept told them they had no grounds for their attempted charges the MDA found them in violation and made them clean up the manure) they were putting bob cats buckets full of cow, horse, sheep manure right next to the property line in view of our back deck. (they were mad cause we and another neighbor filed a complaint with the health dept due to their garbage bags ripped open and garbage all over the place, which is also a violation of the deed restrictions) there's more to tell here if you find this a case your interested in. They are not nice people and retaliate if you turn them in for any violations. If we had known about these deed restrictions we would have stopped them years ago when they got their first cow!! I even called the title company and asked if they look for deed restrictions and they told me no.
Bottom line, I suggested they hire a good real estate attorney to sort the mess out. She found her owner policy and has hired an attorney. It will be interesting to see how the case is resolved and I do hope we hear the end of the story. ;)
Friday, March 20, 2009
working on a mystery, a title agent mystery that is
We're working with a consumer buying a commercial property who also planned to use their residence as collateral for a line of credit to make improvements on the new building. Routine process, their bank asked for a copy of the deed to their house and they can't find it. They called their mortgage lender who starting acting kinda weird and would only provide an unexecuted copy of a mortgage, so they asked me to look into the situation.
Guess, what? There is no deed on record for their residence or a mortgage.
Long story short, they were working with an out of state title agent who I'm not even sure was licensed in PA, who has since gone out of business and nobody, not even the seller has copies of a signed HUD-1 or any other documents from closing.
Thankfully, and for what reason I don't know, the seller's attorney had a copy of the signed title insurance commitment so this consumer has some basis for a title insurance claim.
Oddly, though this out of state title agent handled the entire transaction, including receipt of lender funds and disbursement, the unsigned HUD-1 has the name of a different company as settlement/title agent, supposedly a PA company that I can't find anywhere either.
In retrospect, these folks are kicking themselves for not being more diligent about getting copies and knowing who they were working with. They sort of went on automatic pilot and just trusted that they were working with professionals.
Please, folks, choose your title agent wisely. Know who they are and where they are and make certain you get a title insurance commitment to review prior to close, make certain you get a signed HUD-1 at closing, and then follow-up after closing to confirm receipt of the recorded deed and issuance of your title insurance policy.
Guess, what? There is no deed on record for their residence or a mortgage.
Long story short, they were working with an out of state title agent who I'm not even sure was licensed in PA, who has since gone out of business and nobody, not even the seller has copies of a signed HUD-1 or any other documents from closing.
Thankfully, and for what reason I don't know, the seller's attorney had a copy of the signed title insurance commitment so this consumer has some basis for a title insurance claim.
Oddly, though this out of state title agent handled the entire transaction, including receipt of lender funds and disbursement, the unsigned HUD-1 has the name of a different company as settlement/title agent, supposedly a PA company that I can't find anywhere either.
In retrospect, these folks are kicking themselves for not being more diligent about getting copies and knowing who they were working with. They sort of went on automatic pilot and just trusted that they were working with professionals.
Please, folks, choose your title agent wisely. Know who they are and where they are and make certain you get a title insurance commitment to review prior to close, make certain you get a signed HUD-1 at closing, and then follow-up after closing to confirm receipt of the recorded deed and issuance of your title insurance policy.
Friday, March 13, 2009
PA escheat deadline coming up.
Just a reminder to PA title agents that our deadline for filing unclaimed property reports with the Pennsylvania Treasury Department is April 15th. A copy of the Unclaimed Property Act is available at www.patreasury.org.
We are being reminded by the Department that a compliance report is to be filed, even if we have no unclaimed property.
We are being reminded by the Department that a compliance report is to be filed, even if we have no unclaimed property.
Friday, March 06, 2009
I'm kinda blown away.....I had no idea Tanta died.
A few months ago I stopped following all the title blogs and all the mortgage blogs. I just couldn't take it anymore. So, this is a belated.....
RIP Tanta.
You really knew your stuff and you knew how to teach. I see a guitar in your hands and that makes me smile.
You really knew your stuff and you knew how to teach. I see a guitar in your hands and that makes me smile.
Wednesday, March 04, 2009
just thought I'd post that there's a whole lot of normalcy going on
Most mortgage lenders have lots of money to lend and rates are fabulous.
Most homeowners are not in foreclosure and are making their mortgage payments on time.
Most of the lack of business is due to normal fear mongering by the media, BUT
...surprise, surprise, life goes on and we the people eventually just go about our business living life and in the process the recovery is happening with or without the government and the media.
Friday, February 27, 2009
message to Ken or Kent
You asked me to call you to help answer a question you couldn't find on the blog.
I'm the person you hung up on.
If you still need help, please shoot an e-mail to dianecipa@gmail.com.
I'm the person you hung up on.
If you still need help, please shoot an e-mail to dianecipa@gmail.com.
How to write a “Qualified Written Letter” to your Lender
Follow this link. These folks did a good job of it and I like their easy to use sample.
Saturday, February 21, 2009
Proof of Loss.....the Owner Policy lingo
In the event the Company is unable to determine the amount of loss or damage, the Company may, at its option, require as a condition of payment that the Insured Claimant furnish a signed proof of loss. The proof of loss must described the defect, lien, encumbrance, or other matter insured against by the policy that constitutes the basis of loss or damage and shall state, to the extent possible, the basis of calculating the amount of the loss or damage.
Notice of Claim to be given by Insured Claimant .....the Owner Policy lingo
The Insured shall notify the Company promptly in writing (i) in case of any litigation as set forth in Section 5(a) of these Conditions, (ii) in case Knowledge shall come to an Insured hereunder of any claim of title or interest that is adverse to the Title, as insured, and that might cause loss or damage for which the Company may be liable by virtue of this policy, or (iii) if the Title, as insured, is rejected as Unmarketable Title. If the Company is prejudiced by the failure of the Insured Claimant to provide prompt notice, the Company's liability to the Insured Claimant under the policy shall be reduced to the extent of the prejudice.
Wednesday, February 18, 2009
Next Ace marches on as an automaton of title
ORANGE, Calif.–(BUSINESS WIRE)–NextAce, a title automation and business process optimization Inc. 500 company, today announced the completion of its one millionth title order through its automated title system, TitleEDGE.
Title companies and underwriters servicing 253 counties in 23 states currently use TitleEDGE, and in doing so, NextAce estimates it has saved the title industry over $37 million through staff reductions and decreased production costs. Read more...
replace expert humans with a cheap automation substitute....watch Idiocracy evolving.... dc
Friday, February 13, 2009
query: what if the title commitment isn't received on time
You'll need to postpone your transaction to await the title commitment.
This is yet another reason to shop carefully for title insurance services. Ask how long it normally takes to produce a title commitment and then make certain you allow enough time.
When a consumer calls my office and asks that question, I tell them it will take 7 to 10 days to produce a title commitment. I don't bend on that because I know that's reality. I know lots of title agents who will bend on the initial promise and when they can't bend reality later, the consumer will be forced to face it and be disappointed.
Why does it take 7 to 10 days to produce a title commitment? We have a professional abstractor do a full search, we have to get lien letters from numerous municipal agencies who want a check in hand as payment for creating these letters. We have other customers who we are are serving and we treat all customers with equal care and consideration.
So, when you come across a title agent who says they can produce a title commitment in hours, you must ask yourself whether this person is doing a full search and examination, are they promising more than they can deliver, do they have no other customers or have they decided to place your interest before others and will they do that to you if a bigger deal walks through the door?
With interest rates fluctuating, we keep in mind that you have serious deadlines and we work with you to get where you have to be and with realistic expectations.
This is yet another reason to shop carefully for title insurance services. Ask how long it normally takes to produce a title commitment and then make certain you allow enough time.
When a consumer calls my office and asks that question, I tell them it will take 7 to 10 days to produce a title commitment. I don't bend on that because I know that's reality. I know lots of title agents who will bend on the initial promise and when they can't bend reality later, the consumer will be forced to face it and be disappointed.
Why does it take 7 to 10 days to produce a title commitment? We have a professional abstractor do a full search, we have to get lien letters from numerous municipal agencies who want a check in hand as payment for creating these letters. We have other customers who we are are serving and we treat all customers with equal care and consideration.
So, when you come across a title agent who says they can produce a title commitment in hours, you must ask yourself whether this person is doing a full search and examination, are they promising more than they can deliver, do they have no other customers or have they decided to place your interest before others and will they do that to you if a bigger deal walks through the door?
With interest rates fluctuating, we keep in mind that you have serious deadlines and we work with you to get where you have to be and with realistic expectations.
I think it's fair to say PA notary laws need work.
Our investigation also demonstrated that the lack of requirements and laws governing Notaries Public, and the ease with which Notaries, and ring leaders, Carlos Quiles, Ivan Delgado, and accomplices and co-conspirators, Lenora Irene Jackson (Evans) and Rebecca A. Robinson had in committing these crimes because no one seriously enforces State laws requiring the person who sells a property to appear in person before the Notary Public. Moreover, State Law does not mandate that the Notary keep a thumbprint or photo identification presented to them with the paperwork they are required to keep should an investigation be commenced. This allows the Notary “not to remember” the person who appeared before them due to the heavy volume of people needing a Notary’s services. In this case, some of the Notaries didn’t keep required logs, and, of course, didn’t care if the signatures were known forgeries. Read more....
Friday, February 06, 2009
PA title agent indicted
In the following press release [pages 8 & 9] Mary Beth Buchanan, United States Attorney for the Western District of Pennsylvania announced thay a grand jury returned an indictment charging Kenneth Fox, age 42, of 110 Penn Manor Road, Irwin, Pennsylvania 15642, with participating in a Wire Fraud Conspiracy and a Money Laundering Conspiracy.
The indictment alleges that Fox and another individual operated a closing company called Southwest Settlement Services. As a closing company, Fox and Southwest Settlement Services was charged with paying off liabilities associated with the collateral underlying the loans, like mortgages, in accordance with the lender’s instructions. The indictment alleges that Fox and his co-conspirators did not pay off the mortgages as instructed, but used the money for their own benefit. The indictment further alleges that to conceal their fraud, Fox and his co-conspirators used money from subsequent closings to make mortgage payments and pay off mortgages that should have been paid off through earlier transactions.
Thank you THE MORTGAGE FRAUD REPORTER.
The indictment alleges that Fox and another individual operated a closing company called Southwest Settlement Services. As a closing company, Fox and Southwest Settlement Services was charged with paying off liabilities associated with the collateral underlying the loans, like mortgages, in accordance with the lender’s instructions. The indictment alleges that Fox and his co-conspirators did not pay off the mortgages as instructed, but used the money for their own benefit. The indictment further alleges that to conceal their fraud, Fox and his co-conspirators used money from subsequent closings to make mortgage payments and pay off mortgages that should have been paid off through earlier transactions.
Thank you THE MORTGAGE FRAUD REPORTER.
Wednesday, February 04, 2009
query: can judgment lien be on more than one home at the same time
Yes. A judgment is against a person and in most cases attaches to all of your assets.
Tuesday, February 03, 2009
goodness, gracious
There are reports out of State College, PA of a car bombing and a molotov cocktail being thrown into someone's livingroom - these acts by fellows engaged or previously as mortgage brokers and perhaps a title agent.
According to police the goons were under pressure due to regulators having had shut down their businesses.
According to police the goons were under pressure due to regulators having had shut down their businesses.
Sunday, February 01, 2009
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