WFG Wiki - User contributions [en]

KY Operations Summary

2015-07-06T16:59:30Z

Abfields: /* Taxes */

==Licensed Entity:==
*WFGNTIC/WFG LS
*See Attached HUD Sample for Additional Information [[file:Kentucky_HUD-1.pdf]]
==Banking Information==
*Bank account -- <<INSERT ACCOUNT #/ROUTING #/BANK NAME>>
*Checks stale dated after -- ___ days of issuance
*Good Funds Law -- No statute
*Disbursements Requirements --
*Special Bank Requirements (IOLTA/IOTA/OTHER or account specific to that state’s funds) -- None
==Payment Customs==
*Buyer customarily pays for Owner’s policy
*Seller pays Transfer Tax -
* Buyer pays deed and mortgage recording fees; Seller pays recording fee for the release of existing mortgage(s)
*Buyer pays Survey Charges
*Customarily the Buyer pays the majority of the closing fee, with perhaps a small part paid by the seller; it can vary between closers and areas of the state.
==Escrow/Settlement ==
*Who can prepare the HUD -- No restrictions
*Who can sign the HUD (EO/LTP/Attorney) -- No restrictions
*Who orders hazard insurance -- Customary -
*When is transaction consummated for new HUDS --
*Record before/after disburse -- Disburse then record
*Filed/restricted escrow rates -- No
*Record retention requirements -- No statutes
*Is an attorney involved in the closing -- No
*Who can handle loan document signing -- Notary
*Doc Prep Restrictions -- Doc Prep is UPL
*Use Escrow Instructions or not -- No
*Use Estimated HUD or Final -- Final
*Pass-thru charges -- No restrictions
*Rates Inclusive or not -- Not inclusive. Customary to charge a separate title search fee (which can be called an “exam” fee). Kentucky is not an “all-inclusive” premium state.
*Up Charging -- No restrictions
*Junk Charges -- No restrictions
*Special HUD Requirements -- None – BUT Premium Taxes in KY by County
**[http://wiki.wfgstaging.com/images/2/2e/KY_Tax_Rates.pdf 2015 Premium Tax Rates] Use "All Other Risk" Column
*Special Disclosures -- None
*CPL --
*UPL Issues -- Doc Prep is UPL
*Joinder of non-titled spouse -- Yes
*Survey Required -- OP – Yes for extended coverage; LP – no

==Audits==
*Required -- No
==Recording Process==
*E-recording --
*Record before disbursement --
*Special recording procedure -- Consideration statement for deeds
==Recording/Document Requirements==
*Marital Status Stated -- Not required
*Transfer Tax -- Yes Transfer tax is uniform across the state. Transfer tax is imposed at fifty cents for each $500 of value as declared in the deed. KRS 142.050(2). See KRS 142.050(7) for exceptions.

*Mortgage Tax -- No
*Address for grantor/grantee/property -- Grantee required
*Witnesses -- None Required for deeds and mortgages, both must be acknowledged. KRS 382.270.
*Names typed/printed -- Yes
*Prepared by/return to -- Name, address, signature
*Notary Stamp/requirements --
*Parcel or tax index number -- 1st page
*Recitation of Consideration -- Required
*Derivation Clause -- Required
*Corporate Signatures/Attestation --
*Ink Color/Font -- Black/8 pt minimum
*Legal Description -- State/county/municipality in 1st paragraph
*Margins -- 2” 1st page, 1” all other
*Other Special Recording: --
==Document Types==
*Conveyance -- Warranty Deed, Limited Warranty Deed, Quitclaim Deed
*Security Instrument -- Mortgage
*Release -- Release
==Tenancies==
*Tenants in Common -- Yes
*Joint Tenants -- No
*Tenancy by Entireties -- Yes – can be created
*Community Property -- No
*Homestead -- Yes
*Joinder of Non-titled Spouse -- Yes
==Taxes==
*Taxes Levied --
*Taxes due -- 9/15
*Delinquent -- 1/1 KRS 134.020
*City taxes should be verified directly with the particular city, as their schedules may vary.
*Cities charge a seperate Premium tax in KY.
**[http://wiki.wfgstaging.com/images/2/2e/KY_Tax_Rates.pdf 2015 Premium Tax Rates] Use "All Other Risk" Column

==Commitment/Policy Special Requirements==
*Who can sign Commitment/Policy -- No restrictions
*Other --
==Post Closing Requirements==
*Recon follow up required --

KY Operations Summary

2015-07-06T16:58:23Z

Abfields: /* Escrow/Settlement */

==Licensed Entity:==
*WFGNTIC/WFG LS
*See Attached HUD Sample for Additional Information [[file:Kentucky_HUD-1.pdf]]
==Banking Information==
*Bank account -- <<INSERT ACCOUNT #/ROUTING #/BANK NAME>>
*Checks stale dated after -- ___ days of issuance
*Good Funds Law -- No statute
*Disbursements Requirements --
*Special Bank Requirements (IOLTA/IOTA/OTHER or account specific to that state’s funds) -- None
==Payment Customs==
*Buyer customarily pays for Owner’s policy
*Seller pays Transfer Tax -
* Buyer pays deed and mortgage recording fees; Seller pays recording fee for the release of existing mortgage(s)
*Buyer pays Survey Charges
*Customarily the Buyer pays the majority of the closing fee, with perhaps a small part paid by the seller; it can vary between closers and areas of the state.
==Escrow/Settlement ==
*Who can prepare the HUD -- No restrictions
*Who can sign the HUD (EO/LTP/Attorney) -- No restrictions
*Who orders hazard insurance -- Customary -
*When is transaction consummated for new HUDS --
*Record before/after disburse -- Disburse then record
*Filed/restricted escrow rates -- No
*Record retention requirements -- No statutes
*Is an attorney involved in the closing -- No
*Who can handle loan document signing -- Notary
*Doc Prep Restrictions -- Doc Prep is UPL
*Use Escrow Instructions or not -- No
*Use Estimated HUD or Final -- Final
*Pass-thru charges -- No restrictions
*Rates Inclusive or not -- Not inclusive. Customary to charge a separate title search fee (which can be called an “exam” fee). Kentucky is not an “all-inclusive” premium state.
*Up Charging -- No restrictions
*Junk Charges -- No restrictions
*Special HUD Requirements -- None – BUT Premium Taxes in KY by County
**[http://wiki.wfgstaging.com/images/2/2e/KY_Tax_Rates.pdf 2015 Premium Tax Rates] Use "All Other Risk" Column
*Special Disclosures -- None
*CPL --
*UPL Issues -- Doc Prep is UPL
*Joinder of non-titled spouse -- Yes
*Survey Required -- OP – Yes for extended coverage; LP – no

==Audits==
*Required -- No
==Recording Process==
*E-recording --
*Record before disbursement --
*Special recording procedure -- Consideration statement for deeds
==Recording/Document Requirements==
*Marital Status Stated -- Not required
*Transfer Tax -- Yes Transfer tax is uniform across the state. Transfer tax is imposed at fifty cents for each $500 of value as declared in the deed. KRS 142.050(2). See KRS 142.050(7) for exceptions.

*Mortgage Tax -- No
*Address for grantor/grantee/property -- Grantee required
*Witnesses -- None Required for deeds and mortgages, both must be acknowledged. KRS 382.270.
*Names typed/printed -- Yes
*Prepared by/return to -- Name, address, signature
*Notary Stamp/requirements --
*Parcel or tax index number -- 1st page
*Recitation of Consideration -- Required
*Derivation Clause -- Required
*Corporate Signatures/Attestation --
*Ink Color/Font -- Black/8 pt minimum
*Legal Description -- State/county/municipality in 1st paragraph
*Margins -- 2” 1st page, 1” all other
*Other Special Recording: --
==Document Types==
*Conveyance -- Warranty Deed, Limited Warranty Deed, Quitclaim Deed
*Security Instrument -- Mortgage
*Release -- Release
==Tenancies==
*Tenants in Common -- Yes
*Joint Tenants -- No
*Tenancy by Entireties -- Yes – can be created
*Community Property -- No
*Homestead -- Yes
*Joinder of Non-titled Spouse -- Yes
==Taxes==
*Taxes Levied --
*Taxes due -- 9/15
*Delinquent -- 1/1 KRS 134.020
*City taxes should be verified directly with the particular city, as their schedules may vary.
==Commitment/Policy Special Requirements==
*Who can sign Commitment/Policy -- No restrictions
*Other --
==Post Closing Requirements==
*Recon follow up required --

File:KY Tax Rates.pdf

2015-07-06T16:55:27Z

Abfields: KY Premium Tax Rates 2015 from Stewart

KY Premium Tax Rates 2015 from Stewart

WI Underwriting References

2015-06-25T22:22:22Z

Abfields: Created page with "==Mechanics Liens== [http://constructionliens.uslegal.com/state-laws/wisconsin-construction-lien-law/ source] ===What is a construction or mechanic’s lien?=== Every State..."

==Mechanics Liens==

[http://constructionliens.uslegal.com/state-laws/wisconsin-construction-lien-law/ source]
===What is a construction or mechanic’s lien?===

Every State permits a person who supplies labor or materials for a construction project to claim a lien against the improved property. While some states differ in their definition of improvements and some states limit lien claims to buildings or structures, most permit the filing of a document with the local court that puts parties interested in the property on notice that the party asserting the lien has a claim. States differ widely in the method and time within which a party may act on their lien. Also varying widely are the requirements of written notices between property owners, contractors, subcontractors and laborers, and in some cases lending institutions. As a general rule, these statutes serve to prevent unpleasant surprises by compelling parties who wish to assert their legal rights to put all parties who might be interested in the property on notice of a claim or the possibility of a claim. This by no means constitutes a complete discussion of construction lien law and should not be interpreted as such. Parties seeking to know more about construction laws in their State should always consult their State statutes directly.

===Who can claim a lien in this State?===

Every person who performs any work or procures its performance or furnishes any labor or materials or plans or specifications for the improvement of land, and who complies with s. 779.02, shall have a lien therefor on all interests in the land belonging to its owners.

===How long does a party have to claim a lien?===

No lien shall exist and no action to enforce a lien shall be maintained unless within 6 months from the date the lien claimant furnished the last labor or materials a claim for the lien is filed in the office of the clerk of circuit court of the county in which the lands affected by the lien lie, and unless within 2 years from the date of filing a claim for lien an action is brought and summons and complaint filed.

===Does this State require or provide for a notice from subcontractors and laborers to property owners?===

Yes. No lien claim may be filed or action brought thereon unless, at least 30 days before timely filing of the lien claim, the lien claimant serves on the owner, personally or by registered mail with return receipt requested, a written notice of intent to file a lien claim. The notice is required to be given whether or not the claimant has been required to and has given a previous notice pursuant to s. 779.02. Such notice shall briefly describe the nature of the claim, its amount and the land and improvement to which it relates.

Every prime contractor who enters into a contract with the owner for a work of improvement on the owner’s land and who has contracted or will contract with any subcontractors or materialmen to provide labor or materials for the work of improvement shall include in any written contract with the owner the notice required by this paragraph, and shall provide the owner with a copy of the written contract. If no written contract for the work of improvement is entered into, the notice shall be prepared separately and served personally or by registered mail on the owner or authorized agent within 10 days after the first labor or materials are furnished for the improvement by or pursuant to the authority of the prime contractor. The notice warns of the lien rights of furishers of labor and materials.

Every person other than a prime contractor who furnishes labor or materials for an improvement shall have the lien and remedy under this subchapter only if within 60 days after furnishing the first labor or materials the person gives notice in writing, in 2 signed copies, to the owner either by personal service on the owner or authorized agent or by registered mail with return receipt requested to the owner or authorized agent at the last-known post-office address.

===Does this State require a notice prior to starting work, or after work has been completed?===

No. Wisconsin law does not provide for a notice of commencement or notice of completion as in some other States.

===Does this State permit a person with an interest in property to deny responsibility for improvements?===

No. Wisconsin law does not have a provision allowing a property owner to deny responsibility for improvements.

===Is a notice attesting to the satisfaction of a lien provided for or required?===

Every lien claimant, or the attorney who executed and filed a claim for lien on the claimant’s behalf, who has received satisfaction or tender of the claim with the costs of any action brought on the claim shall, at the request of any person interested in the premises affected and on payment of the costs of satisfying the same, execute and deliver the necessary satisfaction to the interested person. On filing the satisfaction with the clerk of circuit court, the clerk of circuit court shall enter satisfaction of the claim on the judgment and lien docket. Failure to execute and deliver the satisfaction or to satisfy the lien on the judgment and lien docket shall render the person so refusing liable to pay to the person requiring the satisfaction a sum equal to one-half of the sum claimed in the claim for lien.

[http://constructionliens.uslegal.com/state-laws/wisconsin-construction-lien-law/#sthash.kchPzGRP.dpuf See more at:]

[http://www.wbb-law.com/wp-content/uploads/2014/11/WI_Construction_Lien_Chart_Landscape.pdf Mechanics Lien Flow Chart]

MI Underwriting References

2015-06-25T20:02:06Z

Abfields:

[http://connect.michbar.org/realproperty/publicresources/landtitle Michigan Land Title Standards]

WV Operations Summary

2015-05-27T16:23:21Z

Abfields: /* Tenancies */

==Licensed Entity:==
*See Attached [http://wiki.wfgstaging.com/images/8/8d/West_Virginia_HUD-1.pdf HUD Sample] for Additional Information
==Banking Information ==
*Bank account -- <<INSERT ACCOUNT #/ROUTING #/BANK NAME>>
*Checks stale dated after -- ___ days of issuance
*Good Funds Law -- No
*Disbursements Requirements -- Attorney must supervise disbursement
*Special Bank Requirements (IOLTA/IOTA/OTHER or account specific to that state’s funds) -- No
==Escrow/Settlement ==
*Who can prepare the HUD -- Under attorney supervision
*Who can sign the HUD (EO/LTP/Attorney) -- Not restricted
*Who orders hazard insurance --
*When is transaction consummated for new HUDS --
*Record before/after disburse -- Disburse then record
*Filed/restricted escrow rates -- No
*Record retention requirements -- 3 years
*Is an attorney involved in the closing -- Yes – attorney must close and supervise disbursement
*Who can handle loan document signing -- Attorney
*Doc/Deed Prep Restrictions -- Attorney must prepare legal documents
*Use Escrow Instructions or not -- No
*Use Estimated HUD or Final -- Final
*Pass-thru charges -- Not restricted
*Rates Inclusive or not -- Not
*Up Charging -- Not restricted
*Junk Charges -- Not restricted
*Special HUD Requirements --
*Special Disclosures --
*CPL -- Yes
*UPL Issues -- Yes – activities of title agent must be under supervision of WV Attorney. APPROVED LAW FIRM IS PCN – KEN SMOLAR; USE OF ANY OTHER LAW FIRM REQUIRES WRITTEN CONSENT FROM THE COMPLIANCE DEPARTMENT
*Joinder of non-titled spouse -- Yes
*Survey Required -- Purchase – no
Refinance – no
==Audits==
*Required -- No
==Recording Process==
*E-recording -- County list of e-recording attached
*Record before disbursement -- Disburse then record
*Special recording procedure -- Sales listing form and declaration of consideration with all deeds
==Recording/Document Requirements==
*Marital Status Stated -- Not required
*Transfer Tax -- Yes
*Mortgage Tax -- No
*Address for grantor/grantee/property --
*Witnesses --
*Names typed/printed -- Required
*Prepared by/return to -- Prepared by name and signature required at end of document; return to address required
*Notary Stamp/requirements --
*Parcel or tax index number -- Required/ Auditor’s filed number
*Recitation of Consideration --
*Derivation Clause -- Required
*Corporate Signatures/Attestation --
*Ink Color/Font -- Black/10 pt minimum
*Legal Description -- Include state, county, municipality in 1st paragraph of legal description
*Margins -- 1st page top right 3.5” x 5”
*Other Special Recording: --
==Document Types==
*Conveyance -- Warranty Deed
*Security Instrument -- Deed of Trust
*Release -- Release of Deed of Trust
==Tenancies==
*Tenants in Common – Yes -- presumed
*Joint Tenants -- Yes if clearly stated. Survivorship is created only by express language (W. Va. Code § 36-1-20)
*Tenancy by Entireties – Not recognized W. Va.Code § [http://www.legis.state.wv.us/wvcode/ChapterEntire.cfm?chap=36 36-1-19], as construed in McNeely v. South Penn Oil Co.)
*Community Property -- No
*Homestead -- Yes
*Joinder of Non-titled Spouse – Yes
** Dower/curtesy abolished on June 5, 1992 (W. Va. Code § 43-1-1) Prior to June 5, 1992, surviving spouse entitled to one-third life estate in the decedent’s real estate.

==Taxes==
*Taxes Levied -- 7/1
*Taxes due -- 9/1 & 3/1
*Delinquent -- 10/1 & 4/1
==Commitment/Policy Special Requirements==
*Who can sign Commitment/Policy -- Countersignature requirement?
*Other –
==Payment Customs==
*Buyer pays Owners Policy
*Seller pays transfer privilege tax; buyer pays all other taxes
*Buyer pays survey
*Each pays for closing services provided them.
==Post Closing Requirements==
*Recon follow up required –

==Withholding Requirements==
*Tax must be withheld on sales by non-residents.
*[http://www.state.wv.us/taxrev/publications/tsd/tsd389.pdf W.V. Summary]
*[http://www.wva.state.wv.us/wvtax/withholdingtaxforms.aspx Webpage with forms]

KY Underwriting Summary

2015-05-11T21:54:50Z

Abfields: /* UPL */

==Search/Exam==
*Minimum Search Requirements -- No statute, No state-imposed search periods, no marketable record title acts, and no standards imposed by a state bar association. Each underwriter sets its own search standards.
*Plant or other search restrictions --
*Additional Requirements for REO Searches --
*Foreclosure Checklist --
*Special Searches Required (Code, HOA, Utilities)? --
*Survey Requirements --

==UPL==
Non-attorneys may conduct real estate closings, but may not answer legal questions that arise at the closing, or offer any legal advice to the parties. Preparation of deeds and mortgages is the practice of law and must be prepared by an attorney. [http://caselaw.findlaw.com/ky-supreme-court/1110325.html Countrywide Home Loans, Inc .v. Kentucky Bar Association ]; 113 S.W.3d 105 (Ky 2003).

==Vesting==

==Witness Requirements==
Witnesses are not required for deeds and mortgages, however, both must be acknowledged. KRS 382.270.

==Property Tax ==

==Mortgage/Transfer Tax==
Transfer tax is uniform across the state. Transfer tax is imposed at fifty cents for each $500 of value as declared in the deed. KRS 142.050(2). See KRS 142.050(7) for exceptions.

==Spousal Joinder Requirements/Homestead==
Kentucky recognizes the dower/curtesy interest of non-titled spouses, and therefore, a non-titled spouse must join in a deed or mortgage to convey his/her interest in the property. KRS 392.020. Kentucky does not recognize civil unions.

==Power Of Attorney==

==Construction Liens==

==Foreclosure Review==

==Instrument Requirements ==

==Who May Serve As Trustee On Deed Of Trust==

==Time Limitations==
*US Judgment Liens -- 20 years
*State Court Judgment Liens -- 15 years
*Federal Tax Liens -- 10 years (+ 30 days)
*State Tax Liens -- 10 years
*Estate Tax Lien -- 10 years
*State Inheritance Tax Liens -- 10 years
*Mechanics Liens -- 1 year
*Financing Statements -- 5 years
*Mortgages -- 15 years from maturity
*HOA Liens -- 15 years
*Condominium assessments --
*Child Support Liens --

==Odd Stuff==

KY Underwriting Summary

2015-05-11T21:54:24Z

Abfields: /* UPL */

==Search/Exam==
*Minimum Search Requirements -- No statute, No state-imposed search periods, no marketable record title acts, and no standards imposed by a state bar association. Each underwriter sets its own search standards.
*Plant or other search restrictions --
*Additional Requirements for REO Searches --
*Foreclosure Checklist --
*Special Searches Required (Code, HOA, Utilities)? --
*Survey Requirements --

==UPL==
Non-attorneys may conduct real estate closings, but may not answer legal questions that arise at the closing, or offer any legal advice to the parties. Preparation of deeds and mortgages is the practice of law and must be prepared by an attorney. [Countrywide Home Loans, Inc .v. Kentucky Bar Association http://caselaw.findlaw.com/ky-supreme-court/1110325.html]; 113 S.W.3d 105 (Ky 2003).

==Vesting==

==Witness Requirements==
Witnesses are not required for deeds and mortgages, however, both must be acknowledged. KRS 382.270.

==Property Tax ==

==Mortgage/Transfer Tax==
Transfer tax is uniform across the state. Transfer tax is imposed at fifty cents for each $500 of value as declared in the deed. KRS 142.050(2). See KRS 142.050(7) for exceptions.

==Spousal Joinder Requirements/Homestead==
Kentucky recognizes the dower/curtesy interest of non-titled spouses, and therefore, a non-titled spouse must join in a deed or mortgage to convey his/her interest in the property. KRS 392.020. Kentucky does not recognize civil unions.

==Power Of Attorney==

==Construction Liens==

==Foreclosure Review==

==Instrument Requirements ==

==Who May Serve As Trustee On Deed Of Trust==

==Time Limitations==
*US Judgment Liens -- 20 years
*State Court Judgment Liens -- 15 years
*Federal Tax Liens -- 10 years (+ 30 days)
*State Tax Liens -- 10 years
*Estate Tax Lien -- 10 years
*State Inheritance Tax Liens -- 10 years
*Mechanics Liens -- 1 year
*Financing Statements -- 5 years
*Mortgages -- 15 years from maturity
*HOA Liens -- 15 years
*Condominium assessments --
*Child Support Liens --

==Odd Stuff==

KY Underwriting Summary

2015-05-11T21:53:22Z

Abfields: /* UPL */

==Search/Exam==
*Minimum Search Requirements -- No statute, No state-imposed search periods, no marketable record title acts, and no standards imposed by a state bar association. Each underwriter sets its own search standards.
*Plant or other search restrictions --
*Additional Requirements for REO Searches --
*Foreclosure Checklist --
*Special Searches Required (Code, HOA, Utilities)? --
*Survey Requirements --

==UPL==
Non-attorneys may conduct real estate closings, but may not answer legal questions that arise at the closing, or offer any legal advice to the parties. Preparation of deeds and mortgages is the practice of law and must be prepared by an attorney. [[Countrywide Home Loans, Inc .v. Kentucky Bar Association http://caselaw.findlaw.com/ky-supreme-court/1110325.html]]; 113 S.W.3d 105 (Ky 2003).

==Vesting==

==Witness Requirements==
Witnesses are not required for deeds and mortgages, however, both must be acknowledged. KRS 382.270.

==Property Tax ==

==Mortgage/Transfer Tax==
Transfer tax is uniform across the state. Transfer tax is imposed at fifty cents for each $500 of value as declared in the deed. KRS 142.050(2). See KRS 142.050(7) for exceptions.

==Spousal Joinder Requirements/Homestead==
Kentucky recognizes the dower/curtesy interest of non-titled spouses, and therefore, a non-titled spouse must join in a deed or mortgage to convey his/her interest in the property. KRS 392.020. Kentucky does not recognize civil unions.

==Power Of Attorney==

==Construction Liens==

==Foreclosure Review==

==Instrument Requirements ==

==Who May Serve As Trustee On Deed Of Trust==

==Time Limitations==
*US Judgment Liens -- 20 years
*State Court Judgment Liens -- 15 years
*Federal Tax Liens -- 10 years (+ 30 days)
*State Tax Liens -- 10 years
*Estate Tax Lien -- 10 years
*State Inheritance Tax Liens -- 10 years
*Mechanics Liens -- 1 year
*Financing Statements -- 5 years
*Mortgages -- 15 years from maturity
*HOA Liens -- 15 years
*Condominium assessments --
*Child Support Liens --

==Odd Stuff==

Race-Notice States

2015-05-11T00:19:44Z

Abfields: /* Race-Notice statute */

==Race statute==

Also known as the "Race to the courthouse." The rule that the document recorded first wins and will have priority over any later recordings.
States that follow the Race statute: Delaware, Louisiana, and North Carolina.

==Notice statute==

A later buyer who pays fair value for the property and does not have notice that there were any other earlier conflicting interests, wins and will have priority over any later recordings.

States that follow the Notice statute: Alabama, Arizona, Connecticut, Florida, Illinois, Iowa, Kansas, Kentucky, Maine, Massachusetts, Missouri, New Hampshire, New Mexico, Oklahoma, Rhode Island, South Carolina, Tennessee, Vermont, and West Virginia.

==Race-Notice statute==

A later buyer who pays fair value, does not have notice of any other earlier conflicting interests, and records first, wins and will have priority over any later recordings.

States that follow the Race-Notice statute: Alaska, Arkansas, California, Colorado, District of Columbia, Georgia, Hawaii, Idaho, Indiana, Maryland, Michigan, Minnesota, Mississippi, Montana, Nebraska, Nevada, New Jersey, New York, North Dakota, Ohio (regarding mortgages, OH follows the Race statute), Oregon, Pennsylvania (regarding mortgages, PN follows Race), South Dakota, Texas, Utah, Washington, Wisconsin, and Wyoming.

Source: http://www.legalmatch.com/law-library/article/recording-acts.html

Race-Notice States

2015-05-11T00:19:24Z

Abfields: /* Race-Notice statute */

==Race statute==

Also known as the "Race to the courthouse." The rule that the document recorded first wins and will have priority over any later recordings.
States that follow the Race statute: Delaware, Louisiana, and North Carolina.

==Notice statute==

A later buyer who pays fair value for the property and does not have notice that there were any other earlier conflicting interests, wins and will have priority over any later recordings.

States that follow the Notice statute: Alabama, Arizona, Connecticut, Florida, Illinois, Iowa, Kansas, Kentucky, Maine, Massachusetts, Missouri, New Hampshire, New Mexico, Oklahoma, Rhode Island, South Carolina, Tennessee, Vermont, and West Virginia.

==Race-Notice statute==
A later buyer who pays fair value, does not have notice of any other earlier conflicting interests, and records first, wins and will have priority over any later recordings.

States that follow the Race-Notice statute: Alaska, Arkansas, California, Colorado, District of Columbia, Georgia, Hawaii, Idaho, Indiana, Maryland, Michigan, Minnesota, Mississippi, Montana, Nebraska, Nevada, New Jersey, New York, North Dakota, Ohio (regarding mortgages, OH follows the Race statute), Oregon, Pennsylvania (regarding mortgages, PN follows Race), South Dakota, Texas, Utah, Washington, Wisconsin, and Wyoming.

Source: http://www.legalmatch.com/law-library/article/recording-acts.html

Race-Notice States

2015-05-11T00:18:52Z

Abfields: Created page with " ==Race statute== Also known as the "Race to the courthouse." The rule that the document recorded first wins and will have priority over any later recordings. States that f..."

==Race statute==

Also known as the "Race to the courthouse." The rule that the document recorded first wins and will have priority over any later recordings.
States that follow the Race statute: Delaware, Louisiana, and North Carolina.

==Notice statute==

A later buyer who pays fair value for the property and does not have notice that there were any other earlier conflicting interests, wins and will have priority over any later recordings.

States that follow the Notice statute: Alabama, Arizona, Connecticut, Florida, Illinois, Iowa, Kansas, Kentucky, Maine, Massachusetts, Missouri, New Hampshire, New Mexico, Oklahoma, Rhode Island, South Carolina, Tennessee, Vermont, and West Virginia.

==Race-Notice statute==

A later buyer who pays fair value, does not have notice of any other earlier conflicting interests, and records first, wins and will have priority over any later recordings.

States that follow the Race-Notice statute: Alaska, Arkansas, California, Colorado, District of Columbia, Georgia, Hawaii, Idaho, Indiana, Maryland, Michigan, Minnesota, Mississippi, Montana, Nebraska, Nevada, New Jersey, New York, North Dakota, Ohio (regarding mortgages, OH follows the Race statute), Oregon, Pennsylvania (regarding mortgages, PN follows Race), South Dakota, Texas, Utah, Washington, Wisconsin, and Wyoming.

Source: [legalmatch.com http://www.legalmatch.com/law-library/article/recording-acts.html]

Multi-State Comparisons

2015-05-11T00:17:19Z

Abfields: Created page with "Race-Notice States"

[[Race-Notice States]]

MD Underwriting References

2015-05-01T23:35:04Z

Abfields:

[What is recordable & Tenancies reference http://www.oag.state.md.us/courts/landrecseminar/2004/2004_2_landrecs.pdf]

MD Underwriting References

2015-05-01T23:34:32Z

Abfields: Created page with " What is recordable & Tenancies reference [http://www.oag.state.md.us/courts/landrecseminar/2004/2004_2_landrecs.pdf]"

What is recordable & Tenancies reference
[http://www.oag.state.md.us/courts/landrecseminar/2004/2004_2_landrecs.pdf]

AZ Underwriting Summary

2015-04-29T17:48:46Z

Abfields: /* Spousal Joinder Requirements/Homestead */

==Search/Exam==

*Minimum Search Requirements -- No state law sets minimum period of time for a title search but a title plant must typically have a minimum 40 year chain;
There is not a marketable record title act in Arizona.

*Plant or other search restrictions -- Yes if over 100k population in county. [http://www.id.state.az.us/index.html Department of Insurance Link]. Title plant maintenance includes being a lessee or joint owner of a title plant. Alternatively, you may base your title policy on a title policy issued to you from a title insurer who does maintain such a title plant in the respective county or counties.

*Additional Requirements for REO Searches -- No

*Special Searches Required (Code, HOA, Utilities)? Included in normal search

*Survey Requirements
**Purchase – no
**Refinance - no

==UPL==
* Doc prep is UPL
*Arizona state law does not require attorney or abstractor involvement; however policies must be issued by a licensed issuing agent with Dept. of Insurance with an Arizona licensed title insurer.
**[http://wiki.wfgstaging.com/images/0/07/Arizona_Supreme_Ct_Rule_31_Practice_of_Law.docx Rule 31, Rules of the Supreme Court of Arizona]
**[http://wiki.wfgstaging.com/images/9/9e/State_Bar_of_Ariz_v_Arizona_Land_Title_And_Trust_Co_%282%29.pdf State Bar of Ariz. v. Arizona Land Title & Trust Co., 366 P.2d 1, 12 (Ariz. 1961)]

==Vesting==

==Property Tax ==

==Mortgage/Transfer Tax==

==Spousal Joinder Requirements/Homestead==

Joinder by non-title spouse not required by law. However Arizona is a community property state.

==Power Of Attorney==

==Construction Liens==

==Foreclosure Review==

==Instrument Requirements ==

==Who May Serve As Trustee On Deed Of Trust==

==Time Limitations==

*US Judgment Liens 20 years, renewable for 20 years

*State Court Judgment Liens 5 years

*Child Support notice of deficiency -- Defense 10 years after emancipation of the youngest child (18, marriage, death) A.R.S. § 25-503(J)

*Federal Tax Liens 10 years (+30 days); can be refiled

*State Tax Liens

*Estate Tax Lien Federal 10 years

*State Inheritance Tax Liens

*Mechanics Liens 6 months, if no law suit filed

*Financing Statements 5 years

*Mortgages

*HOA Liens 2 years

*Condominium assessments 2 years

==Odd Stuff==
*Title insurer has statutory authority to release subject to the requirements in A.R.S. 33-707.

*Arizona Department of insurance is the governing body where both rates and forms are filed. [http://www.id.state.az.us/index.html.title. DOI Website]

*Usury endorsement is available. The statutory maximum rate of interest is 10% per annum, unless a different rate is contracted for in writing, in which case any rate of interest may be agreed upon. ARS 44-1201. Usury also constitutes a misdemeanor crime. ARS 13-2208.

TX Operations Summary

2015-04-19T01:07:38Z

Abfields: /* Recording Process */

==Licensed Entity==
WFG LENDER SERVICES, LLC & WFG NATIONAL TITLE???

==Banking Information ==
*Bank account -- <<INSERT ACCOUNT #/ROUTING #/BANK NAME>>
*Checks stale dated after -- ___ days of issuance
*Good Funds Law -- $1500
*Disbursements Requirements -- MUST CLOSE THRU LICENSED TEXAS OPERATION
*Special Bank Requirements (IOLTA/IOTA/OTHER or account specific to that state’s funds) -- FUNDS MUST ONLY PASS THROUGH TEXAS ESCROW ACCOUNT – CANNOT TOUCH ANOTHER ACCOUNT
==Escrow/Settlement ==
*Who can prepare the HUD -- Texas Licensed Escrow Officer
*Who can sign the HUD (EO/LTP/Attorney) -- Texas Licensed Escrow Officer
*Who orders hazard insurance -- Customary -
*When is transaction consummated for new HUDS --
*Record before/after disburse -- After Disbursement
*Filed/restricted escrow rates -- Not filed but restricted
*Record retention requirements -- Yes
*Is an attorney involved in the closing -- No, only legal doc prep
*Who can handle loan document signing -- Notary for purchase and refinance. Home Equity/HELOC/REVERSE MTG have special closing restrictions: only in office of the lender, a title company or a Texas licensed attorney
*Doc Prep Restrictions -- Attorney must prepare
*Use Escrow Instructions or not -- No
*Use Estimated HUD or Final -- Final
*Pass-thru charges -- Limited fees permitted
*Rates Inclusive or not -- Inclusive of search exam & settlement but can charge an “Escrow Fee”
*Up Charging -- Prohibited
*Junk Charges -- Prohibited – actual charges only
*Special HUD Requirements -- Yes – disclosures of all payments and any splits for title evidence must be clearly disclosed
*Special Disclosures -- Yes – commitment must disclose split for title evidence and Schedule D must disclose details regarding agency
*CPL -- Yes
*UPL Issues -- Legal documents
*Joinder of non-titled spouse -- Yes
*Survey Required – YES – for survey deletions (and any short form policy); either new survey or existing survey and T-47 Survey Affidavit

==AUDITS==
*Required -- Yes, Annual CPA audit of escrow accounts, TDI Audits every 2 years (+/-), underwriter policy audit every 2 years
==Recording Process==
*E-recording -- County list of e-recording attached
*Record before disbursement -- Disburse first
*Special recording procedure -- No
==Recording/Document Requirements==
*Marital Status Stated -- Not required but customary
*Transfer Tax -- No
*Mortgage Tax -- No
*Address for grantor/grantee/property -- Yes for Grantee (some counties require it to appear on the first page)
*Witnesses -- Not required, but two witnesses may replace the notary – but it is not common practice.
*Names typed/printed -- No
*Prepared by/return to -- No
*Notary Stamp/requirements -- Stamp or seal must have date of expiration and name
*Parcel or tax index number -- Not required
*Recitation of Consideration -- Not required but nominal consideration customary
*Derivation Clause -- Not required
*Corporate Signatures/Attestation -- No special requirements
*Ink Color/Font -- Blue or black (varies by county)
*Legal Description --
*Margins -- Some counties require 3” on top of first page
*Other Special Recording: --

==Document Types==
*Conveyance -- Warranty Deed (General or Special), Warranty Deed with Vendor’s Lien, Deed without Warranties (Quit Claim not generally used except in family situations QC not generally insurable)
*Security Instrument -- Deed of Trust
*Release -- Release of Lien
==Tenancies==
*Tenants in Common -- Yes
*Joint Tenants -- Only by express language
*Tenancy by Entireties – No In re Garrett, 429 B.R. 220, 240 (Bankr. S.D. Tex. 2010)
*Community Property -- Yes
*Homestead -- Yes
*Joinder of Non-titled Spouse – Yes if homestead
==Taxes==
*Taxes Levied -- 1/1 (All properties must have at least county and school/ISD taxes, most also have city/municipal taxes and other special taxes.); amount determined when values and tax rates are certified in October
*Taxes due -- 10/1 (Although the actual tax bills may not be available until November or December)
*Delinquent -- After 1/31 following year – unless installment payments are being made
==Commitment/Policy Special Requirements==
*Who can sign Commitment/Policy -- Licensed Texas Escrow Officer, licensed Texas Title insurance agent or designated underwriter.
*Other --

==Payment Customs==
Subject to negotiation. Customary payment practices are:
*Owner’s Policy paid by Seller
*Transfer Tax & Recording Fees paid by Buyer
*Survey Charges paid by Seller, but buyer pays for area and boundary amendment.
*Parties customarily split escrow fees. Texas does not have a closing settlement fee.
==Post Closing Requirements==
*Recon follow up required –
==Withholding Requirements==
None

ATG Summary

2015-04-06T21:21:31Z

Abfields: Created page with "New CFPB Integrated Disclosures ATG Will Help You Prepare for August Implementation As the holiday season approaches, the August 1, 2015, implementation date of the Consumer..."

New CFPB Integrated Disclosures
ATG Will Help You Prepare for August Implementation

As the holiday season approaches, the August 1, 2015, implementation date of the Consumer Financial Protection Bureau (CFPB) rule integrating the TILA-RESPA disclosures is only nine (9) months away.
The rule consolidates four existing disclosures into two forms: the Loan Estimate and the Closing Disclosure.
The rule applies to most closed-end consumer credit transactions secured by real property. Transactions exempted include:
Home equity lines of credit;
Reverse mortgages;
Mortgages secured by a mobile home or dwelling not attached to land; and
Loans made by a creditor who makes five or fewer mortgages per year.
Significant Changes
Zero Tolerance – The fees paid to the lender, mortgage broker, or an affiliate of either may not increase from what is disclosed on the Loan Estimate. The fees paid to an unaffiliated third party may not increase if the lender does not permit the consumer to shop for that service. Transfer taxes are also subject to a zero tolerance.
10% Cumulative Tolerance – Recording fees and fees paid to third-party service providers, when the lender allows the consumer to shop and the consumer selects a provider on the creditor’s written list, are subject to a 10% cumulative tolerance.
Charges Not Subject to a Tolerance – Prepaid interest, property insurance premiums, escrows, and services required by the lender when the consumer is allowed to shop. When the consumer selects a third-party provider not on the creditor’s written list of service providers, the fee for that service is not subject to a tolerance.
Closing Disclosure - What’s New?
Itemization is back and roll-up lines are gone.
Agent/underwriter split for title premiums is no longer required.
Seller’s title charges assessed to the buyer are gone.
Line numbers are gone, fees will be alphabetized.
Owner’s Title Insurance is listed as “Optional.”
The Closing Disclosure replaces the HUD-1 and the final TIL disclosure. The rule requires the creditor to provide the Closing Disclosure to the consumer (borrower) three business days before consummation. Consummation occurs when the consumer becomes contractually obligated to the creditor on the loan – basically, the closing when the consumer executes the note and mortgage.
The creditor is responsible for the completion and timely delivery of the Closing Disclosure, however, the CFPB has acknowledged the significant role of settlement agents in the closing process and allows creditors to contract with settlement agents regarding completion and delivery of the disclosure.
Delivery Three Business Days Prior to Consummation
The consumer must receive the Closing Disclosure three business days before the closing. The Closing Disclosure may be delivered in person, by mail, or by other delivery methods including email. Electronic delivery methods are subject to compliance with consumer consent and the Electronic Signatures in Global and National Commerce Act. Wells Fargo has announced that they will complete and deliver the Closing Disclosure. They’ve also indicated that they intend to utilize US mail to deliver the disclosure. Delivery by mail under the rule is presumed to occur three business days after posting. This means the completed disclosure, containing figures from all parties, must be placed in the mail preferably 10 days prior to the closing date to meet the three-day rule and allow for non-business days, such as Sundays. Lenders utilizing this method of delivery will obviously need to schedule their closings far in advance and they’ll need figures from all parties to the transaction in order to complete and deliver the Closing Disclosure.
The rule defines a business day as all calendar days except Sundays and the legal public holidays specified in 5 U.S.C. 6103(a).
2015 Federal Holiday Schedule
Date Holiday
Thursday, January 1 New Year’s Day
Monday, January 19 Martin Luther King, Jr.'s Birthday
Monday, February 16 Washington’s Birthday
Monday, May 25 Memorial Day
Friday, July 3* Independence Day
Monday, September 7 Labor Day
Monday, October 12 Columbus Day
Wednesday, November 11 Veterans Day
Thursday, November 26 Thanksgiving Day
Friday, December 25 Christmas Day
*July 4, 2015 falls on a Saturday. For most Federal employees, Friday, July 3, will be treated as a holiday.
ALTA Three-Day Closing Rule Chart
Changes that require a new disclosure and an additional three-business-day waiting period after receipt have been limited to the following:
changes to the APR above 1/8 of a percent for most loans and 1/4 of a percent for loans with irregular payments or periods;
changes to the loan product; and
the addition of a prepayment penalty to the loan.
Waiving the Three Business Day Waiting Period
Consumers may waive or modify the waiting period when:
the extension of credit is needed to meet a bona fide personal financial emergency;
the consumer has received the Closing Disclosure; and
the consumer gives the creditor a dated written statement that describes the emergency, specifically modifies or waives the waiting period, and bears the signature of all consumers who are primarily liable on the legal obligation.
Seller’s Closing Disclosure
The settlement agent is required to provide the seller with the Closing Disclosure no later than the day of consummation. If the Closing Disclosure provided to the consumer also contains the seller’s information a copy may be provided to the seller. If the settlement agent provides the seller with a separate disclosure a copy of the seller’s disclosure must be provided to the creditor.
Title Insurance Charges on the Loan Estimate and Closing Disclosure
The rule requires that when owner’s and lender’s policies are simultaneously issued, the full, undiscounted rate should be disclosed to the consumer on the Loan Estimate and the Closing Disclosure. The Owner’s Title Insurance is to be disclosed in the “Other” category and is to be calculated by adding the simultaneous issuance premium to the full owner’s policy premium, and then deducting the full premium for the lender’s coverage. In the majority of states this results in overstated title charges to the buyer and an inflated cash to close figure. Consequently, the seller’s title charges and proceeds will be understated. The American Land Title Association and The Mortgage Bankers’ Association have both written to the CFPB to comment on this issue in hopes of having the rule amended.
Uniform Closing Dataset (UCD)
The Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) have created a Uniform Closing Dataset (UCD) to standardize the naming of fees used for loans they purchase. Since the Closing Disclosure requires fees to be listed alphabetically, the UCD will greatly simplify the data entry process by requiring uniform use of such terms as Realtor commission, recording fees, etc. Fannie and Freddie expect to begin requiring use of the UCD in 2016.
Software and Training for ATG Staff and ATG Agents
To stay informed on this important topic, ATG mangers and staff have attended CFPB webinars, ALTA webinars, and webinars on the CFPB rule offered by RamQuest®. We will offer training opportunities for ATG agents in 2015, but until then we strongly recommend ATG agents and their employees view our 2014 OnDemand program, The New Real Estate Closing Process: CFPB Rule Explained. We will announce our plans for additional, specific training for ATG agents, closers, and staff in the spring of 2015, after the new software is released (expected in the first quarter of 2015). Watch your email and our website for details.
Conclusions
It is evident from the content of this rule that the CFPB is primarily focused on borrowers and lenders. The CFPB wants to ensure that consumers can obtain a mortgage through a process that is without surprises. However, this rule is only one of many new regulations impacting lenders and the processes they use to originate and service mortgages. Lenders have the liability and will determine the settlement agent’s role in the preparation of the Closing Disclosure. This presents a unique opportunity for all of us to reach out to the lenders and Realtors in our areas to become their trusted advisers and partners on the implementation of the Integrated Disclosures.
As always, our goal is to ensure that attorney agents remain part of the title insurance landscape by offering support and tools to help you comply with the CFPB rule and ALTA Best Practices. We appreciate that certain components will be a challenge. Take advantage of the tools and information on our website and upcoming training programs to ease the transition. Contact us with questions or concerns. We look forward to hearing from you.
David S. Huffman
ATG Senior Vice President - Title Operations
[Last update: 12-8-14]
- See more at: http://www.atgf.com/underwriting/news/new-cfpb-integrated-disclosures#sthash.whgeLzZC.dpuf

Integrated Mortgage Disclosure

2015-04-06T21:21:13Z

Abfields: /* Resources */

== Resources ==

[http://national.wfgnationaltitle.com/compliance/newsletter/ WFG 4th C]

[http://www.consumerfinance.gov/knowbeforeyouowe/ Know Before You Owe]

[http://www.consumerfinance.gov/owning-a-home CFPB Owning a Home Guide]

[[ATG Summary]]

===The Forms===

*[http://files.consumerfinance.gov/f/201311_cfpb_kbyo_loan-estimate.pdf Loan Estimate Example]

*[http://files.consumerfinance.gov/f/201311_cfpb_kbyo_closing-disclosure.pdf Closing Disclosure Example (Sale)]

===The Rule===

*[http://www.consumerfinance.gov/f/201311_cfpb_final-rule-preamble_integrated-mortgage-disclosures.pdf The Preamble]

*[http://www.consumerfinance.gov/f/201311_cfpb_final-rule-amendments-to-regulations_integrated-mortgage-disclosures.pdf Regulatory Text]

*[http://www.consumerfinance.gov/f/201311_cfpb_final-rule-commentary_integrated-mortgage-disclosures.pdf Official Interpretations]

Integrated Mortgage Disclosure

2015-04-06T21:20:57Z

Abfields: /* Resources */

== Resources ==

[http://national.wfgnationaltitle.com/compliance/newsletter/ WFG 4th C]

[http://www.consumerfinance.gov/knowbeforeyouowe/ Know Before You Owe]

[http://www.consumerfinance.gov/owning-a-home CFPB Owning a Home Guide]

[ATG Summary]

===The Forms===

*[http://files.consumerfinance.gov/f/201311_cfpb_kbyo_loan-estimate.pdf Loan Estimate Example]

*[http://files.consumerfinance.gov/f/201311_cfpb_kbyo_closing-disclosure.pdf Closing Disclosure Example (Sale)]

===The Rule===

*[http://www.consumerfinance.gov/f/201311_cfpb_final-rule-preamble_integrated-mortgage-disclosures.pdf The Preamble]

*[http://www.consumerfinance.gov/f/201311_cfpb_final-rule-amendments-to-regulations_integrated-mortgage-disclosures.pdf Regulatory Text]

*[http://www.consumerfinance.gov/f/201311_cfpb_final-rule-commentary_integrated-mortgage-disclosures.pdf Official Interpretations]

Integrated Mortgage Disclosure

2015-03-02T23:52:01Z

Abfields: /* The Forms */

== Resources ==

[http://national.wfgnationaltitle.com/compliance/newsletter/ WFG 4th C]

[http://www.consumerfinance.gov/knowbeforeyouowe/ Know Before You Owe]

[http://www.consumerfinance.gov/owning-a-home CFPB Owning a Home Guide]

===The Forms===

*[http://files.consumerfinance.gov/f/201311_cfpb_kbyo_loan-estimate.pdf Loan Estimate Example]

*[http://files.consumerfinance.gov/f/201311_cfpb_kbyo_closing-disclosure.pdf Closing Disclosure Example (Sale)]

===The Rule===

*[http://www.consumerfinance.gov/f/201311_cfpb_final-rule-preamble_integrated-mortgage-disclosures.pdf The Preamble]

*[http://www.consumerfinance.gov/f/201311_cfpb_final-rule-amendments-to-regulations_integrated-mortgage-disclosures.pdf Regulatory Text]

*[http://www.consumerfinance.gov/f/201311_cfpb_final-rule-commentary_integrated-mortgage-disclosures.pdf Official Interpretations]

Integrated Mortgage Disclosure

2015-03-02T23:51:40Z

Abfields: /* Resources */

== Resources ==

[http://national.wfgnationaltitle.com/compliance/newsletter/ WFG 4th C]

[http://www.consumerfinance.gov/knowbeforeyouowe/ Know Before You Owe]

[http://www.consumerfinance.gov/owning-a-home CFPB Owning a Home Guide]

===The Forms===

[http://files.consumerfinance.gov/f/201311_cfpb_kbyo_loan-estimate.pdf Loan Estimate Example]

[http://files.consumerfinance.gov/f/201311_cfpb_kbyo_closing-disclosure.pdf Closing Disclosure Example (Sale)]

===The Rule===

*[http://www.consumerfinance.gov/f/201311_cfpb_final-rule-preamble_integrated-mortgage-disclosures.pdf The Preamble]

*[http://www.consumerfinance.gov/f/201311_cfpb_final-rule-amendments-to-regulations_integrated-mortgage-disclosures.pdf Regulatory Text]

*[http://www.consumerfinance.gov/f/201311_cfpb_final-rule-commentary_integrated-mortgage-disclosures.pdf Official Interpretations]

Integrated Mortgage Disclosure

2015-03-02T23:34:13Z

Abfields: Created page with " == Resources == [http://national.wfgnationaltitle.com/compliance/newsletter/ WFG 4th C] [http://www.consumerfinance.gov/knowbeforeyouowe/ Know Before You Owe] [http://www...."

== Resources ==

[http://national.wfgnationaltitle.com/compliance/newsletter/ WFG 4th C]

[http://www.consumerfinance.gov/knowbeforeyouowe/ Know Before You Owe]

[http://www.consumerfinance.gov/owning-a-home CFPB Owning a Home Guide]

The Rule

*[http://www.consumerfinance.gov/f/201311_cfpb_final-rule-preamble_integrated-mortgage-disclosures.pdf The Preamble]

*[http://www.consumerfinance.gov/f/201311_cfpb_final-rule-amendments-to-regulations_integrated-mortgage-disclosures.pdf Regulatory Text]

*[http://www.consumerfinance.gov/f/201311_cfpb_final-rule-commentary_integrated-mortgage-disclosures.pdf Official Interpretations]

LA Underwriting Summary

2015-01-27T00:13:33Z

Abfields: /* UPL */

==Search/Exam==
*Minimum Search Requirements -- Statute requires 30 years for purchases or longer, if necessary, in order to reach an arms-length sale between unrelated, third parties. 10 years for refinance but still need a 20 year Fed Lien Search. La RS 22:512(17)(b)(vi)(gg). State Bar association requires 35 years or such longer period of time as may be necessary to commence the examination with a conveyance for consideration.
*Plant or other search restrictions -- No
*Additional Requirements for REO Searches --
*Foreclosure Checklist --
*Special Searches Required (Code, HOA, Utilities)? --
*Survey Requirements --
*Title examiner must be LA licensed Attorney.

==UPL==
*UPL Hot Button Issues -- Attorney Certification Required
Any title insurance report or title insurance policy shall be based upon an examination of title, which shall be conducted only by LA licensed attorneys. The examination and resulting opinion, if it furnishes the basis of a title insurance report or title insurance policy, shall be reduced to writing by the attorney. La R.S. 22:512(17). This information and other must be shown on face of the insured mortgage or deed. La. Rev. Stat. Ann § 22:513.1

==Vesting==
*Louisiana civil law is based on Roman, Spanish and French law. Tenancy types based on English law used in the other states are not recognized in Louisiana.

*The following tenancy types are recognized:
**Community Property
***Property acquired during marriage.
***Donations to both spouses. Source: CC Art. 2338
**Separate Property
***Property acquired prior to marriage.
***Property donated to individual spouse.
***Inherited property.
***Property acquired during marriage if act contains declaration that acquiring spouse is purchasing as his separate property with separate funds (referred to as double declaration). Other spouse if available should intervene in act and acknowledges that property is other spouse’s separate property. Creditors of the community and forced heirs may controvert the declaration, but a subsequent transfer by onerous title or a mortgage may not be set aside on grounds of falsity of the declaration.
***Property designated as separate in a matrimonial agreement. After marriage, court approval is required for a valid matrimonial agreement that modifies or terminates the community regime. Source: CC Art. 2341, CC Art. 2342, CC Art. 2329
**Usufruct - Usufruct is a right to possess property and collect its fruits and revenues. A person holding a usufruct (usufructuary) on immovable property does not have the right to sell or mortgage the immovable property unless the instrument creating the usufruct grants the usufructuary the right to dispose of the immovable property. A spouse in his or her last will often grants the surviving spouse the right to dispose of immovable property. In the absence of a will, the usufructuary and all naked owners must execute a sale, lease or mortgage of inherited property. The legal usufruct in favor of the surviving spouse terminates upon remarriage. Source: CC Art. 535, CC Art. 568, CC Art. 890

* Louisiana does recognize components of property ownership known as "usus," which is the right to use the property, "fructus," which is the right to use the fruits produced by the property, and "abuses," which is the right to alienate the property. A "usufruct," combining the components of usus and fructus, allows a person the right to enjoy the property while ownership of the property is vested in another. Ownership in division is the ownership of something by two or more persons, generally presumed to be by equal shares. All owners must sign a sale or a mortgage, including usufructuaries and naked owners, unless the usufructuary is given the power to sell or mortgage in his or her acquisition.
*Attachment of Liens: Liens, called “privileges” in Louisiana, are of two sorts, statutory and contractual. Statutory liens, such as that in favor of workmen and material suppliers, can attach to the property even if the services were ordered by a non-owner. However, the lien must identify the proper owner of the property to attach. Contractual liens, such as mortgages, attach when the proper owner signs a document, such as a mortgage, and the document is recorded. Where property is community, both spouses must sign the mortgage, and the signature of one spouse may not be effective, even as to that one spouse’s share. Judgment liens against either spouse will attach to the entire community property, not just that spouse’s half.

==Witness Requirements==

==Property Tax ==
*Parish property taxes for the current year in all parishes except Orleans are due in December and are delinquent after December 31st. The sheriff of each parish is the ex officio tax collector. Source: R.S. 47:2127
*Property taxes for Orleans Parish for the current year are due and payable in January and are delinquent after January 31st. The City of New Orleans Department of Finance is the tax collector. Source: R.S. 47:1997.
*Municipalities may also collect ad valorem property taxes. Source: R.S. 33:1236

==Mortgage/Transfer Tax==
*There are no mortgage or transfer taxes in Louisiana except in Orleans Parish.
*In Orleans Parish, the City of New Orleans imposes a documentary tax. The amount of the tax is determined by the amount of the transaction and the type of property.
*In most cases the tax is $325 and is charged per transaction. If a sale and mortgage are filed together, only one tax of $325 is imposed.
*For owner occupied single family homes or residential doubles, the tax will not exceed $325. For all other property, if the document exceeds 25 pages, an additional $100 is collected for each additional page up to a maximum of $2,525.
*There are exemptions for certain transactions, e.g. quitclaims and acts of correction.
*Source: City of New Orleans Ord. No. 18736; New Orleans Code, Ch. 150, Article V

Contact New Orleans Notarial Archives for an accurate calculation at 504-568-8577

==Spousal Joinder Requirements/Homestead==
*Spousal joinder required if community property.
*There are two “homestead exemptions” in Louisiana.
**The first deals with a special ad valorem tax break for home owners who live in their property. The first $75,000 of homestead value is exempt from real estate taxes.
**The second “homestead exemption” deals with creditor claims. The homestead is exempt from seizure and sale up to $35,000. The exemption may be waived in favor of a creditor. For community property, both spouses must sign the waiver of homestead exemption. A waiver of the homestead exemption on separate property may be executed by the owner spouse alone and is binding on the non-owner spouse. Most LA form mortgages contain such a waiver in boilerplate language. Source: R.S. 20:1

==Power Of Attorney==
*A power of attorney is also referred to as a procuration or mandate. Source: CC Art. 2987, CC Art. 2989
*In order to insure a transaction executed with a power of attorney, the power of attorney should be executed before a notary and two witnesses.
*A power of attorney acknowledged before a notary public may be used if approved by WFG underwriting. However, a power of attorney to donate property must always be in authentic form, i.e., executed before a notary and two witnesses. Source: CC Art. 2993, CC Art. 1541
*A general power of attorney is insufficient to convey, donate, lease or mortgage property owned by the principal unless the power to convey, donate, lease or mortgage is expressly granted by the principal. It is not necessary that the power of attorney contain the specific property description. Source: CC Art. 2996, CC Art. 2997
*The power of attorney terminates upon the death or interdiction of the principal. Incapacity or incompetency of the principal does not terminate the power of attorney unless the power of attorney provides otherwise. Source: CC Art. 3024, CC Art. 3026
*An agent may not contract with himself unless authorized by the principal. Source: CC Art. 2998
*A trustee by power of attorney may only delegate the performance of ministerial duties. A power of attorney given by a trustee to sell trust property should recite the price and terms of the sale. Boilerplate language that gives the agent discretion or allows him to perform any acts he deems appropriate should be deleted from a power of attorney by a trustee. Source: R.S. 9:2087

==Construction Liens==
*Liens under the Louisiana Private Works Act (R.S. 9:4801 et seq.) are effective from the date a notice of contract is filed in the case of recorded contracts or from the date work begins if there is no recorded contract.
*Where a lender intends to acquire a mortgage on property upon which improvements will be constructed, the usual practice is to obtain an affidavit from an engineer, surveyor, architect or building inspector that states he inspected the immovable at a specified time and that work had not yet commenced nor had building materials been delivered to the site. The affidavit must be recorded within four business days after its execution, and the lender’s mortgage must be filed before or within four business days of the filing of the affidavit. Absent fraud, the correctness of the facts recited in the affidavit may not be controverted if the affidavit and mortgage are filed in accordance with the time periods set forth above. Source: R.S. 9:4820C

==Foreclosure Review==

State Specific Guidelines for Insuring Louisiana Properties Acquired at Sheriff’s Foreclosure Sale - Executory Proceeding or Sale in Ordinary Proceeding Pursuant to Writ of Fifa

#Check service of citation and petition on defendants in ordinary proceeding.
#Review mortgage to confirm that service of demand for payment has been waived and that mortgage contains a confession of judgment required for executory process.
#Confirm that notice of seizure has been served on defendants.
#Confirm that property description matches in mortgage, petition for executory process or request for writ of fifa, notice of seizure, advertisements and sheriff’s deed.
#Review note of evidence filed by attorney appointed to represent absent or deceased defendants to confirm notice sent to absentees or heirs of deceased defendant.
#Review mortgage and conveyance certificates obtained by sheriff and confirm that proper Mennonite notice was sent to all holders of subordinate mortgages, judgments or liens.
#If subordinate IRS liens attach to property, confirm that adequate notice was sent to IRS. If policy will be issued during 120 day redemption period, list the right of redemption as an exception in the commitment and policy.
#If a subordinate mortgage or lien in favor of United States or one of its agencies other than IRS is recorded, include exception for right of redemption during 1 year period following sheriff’s sale.
#Except to all mortgages, judgments and liens superior to the mortgage or judgment of the seizing creditor.
#Confirm that foreclosing creditor obtained relief from automatic stay if debtor has filed a bankruptcy proceeding.

From Bulletin LA14-01

==Instrument Requirements ==
All acts (Deeds & Mortgages) must contain the following:

*Full name of each party and not initials alone. (The full name should include at least one given name and other initials in addition to the surname of each party.)

*The marital status of each party. The terms “single, married, widow or widower” may be used in lieu of reciting a complete marital history.

*The maiden name and prior married names for female parties signing the act.

*The permanent mailing address of each party.

*Typed or printed names of witnesses and Notary Public under their signature lines.

*The notary identification number or state bar roll number of the Notary Public.

*A sale or mortgage of one to four family residential property insured by a title policy must contain:
**the name, address and Louisiana license number of the title producer
**the name of the title insurance underwriter, and
**the name and bar roll number of the Louisiana attorney who provided the title opinion upon which the policy is based.
**This information may be typed or printed on the document or included in an addendum or rider.

Source: R.S. 35:11, R.S. 35:12, R.S. 22:513.1

==Mortgage/Deed of Trust Requirements==
In Louisiana, the mortgage is the instrument used to secure real property loans; common law deeds of trust are not permitted. A "conventional" mortgage is established by contract, a "legal" mortgage is established by operation of law, and a "judicial" mortgage is established by law to secure a judgment. A "general" mortgage burdens all present and future property of the mortgagor, while a "special" mortgage burdens only certain specified property of the mortgagor. Conventional mortgages are special mortgages. Judicial and legal mortgages are usually general mortgages.

Only a written contract may establish a conventional mortgage. The writing may be either an authentic act or an act under private signature, although it is customary for mortgages to be in authentic form for purposes of quick foreclosure. The conventional mortgage must state precisely the description of the immovable property over which it is granted, state the amount of the obligation or the maximum amount of the obligations that may be outstanding at any time and from time to time that the mortgage secures, and be signed by all those who have the power to alienate the property. The mortgagee need not sign the contract of mortgage.

When a creditor lends money to a Louisiana debtor, usually a promissory note is signed as evidence of the debt, although this is not absolutely necessary. The promissory note indicates the amount owed and the interest rate to be charged over a certain period of time.

==Time Limitations==

[http://wiki.wfgstaging.com/images/b/bb/Louisiana_Time_Limitations_on_Enforcing_Various_Liens.pdf Chart of LA Time Limitations]

==Odd Stuff==
#Louisiana has not adopted the concept of a purchase money mortgage. It is necessary to run the names of all purchasers in the mortgage records to determine if there are any recorded judgments or liens against purchasers. A prior recorded judgment or lien against a purchaser will have priority over the mortgage in favor of the purchase money lender. Therefore, the title insurer or producer must obtain releases or subordinations for any liens or judgments against purchaser prior to closing or except to such judgments or liens in any title policy issued.
#A title insurer or title producer is required by law to obtain a written title opinion from a Louisiana attorney prior to issuance of a tile policy. The length of the search depends on the type of transaction. If the transaction is a sale, the search must be 30 years or longer if necessary to reach an arm’s length transaction. If the transaction is a refinance, the minimum search period is the longer of 10 years or 2 links. This requirement is contained in the Louisiana Insurance Code and is enforced by the Louisiana Department of Insurance. Louisiana does not permit a title insurer or title producer to issue a policy based on only a prior policy.
#A title producer after paying a mortgage or judgment is responsible to ensure that the inscription of the mortgage or lien is cancelled from the mortgage records.
#R.S.9:5167.1 allows a notary, attorney or title agent (who paid a mortgagee that failed to return a cancellation form within 60 days) to file an affidavit and cancel the paid mortgage. Two other statutes allow for the filing of an affidavit by the notary, attorney, title agent or title insurer who has misplaced a release received from a mortgagee to cancel the released mortgage. See, R.S. 9:5167 and R. S. 9: 5168.
#Any requirement of Arbitration in an insurance policy is not enforceable in Louisiana

Updated 9/18/14 Stephen G. Sklamba

LA Operations Summary

2015-01-27T00:11:18Z

Abfields: /* Recording/Document Requirements */

==Licensed Entity: ==
*See [http://wiki.wfgstaging.com/images/b/bb/Louisiana_HUD-1.pdf Attached HUD] Sample for Additional Information

==Banking Information==
*Bank account -- <<INSERT ACCOUNT #/ROUTING #/BANK NAME>>
*Checks stale dated after -- ___ days of issuance
*Good Funds Law -- $2,500 de minimus
*Disbursements Requirements -- <<INSERT IF WFG REQUIRES CD?>>
*Special Bank Requirements (IOLTA/IOTA/OTHER or account specific to that state’s funds) -- No
==Payment Customs==
*By custom Buyer pays for Owners policy, transfer tax and recording fee, and closing and settlement fee.
*On commercial transactions, these charges are often negotiated on a per transaction basis by the parties.

==Escrow/Settlement ==
*Who can prepare the HUD -- No restrictions
*Who can sign the HUD (EO/LTP/Attorney) -- No restrictions
*Who orders hazard insurance -- Customary -
*When is transaction consummated for new HUDS --
*Record before/after disburse -- Disburse then record
*Filed/restricted escrow rates -- No
*Record retention requirements -- No statutes
*Is an attorney involved in the closing -- No
*Who can handle loan document signing -- Notary
*Doc Prep Restrictions -- Doc Prep is UPL – Attorney must prepare
*Use Escrow Instructions or not -- No
*Use Estimated HUD or Final -- Final
*Pass-thru charges -- No restrictions
*Rates Inclusive or not -- Not inclusive
*Up Charging -- No state law restrictions
*Junk Charges -- No restrictions
*Special HUD Requirements -- No
*Special Disclosures -- No
*CPL --
*UPL Issues -- Doc Prep is UPL, Title review must be attorney. See UPL
*Joinder of non-titled spouse -- Yes
*Survey Required -- OP – not for platted subdivisions; LP – No
==Audits==
*Required -- Every 3 years – underwriter audit
==Recording Process==
*E-recording --
*Record before disbursement -- Disburse then record
*Special recording procedure --
==Recording/Document Requirements==
*Marital Status Stated -- Yes
*Transfer Tax -- None except in Orleans Parrish, City of New Orleans. See [[http://wiki.wfgstaging.com/index.php/LA_Underwriting_Summary#Vesting]]
*Mortgage Tax -- No
*Address for grantor/grantee/property -- All parties required
*Witnesses -- 2
**All mortgage documents and their riders should be in authentic form in accordance with La. Civ. Code art. 1833, that is, signed before a notary and two witnesses. The issue of authentic evidence is important when it comes to the collection of a debt secured by Louisiana real estate. The quickest and the most efficient way to foreclose is by way of "executory process," which is an ex parte in rem procedure whereby a creditor enforces a mortgage or security interest containing a confession of judgment. In order to qualify for an executory proceeding, the creditor must attach authentic evidence of each and every link needed to prove the right to use executory process.
*Names typed/printed -- Yes
*Prepared by/return to -- Not required
*Deed must show the true sales price. All acts of sale or other instruments affecting the transfer of real property must also contain the correct names, marital status and addresses of the vendee, the vendor, as well as the municipal or street address of the property transferred, if available.
*Notary Stamp/requirements --
*Parcel or tax index number --
*Recitation of Consideration -- Required
*Derivation Clause -- Yes
*Corporate Signatures/Attestation --
*Ink Color/Font -- Black/ 10 pt minimum
*Legal Description -- State/parish/municipality/address/municipality #
*Margins -- 2” 1st page; 1” all other
*Other Special Recording: --
*Every Insured conveyance and Mortgage that is insured by a policy after 1/1/12 must show:
**the name, address, and Louisiana license number of the issuing title insurance producer;
**the name of the title insurance underwriter issuing the policy; and
**the name and bar roll number of the attorney licensed to practice law in Louisiana who provided the title opinion upon which the title insurance policy is based. La. Rev. Stat. Ann § 22:513.1

==Releases of Mortgage==
*Act No. 342 of 2011 requires the holder of a mortgage on one-to-four family residential property recorded after January1, 2012, or its servicing agent, to cancel the mortgage upon receipt of full payment and a request from borrower or his settlement agent that the mortgage be cancelled. If the request is received from borrower’s settlement agent, the release must be forwarded to the settlement agent. If no settlement agent is involved, the lender is required to forward the release to the appropriate clerk of court. *The act of release must be filed by the lender with the clerk or forwarded to the settlement agent within 45 days of receipt of full payment and the request by the borrower. If the release is forwarded to the settlement agent, he must file the release within 45 days from receipt. Both the lender and settlement agent may be assessed a statutory penalty in the amount of $500 for failure to comply in addition to actual damages, costs and reasonable attorney fees.

*A mortgage may be cancelled by sending the paid or cancelled mortgage note to the clerk of court. Louisiana law also allows for cancellation by affidavit. Samples of the various affidavits used by the Clerk of Court for the Parish of Jefferson may be found on the website for the Jefferson Parish Clerk, www.jpclerkofcourt.us/forms . There is also an all inclusive uniform cancellation affidavit that may be used. Some parishes require additional forms to be filed with the forms permitted by state law.

Ref: R.S. 9:5165, R.S. 9:5166, R.S. 9:5167, R.S. 9:5168, R.S. 9:5169, R.S. 9:5172, R.S. 9:5174

==Document Types==
*Louisiana law provides that three forms may be used for a valid sale - an authentic act, an act under private signature duly acknowledged, and an act under private signature. A sale may be made with or without warranty of title. The price should be recited in the sale.

**An authentic act is a writing executed by the parties before a notary public in the presence of two witnesses.

**An act under private signature duly acknowledged may be acknowledged not only by a party who executed it but also by a witness in whose presence it was executed.

**Due to the possibility of fraud and forgery, WFG will not insure a sale under private signature, i.e. where only the parties sign.

**An interest in property may be transferred by quitclaim deed. If the quitclaim does not recite adequate consideration, it must be by authentic act.

*A donation inter vivos is null if not made by authentic act and is without effect until accepted by the donee. The acceptance must be made during the lifetime of the donor.

*A mortgage should be in authentic form. If a mortgage is not executed before a notary and two witnesses, the lender may not legally use executory process to foreclose on the mortgage and could only enforce the mortgage in an ordinary action. The ordinary process results in additional delays and the lender incurs additional expenses. <ref>CC Art. 2440, CC Art. 1541, CC Art. 1544, CC Art. 1833, CC Art. 1836, R.S. 13:3720, R.S. 35:511</ref>
*Conveyance -- Deed called an “Act of Sale.” No statutory form of deed, but there are customary general warranty deeds, special or limited warranty deeds, and quit claim deeds (Acts of Sale).
*Security Instrument -- Mortgage

----

<references/>

==Tenancies==
*Tenants in Common -- No
*Joint Tenants -- No
*Tenancy by Entireties -- No
*Community Property -- Yes
*Separate Property -- Yes
*Unusual categories: Louisiana recognizes components of property ownership known as "usus," which is the right to use the property, "fructus," which is the right to use the fruits produced by the property, and "abuses," which is the right to alienate the property. A "usufruct," combining the components of usus and fructus, allows a person the right to enjoy the property while ownership of the property is vested in another. Ownership in division is the ownership of something by two or more persons, generally presumed to be by equal shares. All owners must sign a sale or a mortgage, including usufructuaries and naked owners, unless the usufructuary is given the power to sell or mortgage in his or her acquisition.
*Homestead -- Yes
*Joinder of Non-titled Spouse -- Yes as to community property. Community property presumed unless otherwise stated.

==Taxes==
*The Tax Year for all parishes—Jan 1 to Dec 31
*The Due Date for Orleans Parish only is January 31 and is payable “in advance”
*Parish property taxes for the current year in all parishes except Orleans are due in December and are delinquent after December 31st. The sheriff of each parish is the ex officio tax collector. Source: R.S. 47:2127
*Property taxes for Orleans Parish for the current year are due and payable in January and are delinquent after January 31st. The City of New Orleans Department of Finance is the tax collector. Source: R.S. 47:1997.

Municipalities may also collect ad valorem property taxes. Source: R.S. 33:1236

==Commitment/Policy Special Requirements==
*Who can sign Commitment/Policy -- LTP – must show license #
*Other --
==Post Closing Requirements==
*Recon follow up required --

KY Operations Summary

2015-01-20T21:36:40Z

Abfields: /* New Category */

==Licensed Entity:==
*WFGNTIC/WFG LS
*See Attached HUD Sample for Additional Information [[file:Kentucky_HUD-1.pdf]]
==Banking Information==
*Bank account -- <<INSERT ACCOUNT #/ROUTING #/BANK NAME>>
*Checks stale dated after -- ___ days of issuance
*Good Funds Law -- No statute
*Disbursements Requirements --
*Special Bank Requirements (IOLTA/IOTA/OTHER or account specific to that state’s funds) -- None
==Payment Customs==
*Buyer customarily pays for Owner’s policy
*Seller pays Transfer Tax -
* Buyer pays deed and mortgage recording fees; Seller pays recording fee for the release of existing mortgage(s)
*Buyer pays Survey Charges
*Customarily the Buyer pays the majority of the closing fee, with perhaps a small part paid by the seller; it can vary between closers and areas of the state.
==Escrow/Settlement ==
*Who can prepare the HUD -- No restrictions
*Who can sign the HUD (EO/LTP/Attorney) -- No restrictions
*Who orders hazard insurance -- Customary -
*When is transaction consummated for new HUDS --
*Record before/after disburse -- Disburse then record
*Filed/restricted escrow rates -- No
*Record retention requirements -- No statutes
*Is an attorney involved in the closing -- No
*Who can handle loan document signing -- Notary
*Doc Prep Restrictions -- Doc Prep is UPL
*Use Escrow Instructions or not -- No
*Use Estimated HUD or Final -- Final
*Pass-thru charges -- No restrictions
*Rates Inclusive or not -- Not inclusive. Customary to charge a separate title search fee (which can be called an “exam” fee). Kentucky is not an “all-inclusive” premium state.
*Up Charging -- No restrictions
*Junk Charges -- No restrictions
*Special HUD Requirements -- None – BUT Premium Taxes in KY by County
*Special Disclosures -- None
*CPL --
*UPL Issues -- Doc Prep is UPL
*Joinder of non-titled spouse -- Yes
*Survey Required -- OP – Yes for extended coverage; LP – no
==Audits==
*Required -- No
==Recording Process==
*E-recording --
*Record before disbursement --
*Special recording procedure -- Consideration statement for deeds
==Recording/Document Requirements==
*Marital Status Stated -- Not required
*Transfer Tax -- Yes Transfer tax is uniform across the state. Transfer tax is imposed at fifty cents for each $500 of value as declared in the deed. KRS 142.050(2). See KRS 142.050(7) for exceptions.

*Mortgage Tax -- No
*Address for grantor/grantee/property -- Grantee required
*Witnesses -- None Required for deeds and mortgages, both must be acknowledged. KRS 382.270.
*Names typed/printed -- Yes
*Prepared by/return to -- Name, address, signature
*Notary Stamp/requirements --
*Parcel or tax index number -- 1st page
*Recitation of Consideration -- Required
*Derivation Clause -- Required
*Corporate Signatures/Attestation --
*Ink Color/Font -- Black/8 pt minimum
*Legal Description -- State/county/municipality in 1st paragraph
*Margins -- 2” 1st page, 1” all other
*Other Special Recording: --
==Document Types==
*Conveyance -- Warranty Deed, Limited Warranty Deed, Quitclaim Deed
*Security Instrument -- Mortgage
*Release -- Release
==Tenancies==
*Tenants in Common -- Yes
*Joint Tenants -- No
*Tenancy by Entireties -- Yes – can be created
*Community Property -- No
*Homestead -- Yes
*Joinder of Non-titled Spouse -- Yes
==Taxes==
*Taxes Levied --
*Taxes due -- 9/15
*Delinquent -- 1/1 KRS 134.020
*City taxes should be verified directly with the particular city, as their schedules may vary.
==Commitment/Policy Special Requirements==
*Who can sign Commitment/Policy -- No restrictions
*Other --
==Post Closing Requirements==
*Recon follow up required --

KY Operations Summary

2015-01-20T21:36:23Z

Abfields: /* Banking Information */

==Licensed Entity:==
*WFGNTIC/WFG LS
*See Attached HUD Sample for Additional Information [[file:Kentucky_HUD-1.pdf]]
==Banking Information==
*Bank account -- <<INSERT ACCOUNT #/ROUTING #/BANK NAME>>
*Checks stale dated after -- ___ days of issuance
*Good Funds Law -- No statute
*Disbursements Requirements --
*Special Bank Requirements (IOLTA/IOTA/OTHER or account specific to that state’s funds) -- None
==New Category==

==Payment Customs==
*Buyer customarily pays for Owner’s policy
*Seller pays Transfer Tax -
* Buyer pays deed and mortgage recording fees; Seller pays recording fee for the release of existing mortgage(s)
*Buyer pays Survey Charges
*Customarily the Buyer pays the majority of the closing fee, with perhaps a small part paid by the seller; it can vary between closers and areas of the state.
==Escrow/Settlement ==
*Who can prepare the HUD -- No restrictions
*Who can sign the HUD (EO/LTP/Attorney) -- No restrictions
*Who orders hazard insurance -- Customary -
*When is transaction consummated for new HUDS --
*Record before/after disburse -- Disburse then record
*Filed/restricted escrow rates -- No
*Record retention requirements -- No statutes
*Is an attorney involved in the closing -- No
*Who can handle loan document signing -- Notary
*Doc Prep Restrictions -- Doc Prep is UPL
*Use Escrow Instructions or not -- No
*Use Estimated HUD or Final -- Final
*Pass-thru charges -- No restrictions
*Rates Inclusive or not -- Not inclusive. Customary to charge a separate title search fee (which can be called an “exam” fee). Kentucky is not an “all-inclusive” premium state.
*Up Charging -- No restrictions
*Junk Charges -- No restrictions
*Special HUD Requirements -- None – BUT Premium Taxes in KY by County
*Special Disclosures -- None
*CPL --
*UPL Issues -- Doc Prep is UPL
*Joinder of non-titled spouse -- Yes
*Survey Required -- OP – Yes for extended coverage; LP – no
==Audits==
*Required -- No
==Recording Process==
*E-recording --
*Record before disbursement --
*Special recording procedure -- Consideration statement for deeds
==Recording/Document Requirements==
*Marital Status Stated -- Not required
*Transfer Tax -- Yes Transfer tax is uniform across the state. Transfer tax is imposed at fifty cents for each $500 of value as declared in the deed. KRS 142.050(2). See KRS 142.050(7) for exceptions.

*Mortgage Tax -- No
*Address for grantor/grantee/property -- Grantee required
*Witnesses -- None Required for deeds and mortgages, both must be acknowledged. KRS 382.270.
*Names typed/printed -- Yes
*Prepared by/return to -- Name, address, signature
*Notary Stamp/requirements --
*Parcel or tax index number -- 1st page
*Recitation of Consideration -- Required
*Derivation Clause -- Required
*Corporate Signatures/Attestation --
*Ink Color/Font -- Black/8 pt minimum
*Legal Description -- State/county/municipality in 1st paragraph
*Margins -- 2” 1st page, 1” all other
*Other Special Recording: --
==Document Types==
*Conveyance -- Warranty Deed, Limited Warranty Deed, Quitclaim Deed
*Security Instrument -- Mortgage
*Release -- Release
==Tenancies==
*Tenants in Common -- Yes
*Joint Tenants -- No
*Tenancy by Entireties -- Yes – can be created
*Community Property -- No
*Homestead -- Yes
*Joinder of Non-titled Spouse -- Yes
==Taxes==
*Taxes Levied --
*Taxes due -- 9/15
*Delinquent -- 1/1 KRS 134.020
*City taxes should be verified directly with the particular city, as their schedules may vary.
==Commitment/Policy Special Requirements==
*Who can sign Commitment/Policy -- No restrictions
*Other --
==Post Closing Requirements==
*Recon follow up required --

OR Operations Summary

2015-01-20T21:34:54Z

Abfields:

Oregon requires a statement of consideration on the face of the deed to be recordable.
O.R.S. § 93.030

Deed or other instrument conveying title must contain this statement per O.R.S. § 93.040:

“BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON TRANSFERRING FEE TITLE SHOULD INQUIRE ABOUT THE PERSON’S RIGHTS, IF ANY, UNDER ORS 195.300, 195.301 AND 195.305 TO 195.336 AND SECTIONS 5 TO 11, CHAPTER 424, OREGON LAWS 2007, SECTIONS 2 TO 9 AND 17, CHAPTER 855, OREGON LAWS 2009, AND SECTIONS 2 TO 7, CHAPTER 8, OREGON LAWS 2010. THIS INSTRUMENT DOES NOT ALLOW USE OF THE PROPERTY DESCRIBED IN THIS INSTRUMENT IN VIOLATION OF APPLICABLE LAND USE LAWS AND REGULATIONS. BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON ACQUIRING FEE TITLE TO THE PROPERTY SHOULD CHECK WITH THE APPROPRIATE CITY OR COUNTY PLANNING DEPARTMENT TO VERIFY THAT THE UNIT OF LAND BEING TRANSFERRED IS A LAWFULLY ESTABLISHED LOT OR PARCEL, AS DEFINED IN ORS 92.010 OR 215.010, TO VERIFY THE APPROVED USES OF THE LOT OR PARCEL, TO DETERMINE ANY LIMITS ON LAWSUITS AGAINST FARMING OR FOREST PRACTICES, AS DEFINED IN ORS 30.930, AND TO INQUIRE ABOUT THE RIGHTS OF NEIGHBORING PROPERTY OWNERS, IF ANY, UNDER ORS 195.300, 195.301 AND 195.305 TO 195.336 AND SECTIONS 5 TO 11, CHAPTER 424, OREGON LAWS 2007, SECTIONS 2 TO 9 AND 17, CHAPTER 855, OREGON LAWS 2009, AND SECTIONS 2 TO 7, CHAPTER 8, OREGON LAWS 2010.”

'''Sales Contracts''' and earnest money receipts require these statements per O.R.S. § 93.040::

“THE PROPERTY DESCRIBED IN THIS INSTRUMENT MAY NOT BE WITHIN A FIRE PROTECTION DISTRICT PROTECTING STRUCTURES. THE PROPERTY IS SUBJECT TO LAND USE LAWS AND REGULATIONS THAT, IN FARM OR FOREST ZONES, MAY NOT AUTHORIZE CONSTRUCTION OR SITING OF A RESIDENCE AND THAT LIMIT LAWSUITS AGAINST FARMING OR FOREST PRACTICES, AS DEFINED IN ORS 30.930, IN ALL ZONES. BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON TRANSFERRING FEE TITLE SHOULD INQUIRE ABOUT THE PERSON’S RIGHTS, IF ANY, UNDER ORS 195.300, 195.301 AND 195.305 TO 195.336 AND SECTIONS 5 TO 11, CHAPTER 424, OREGON LAWS 2007, SECTIONS 2 TO 9 AND 17, CHAPTER 855, OREGON LAWS 2009, AND SECTIONS 2 TO 7, CHAPTER 8, OREGON LAWS 2010. BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON ACQUIRING FEE TITLE TO THE PROPERTY SHOULD CHECK WITH THE APPROPRIATE CITY OR COUNTY PLANNING DEPARTMENT TO VERIFY THAT THE UNIT OF LAND BEING TRANSFERRED IS A LAWFULLY ESTABLISHED LOT OR PARCEL, AS DEFINED IN ORS 92.010 OR 215.010, TO VERIFY THE APPROVED USES OF THE LOT OR PARCEL, TO VERIFY THE EXISTENCE OF FIRE PROTECTION FOR STRUCTURES AND TO INQUIRE ABOUT THE RIGHTS OF NEIGHBORING PROPERTY OWNERS, IF ANY, UNDER ORS 195.300, 195.301 AND 195.305 TO 195.336 AND SECTIONS 5 TO 11, CHAPTER 424, OREGON LAWS 2007, SECTIONS 2 TO 9 AND 17, CHAPTER 855, OREGON LAWS 2009, AND SECTIONS 2 TO 7, CHAPTER 8, OREGON LAWS 2010.”

“THE PROPERTY DESCRIBED IN THIS INSTRUMENT IS SUBJECT TO SPECIAL ASSESSMENT UNDER ORS 358.505.”

Phrase "Joint Tenants" creates a Tenancy in Common, which has no survivorship, unless survivorship expressly stated.
Tenancy by the entirety if the conveyance is to a husband and wife unless the conveyance or devise clearly and expressly declares otherwise. O.R.S. § 93.180

OR Operations Summary

2015-01-20T21:34:37Z

Abfields: /* Level 2 heading example */

[http://www.consumerfinance.gov/blog/accepting-applications-for-our-advisory-board-and-councils-2015/ CFPB Junk]

Oregon requires a statement of consideration on the face of the deed to be recordable.
O.R.S. § 93.030

Deed or other instrument conveying title must contain this statement per O.R.S. § 93.040:

“BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON TRANSFERRING FEE TITLE SHOULD INQUIRE ABOUT THE PERSON’S RIGHTS, IF ANY, UNDER ORS 195.300, 195.301 AND 195.305 TO 195.336 AND SECTIONS 5 TO 11, CHAPTER 424, OREGON LAWS 2007, SECTIONS 2 TO 9 AND 17, CHAPTER 855, OREGON LAWS 2009, AND SECTIONS 2 TO 7, CHAPTER 8, OREGON LAWS 2010. THIS INSTRUMENT DOES NOT ALLOW USE OF THE PROPERTY DESCRIBED IN THIS INSTRUMENT IN VIOLATION OF APPLICABLE LAND USE LAWS AND REGULATIONS. BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON ACQUIRING FEE TITLE TO THE PROPERTY SHOULD CHECK WITH THE APPROPRIATE CITY OR COUNTY PLANNING DEPARTMENT TO VERIFY THAT THE UNIT OF LAND BEING TRANSFERRED IS A LAWFULLY ESTABLISHED LOT OR PARCEL, AS DEFINED IN ORS 92.010 OR 215.010, TO VERIFY THE APPROVED USES OF THE LOT OR PARCEL, TO DETERMINE ANY LIMITS ON LAWSUITS AGAINST FARMING OR FOREST PRACTICES, AS DEFINED IN ORS 30.930, AND TO INQUIRE ABOUT THE RIGHTS OF NEIGHBORING PROPERTY OWNERS, IF ANY, UNDER ORS 195.300, 195.301 AND 195.305 TO 195.336 AND SECTIONS 5 TO 11, CHAPTER 424, OREGON LAWS 2007, SECTIONS 2 TO 9 AND 17, CHAPTER 855, OREGON LAWS 2009, AND SECTIONS 2 TO 7, CHAPTER 8, OREGON LAWS 2010.”

'''Sales Contracts''' and earnest money receipts require these statements per O.R.S. § 93.040::

“THE PROPERTY DESCRIBED IN THIS INSTRUMENT MAY NOT BE WITHIN A FIRE PROTECTION DISTRICT PROTECTING STRUCTURES. THE PROPERTY IS SUBJECT TO LAND USE LAWS AND REGULATIONS THAT, IN FARM OR FOREST ZONES, MAY NOT AUTHORIZE CONSTRUCTION OR SITING OF A RESIDENCE AND THAT LIMIT LAWSUITS AGAINST FARMING OR FOREST PRACTICES, AS DEFINED IN ORS 30.930, IN ALL ZONES. BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON TRANSFERRING FEE TITLE SHOULD INQUIRE ABOUT THE PERSON’S RIGHTS, IF ANY, UNDER ORS 195.300, 195.301 AND 195.305 TO 195.336 AND SECTIONS 5 TO 11, CHAPTER 424, OREGON LAWS 2007, SECTIONS 2 TO 9 AND 17, CHAPTER 855, OREGON LAWS 2009, AND SECTIONS 2 TO 7, CHAPTER 8, OREGON LAWS 2010. BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON ACQUIRING FEE TITLE TO THE PROPERTY SHOULD CHECK WITH THE APPROPRIATE CITY OR COUNTY PLANNING DEPARTMENT TO VERIFY THAT THE UNIT OF LAND BEING TRANSFERRED IS A LAWFULLY ESTABLISHED LOT OR PARCEL, AS DEFINED IN ORS 92.010 OR 215.010, TO VERIFY THE APPROVED USES OF THE LOT OR PARCEL, TO VERIFY THE EXISTENCE OF FIRE PROTECTION FOR STRUCTURES AND TO INQUIRE ABOUT THE RIGHTS OF NEIGHBORING PROPERTY OWNERS, IF ANY, UNDER ORS 195.300, 195.301 AND 195.305 TO 195.336 AND SECTIONS 5 TO 11, CHAPTER 424, OREGON LAWS 2007, SECTIONS 2 TO 9 AND 17, CHAPTER 855, OREGON LAWS 2009, AND SECTIONS 2 TO 7, CHAPTER 8, OREGON LAWS 2010.”

“THE PROPERTY DESCRIBED IN THIS INSTRUMENT IS SUBJECT TO SPECIAL ASSESSMENT UNDER ORS 358.505.”

Phrase "Joint Tenants" creates a Tenancy in Common, which has no survivorship, unless survivorship expressly stated.
Tenancy by the entirety if the conveyance is to a husband and wife unless the conveyance or devise clearly and expressly declares otherwise. O.R.S. § 93.180

OR Operations Summary

2015-01-20T21:34:24Z

Abfields: /* Level 3 */

[http://www.consumerfinance.gov/blog/accepting-applications-for-our-advisory-board-and-councils-2015/ CFPB Junk]

Oregon requires a statement of consideration on the face of the deed to be recordable.
O.R.S. § 93.030

Deed or other instrument conveying title must contain this statement per O.R.S. § 93.040:

“BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON TRANSFERRING FEE TITLE SHOULD INQUIRE ABOUT THE PERSON’S RIGHTS, IF ANY, UNDER ORS 195.300, 195.301 AND 195.305 TO 195.336 AND SECTIONS 5 TO 11, CHAPTER 424, OREGON LAWS 2007, SECTIONS 2 TO 9 AND 17, CHAPTER 855, OREGON LAWS 2009, AND SECTIONS 2 TO 7, CHAPTER 8, OREGON LAWS 2010. THIS INSTRUMENT DOES NOT ALLOW USE OF THE PROPERTY DESCRIBED IN THIS INSTRUMENT IN VIOLATION OF APPLICABLE LAND USE LAWS AND REGULATIONS. BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON ACQUIRING FEE TITLE TO THE PROPERTY SHOULD CHECK WITH THE APPROPRIATE CITY OR COUNTY PLANNING DEPARTMENT TO VERIFY THAT THE UNIT OF LAND BEING TRANSFERRED IS A LAWFULLY ESTABLISHED LOT OR PARCEL, AS DEFINED IN ORS 92.010 OR 215.010, TO VERIFY THE APPROVED USES OF THE LOT OR PARCEL, TO DETERMINE ANY LIMITS ON LAWSUITS AGAINST FARMING OR FOREST PRACTICES, AS DEFINED IN ORS 30.930, AND TO INQUIRE ABOUT THE RIGHTS OF NEIGHBORING PROPERTY OWNERS, IF ANY, UNDER ORS 195.300, 195.301 AND 195.305 TO 195.336 AND SECTIONS 5 TO 11, CHAPTER 424, OREGON LAWS 2007, SECTIONS 2 TO 9 AND 17, CHAPTER 855, OREGON LAWS 2009, AND SECTIONS 2 TO 7, CHAPTER 8, OREGON LAWS 2010.”

== Level 2 heading example ==

'''Sales Contracts''' and earnest money receipts require these statements per O.R.S. § 93.040::

“THE PROPERTY DESCRIBED IN THIS INSTRUMENT MAY NOT BE WITHIN A FIRE PROTECTION DISTRICT PROTECTING STRUCTURES. THE PROPERTY IS SUBJECT TO LAND USE LAWS AND REGULATIONS THAT, IN FARM OR FOREST ZONES, MAY NOT AUTHORIZE CONSTRUCTION OR SITING OF A RESIDENCE AND THAT LIMIT LAWSUITS AGAINST FARMING OR FOREST PRACTICES, AS DEFINED IN ORS 30.930, IN ALL ZONES. BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON TRANSFERRING FEE TITLE SHOULD INQUIRE ABOUT THE PERSON’S RIGHTS, IF ANY, UNDER ORS 195.300, 195.301 AND 195.305 TO 195.336 AND SECTIONS 5 TO 11, CHAPTER 424, OREGON LAWS 2007, SECTIONS 2 TO 9 AND 17, CHAPTER 855, OREGON LAWS 2009, AND SECTIONS 2 TO 7, CHAPTER 8, OREGON LAWS 2010. BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON ACQUIRING FEE TITLE TO THE PROPERTY SHOULD CHECK WITH THE APPROPRIATE CITY OR COUNTY PLANNING DEPARTMENT TO VERIFY THAT THE UNIT OF LAND BEING TRANSFERRED IS A LAWFULLY ESTABLISHED LOT OR PARCEL, AS DEFINED IN ORS 92.010 OR 215.010, TO VERIFY THE APPROVED USES OF THE LOT OR PARCEL, TO VERIFY THE EXISTENCE OF FIRE PROTECTION FOR STRUCTURES AND TO INQUIRE ABOUT THE RIGHTS OF NEIGHBORING PROPERTY OWNERS, IF ANY, UNDER ORS 195.300, 195.301 AND 195.305 TO 195.336 AND SECTIONS 5 TO 11, CHAPTER 424, OREGON LAWS 2007, SECTIONS 2 TO 9 AND 17, CHAPTER 855, OREGON LAWS 2009, AND SECTIONS 2 TO 7, CHAPTER 8, OREGON LAWS 2010.”

“THE PROPERTY DESCRIBED IN THIS INSTRUMENT IS SUBJECT TO SPECIAL ASSESSMENT UNDER ORS 358.505.”

Phrase "Joint Tenants" creates a Tenancy in Common, which has no survivorship, unless survivorship expressly stated.
Tenancy by the entirety if the conveyance is to a husband and wife unless the conveyance or devise clearly and expressly declares otherwise. O.R.S. § 93.180

OR Operations Summary

2015-01-20T21:34:00Z

Abfields:

[http://www.consumerfinance.gov/blog/accepting-applications-for-our-advisory-board-and-councils-2015/ CFPB Junk]

Oregon requires a statement of consideration on the face of the deed to be recordable.
O.R.S. § 93.030

Deed or other instrument conveying title must contain this statement per O.R.S. § 93.040:

“BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON TRANSFERRING FEE TITLE SHOULD INQUIRE ABOUT THE PERSON’S RIGHTS, IF ANY, UNDER ORS 195.300, 195.301 AND 195.305 TO 195.336 AND SECTIONS 5 TO 11, CHAPTER 424, OREGON LAWS 2007, SECTIONS 2 TO 9 AND 17, CHAPTER 855, OREGON LAWS 2009, AND SECTIONS 2 TO 7, CHAPTER 8, OREGON LAWS 2010. THIS INSTRUMENT DOES NOT ALLOW USE OF THE PROPERTY DESCRIBED IN THIS INSTRUMENT IN VIOLATION OF APPLICABLE LAND USE LAWS AND REGULATIONS. BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON ACQUIRING FEE TITLE TO THE PROPERTY SHOULD CHECK WITH THE APPROPRIATE CITY OR COUNTY PLANNING DEPARTMENT TO VERIFY THAT THE UNIT OF LAND BEING TRANSFERRED IS A LAWFULLY ESTABLISHED LOT OR PARCEL, AS DEFINED IN ORS 92.010 OR 215.010, TO VERIFY THE APPROVED USES OF THE LOT OR PARCEL, TO DETERMINE ANY LIMITS ON LAWSUITS AGAINST FARMING OR FOREST PRACTICES, AS DEFINED IN ORS 30.930, AND TO INQUIRE ABOUT THE RIGHTS OF NEIGHBORING PROPERTY OWNERS, IF ANY, UNDER ORS 195.300, 195.301 AND 195.305 TO 195.336 AND SECTIONS 5 TO 11, CHAPTER 424, OREGON LAWS 2007, SECTIONS 2 TO 9 AND 17, CHAPTER 855, OREGON LAWS 2009, AND SECTIONS 2 TO 7, CHAPTER 8, OREGON LAWS 2010.”

== Level 2 heading example ==
===Level 3===
*asd;lkga
*asldkhga;lkgh
*adklhgasd;lkghsd
**ad;lkghadsglkh

#laksdhg
#poi9weyht

'''Sales Contracts''' and earnest money receipts require these statements per O.R.S. § 93.040::

“THE PROPERTY DESCRIBED IN THIS INSTRUMENT MAY NOT BE WITHIN A FIRE PROTECTION DISTRICT PROTECTING STRUCTURES. THE PROPERTY IS SUBJECT TO LAND USE LAWS AND REGULATIONS THAT, IN FARM OR FOREST ZONES, MAY NOT AUTHORIZE CONSTRUCTION OR SITING OF A RESIDENCE AND THAT LIMIT LAWSUITS AGAINST FARMING OR FOREST PRACTICES, AS DEFINED IN ORS 30.930, IN ALL ZONES. BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON TRANSFERRING FEE TITLE SHOULD INQUIRE ABOUT THE PERSON’S RIGHTS, IF ANY, UNDER ORS 195.300, 195.301 AND 195.305 TO 195.336 AND SECTIONS 5 TO 11, CHAPTER 424, OREGON LAWS 2007, SECTIONS 2 TO 9 AND 17, CHAPTER 855, OREGON LAWS 2009, AND SECTIONS 2 TO 7, CHAPTER 8, OREGON LAWS 2010. BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON ACQUIRING FEE TITLE TO THE PROPERTY SHOULD CHECK WITH THE APPROPRIATE CITY OR COUNTY PLANNING DEPARTMENT TO VERIFY THAT THE UNIT OF LAND BEING TRANSFERRED IS A LAWFULLY ESTABLISHED LOT OR PARCEL, AS DEFINED IN ORS 92.010 OR 215.010, TO VERIFY THE APPROVED USES OF THE LOT OR PARCEL, TO VERIFY THE EXISTENCE OF FIRE PROTECTION FOR STRUCTURES AND TO INQUIRE ABOUT THE RIGHTS OF NEIGHBORING PROPERTY OWNERS, IF ANY, UNDER ORS 195.300, 195.301 AND 195.305 TO 195.336 AND SECTIONS 5 TO 11, CHAPTER 424, OREGON LAWS 2007, SECTIONS 2 TO 9 AND 17, CHAPTER 855, OREGON LAWS 2009, AND SECTIONS 2 TO 7, CHAPTER 8, OREGON LAWS 2010.”

“THE PROPERTY DESCRIBED IN THIS INSTRUMENT IS SUBJECT TO SPECIAL ASSESSMENT UNDER ORS 358.505.”

Phrase "Joint Tenants" creates a Tenancy in Common, which has no survivorship, unless survivorship expressly stated.
Tenancy by the entirety if the conveyance is to a husband and wife unless the conveyance or devise clearly and expressly declares otherwise. O.R.S. § 93.180

NC Underwriting Summary

2015-01-19T21:37:47Z

Abfields: /* Time Limitations */

==Search/Exam==
*Minimum Search Requirements -- No Statutory Requirements for min search. Custom based on Marketable Title Act ch. 47B – 30 years, 10 year NC judgment search and 20 year Federal judgment search.
*Plant or other search restrictions -- No Plant – Attorney must supervise/certify search and provide attorney opinion
*Additional Requirements for REO Searches -- N/A
*Foreclosure Checklist -- N/A
*Special Searches Required (Code, HOA, Utilities)? --
*Survey Requirements
**Purchase –yes
**Refinance – no

==UPL==
*UPL Hot Button Issues --
**Extreme caution required for NC Transactions; WFG approved attorney is Douglas P. Matheson; closing with any other attorney requires written approval from Compliance.
**It is inappropriate for a title company to charge search and exam fees collectable for itself.
*A North Carolina licensed attorney, who is not an employee or agent of the title company, must certify title to a title company before a title policy may be issued per North Carolina General Statute section 58-26.1. Title companies may be owned, operated by or employ attorneys, but the attorney may not certify title to the company.

*Drafting of legal documents, including deeds, mortgages, and other transaction documents must be prepared by a NC attorney. NCGS § 84-2.1.

*Non-attorneys may provide limited services in a real estate closing including witnessing of closing documents and receipt and disbursement of closing funds. NC revised opinion on Authorized Practice now requires the supervision of the closing by a NC attorney, approval of funds for disbursement and final certification of title.
==Witness Requirements==
No Witnesses Required for Deeds or Deeds of Trust. Execution and Acknowledgment.

==Property Tax ==
Taxes are assessed on a calendar basis; assessment beginning on January 1, due and payable by September 1 and payable without interest through January 5 of the following year. County budgets are based on fiscal year July 1 to June 30 but tax rates are applied on calendar basis.

==Mortgage/Transfer Tax==
*No Mortgage Tax
*Transfer taxes are collected on deeds at rate of $2 per $1000 in consideration ($1/$500). Deeds must show the amount of tax due on the face of the instrument. No transfer tax on deeds of trust or mortgages.

*Three counties, Pasquotank, Perquimans, and Washington, are authorized to collect an additional $1 per $100 as a land transfer tax on certain transactions. Those tax authorities should be contacted for specifics.
==Spousal Joinder Requirements/Homestead==
*A non-titled spouse must join in any conveyance after the initial purchase money deed of trust. This includes the principal residence and any recreational or investment property. Under the Doctrine of Instantaneous Seisin, we can insure the purchase money transaction, that is the individual taking title and granting a deed of trust in the same transaction, without the spouse’s joinder. This is only good for the purchase money transaction; the dower right exists for each subsequent refinance or sale.

==Power Of Attorney==

==Construction Liens==

==Foreclosure Review==

==Instrument Requirements ==

==Who May Serve As Trustee On Deed Of Trust==
*A deed of trust is customary in N.C. Power of Sale contained in the NC form deed of trust allows streamlined quasi-judicial foreclosure process.
*Mortgages are allowed but will require judicial foreclosure.
*Any person or entity (other than minor) may be the trustee. Failure to name a trustee is corrected by statute that allows substitution of trustee to correct missing trustee. NCGS § 45-10.
*It is customary to list the closing attorney as trustee. Most banks in NC have designated entities to serve as trustee.

==Time Limitations==

*US Judgment Liens -- 20 years, renewable for 20 years
*State Court Judgment Liens -- 10 years
*Federal Tax Liens -- 10 years (+30 days); can be refiled
*State Tax Liens -- 10 years
*Estate Tax Lien -- Federal 10 years
*State Inheritance Tax Liens -- 10 years
*Mechanics Liens -- 6 months
*Financing Statements -- 5 years, can be renewed for 5 year term
*Mortgages -- If maturity date or last payment date is specified in the recorded instrument, 15 years; If not stated 35 years. N.C.G.S.A. § 45-36.24
*HOA Liens --
*Condominium assessments --
*Child Support Liens --

==Odd Stuff==
*A NC attorney may serve as a satisfaction agent acting on behalf of the landowner, and upon notice to the secured creditor of the intention to satisfy the recorded mortgage. The notice must identify the satisfaction agent, identify the security instrument to be satisfied, including parties, grounds for satisfaction, and authority. The statute sets out the specifics in NCGS § 45‑36.14.
*Usury
**NC has statutory limitations on interest on consumer loans, mortgages, HELOCS and high cost loans: NC General Statutes § 24 1.1A. et seq.
**Interest rates are limited for loans to natural persons for personal, family or household purposes secured by manufactured homes or structures used as principal residence.
**A high cost loan is limited to $300,000 or less or the conforming loan size established by Fannie Mae.
**A loan made to a non-natural person, for $300,000 or more, obtained by a natural person for purpose other than personal, family or household purpose is exempt from application of usury regulations.

AZ Underwriting Summary

2015-01-19T21:23:18Z

Abfields: /* Time Limitations */

==Search/Exam==

*Minimum Search Requirements -- No state law sets minimum period of time for a title search but a title plant must typically have a minimum 40 year chain;
There is not a marketable record title act in Arizona.

*Plant or other search restrictions -- Yes if over 100k population in county. [http://www.id.state.az.us/index.html Department of Insurance Link]. Title plant maintenance includes being a lessee or joint owner of a title plant. Alternatively, you may base your title policy on a title policy issued to you from a title insurer who does maintain such a title plant in the respective county or counties.

*Additional Requirements for REO Searches -- No

*Special Searches Required (Code, HOA, Utilities)? Included in normal search

*Survey Requirements
**Purchase – no
**Refinance - no

==UPL==
* Doc prep is UPL
*Arizona state law does not require attorney or abstractor involvement; however policies must be issued by a licensed issuing agent with Dept. of Insurance with an Arizona licensed title insurer.
**[http://wiki.wfgstaging.com/images/0/07/Arizona_Supreme_Ct_Rule_31_Practice_of_Law.docx Rule 31, Rules of the Supreme Court of Arizona]
**[http://wiki.wfgstaging.com/images/9/9e/State_Bar_of_Ariz_v_Arizona_Land_Title_And_Trust_Co_%282%29.pdf State Bar of Ariz. v. Arizona Land Title & Trust Co., 366 P.2d 1, 12 (Ariz. 1961)]

==Vesting==

==Property Tax ==

==Mortgage/Transfer Tax==

==Spousal Joinder Requirements/Homestead==

Joinder by non-title spouse not required by law.

==Power Of Attorney==

==Construction Liens==

==Foreclosure Review==

==Instrument Requirements ==

==Who May Serve As Trustee On Deed Of Trust==

==Time Limitations==

*US Judgment Liens 20 years, renewable for 20 years

*State Court Judgment Liens 5 years

*Child Support notice of deficiency -- Defense 10 years after emancipation of the youngest child (18, marriage, death) A.R.S. § 25-503(J)

*Federal Tax Liens 10 years (+30 days); can be refiled

*State Tax Liens

*Estate Tax Lien Federal 10 years

*State Inheritance Tax Liens

*Mechanics Liens 6 months, if no law suit filed

*Financing Statements 5 years

*Mortgages

*HOA Liens 2 years

*Condominium assessments 2 years

==Odd Stuff==
*Title insurer has statutory authority to release subject to the requirements in A.R.S. 33-707.

*Arizona Department of insurance is the governing body where both rates and forms are filed. [http://www.id.state.az.us/index.html.title. DOI Website]

*Usury endorsement is available. The statutory maximum rate of interest is 10% per annum, unless a different rate is contracted for in writing, in which case any rate of interest may be agreed upon. ARS 44-1201. Usury also constitutes a misdemeanor crime. ARS 13-2208.

Bankruptcy

2015-01-14T19:28:56Z

Abfields:

[http://www.lexology.com/library/detail.aspx?g=268ff416-986d-4d9f-ae4a-2646b3090815&utm_source=Lexology+Daily+Newsfeed&utm_medium=HTML+email+-+Body+-+Federal+section&utm_campaign=Lexology+subscriber+daily+feed&utm_content=Lexology+Daily+Newsfeed+2014-11-21&utm_term= Perfection of Mechanics Liens & Other claims under Bankruptcy Stay]

The general avoidance power is at 11 USC 544 .
The trustee also has avoidance powers under 11 USC 547 for preferences.
“Transfer” includes a lien. See s. 101(54) after BAPCPA
Section 546 places some limitations on the power of avoidance

547(e)(2) gives 30 days to perfect by recording a sale or mortgage of real property.
Same for creating UCC Interests under 547(c)(3)(B) – but UCC itself may set a shorter time for perfecting.

Authority for filing to perfect not being a violation of the stay is 362(b)(3) as interpreted in In re Construction Supervision Services

PA Judgment Liens

2015-01-07T21:48:44Z

Abfields: Created page with "==Lien Against All Real Property of Judgment Debtor:== When entered of record, a judgment operates as a lien against all real property of the judgment debtor in the county in..."

==Lien Against All Real Property of Judgment Debtor:==

When entered of record, a judgment operates as a lien against all real property of the judgment debtor in the county in which it was filed. 42 Pa. C.S.A. § 4303(a) (1982). The lien of a judgment binds all real property of the debtor whether legally or equitably held. Clariton Corp. v. Chicago Title Ins. Co., 438 Pa. Super. 488, 652 A.2d 916, 919 (1995), allocatur denied, 665 A.2d 466 (1995); Parnes v. Hibbs, 191 Pa. Super. 56, 155 A.2d 426, 427 (1959). However, a judgment is not a lien against real property to which the judgment debtor holds only the bare record title and no beneficial interest. Sill v. Swakhamer, 103 Pa. 7 (1883).

==Previously Conveyed and After-Acquired Real Property:==

A judgment is only a lien against the real property which the judgment debtor owns at the time that the judgment is entered. A judgment is not a lien against real property which the debtor has previously conveyed in good faith. Davis v. Commonwealth Trust Company, 335 Pa. 387, 7 A.2d 3, 6 (1939). Similarly, a judgment is not a lien against real property which the judgment debtor acquires after the judgment has been entered of record. Philadelphia Nat’l Bank v. Taylor, 421 Pa. 35, 218 A.2d 246, 247-48 (1946). However, a judgment can be made a lien against after-acquired real property by revival of the lien after the real property has been acquired. Judgment Lien Law of July 3, 1947, P.L. 1234, 12 P.S. §880 repealed by Judiciary Act Repealer Act of April 28, 1978, P.L. 202 §2(a)). The Judgment Lien Law was suspended by the Pa. R.C.P. 3025 et seq., relating to the procedure for the revival of judgments, but these rules do not alter the substantive effect of the revival of judgments on after-acquired real property. Ladner on Conveyancing in Pennsylvania, § 16.01, n.11 (4th ed. 1994). See 42 Pa. C.S.A. §§ 1722, 4303. For a discussion of the procedure for the revival of judgments, see infra section VI.

==Agreement to Restrict Lien: ==

The lien of a judgment can, by agreement, be restricted to a particular piece or interest in real property of the judgment debtor. Stanton v. White, 32 Pa. 358 (1859). A restricted judgment, upon unconditional revival, becomes a general lien on all real property of the judgment debtor as of the date of revival. McMurray’s Administrators v. Hopper, 43 Pa. 468 (1863).

==Entireties Real Property: ==

A judgment entered against one spouse individually is not a lien against real property held by both spouses as tenants-by-the-entireties. Constitution Bank v. Olson, 423 Pa. Super. 134, 620 A.2d 1146, 1153 (1993); Klebach v. Mellon Bank, N.A., 388 Pa. Super. 203, 565 A.2d 448, 450 (1989), allocatur denied, 593 A.2d 420 (1991); Reliance Insurance Co. v. Schoolfield Construction Co, 14 Pa. D. & C.4th 490, 494 (1992); United States of America v. Chapuistat, 8 Pa. D. & C.4th 467, 471 (1990); Blusiewicz v. Rosenfield, 33 Pa. D. & C.2d 470, 473 (1964). However, upon divorce, spouses who previously held real property as tenants-by-the-entireties become owners as tenants-in-common. 23 Pa. C.S.A. § 3507(a) (1990); Weaver v. Weaver, 413 Pa. Super. 382, 605 A.2d 410, 411 (1992). Accordingly, in Bayer v. Bayer, 65 Pa. D. & C.2d 615 (1974), the court held that a judgment entered against one spouse prior to divorce becomes a lien against that spouse’s interest in real property as a tenant-in-common upon the entry of a divorce decree. Real property held as tenants-in-common is lienable by judgment creditors of the separate tenants. Wirtz v. Philips, 251 F. Supp. 789, 808 (W.D. Pa. 1965). A judgment against one party becomes a lien on the property upon death of the other spouse and the lien priority date is the date the judgment was entered. In the case of a bifurcated Divorce, while 68 P.S. 501 may operate to sever the tenancy by the entireties, the property does not loose its marital character. Jawork v. Jawork, 378 Pa. Super. 89, 548 A.2d 290 (1988). As marital property subject to an order of court, the property is in custodia legis pending compliance with the courts’ order, and is not subject to attachment until the court order has been complied with. Klebach v. Mellon Bank, N.A. 388 Pa. Super.203 565 A.2d 448 (1988)

==Real Property Held or Sold Under an Agreement of Sale: ==

A judgment against a vendee under an agreement of sale for the purchase of real property is a lien against the vendee’s equitable interest in the real property and binds the legal estate the moment it merges with the vendee’s equitable interest. Commonwealth v. Mars, 8 Pa. D. & C.2d 745 (1956). “A judgment against a vendor of land under an agreement of sale binds his legal estate as well as beneficial interest, an interest in the amount of the unpaid purchase price." Second National Bank v. Anderson, 71 Pa. D. & C.2d 471, 475 (1976) (citations omitted). If the judgment creditor has notice of the agreement prior to entering judgment, his lien only attaches to the unpaid purchase price of the real property. Id. See generally 21 P.S. §5351 (Pennsylvania recording statute).

==Lien against Property during Divorce: ==

Following a line of cases the Superior Court in Frantz v. Frantz 972 A.2d 525 (Pa. Super 2009) found that during the divorce proceeding, property held by the entireties was in custodia legis and not subject to a lien against either owner, and further even after divorce and the conversion of the tenancy, a lien could not attach. The Court relied on Klebach v. Mellon Bank, N.A., 388 Pa.Super. 203, 565 A.2d 448 (1989)

PA Underwriting References

2015-01-07T21:47:24Z

Abfields:

[[PA Judgment Liens]]

PA Underwriting References

2015-01-07T21:46:56Z

Abfields: Created page with "[PA Judgment Liens]"

[PA Judgment Liens]

MO Underwriting Summary

2014-12-29T17:04:23Z

Abfields: /* Vesting */

==Search/Exam==
*Minimum Search Requirements -- 27 years. V.A.M.S. 381.071 Search must be made at a Registered Title Plant (a set of geographically indexed records registered with the DIFP) unless a search from the plant cannot be obtained at a reasonable cost in a reasonable time.
*no marketable record title act; marketable title determined by case law and Title Standard;
*Plant or other search restrictions -- Plants required unless written evidence that plant provider cannot meet reasonable turn times
*Additional Requirements for REO Searches -- No
*Foreclosure Checklist -- N/A
*Special Searches Required (Code, HOA, Utilities)? -- St. Louis taxes/special benefit districts
*Survey Requirements -- No

==UPL==
*UPL Hot Button Issues -- Don’t charge a doc prep fee
*An attorney is not required. A Licensed Missouri Producer must search, examine, close, record or handle any other aspects of closing and commitment and policy issuance. (License issued by the Missouri Dept. of Insurance, Financial Institutions and Professional Licensing: MO DIFP) RSMo 381.031.19
==Vesting==
Recognizes
*Tenants in Common -- which is presumed whenever two or more parties take title and no contrary intent is expressed -- except for trustees, P.R. and H&W V.A.M.S. 442.450
*Joint Tenants
*Tenancy by Entireties -- Automatic if H&W and no contrary intent in conveyance. [https://a.next.westlaw.com/Document/Ie9720a32e7a711d99439b076ef9ec4de/View/FullText.html?originationContext=docHeader&contextData=(sc.DocLink)&transitionType=Document&docSource=2b46c3e10d8843369d67bfd7dd4085d2 Woodworth v. Mauk], 614 S.W.2d 308 (Mo App. W.D. 1981)

*Community Property -- No
*Homestead -- Yes
*Joinder of Non-titled Spouse -- Yes

==Witness Requirements==
No Witness Required

==Property Tax ==

==Mortgage/Transfer Tax==
No Mortgage Tax.

==Spousal Joinder Requirements/Homestead==
A Non-Title Holding Spouse must execute any deed of conveyance or deed of trust. There is no civil union in Missouri.

==Power Of Attorney==

==Construction Liens==

==Foreclosure Review==

==Instrument Requirements ==

==Who May Serve As Trustee On Deed Of Trust==
Deed of Trust only. The trustee must be a MO resident individual over the age of 18 or a MO corporation. If a non-resident individual or foreign corporation is named as trustee, a MO resident individual or MO corporation must be added as co-trustee.

An underwriter or a title agent could qualify as a trustee if it is a MO corporation. By custom, an attorney who is a resident of Missouri is usually named trustee. The lender/beneficiary selects the trustee.

==Time Limitations==

*US Judgment Liens -- 20 years, renewable for 20 years
*State Court Judgment Liens -- 10 years, subject to renewal for an unlimited number of 3 year periods
*Federal Tax Liens -- 10 years, 30 days (See 26 USCA 6323(g))
*State Tax Liens -- 10 years, subject to 10 year renewal
*Estate Tax Lien -- Yes, against beneficiaries; 10 years if judgment obtained
*State Inheritance Tax Liens -- No
*Mechanics Liens -- 6 months
*Financing Statements -- 5 years (manufactured housing 30 years); can be renewed for successive terms
*Mortgages -- 20 years
*HOA Liens --
*Condominium assessments -- 3 years
*Child Support Liens --
==Odd Stuff==
*Mandatory arbitration is prohibited in Missouri. The filed Arbitration Endorsement should be included with each policy.
*Filed Rates & Forms. http://sos.mo.gov/adrules/csr/current/20csr/20c500-7.pdf

MO Operations Summary

2014-12-29T16:59:32Z

Abfields: /* Tenancies */

==Licensed Entity:==
WFG LENDER SERVICES, LLC
*See [http://wiki.wfgstaging.com/images/e/e0/Missouri_HUD-1.pdf Attached HUD] Sample for Additional Information
==Banking Information==
*Bank account/LS -- 934084476/Chase Bank
*Good Funds Law -- <<INSERT ANY DE MINIMUS AMOUNT>>
*Disbursements Requirements -- <<INSERT IF WFG REQUIRES CD?>>
*Special Bank Requirements (IOLTA/IOTA/OTHER or account specific to that state’s funds) -- NO
==Escrow/Settlement ==
*Who can prepare the HUD -- Licensed Producer
*Who can sign the HUD (EO/LTP/Attorney) -- Licensed Producer
*Who orders hazard insurance -- Customary -
*When is transaction consummated for new HUDS --
*Record before/after disburse -- Record first
*Filed/restricted escrow rates -- No
*Record retention requirements --
*Is an attorney involved in the closing -- No
*Who can handle loan document signing -- Notary
*Doc Prep Restrictions -- Non-standard documents need to be prepared by an attorney
*Use Escrow Instructions or not -- No
*Use Estimated HUD or Final -- Final
*Pass-thru charges -- Yes
*Rates Inclusive or not -- Not inclusive. It is customary (and required in residential transactions) to charge a separate Title Service Charge which includes search and examination. We are prohibited from quoting an all- inclusive charge for residential transactions; the charges must be broken down between the Filed Risk Rate for the premium and the Title Service Charge.
*Up Charging -- Limited by RESPA
*Junk Charges -- Not prohibited
*Special HUD Requirements -- No
*Special Disclosures -- Yes – AFBA and other disclosures required
*CPL -- Required for lender, buyer and seller unless waived in writing
*UPL Issues -- An attorney is not required. A Licensed Missouri Producer must search, examine, close, record or handle any other aspects of closing and commitment and policy issuance. (License issued by the Missouri Dept. of Insurance, Financial Institutions and Professional Licensing: MO DIFP) RSMo 381.031.19warranty
*Joinder of non-titled spouse -- Yes
*Survey Required -- No

==Audits==
*Required -- Annual audit by underwriter
==Recording Process==
*E-recording -- County list of e-recording attached
*Record before disbursement -- Record first
*Special recording procedure -- <<WALK THRU??>>
==Recording/Document Requirements==
*Marital Status Stated -- Yes
*Transfer Tax -- No
*Mortgage Tax -- No
*Address for grantor/grantee/property -- Grantees
*Witnesses -- No
*Names typed/printed -- Not required but customary
*Prepared by/return to -- Yes
*Notary Stamp/requirements --
*Parcel or tax index number -- No
*Recitation of Consideration -- Evidence of consideration required but not purchase price
*Derivation Clause -- No
*Corporate Signatures/Attestation -- No special requirements
*Ink Color/Font -- Black or dark ink; 8 pt; signatures must be in black or dark ink
*Legal Description -- No special requirements
*Margins -- 3” top margin; ¾” side and bottom margins
*Other Special Recording: -- City of St. Louis is its own recording jurisdiction and requires grantor and grantee to sign deeds.
==Document Types==
*Conveyance -- Warranty Deed; Quit Claim Deed; Special Warranty Deed; Transfer on Death Deed
*Security Instrument -- Mortgage or Deed of Trust
*Release -- Release or Satisfaction
==Tenancies==
*Tenants in Common -- Yes --- presumed unless H&W
*Joint Tenants -- Yes
*Tenancy by Entireties -- Yes -- Automatic if H&W and no contrary intent
*Community Property -- No
*Homestead -- Yes
*Joinder of Non-titled Spouse -- Yes

==Taxes==
*Taxes Levied -- 1/1
*Taxes due -- Each county determines payment structure, which can be annual, semi-annual, or quarterly; does not apply to financial institutions that escrow taxes for borrowers. Lenders who escrow funds must make one annual payment before 11/1.
*Delinquent -- 1/1 of following year
==Commitment/Policy Special Requirements==
*Who can sign Commitment/Policy -- Licensed Producer
*Other --

==Payment Customs==
*Seller pays for the Owner’s policy in Western MO; Buyer pays for the Owner’s policy in Eastern MO.
*No Transfer tax in MO; Recording fees are paid by the Buyer for the deed, by the Borrower for the deed of trust, unless the contract specifies otherwise.
*Borrower pays for Survey if required by Lender. Buyer also pays for Survey if required for Buyer unless contract specifies otherwise.
*Closing fees generally split between Buyer and Seller.
==Post Closing Requirements==
*Recon follow up required --

Military Powers of Attorney

2014-12-27T00:18:52Z

Abfields: Created page with "==MILITARY POWER OF ATTORNEY REQUIREMENTS:== A Military Power of Attorney is exempt from any requirements as to form, substance, formality or recording under state laws and gi..."

==MILITARY POWER OF ATTORNEY REQUIREMENTS:==
A Military Power of Attorney is exempt from any requirements as to form, substance, formality or recording under state laws and given the same legal effect as a power of attorney prepared and executed in accordance with state laws (10 USC 1044a & b).
The military power of attorney will usually, but not always, contain the following language as a preamble:
“This is a military Power of Attorney prepared pursuant to section 1044b of title 10, United States Code, and executed by a person authorized to receive legal assistance from the Military Service. Federal law exempts this power of attorney from any requirement of form, substance, formality, or recording that is prescribed for powers of attorney by the laws of a State, the District of Columbia, or a commonwealth, territory, or possession of the United States. Federal law specifies that this power of attorney shall be given the same legal effect as a power of attorney prepared and executed in accordance with the laws of the jurisdiction where it is presented.” (32 CFR Part 153 Appendix C)

Please contact your WFG underwriter if you have a question about whether a given Power of Attorney meets the requirements for a military power.
==NOTARY RULES FOR MILITARY POWERS OF ATTORNEY==
10 USC 1044a extends general powers of a notary public to all judge advocates, all civilian attorneys serving as legal assistance attorneys, all adjutants, assistant adjutants, and personnel adjutants, all other members of the armed forces who are designated by regulations of the armed forces or by state law to have those powers, and all employees of a military department or the Coast Guard who are designated by regulations of the Secretary of Defense or by a state to have those powers for exercise outside the United States.
The powers specified above are extended to all notarial acts done for members of any armed forces, other persons eligible for legal assistance under the provisions of 10 USC 1044 or regulations of the Department of Defense, persons serving with, employed by, or accompanying the armed forces outside the United States and outside the Commonwealth of Puerto Rico, Guam and the Virgin Islands and other persons subject to the Uniform Code of Military Justice outside of the United States.

==UNDERWRITING REQUIREMENTS:==
Notwithstanding that a Military Power of Attorney does not need to comply with certain state requirements, WFG will insure a transaction in which a Military Power of Attorney is being used provided that all of the following requirements have been met:
*The power of attorney has been executed by the principal giving the power;
*The power of attorney has been properly acknowledged by a person having the powers of a notary public under federal or state law (see Section above entitled “Notary Rules for Military Powers of Attorney”);
*The power of attorney authorizes the agent to perform the specific acts necessary to consummate the transaction; e.g., to sell and convey in the case of a sale or to mortgage or encumber in the case of financing;
*The military status of the person giving the power of attorney is confirmed by a telegram, letter or email from the commanding officer (or other applicable superior) of such person and if confirmation cannot be obtained, then by an affidavit from a person having personal knowledge; and
*Reasonable evidence that the principal giving the power of attorney is still alive.

Service Members' Civil Relief Act

2014-12-27T00:11:12Z

Abfields: Created page with " [http://wfgunderwriting.com/download/national/bulletins/Bulletins%20-%202014/WFG%20National%20Bulletin%20National%202014-06-%20SCRA%20following%20Foreclosure%20of%20Mortgage%..."

[http://wfgunderwriting.com/download/national/bulletins/Bulletins%20-%202014/WFG%20National%20Bulletin%20National%202014-06-%20SCRA%20following%20Foreclosure%20of%20Mortgage%20Deed%20of%20Trust.pdf National Bulletin 2014-6] provides guidance on properly implementing the Servicemembers Civil Relief Act. 50 App. U.S.C.A. 501 et seq. (“the Act” or “SCRA”), which was formerly known as the “Soldiers and Sailors’ Civil Relief Act”. This article is intended to provide a broader perspective and deeper understanding about this lengthy piece of legislation that addresses a variety of issues important to military personnel.
==Who Does the Act Protect?==
The Act protects active duty members in the Army, Navy, Air Force, Marine Corps and Coast Guard, and members of the National Guard called to active service for 30 days or more. The term “Military Service” as defined in the Act, also applies to members of the commissioned corps of the National Oceanic and Atmospheric Administration; and the commissioned corps of the Public Health Service. [http://uscode.house.gov/view.xhtml?hl=false&edition=prelim&req=granuleid%3AUSC-prelim-title50a-node133-node135-title1&num=0&saved=%7CZ3JhbnVsZWlkOlVTQy1wcmVsaW0tdGl0bGU1MGEtbm9kZTEzMy1ub2RlMTM1LXNlY3Rpb241MDE%3D%7C%7C%7C0%7Cfalse%7Cprelim § 511].
Under certain circumstances, (e.g., eviction actions), dependents of military members (e.g., a spouse, child, and someone who is supported by the servicemember) are also covered by the Act. §§ [http://uscode.house.gov/view.xhtml?hl=false&edition=prelim&req=granuleid%3AUSC-prelim-title50a-node133-node135-title1&num=0&saved=%7CZ3JhbnVsZWlkOlVTQy1wcmVsaW0tdGl0bGU1MGEtbm9kZTEzMy1ub2RlMTM1LXNlY3Rpb241MDE%3D%7C%7C%7C0%7Cfalse%7Cprelim 511], [http://uscode.house.gov/view.xhtml?hl=false&edition=prelim&req=granuleid%3AUSC-prelim-title50a-node133-node135-title3-section531&num=0&saved=%7CZ3JhbnVsZWlkOlVTQy1wcmVsaW0tdGl0bGU1MGEtbm9kZTEzMy1ub2RlMTM1LXNlY3Rpb241MDE%3D%7C%7C%7C0%7Cfalse%7Cprelim 531]. Dependents may also be entitled to protections with respect to other obligations if they can demonstrate that their ability to comply with an obligation is materially affected by the servicemember's Military Service. § 538. Persons secondarily liable, like sureties, guarantors, endorsers, accommodation makers, and co-makers, may also be protected. [http://uscode.house.gov/view.xhtml?hl=false&edition=prelim&req=granuleid%3AUSC-prelim-title50a-node133-node135-title1-section513&num=0&saved=%7CZ3JhbnVsZWlkOlVTQy1wcmVsaW0tdGl0bGU1MGEtbm9kZTEzMy1ub2RlMTM1LXNlY3Rpb241MDE%3D%7C%7C%7C0%7Cfalse%7Cprelim § 513].
==What Does the Act Protect?==
The Act provides a wide range of protections for individuals entering, called to active duty in the military, or deployed servicemembers. It postpones or suspends certain civil obligations to allow servicemembers to devote their full attention to duty and relieve stress on their families. The Act impacts a broad range of things, including:

*Outstanding credit card debt
*Mortgage payments
*Foreclosures
*Pending trials
*Taxes and Tax foreclosures
*Life insurance
*Protecting dependents against eviction
*Allowing the servicemember to terminate a lease following change of station orders.
*Caps interest rates on credit obligations (including credit cards)

This article focuses on only those sections of the Act that directly affect foreclosure procedures and the insurability of foreclosed property. However, note that these provisions also apply to other court actions like quiet title actions and domestic relations actions that can affect title. It does not purport to be a review of the entire Act.
==How Does the Act affect Real Property Title?==
WFG and its agents are rarely going to be in the role of creditors to a service-member or in any of the other directly affected relationships. However, we do provide title and other services to creditors who have duties under the Act. In that role, we may be called upon to assist them with their own compliance with the Act.
When we insure title after a foreclosure, we also must assure that any affected servicemembers received the full protections to which they are entitled under the Act, and that it is properly documented in the land or court records for the benefit of the next examiner. While as title examiners, we are not subject to the criminal enforcement provisions of the Act, a completed judicial or non-judicial foreclosure may be set aside based on non-compliance with the Act – thus turning it into a title claim. It is also the right thing to do for the brave men and women serving our country.
So first, we’ll examine the provisions of the Act which affect Real Property Title. National Bulletin 2014-6 spells out the practices and standards to be followed to document proper compliance.
The SCRA affects real property title in five different ways:
===1. Judicial Foreclosure of Pre-Service Mortgage:===
[Section 533 of the Act protects military personnel from legal proceedings to enforce a secured debt in the nature of a mortgage created prior to the date on which Military Service commenced.
Under subsection 533(b), a court must stay any proceedings to enforce a secured debt unless the court finds that the ability of the debtor to comply with the terms of the debt was not materially affected by Military Service.
From a title standpoint, it is important to note [http://uscode.house.gov/view.xhtml?hl=false&edition=prelim&req=granuleid%3AUSC-prelim-title50a-node133-node135-title3-section533&num=0&saved=%7CZ3JhbnVsZWlkOlVTQy1wcmVsaW0tdGl0bGU1MGEtbm9kZTEzMy1ub2RlMTM1LXNlY3Rpb241MDE%3D%7C%7C%7C0%7Cfalse%7Cprelim §533(c)] which provides any foreclosure made during the period of Military Service or for one year thereafter is invalid unless agreed to by the mortgagor or specifically approved by the court.
Section 533 does not apply to the foreclosure of Condominium, Homeowners Association Liens, or other non-tax liens, however, [http://uscode.house.gov/view.xhtml?hl=false&edition=prelim&req=granuleid%3AUSC-prelim-title50a-node133-node135-title2&num=0&saved=%7CZ3JhbnVsZWlkOlVTQy1wcmVsaW0tdGl0bGU1MGEtbm9kZTEzMy1ub2RlMTM1LXNlY3Rpb241MDE%3D%7C%7C%7C0%7Cfalse%7Cprelim §521] (protecting against default judgments); [http://uscode.house.gov/view.xhtml?hl=false&edition=prelim&req=granuleid%3AUSC-prelim-title50a-node133-node135-title2-section522&num=0&saved=%7CZ3JhbnVsZWlkOlVTQy1wcmVsaW0tdGl0bGU1MGEtbm9kZTEzMy1ub2RlMTM1LXNlY3Rpb241MDE%3D%7C%7C%7C0%7Cfalse%7Cprelim §522] (providing for stay of proceedings) and [http://uscode.house.gov/view.xhtml?hl=false&edition=prelim&req=granuleid%3AUSC-prelim-title50a-node133-node135-title2-section524&num=0&saved=%7CZ3JhbnVsZWlkOlVTQy1wcmVsaW0tdGl0bGU1MGEtbm9kZTEzMy1ub2RlMTM1LXNlY3Rpb241MDE%3D%7C%7C%7C0%7Cfalse%7Cprelim §524] (stay or vacation of execution) may provide important protections in those contexts.
===2. Non-Judicial Foreclosure of Pre-Service Mortgage===
The same section 533(c) functionally makes a non-judicial foreclosure of a pre-service mortgage or deed of trust impractical as to an active duty servicemember or within one year after the conclusion of Military Service. There are two ways in which a non-judicial foreclosure may validly proceed. The first is to have an express court order authorizing the sale and a second approving the sale. (hardly a non-judicial process). The second is to have the servicemember agree to the foreclosure. The waiver of rights under the Act requires meeting very specific requirements ([http://uscode.house.gov/view.xhtml?hl=false&edition=prelim&req=granuleid%3AUSC-prelim-title50a-node133-node135-title1-section517&num=0&saved=%7CZ3JhbnVsZWlkOlVTQy1wcmVsaW0tdGl0bGU1MGEtbm9kZTEzMy1ub2RlMTM1LXNlY3Rpb241MDE%3D%7C%7C%7C0%7Cfalse%7Cprelim §517]) and reliance on any such waiver is to be made only upon review and approval of a WFG underwriter. The responsibility for assuring compliance with these requirements falls to the foreclosing lender and the trustee. While practices differ around the country, compliance with the Act is not always documented in the land records.
===3. Protections against Default Judgments===
Congress recognized that it can be exceedingly difficult for a servicemember to respond to or appear before a domestic court. Accordingly, [http://uscode.house.gov/view.xhtml?hl=false&edition=prelim&req=granuleid%3AUSC-prelim-title50a-node133-node135-title2&num=0&saved=%7CZ3JhbnVsZWlkOlVTQy1wcmVsaW0tdGl0bGU1MGEtbm9kZTEzMy1ub2RlMTM1LXNlY3Rpb241MDE%3D%7C%7C%7C0%7Cfalse%7Cprelim §521] of the Act provides protections for the servicemember against the entry of default judgments.
In any action in which a defendant does not make an appearance, “the court, before entering judgment for the plaintiff, shall require the plaintiff to file with the court an affidavit … stating whether or not the defendant is in Military Service and showing necessary facts to support the affidavit.” Contrary to common belief, personal service on a person does not remove one from the requirements of the Act.
As the Act is phrased, this affidavit would seem to be a condition precedent to the entry of a judgment, such that a judgment entered in violation of this provision would be void. However, the case law holds that it is merely voidable at the instance of the servicemember. See e.g. Davidson v. General Finance Corp., 295 F. Supp. 878, (N.D.Ga.1968); Rentfrow v. Wilson, 213 A.2d 295 (D.C.App.1965); Krumme v. Krumme, 636 P.2d 814, 6 Kan.App.2d 939 (Kan.App. 1981).
Where it appears from the affidavit that the defendant is in Military Service, the court may not enter a judgment until after the court appoints an attorney to represent the defendant. If an attorney appointed under this section to represent a servicemember cannot locate the servicemember, actions by the attorney in the case do not waive any defense of the servicemember or otherwise bind the servicemember. [http://uscode.house.gov/view.xhtml?hl=false&edition=prelim&req=granuleid%3AUSC-prelim-title50a-node133-node135-title2&num=0&saved=%7CZ3JhbnVsZWlkOlVTQy1wcmVsaW0tdGl0bGU1MGEtbm9kZTEzMy1ub2RlMTM1LXNlY3Rpb241MDE%3D%7C%7C%7C0%7Cfalse%7Cprelim §521(b)(2)].
Providing a false affidavit is a criminal violation under [http://uscode.house.gov/view.xhtml?hl=false&edition=prelim&req=granuleid%3AUSC-prelim-title50a-node133-node135-title2&num=0&saved=%7CZ3JhbnVsZWlkOlVTQy1wcmVsaW0tdGl0bGU1MGEtbm9kZTEzMy1ub2RlMTM1LXNlY3Rpb241MDE%3D%7C%7C%7C0%7Cfalse%7Cprelim §521(c)] of the Act, and subjects the parties to state law penalties for fraud on the court and perjury. Moving for a default judgment without providing the required affidavit may also constitute an ethical violation for foreclosing counsel.
From a title insurance standpoint the danger is that the court is statutorily obligated to reopen the judgment and allow the servicemember to defend the action (potentially unwinding the insured sale) if it appears that the servicemember was materially affected by reason of Military Service in defending the action and has a meritorious or legal defense to the action or some part of it. The motion to reopen the judgment may be filed up to 60 days after the end of Military Service. [http://uscode.house.gov/view.xhtml?hl=false&edition=prelim&req=granuleid%3AUSC-prelim-title50a-node133-node135-title2&num=0&saved=%7CZ3JhbnVsZWlkOlVTQy1wcmVsaW0tdGl0bGU1MGEtbm9kZTEzMy1ub2RlMTM1LXNlY3Rpb241MDE%3D%7C%7C%7C0%7Cfalse%7Cprelim §521(g)(2)]. Note this is in addition to the basic voidability of the foreclosure under [http://uscode.house.gov/view.xhtml?hl=false&edition=prelim&req=granuleid%3AUSC-prelim-title50a-node133-node135-title3-section533&num=0&saved=%7CZ3JhbnVsZWlkOlVTQy1wcmVsaW0tdGl0bGU1MGEtbm9kZTEzMy1ub2RlMTM1LXNlY3Rpb241MDE%3D%7C%7C%7C0%7Cfalse%7Cprelim §533(c)].
===4. Tax Foreclosure/Tax Sale===
Real property occupied for dwelling, professional, business, or agricultural purposes by a servicemember or the servicemember's dependents or employees may not be sold to enforce the collection of a tax or assessment (other than income taxes) except by court order and with the court’s determination that Military Service does not materially affect the servicemember's ability to pay the unpaid tax or assessment.
The court may stay the collection action or sale during the period of Military Service and for a period not more than 180 days after the end of Military Service. When the property has been sold or forfeited in compliance with these requirements, the servicemember has the right to redeem (or commence an action to redeem) anytime during or within 180 days after termination of or release from Military Service. §561
Please note that WFG generally does not insure titles based on non-judicial tax sales for reasons unrelated to SCRA. However, if WFG does agree to insure a tax title, an SCRA exception must be taken in any policy unless the matter has been cleared as set forth in National Bulletin 2014-6.
===5. Interest Rates Capped, Payments Adjusted.===
Interest rates on pre-service debts are capped at 6% per annum, with any excess interest forgiven and periodic installments payments recomputed to reflect the lower rate. [http://uscode.house.gov/view.xhtml?hl=false&edition=prelim&req=granuleid%3AUSC-prelim-title50a-node133-node135-title2-section527&num=0&saved=%7CZ3JhbnVsZWlkOlVTQy1wcmVsaW0tdGl0bGU1MGEtbm9kZTEzMy1ub2RlMTM1LXNlY3Rpb241MDE%3D%7C%7C%7C0%7Cfalse%7Cprelim §527] This limitation on interest rates applies for the entire period of service as to all debts. As to mortgage debts, the interest rate cap continues for an additional one year after the end of Military Service. This limitation is also available to the dependents of a servicemember, if the dependent's ability to comply with the obligation is materially affected by reason of Military Service. [http://uscode.house.gov/view.xhtml?hl=false&edition=prelim&req=granuleid%3AUSC-prelim-title50a-node133-node135-title3-section538&num=0&saved=%7CZ3JhbnVsZWlkOlVTQy1wcmVsaW0tdGl0bGU1MGEtbm9kZTEzMy1ub2RlMTM1LXNlY3Rpb241MDE%3D%7C%7C%7C0%7Cfalse%7Cprelim §538].
While this protection does not directly affect Real Property title, or affect the foreclosure process, it may retroactively affect the amount of the debt, or the existence of a default.
Underwriting requirements for the SCRA are set forth in [http://wfgunderwriting.com/download/national/bulletins/Bulletins%20-%202014/WFG%20National%20Bulletin%20National%202014-06-%20SCRA%20following%20Foreclosure%20of%20Mortgage%20Deed%20of%20Trust.pdf National Bulletin 2014-6.]

Mutual Indemnification Agreements

2014-12-26T23:20:33Z

Abfields: /* States with Treaties */

===What is a "Treaty"===

A handful of states have Mutual Indemnification Agreement (sometimes referred to as a “Treaty”), to which WFG National Title Insurance Co. is a party. These are a standing offer of indemnification given by each insurer who is party to the Treaty to every other party to the agreement. Each offers to protect the other party from loss or damage resulting from certain, very specific, usually narrow, types of title defects which may have been missed or not cured at the time the prior insurer insured a transaction. Coverage under a Treaty is never available if the prior insurer took a proper exception for the matter in their policy.

===What Can a Treaty Resolve===

Reliance on a Treaty is sometimes a solution to allow a current transaction to close without curing an underlying title defect. It does not “Fix” or “Cure” the underlying problem, so, depending on the issue, this “solution” may not be beneficial or acceptable to your customer, nor does reliance on a treaty necessarily protect a WFG agent from possible claims by their customer.

Because this is an extension of the liability of the prior insurer, the categories covered are generally narrow, including things like mortgages not satisfied of record, or not satisfied by the record holder of the mortgage (HELOCS are often excluded from the Treaty); inability to confirm authority of corporate officers and those operating under powers of attorney from record sources; whether all formalities were followed and due process given in foreclosures or other title litigation; lack of witnesses and acknowledgement defects (in states where these are cured by statute with the passage of time) and other title defects.

===What to Check when Relying on a Treaty===

In issuing a WFG policy, WFG agents (and in the West, our direct operations) are authorized to rely on any applicable Treaties without the need for specific approval by the Underwriting Department, upon confirming:

*Both WFG and the insurer that issued the prior policy are parties to the Treaty. (not all underwriters are parties to every treaty)
*The property to be insured is within the state covered by the Treaty.
*You have possession of (and keep in your files) a copy of the title policy insuring the current owner in some prior transaction, confirm that policy was issued after the defect in question was placed of record, and that the prior policy took no exception for that defect.
*The agent has confirmed that the defect in question is covered by the Treaty, does not exceed any dollar limits and that there is strict compliance with all of the Treaty’s requirements, conditions, and limitations.
*So that there is no question later about whether the defect was known and disclosed to the customer, and so WFG is on notice of potential recoveries under a Treaty, language similar to the following should be included in any WFG commitment and policy issued in reliance on the Treaty:

<blockquote>Note:
The title search revealed [describe the defect including any recording information]. No exception to coverage is being taken for this matter based on the indemnities provided in [________________Mutual Indemnification Agreement] and Title policy #XXXXX issued by [Company]. </blockquote>

*A copy of the prior company’s policy should be attached to the WFG policy when the WFG policies are submitted.

===Caution===

Treaties are highly technical, with lots of provisos and conditions. If you read it wrong, or don’t fully understand it – you as the agent may be taking on significant liability. In relying on a Treaty, you are insuring over a known title defect, and if the treaty doesn’t apply, you may be doing so without any protection from the prior insurer (and perhaps even releasing the prior insurer from liability); so if you have questions about the applicability of a treaty to a specific transaction, please contact the WFG underwriter in the state for your property.

===States with Treaties===

WFG is currently party to Treaties in
*[http://wiki.wfgstaging.com/images/f/fc/Arkansas_Indemnity_AGreement_Combined.pdf Arkansas]
*[http://wiki.wfgstaging.com/images/e/ef/FL_3rd_Rev-MIA_%28dted_11-2011%29_DND.pdf Florida]
*[http://wiki.wfgstaging.com/images/2/2d/GA_MIA_Combined.pdf Georgia]
*[http://wiki.wfgstaging.com/images/c/ca/IN_Mutual_Indemnification_Agreement.pdf Indiana]
*[http://wiki.wfgstaging.com/images/1/12/IL_Intercompany_indemnity_fully_executed.pdf Illinois]
*[http://wiki.wfgstaging.com/images/6/65/Michigan_Mutual_Indemnification_Agreement_07242014.pdf Michigan]
*[http://wiki.wfgstaging.com/images/a/a3/MS_MIA_Combined.pdf Mississippi]
*[http://wiki.wfgstaging.com/images/b/b8/NJ_Indemnification_Agreement_Combined.pdf New Jersey]
*[http://wiki.wfgstaging.com/images/5/57/NY_Second_Amended_and_Restated_MIA_Combined.pdf New York] and
*[http://wiki.wfgstaging.com/images/1/14/SC_Mutual_Indemnity_Agreement.pdf South Carolina]

WFG has elected not to join the Mutual Indemnification Agreement in North Carolina.

Mutual Indemnification Agreements

2014-12-26T23:19:49Z

Abfields: /* States with Treaties */

File:NY Second Amended and Restated MIA Combined.pdf

2014-12-26T23:19:30Z

Abfields:

File:NJ Indemnification Agreement Combined.pdf

2014-12-26T23:18:39Z

Abfields:

Mutual Indemnification Agreements

2014-12-26T23:15:23Z

Abfields: /* States with Treaties */

===What is a "Treaty"===

A handful of states have Mutual Indemnification Agreement (sometimes referred to as a “Treaty”), to which WFG National Title Insurance Co. is a party. These are a standing offer of indemnification given by each insurer who is party to the Treaty to every other party to the agreement. Each offers to protect the other party from loss or damage resulting from certain, very specific, usually narrow, types of title defects which may have been missed or not cured at the time the prior insurer insured a transaction. Coverage under a Treaty is never available if the prior insurer took a proper exception for the matter in their policy.

===What Can a Treaty Resolve===

Reliance on a Treaty is sometimes a solution to allow a current transaction to close without curing an underlying title defect. It does not “Fix” or “Cure” the underlying problem, so, depending on the issue, this “solution” may not be beneficial or acceptable to your customer, nor does reliance on a treaty necessarily protect a WFG agent from possible claims by their customer.

Because this is an extension of the liability of the prior insurer, the categories covered are generally narrow, including things like mortgages not satisfied of record, or not satisfied by the record holder of the mortgage (HELOCS are often excluded from the Treaty); inability to confirm authority of corporate officers and those operating under powers of attorney from record sources; whether all formalities were followed and due process given in foreclosures or other title litigation; lack of witnesses and acknowledgement defects (in states where these are cured by statute with the passage of time) and other title defects.

===What to Check when Relying on a Treaty===

In issuing a WFG policy, WFG agents (and in the West, our direct operations) are authorized to rely on any applicable Treaties without the need for specific approval by the Underwriting Department, upon confirming:

*Both WFG and the insurer that issued the prior policy are parties to the Treaty. (not all underwriters are parties to every treaty)
*The property to be insured is within the state covered by the Treaty.
*You have possession of (and keep in your files) a copy of the title policy insuring the current owner in some prior transaction, confirm that policy was issued after the defect in question was placed of record, and that the prior policy took no exception for that defect.
*The agent has confirmed that the defect in question is covered by the Treaty, does not exceed any dollar limits and that there is strict compliance with all of the Treaty’s requirements, conditions, and limitations.
*So that there is no question later about whether the defect was known and disclosed to the customer, and so WFG is on notice of potential recoveries under a Treaty, language similar to the following should be included in any WFG commitment and policy issued in reliance on the Treaty:

<blockquote>Note:
The title search revealed [describe the defect including any recording information]. No exception to coverage is being taken for this matter based on the indemnities provided in [________________Mutual Indemnification Agreement] and Title policy #XXXXX issued by [Company]. </blockquote>

*A copy of the prior company’s policy should be attached to the WFG policy when the WFG policies are submitted.

===Caution===

Treaties are highly technical, with lots of provisos and conditions. If you read it wrong, or don’t fully understand it – you as the agent may be taking on significant liability. In relying on a Treaty, you are insuring over a known title defect, and if the treaty doesn’t apply, you may be doing so without any protection from the prior insurer (and perhaps even releasing the prior insurer from liability); so if you have questions about the applicability of a treaty to a specific transaction, please contact the WFG underwriter in the state for your property.

===States with Treaties===

WFG is currently party to Treaties in
*[http://wiki.wfgstaging.com/images/f/fc/Arkansas_Indemnity_AGreement_Combined.pdf Arkansas]
*[http://wiki.wfgstaging.com/images/e/ef/FL_3rd_Rev-MIA_%28dted_11-2011%29_DND.pdf Florida]
*[http://wiki.wfgstaging.com/images/2/2d/GA_MIA_Combined.pdf Georgia]
*[http://wiki.wfgstaging.com/images/c/ca/IN_Mutual_Indemnification_Agreement.pdf Indiana]
*[http://wiki.wfgstaging.com/images/1/12/IL_Intercompany_indemnity_fully_executed.pdf Illinois]
*[http://wiki.wfgstaging.com/images/6/65/Michigan_Mutual_Indemnification_Agreement_07242014.pdf Michigan]
*[http://wiki.wfgstaging.com/images/a/a3/MS_MIA_Combined.pdf Mississippi]
*New Jersey
*New York and
*[http://wiki.wfgstaging.com/images/1/14/SC_Mutual_Indemnity_Agreement.pdf South Carolina]

File:GA MIA Combined.pdf

2014-12-26T23:14:59Z

Abfields:

File:Arkansas Indemnity AGreement Combined.pdf

2014-12-26T23:14:33Z

Abfields:

File:MS MIA Combined.pdf

2014-12-26T23:13:55Z

Abfields:

Mutual Indemnification Agreements

2014-12-26T23:09:14Z

Abfields: /* States with Treaties */

===What is a "Treaty"===

A handful of states have Mutual Indemnification Agreement (sometimes referred to as a “Treaty”), to which WFG National Title Insurance Co. is a party. These are a standing offer of indemnification given by each insurer who is party to the Treaty to every other party to the agreement. Each offers to protect the other party from loss or damage resulting from certain, very specific, usually narrow, types of title defects which may have been missed or not cured at the time the prior insurer insured a transaction. Coverage under a Treaty is never available if the prior insurer took a proper exception for the matter in their policy.

===What Can a Treaty Resolve===

Reliance on a Treaty is sometimes a solution to allow a current transaction to close without curing an underlying title defect. It does not “Fix” or “Cure” the underlying problem, so, depending on the issue, this “solution” may not be beneficial or acceptable to your customer, nor does reliance on a treaty necessarily protect a WFG agent from possible claims by their customer.

Because this is an extension of the liability of the prior insurer, the categories covered are generally narrow, including things like mortgages not satisfied of record, or not satisfied by the record holder of the mortgage (HELOCS are often excluded from the Treaty); inability to confirm authority of corporate officers and those operating under powers of attorney from record sources; whether all formalities were followed and due process given in foreclosures or other title litigation; lack of witnesses and acknowledgement defects (in states where these are cured by statute with the passage of time) and other title defects.

===What to Check when Relying on a Treaty===

In issuing a WFG policy, WFG agents (and in the West, our direct operations) are authorized to rely on any applicable Treaties without the need for specific approval by the Underwriting Department, upon confirming:

*Both WFG and the insurer that issued the prior policy are parties to the Treaty. (not all underwriters are parties to every treaty)
*The property to be insured is within the state covered by the Treaty.
*You have possession of (and keep in your files) a copy of the title policy insuring the current owner in some prior transaction, confirm that policy was issued after the defect in question was placed of record, and that the prior policy took no exception for that defect.
*The agent has confirmed that the defect in question is covered by the Treaty, does not exceed any dollar limits and that there is strict compliance with all of the Treaty’s requirements, conditions, and limitations.
*So that there is no question later about whether the defect was known and disclosed to the customer, and so WFG is on notice of potential recoveries under a Treaty, language similar to the following should be included in any WFG commitment and policy issued in reliance on the Treaty:

<blockquote>Note:
The title search revealed [describe the defect including any recording information]. No exception to coverage is being taken for this matter based on the indemnities provided in [________________Mutual Indemnification Agreement] and Title policy #XXXXX issued by [Company]. </blockquote>

*A copy of the prior company’s policy should be attached to the WFG policy when the WFG policies are submitted.

===Caution===

Treaties are highly technical, with lots of provisos and conditions. If you read it wrong, or don’t fully understand it – you as the agent may be taking on significant liability. In relying on a Treaty, you are insuring over a known title defect, and if the treaty doesn’t apply, you may be doing so without any protection from the prior insurer (and perhaps even releasing the prior insurer from liability); so if you have questions about the applicability of a treaty to a specific transaction, please contact the WFG underwriter in the state for your property.

===States with Treaties===

WFG is currently party to Treaties in
*Arkansas
*[http://wiki.wfgstaging.com/images/e/ef/FL_3rd_Rev-MIA_%28dted_11-2011%29_DND.pdf Florida]
*Georgia
*[http://wiki.wfgstaging.com/images/c/ca/IN_Mutual_Indemnification_Agreement.pdf Indiana]
*[http://wiki.wfgstaging.com/images/1/12/IL_Intercompany_indemnity_fully_executed.pdf Illinois]
*[http://wiki.wfgstaging.com/images/6/65/Michigan_Mutual_Indemnification_Agreement_07242014.pdf Michigan]
*Mississippi
*New Jersey
*New York and
*[http://wiki.wfgstaging.com/images/1/14/SC_Mutual_Indemnity_Agreement.pdf South Carolina]