Shari'ah Loans - Revision history

Joetschida at 04:03, 22 August 2019

2019-08-22T04:03:37Z

Joetschida at 04:03, 22 August 2019

2019-08-22T04:03:01Z

Joetschida at 04:02, 22 August 2019

2019-08-22T04:02:33Z

Joetschida at 04:01, 22 August 2019

2019-08-22T04:01:22Z

Joetschida at 03:59, 22 August 2019

2019-08-22T03:59:50Z

Joetschida at 03:59, 22 August 2019

2019-08-22T03:59:14Z

Joetschida at 03:58, 22 August 2019

2019-08-22T03:58:33Z

Joetschida at 03:57, 22 August 2019

2019-08-22T03:57:04Z

Joetschida at 03:52, 22 August 2019

2019-08-22T03:52:04Z

Joetschida at 03:49, 22 August 2019

2019-08-22T03:49:51Z

@@ Line 11: / Line 11: @@
 The problem from a title insurance standpoint is that the LLC, as a co-owner of the property, does not sign the mortgage to be insured.  Since a co-owner does not sign the mortgage to be insured, the insured mortgage is only a lien on the Buyer’s initial ownership interest.  Therefore, to insure these transactions under this particular lending concept, the commitment and both the owner’s and lender’s policies must have the following exceptions: (1) the policy only insures the Buyer’s initial undivided ownership interest in the property; (2) the policy only insures a mortgage on the Buyer’s initial undivided ownership interest in the property; (3) Any loss or damage arising from the fact that the Co-owner did not sign the insured mortgage; (4) the terms and conditions of the following documents: the COA between the Buyer and the LLC; the OTP between the Buyer and the LLC; the Mortgage between the Buyer and the LLC; and the Assignment of Mortgage to Guidance Residential, LLC.
-===Exceptions.
+===Exceptions. With the following exceptions, WFG may insure these transactions:===
 .	All rights and interest of (Co-Owner LLC, to be created).

@@ Line 11: / Line 11: @@
 The problem from a title insurance standpoint is that the LLC, as a co-owner of the property, does not sign the mortgage to be insured.  Since a co-owner does not sign the mortgage to be insured, the insured mortgage is only a lien on the Buyer’s initial ownership interest.  Therefore, to insure these transactions under this particular lending concept, the commitment and both the owner’s and lender’s policies must have the following exceptions: (1) the policy only insures the Buyer’s initial undivided ownership interest in the property; (2) the policy only insures a mortgage on the Buyer’s initial undivided ownership interest in the property; (3) Any loss or damage arising from the fact that the Co-owner did not sign the insured mortgage; (4) the terms and conditions of the following documents: the COA between the Buyer and the LLC; the OTP between the Buyer and the LLC; the Mortgage between the Buyer and the LLC; and the Assignment of Mortgage to Guidance Residential, LLC.
-===Exceptions. With the following exceptions, WFG may insure these transactions:===
+===Exceptions.
 .	All rights and interest of (Co-Owner LLC, to be created).

← Older revision		Revision as of 04:02, 22 August 2019
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	Bank Offers Muslims Interest-Free Loans by Mandy Morgan		Bank Offers Muslims Interest-Free Loans by Mandy Morgan
	Loan documentation from Guidance Residential LLC		Loan documentation from Guidance Residential LLC
		+
		+	===Exceptions Approved by Guidance Residential:===

@@ Line 11: / Line 11: @@
 The problem from a title insurance standpoint is that the LLC, as a co-owner of the property, does not sign the mortgage to be insured.  Since a co-owner does not sign the mortgage to be insured, the insured mortgage is only a lien on the Buyer’s initial ownership interest.  Therefore, to insure these transactions under this particular lending concept, the commitment and both the owner’s and lender’s policies must have the following exceptions: (1) the policy only insures the Buyer’s initial undivided ownership interest in the property; (2) the policy only insures a mortgage on the Buyer’s initial undivided ownership interest in the property; (3) Any loss or damage arising from the fact that the Co-owner did not sign the insured mortgage; (4) the terms and conditions of the following documents: the COA between the Buyer and the LLC; the OTP between the Buyer and the LLC; the Mortgage between the Buyer and the LLC; and the Assignment of Mortgage to Guidance Residential, LLC.
-===With the forgoing exceptions, WFG may insure these transactions:===
+===Exceptions. With the following exceptions, WFG may insure these transactions:===
 .	All rights and interest of (Co-Owner LLC, to be created).

@@ Line 1: / Line 1: @@
 =Guidance Residential Islamic Loans=
-==The following information is an Article written by Joe Tschida while at Fidelity National Title.==
+===The following information is an Article written by Joe Tschida while at Fidelity National Title.===
 Under the Islamic faith, Muslims are prohibited from paying interest i.e. riba.  Accordingly, it is difficult for Muslims to purchase a house and be faithful to their religion unless they pay cash.  Therefore, the banking industry and the Muslim community have created various lending programs whereby a Muslim may obtain a loan to finance the purchase of a house without paying interest.  This Section discusses a lease-to-purchase concept of Islamic lending established by Guidance Residential, LLC, a Virginia company.
@@ Line 11: / Line 11: @@
 The problem from a title insurance standpoint is that the LLC, as a co-owner of the property, does not sign the mortgage to be insured.  Since a co-owner does not sign the mortgage to be insured, the insured mortgage is only a lien on the Buyer’s initial ownership interest.  Therefore, to insure these transactions under this particular lending concept, the commitment and both the owner’s and lender’s policies must have the following exceptions: (1) the policy only insures the Buyer’s initial undivided ownership interest in the property; (2) the policy only insures a mortgage on the Buyer’s initial undivided ownership interest in the property; (3) Any loss or damage arising from the fact that the Co-owner did not sign the insured mortgage; (4) the terms and conditions of the following documents: the COA between the Buyer and the LLC; the OTP between the Buyer and the LLC; the Mortgage between the Buyer and the LLC; and the Assignment of Mortgage to Guidance Residential, LLC.
-==With the forgoing exceptions, WFG may insure these transactions:==
+===With the forgoing exceptions, WFG may insure these transactions:===
 .	All rights and interest of (Co-Owner LLC, to be created).

← Older revision		Revision as of 03:58, 22 August 2019
Line 1:		Line 1:
		+	=Guidance Residential Islamic Loans=
		+
	The following information is an Article written by Joe Tschida while at Fidelity National Title.		The following information is an Article written by Joe Tschida while at Fidelity National Title.

← Older revision		Revision as of 03:57, 22 August 2019
Line 19:		Line 19:
	7. Terms and conditions of the Obligation to Pay between _________________ and (Co-Owner LLC, to be created).		7. Terms and conditions of the Obligation to Pay between _________________ and (Co-Owner LLC, to be created).
	8. Terms and conditions of Assignment of Mortgage, Property and Contract Rights and Amendment of Security Instrument.		8. Terms and conditions of Assignment of Mortgage, Property and Contract Rights and Amendment of Security Instrument.
		+
		+
		+	Articles and Documents consulted for this article:
		+	Undated article by American Finance House L.A.R.I.B.A.
		+	Faith & Economics What Happens When Religious Law Prevents People From Living The American Dream? by Steve Veldheer
		+	Bank Offers Muslims Interest-Free Loans by Mandy Morgan
		+	Loan documentation from Guidance Residential LLC

← Older revision		Revision as of 03:52, 22 August 2019
Line 1:		Line 1:
−	~~This~~ information is an Article ~~the~~ Joe Tschida ~~wrote~~ while at Fidelity National Title.	+	The following information is an Article written by Joe Tschida while at Fidelity National Title.

	Under the Islamic faith, Muslims are prohibited from paying interest i.e. riba. Accordingly, it is difficult for Muslims to purchase a house and be faithful to their religion unless they pay cash. Therefore, the banking industry and the Muslim community have created various lending programs whereby a Muslim may obtain a loan to finance the purchase of a house without paying interest. This Section discusses a lease-to-purchase concept of Islamic lending established by Guidance Residential, LLC, a Virginia company.		Under the Islamic faith, Muslims are prohibited from paying interest i.e. riba. Accordingly, it is difficult for Muslims to purchase a house and be faithful to their religion unless they pay cash. Therefore, the banking industry and the Muslim community have created various lending programs whereby a Muslim may obtain a loan to finance the purchase of a house without paying interest. This Section discusses a lease-to-purchase concept of Islamic lending established by Guidance Residential, LLC, a Virginia company.

@@ Line 7: / Line 7: @@
 The Buyer and the LLC sign a Co-Ownership Agreement (“COA”) which, while it gives the Buyer the right to occupy the property, provides the LLC with most of the other rights of ownership as a co-owner.  The COA gives the Buyer the right to purchase the LLC’s interest in the property for a “Buyout Amount” established in the COA.  The COA also establishes the percentage of ownership between the Buyer and the LLC.  The COA  prohibits the Buyer from selling or mortgaging the property without the LLC’s consent.    The Buyer also signs an Obligation to Pay (“OTP”) which is basically a promissory note in favor of the LLC.  Naturally, the Buyer executes a mortgage in favor of  the LLC, which secures the OTP and the COA.  The LLC then assigns the COA, the OTP, and the mortgage to Guidance Residential, LLC, which is the real lender in these transactions.
-The problem from a title insurance standpoint is that the LLC, as a co-owner of the property, does not sign the mortgage to be insured.  Since a co-owner does not sign the mortgage to be insured, the insured mortgage is only a lien on the Buyer’s initial ownership interest.  Therefore, to insure these transactions under this particular lending concept, Fidelity National’s commitment and both the owner’s and lender’s policies must have the following exceptions: (1) the policy only insures the Buyer’s initial undivided ownership interest in the property; (2) the policy only insures a mortgage on the Buyer’s initial undivided ownership interest in the property; (3) Any loss or damage arising from the fact that the Co-owner did not sign the insured mortgage; (4) the terms and conditions of the following documents: the COA between the Buyer and the LLC; the OTP between the Buyer and the LLC; the Mortgage between the Buyer and the LLC; and the Assignment of Mortgage to Guidance Residential, LLC.
+The problem from a title insurance standpoint is that the LLC, as a co-owner of the property, does not sign the mortgage to be insured.  Since a co-owner does not sign the mortgage to be insured, the insured mortgage is only a lien on the Buyer’s initial ownership interest.  Therefore, to insure these transactions under this particular lending concept, the commitment and both the owner’s and lender’s policies must have the following exceptions: (1) the policy only insures the Buyer’s initial undivided ownership interest in the property; (2) the policy only insures a mortgage on the Buyer’s initial undivided ownership interest in the property; (3) Any loss or damage arising from the fact that the Co-owner did not sign the insured mortgage; (4) the terms and conditions of the following documents: the COA between the Buyer and the LLC; the OTP between the Buyer and the LLC; the Mortgage between the Buyer and the LLC; and the Assignment of Mortgage to Guidance Residential, LLC.
 With the forgoing exceptions, WFG may insure these transactions: