MO Operations Summary

Licensed Entity:

(02/11/2015)

WFG LENDER SERVICES, LLC

WFG National Title Insurance Company (Must have a licensed title agent on staff to handle transactions)

• See Attached HUD Sample for Additional Information

Banking Information

(02/11/2015)

• 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

(02/11/2015)

• 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

(02/11/2015)

• Required -- Annual audit by underwriter

Recording Process

(02/11/2015)

• E-recording -- County list of e-recording attached
• Record before disbursement -- Record first
• Special recording procedure -- <<WALK THRU??>>

Recording/Document Requirements

(02/11/2015)

• 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.
• Certificate of Value Form required for recording in some counties

(11/20/2017)

• 381.026 requires that the "settlement agent" present documents for recording within five (5) business days after "completion of all conditions precedent" to a closing. Settlement agent is defined in 381.410 in such a way that it does not appear to require the settlement agent to be a licensed producer. Therefore it appears that the person submitting documents for recording does not need to be a licensed title insurance producer.

Document Types

(02/11/2015)

• 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

(02/11/2015)

• 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

(02/11/2015)

• 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

(02/11/2015)

• Who can sign Commitment/Policy -- Licensed Producer
• Other --

Payment Customs

(02/11/2015)

• 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 --

Regulatory Requirements

Missouri requires various functions to be performed only by an individual holding a MO producer license. Questions have been raised about WFG practices in Missouri, those letters are below:

Missouri DOI Investigation Letter

WFG Response to MO DOI 2/18/13