LA Operations Summary

Licensed Entity:

• See 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 [[1]]
• 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: --

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.

Source: CC Art. 2440, CC Art. 1541, CC Art. 1544, CC Art. 1833, CC Art. 1836, R.S. 13:3720, R.S. 35:511

• 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
• Release -- Note recorded marked “discharged/paid”

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 --