TX Operations Summary

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

• Individual -- Yes
• Tenants in Common -- Yes
• Joint Tenancy
• Joint Tenants with Right of Survivorship-- Only by express language, not automatically implied from Joint tenancy
• Tenancy by Entireties – No In re Garrett, 429 B.R. 220, 240 (Bankr. S.D. Tex. 2010)
• Community Property -- Yes
• Homestead -- Yes
• Life Estate -- Yes
• Enhanced Life Estate (Lady Bird) -- Yes
• Joinder of Non-titled Spouse – Yes if homestead

Community Property

• Texas is a community property state.
• All property acquired during marriage is presumed to be community, unless acquired by gift, devise or descent.
• A divorce decree should divest one spouse of the property and award the property to the other spouse.
• If community property is not disposed of in a divorce decree the parties thereafter hold the property as tenants in common.
• Community property cannot be conveyed or mortgaged without the consent of both spouses.
• A deed by one spouse of community property to a third party is void, but creates a cloud on title.
• Texas follows the “inception of title” rule. Whether something is separate or community is determined by the facts existing at the time the property was acquired.

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