AL Operations Summary

Licensed Entity:

(02/02/2015)

WFG NATIONAL TITLE INSURANCE COMPANY or WFG Lender Services, LLC

See Attached HUD Sample for Additional Information

Banking Information

(02/11/2015)

• Bank account/CD 4120780168/Wells Fargo Bank
• Bank account/LS 934084476/Chase Bank
• Good Funds Law
• Disbursements Requirements
• Special Bank Requirements (IOLTA or IOTA or account specific to that state’s funds) No

Escrow/Settlement

(2/11/2015)

• Who can prepare the HUD -- No restrictions
• Who can sign the HUD (EO/LTP/Attorney) -- ?????
• 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 -- No
• Is an attorney involved in the closing -- No
• Who can handle loan document signing -- Notary signing acceptable
• Doc Prep Required by Attorney per State Statute -- Doc Prep is UPL; simple affidavits OK
• Use Escrow Instructions or not -- No
• Use Estimated HUD or Final -- Final only
• Pass-thru charges -- No special restrictions
• Rates Inclusive or not -- Not inclusive. Customary to charge a single search and exam fee
• Up Charging -- No special restrictions
• Junk Charges -- No special restrictions
• Special HUD Requirements -- No
• Special Disclosures -- No
• CPL -- Yes
• Joinder of non-titled spouse -- Yes on refinance; no on purchase documents
• Survey state
  • Purchase – not required on platted residential
  • Refinance – not required

Audits

(02/11/2015)

• Required No

Recording Process

(02/11/2015)

• E-recording County list of e-recording attached
• Record before disbursement Disburse then record
• Special recording procedure

Recording/Document Requirements

(02/11/2015)

• Marital Status Stated -- Required for Grantors/Mortgagors
• Transfer Tax -- Yes
• Mortgage Tax -- Yes Mortgage tax in Alabama is $1.50 per $1,000.00
• Address for grantor/grantee/property -- Grantee (for tax statements)
• Witnesses -- Conveyances and mortgages must be in writing and attested to by one witness. If a party cannot write their name but makes their mark in the alternative, then two witnesses are required. In either case, the notary may be one of the witnesses.
• Names typed/printed -- Yes
• Prepared by/return to -- Yes
• Notary Stamp/requirements -- Name typed/printed under signature; date of expiration of commission and seal or stamp
• Parcel or tax index number
• Recitation of Consideration
• Derivation Clause -- Required
• Corporate Signatures/Attestation
• Ink Color/Font
• Legal Description -- Must contain the plat or reference the plat book/page if description references a plat
• Margins
• Other Special Recording: -- Recordings are done in the office of the Judge of Probate; Tuscaloosa County requires derivation statement

Document Types

(02/11/2015)

• Conveyance Warranty Deed, Limited Warranty Deed, Special Warranty Deed aka Statutory Warranty Deed and Quit Claim Deed
• Security Instrument Mortgage or Deed of Trust
• Release Satisfaction or Release

Tenancies

(02/11/2015)

• Tenants in Common Yes
• Joint Tenants Yes
• Tenancy by Entireties No
• Community Property No
• Homestead -- Yes exempt from levy up to 160 acres or $5,000.
• Joinder of Non-titled Spouse Yes. A spouse not in title to the property must join in the conveyance/mortgage if the property is their homestead property. Ala.Code 1975 § 6-10-3. There are a number of older cases -- cited in AL UW section -- indicating that Purchase Money Mortgage does not require spousal signature on theory that at instant of purchase it was not homestead property. These should not be relied upon without underwriting approval based on the specific facts.

Taxes

(02/11/2015)

• Taxes Levied
• Taxes due 10/1
• Delinquent 1/1

Commitment/Policy Special Requirements

(02/12/2015)

• Who can sign Commitment/Policy -- Employee of Insurer(acting as direct operation) exempt from licensing requirements

• Effective 1/1/2013. Signatory must be a resident of the state and licensed by AL Department of Insurance; the issuing agent must also be licensed through the Alabama Department of Insurance and the business must have a physical place of business within the state. A title agent can be a sole proprietor who is a resident of the state. Agents who operate as an entity must be organized under Title 10A (or its predecessor, Title 10) of the Alabama Code.

Payment Customs

Left to negotiation and contract

Post Closing Requirements

• Recon follow up required

Initial draft thanks to Deb Everett, Summer 2014