TX Operations Summary

Licensed Entity

WFG LENDER SERVICES, LLC for (BEXAR, BRAZORIA, COLLIN, COMAL, DALLAS, DENTON, EL PASO, FORT BEND, GALVESTON, GUADALUPE, HARRIS, HAYS, JEFFERSON, JOHNSON, KAUFMAN, KENDALL, MATAGORDA, MEDINA, MONTGOMERY, NUECES, PARKER, POTTER, RANDALL, ROCKWALL, SMITH, TARRANT, TRAVIS, VICTORIA, WILLIAMSON, WISE)

WFG NATIONAL TITLE COMPANY OF TEXAS, LLC for (ATASCOSA, BEXAR, BRAZORIA, COLLIN, COMAL, DALLAS, DENTON, EL PASO, ELLIS, FORT BEND, GALVESTON, GUADALUPE, HARRIS, HAYS, JOHNSON, KAUFMAN, KENDALL, MEDINA, MONTGOMERY, NUECES, PARKER, ROCKWALL, SAN PATRICIO, TARRANT, WILLIAMSON, WISE)

WFG NATIONAL TITLE INSURANCE COMPANY for (BEXAR, BRAZORIA, COLLIN, DALLAS, DENTON, EL PASO, FORT BEND, GALVESTON, HARRIS, JEFFERSON, MONTGOMERY, ROCKWALL, TARRANT, WILLIAMSON)

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)
• Property taxes are billed on October 1 or “as soon thereafter” as possible. They are due and payable upon receipt of the bill
• Property taxes become delinquent on February 1st of the year following the tax year.
• Property taxes become a lien on January 1st of the year of taxes, but the amounts owed for that year are not known until the assessed values are certified later in the year (May 1st). The lien imposed on January 1st secures the payment of the taxes for that upcoming year and all taxes still due for previous years.
• Some counties, municipalities, and local and special assessments are billed separately; most are billed on a unified bill through the county tax collector. Community development districts may or may not be billed through the tax collector.
• Property owners may elect to pay taxes quarterly. Examiner should review tax collector information closely and be sure “paid” is for entire year and not quarterly installment.
• A disabled owner may elect to defer the collection of taxes on their homestead until their death. Title insurers must realize this does not constitute payment of delinquent taxes; they are still due but collecting has been deferred.
• There are certain exemptions (homestead, over 65, disabled an disabled veteran) which serve to reduce the taxable value of the property. All of these exemptions apply only to homestead property.

Commitment/Policy Special Requirements

• Who can sign Commitment/Policy -- Licensed Texas Escrow Officer, licensed Texas Title insurance agent or designated underwriter.
• Other --

TITLE INSURANCE

• The business of title insurance is regulated by the Texas Department of Insurance. All insurance must be written on the *Form s promulgated by TDI. No *Form may be changed unless authority to do so is found in the Procedural Rules.
• Premium rates are promulgated by TDI, as is the agent/underwriter split.
• Insured Closing Letters may be issued to a lender or a purchaser at no charge.
• All title insurance rules and *Form s are at http://www.tdi.texas.gov/title/titleman.html
• All Underwriting Bulletins for Texas are at http://wfgunderwriting.com/texas/bulletins/

ENDORSEMENTS

• Form T-12: Endorsement (USA)
• Form T-13: Loan Title Policy Binder on Interim Construction Loan
• Form T-14: First Loss Endorsement
• Form T-16: Loan Policy Aggregation Endorsement
• Form T-17: Planned Unit Development Endorsement
• Form T-18: Commitment for Reinsurance
• Form T-18.1: Facultative Reinsurance Agreement
• Form T-19: Restrictions, Encroachments, Minerals Endorsement
• Form T-19.1: Restrictions, Encroachments, Minerals Endorsement
• Form T-19.2: Minerals and Surface Damage Endorsement
• Form T-19.3: Minerals and Surface Damage Endorsement
• Form T-20: Owner Title Policy Commitment to the Texas Department of Transportation
• Form T-21.1: Tertiary Reinsurance Agreement Type I
• Form T-21.2: Tertiary Reinsurance Agreement Type II
• Form T-22: Owner Title Policy Commitment for Eminent Domain Proceedings
• Form T-23: Access Endorsement
• Form T-24: Non-Imputation Endorsement
• Form T-24.1: Non-Imputation Endorsement (Mezzanine Financing)
• Form T-25: Contiguity Endorsement
• Form T-25.1: Contiguity Endorsement
• Form T-26: Additional Insured Endorsement
• Form T-27: Assignment of Rents/Leases Endorsement
• Form T-28: Condominium Endorsement
• Form T-30: Tax Deletion
• Form T-31: Manufactured Housing Endorsement
• Form T-31.1: Supplemental Coverage Manufactured Housing Unit Endorsement
• Form T-33: Variable Rate Mortgage Endorsement
• Form T-33.1: Variable Rate Mortgage-Negative Amortization Endorsement
• Form T-34: Increased Value
• Form T-35: Future Advance/Revolving Credit Endorsement
• Form T-36: Environmental Protection Lien
• Form T-36.1: Commercial Environmental Protection Lien Endorsement (PDF) (Not available until a premium is promulgated.)
• Form T-38: Loan Policy of Title Insurance Endorsement *Form (Pursuant to P-9.b.(3))
• Form T-39: Balloon Mortgage
• Form T-42: Equity Loan Mortgage Endorsement
• Form T-42.1: Supplemental Coverage Equity Loan Mortgage Endorsement(PDF)
• Form T-43: Texas Reverse Mortgage Endorsement
• Form T-44: Texas Residential Limited Coverage Junior Mortgagee Policy Combined Schedule
• Form T-45: Texas Residential Limited Coverage Junior Mortgagee Down Date Endorsement
• Form T-46: Texas Residential Limited Coverage Junior Loan Policy Home Equity Line of
• Form T-48: Co-Insurance Endorsement *Form
• Form T-53: Texas Limited Coverage Residential Chain of Title Policy
• Form T-54: Severable Improvements Endorsement (Not available until a premium is promulgated.)
• Form T-98: Limited Pre-Foreclosure Policy
• Form T-99: Limited Pre-Foreclosure Policy Down Date Endorsement *Form

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