CA Regulatory Summary

Licensed Entity:

WFG NATIONAL TITLE INSURANCE COMPANY

See Attached {http://wiki.wfgstaging.com/images/a/a3/California_HUD-1.pdf HUD Sample] for Additional Information

Banking Information

• Bank account <<INSERT ACCOUNT #/ROUTING #/BANK NAME>>
• Checks stale dated after ___ days of issuance
• Good Funds Law All funds must be cleared – no de minimus amount
• Disbursements Requirements <<INSERT IF WFG REQUIRES CD?>>
• Special Bank Requirements (IOLTA/IOTA/OTHER or account specific to that state’s funds)

Escrow/Settlement

• Who can prepare the HUD
• Who can sign the HUD (EO/LTP/Attorney) EO – but not a licensed designation
• Who orders hazard insurance Customary -
• When is transaction consummated for new HUDS
• Record before/after disburse -- Record then disburse
• Filed/restricted escrow rates -- Filed Escrow Rates
• Record retention requirements
• Is an attorney involved in the closing -- No
• Who can handle loan document signing -- Notary is acceptable
• Doc Prep Restrictions -- No; completion of standard documents is not UPL
• Use Escrow Instructions or not -- Yes
• Use Estimated HUD or Final -- Estimated
• Pass-thru charges -- Permitted
• Rates Inclusive or not -- Inclusive of search and exam
• Up Charging -- Must charge filed rates
• Junk Charges -- Must charge filed rates, Premium includes search and examination so no separate fee permitted .
• Special HUD Requirements
• Special Disclosures NHD(?)
• CPL -- Yes
• UPL Issues -- No
• Joinder of non-titled spouse -- Yes
• Survey Required
  • Purchase – No
  • Refinance – No
• Withholding -- CAL FIRPTA requires withholding of three and one/third percent of the sales price.

Audits

• Required Yes – annual; additional reports required filed quarterly with Commissioner; DOI can conduct an on-site audit

Recording Process

• E-recording County list of e-recording attached
• Record before disbursement Record first
• Special recording procedure

Recording/Document Requirements

• Marital Status Stated Yes
• Transfer Tax Yes
• Mortgage Tax No
• Address for grantor/grantee/property Property address on 1st page
• Witnesses Not required
• Names typed/printed Yes
• Prepared by/return to Preparer not required
• Notary Stamp/requirements California All-Purpose Acknowledgment required
• Parcel or tax index number Required on 1st page
• Recitation of Consideration
• Derivation Clause Required
• Corporate Signatures/Attestation
• Ink Color/Font Black or blue; 10 pt minimum
• Legal Description Include state, county and municipality in 1st paragraph
• Margins 2 ½” x 5” top right corner 1st page
• Other Special Recording: PCOR required with Deed; Recording coversheet required in most counties

Document Types

• Conveyance -- Grant Deed
• Security Instrument -- Deed of Trust
• Release -- Deed of Reconveyance

Tenancies

• Tenants in Common -- Yes
• Joint Tenants -- Yes
• Tenancy by Entireties -- No
• Community Property -- Yes
• Homestead -- Yes
• Joinder of Non-titled Spouse -- Required unless "sole and separate property"

Taxes

• Taxes Levied
• Taxes due 11/1; 2/1
• Delinquent 12/10; 4/10

Commitment/Policy Special Requirements

• Who can sign Commitment/Policy -- No restrictions
• Other

Payment Customs

Largely a matter of contract:

• Owners policy custom varies from county to county from seller paid to buyer paid to split 50/50;
• county transfer tax is generally paid by the seller; as to city transfer tax either the seller pays or split 50/50; seller generally pays for recording the deed and buyer for the deed of trust;
• survey is paid by party that needs/requests it;
• closing/settlement/escrow fees as to most counties, but not all, are paid by buyer or split 50/50.

Post Closing Requirements

• Recon follow up required